Plant-based meat market sees 17% CAGR through to 2027

UnivDatos Markets Insights has forecast that the plant-based meat market will grow at a CAGR of over 17% from 2021-2027. Global plant-based meat sales are expected to reach around US$85 B by 2030, compared to US$5 B in 2018. 

The research firm further expects that plant-based products will account for 10% of global meat consumption within the next five years while conventional meat becomes less popular. UnivDatos Markets Insights said that the supply of conventional meat products would fall by more than 50% by 2040.

COVID-19 created increased awareness about man's impact on the environment, the company said, and has driven government policies on climate change. Consumers stockpiled food during COVID lockdowns, selling 231% more fresh plant-based products in 2020 compared to the same period in 2019. IRI data analysed by The Good Food Institute also registered 454% growth in the sales of plant-based meat over this period.

Soy-based meat is expected to dominate the market during the forecast period due to its protein-rich content. By type, plant-based chicken leads the market followed by plant-based beef. In terms of format, plant-based burger patties dominated the market in 2020 because of their low fat and gluten content, and are expected to maintain their dominance throughout the forecast period.

Although North America dominated the market in 2020, the Asia-Pacific region is expected to witness the highest CAGR growth during the forecast period.

Major players mentioned in the report include:

- Alpha Foods
- Amy's Kitchen
- Beyond Meat
- Hooray Foods
- Impossible Foods
- Maple Leaf Foods
- Morningstar Farms
- Quorn Foods
- The Vegetarian Butcher
- Tofurky

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Successful organisations display collective ambition: Aon Hewitt

• All surveyed organisations said collective ambition was key to their growth trajectory. 
• Organisations with leaders who are united under a singular vision, purpose, and aspiration develop more effective succession pipelines.

A study* of Chief Human Resource Officers (CHROs) from more than 15 industries representing 1.1 million employees demonstrated that organisations who drive stellar growth have "collective ambition", according to the People Fuel Growth study by Aon Hewitt, the global talent, retirement, and health solutions business of Aon.

Collective ambition is fuelled by competitive, yet collaborative leadership and ensures achievement of common goals. The leadership team has a strong desire to be successful, but is also highly aware that that this only occurs when leaders are able to work jointly.

In order to achieve collective ambition, the Aon Hewitt People Fuel Growth study reinforces the belief that ambition in absence of a group is meaningless and the leadership team must have an understanding of growth and how to achieve it. The study found it essential that:

1. Leaders review the organisation's mission and growth plan regularly.

2. Hold meetings to discuss their growth plans at least once a year.

3. Have a regular cadence for their senior leadership meetings; most organisations surveyed meet on a monthly basis to ensure leaders work in unison to accomplish organisational goals.

4. Goals are tied to concrete measures. In high-growth organisations, these are usually crafted so that all employees understand how they contribute to and share in organisational success.

Na Boon Chong, Senior Client Partner, Aon Hewitt Singapore, said: "Collective ambition means that leaders are united under a singular vision, purpose, and aspiration. By uniting leadership around a common goal, supported by intentional alignment from a "people" standpoint and customer centricity that ensures relevance, it helps organisations to best leverage their talent and drive growth from the top down, be it at a firm or at a national level."

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*The People Fuel Growth study sought to understand the impact people have on growth through interviews with CHROs of high-growth Fortune 1000 companies, representing 1.1 million employees across more than 15 industries. Aon Hewitt also analysed its proprietary data to identify differences between high and average growth firms. 

PwC highlights growth opportunities in developing markets

Source: PwC. Cover for the report.

PwC’s Growth Markets Centre has recently launched its 2017 annual Winning in maturing markets report, which focuses on understanding growth opportunities in developing markets.

The report analyses growth opportunities across six key sectors – agriculture, health & education, manufacturing, retail, financial services and connectivity (transport & communication) – and highlights essential business capabilities that firms need to grow profitably in these markets.

According to PwC, growth markets should be considered mature and not volatile, and different markets follow distinctive growth paths towards stability and long-term prosperity. Despite recent stagnation in the pace of real GDP growth as a result of domestic and external factors – including domestic and foreign policy actions, falling global commodity prices, speculation around rising interest rates and unfortunate environmental disasters – growth markets will continue to register a rising share in global GDP growth in the next five years, reaching almost 65% by 2021¹.

To capitalise on existing growth opportunities, organisations need to better understand the shifts governing the market and operational landscape – in particular across these six key sectors, which are essential to achieving balanced economic and human development in the near future:

Agriculture

Sustaining growth in agriculture is of high importance to growth markets, for which the sector is a primary source of livelihood. A large majority of the global agricultural labour force (over 90%) still reside in developing countries². Growth opportunities in agriculture spread across production, enabling farmers to be more efficient and to deliver higher yield, and consumption – addressing the ever-changing food and drink preferences of consumers.

Health & Education

Pushed by the need to cover large infrastructure and resource gaps, health expenditure is expected to grow by 10.7% annually in growth markets versus 3.7% in developed economies by 2022. The opportunity size for maturing markets is also supposed to touch US$4 trillion in annual spend by 2022³ – creating new opportunities for life sciences companies, medical device manufacturers, pharmaceutical companies and delivery service providers.

Digital health is emerging as a growth sector worldwide, garnering US$13 billion in investments over 2014 and 2015⁴. Unsurprisingly, the adoption of technology-driven solutions is expected to increase, with growth markets looking at low cost and less resource-intensive options to bridge existing gaps.

Manufacturing

Growth markets are now responsible for almost 60% of all low and medium technology manufacturing worldwide. Even more noteworthy is the speed at which these markets have grown their share in high-tech manufacturing – accounting for almost 50% of manufacturing value-add globally. The introduction of new production technologies and changing cost dynamics are further expected to influence global manufacturing competitiveness in the coming years.

Retail & consumer goods

Domestic consumption is one of the most important factors in keeping a growth market’s economy moving upward direc. This is driven by the expansion of the middle class, who have a higher propensity to pay for quality and value, therefore boosting opportunities across the sector. This is especially so for discretionary and aspirational products such as clothing, entertainment, leisure and automobiles. Up until 2010, 46% of the world’s middle class lived in growth markets, but by 2020, this will have increased to almost 70% and to nearly 80% by 2030⁵.

Financial services

Expanding access to financial services amongst households will be key to improving the availability of domestic growth capital in growth markets. This can be achieved through technological investments, which are key to improving reach and accessibility to financial services; alternative payments such as non-cash transactions; and the launch of non-traditional sector participants such as e-commerce companies and mobile operators.

Transport & communications

Connectivity is fundamental to growth in any country, but in many growth markets the scale and quality of connectivity infrastructure, across both transport and communication is below what is needed to facilitate and sustain high growth. This presents many opportunities to venture into areas such as improving road connectivity, increasing third-party logistics services, and in furthering mobile and Internet penetration in both urban and rural communities in maturing markets.

The report also discusses capabilities required to navigate through the complex business environment and institutional voids associated with growth markets. Companies will need to develop flexible business models which are more suitable for the local market while developing new capabilities based on operational efficiency, innovation and go-to-market excellence.

David Wijeratne, PwC’s Growth Markets Centre Leader, said, “As we enter 2017, it’s clear that growth markets are on the verge of a new era of leading global growth in which they are projected to enjoy almost two times the absolute growth in GDP as compared to developed markets by 2021, and account for 65% of global growth within the next five years. This will create significant opportunities for private sector players looking to create and deliver value to the billions of people expected to join the middle class in these markets.”

Interested?

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1 International Monetary Fund, World Economic Outlook, October 2016.

2 Business Monitor International, 2016.
 
3 World Economic Forum, Health Systems Leapfrogging in Emerging Economies, January 2014.

4 StartUp Health Insights, Digital Health Funding Rankings, 2015, 2016

5 PwC and Switzerland Global Enterprise, Rising Middle Class – Global Outlook and Growth Potential, April 2015.

Growing Vietnam sees investments from around the region: UOB

According to the United Overseas Bank (UOB) Asian Enterprise Survey 2016*, Vietnam is likely to see increasing investments from its neighbours Malaysia, Thailand and Singapore in the next three to five years.

Enterprises from Malaysia (38%), Thailand (35%) and Singapore (29%) have ranked Vietnam as their top three expansion destinations. They are among the 28% of all respondents who chose the country as their favoured expansion destination in the next three to five years. These Asian enterprises are drawn to Vietnam’s stable political and economic climate (41%), large and growing customer demand (40%) and its favourable tax and regulatory environment (35%).

With economic growth of 6.7% in 2015 and a young workforce where 60% of its 90 million-strong population is under 35 years old, Vietnam is proving to be an attractive investment destination. In the first half of 2016, the country received a record US$11.3 billion in foreign direct investment (FDI), up 105% from the same period last year**.

Eric Tham, Head of Group Commercial Banking at UOB, said that the findings from the UOB Asian Enterprise Survey 2016 reaffirmed the entrepreneurial spirit of Asian enterprises as they continue to seek new markets for growth.

“According to the survey, the top industry sources of foreign investment into Vietnam are from the manufacturing, healthcare and pharmaceuticals, construction and real estate, as well as energy and natural resources sectors. These sectors are key as the country aims to build a strong foundation to support its long-term economic growth.

“Investments into Vietnam will also create more jobs and boost income. This in turn will open the doors for new economic opportunities as Vietnam’s growing urban population and expanding middle class start spending more on consumer goods, and on healthcare services to ensure their personal health and wellbeing. In addition, Vietnamese enterprises will benefit from collaborating with foreign companies in the areas of knowledge sharing and skills transfer,” said Tham.

One company that has ventured into Vietnam to expand their business is CKL Holdings, a food and beverage conglomerate with manufacturing facilities in Ho Chi Minh City for the production of beverages. Chia Chor Meng, Group Chairman of CKL Holdings, said, “We first set up a production plant in 1996 in light of Vietnam’s huge consumer market, lower operating cost, availability of work force and abundant natural raw materials. By having research and development facilities there, we are also able to manufacture and sell products that suit the tastes of the local population. We also tapped Vietnam’s conducive export environment to distribute our products to 60 countries worldwide. Last year, we established our second factory, which is five times the size of the first, to meet increasing customer demand.”

Vietnam’s government is increasing its efforts to attract foreign investment. One example is the memorandum of understanding (MoU) signed between the Vietnam Foreign Investment Agency (FIA) and UOB in 2015 aimed at increasing investment and trade between Vietnam and Southeast Asia. The MoU is FIA’s first such collaboration with a bank.

Tham added that while Vietnam’s economy may be affected by global market uncertainties stemming from a precipitous drop in oil prices and tepid consumer demand in the West, Vietnam’s rapid development presents many opportunities for Asian enterprises.

“The global economy may be slowing down but the Vietnamese economy is still seeing growth. Asian companies that are able to seize the arising opportunities, and produce the products and services needed to meet the rising demands of Vietnam’s middle class, will have a unique opportunity to build strong and sustainable regional businesses,” said Tham.

Interested?

Read the UOB Asian Enterprise Reports 2016

*The survey was conducted by UOB in May and June 2016 among 2,500 Asian enterprises across mainland China, Hong Kong, Indonesia, Malaysia, Singapore and Thailand. The objective was to explore how Asian enterprises are capitalising on business opportunities amid global and regional economic trends and trade flows. 

**Source: Doing Business in Vietnam, International Enterprise Singapore

Quandoo reports significant takeup in Singapore, Australia

Quandoo reports 720 restaurant partners, 1.5 million seated diners in the last 12 months and over 1,400 verified reviews from Singapore diners each month. The online restaurant reservation service, launched in Singapore in 2014, sees 53% of its Singapore users making repeat reservations. The company assessed publicly-available information of the industry and the respective market competitors by the number of connected partner restaurants, and has found it leads in seven markets around the world, including in Singapore, Hong Kong and Turkey.

The company, which also serves Australia, Lebanon, and the UAE in Asia Pacific and the Middle East, it has seen similar trends globally. The company grew its partner restaurant base by 117% from 6,200 restaurants to 13,500 restaurants and has seated more than 24 million diners globally. Quandoo’s penetration of Australia has been particularly fast. Within eight months 1,250 restaurants have joined Quandoo.

Philipp Magin, founder and CEO of Quandoo, said, “Our ambition remains the same: to be the driving force in the digitalising of the restaurant reservation space. The changes that we have undergone in the last year have allowed us to transform our company towards maintaining this objective in a more and more competitive market environment. While the cultural and strategic shift has not been easy to achieve, we are now better equipped than ever before in becoming the leading provider for restaurant reservations globally.”

Dr Charlotte Bruce, Quandoo Vice President Asia and Pacific, said, “Singapore is a melting pot of different cultures with great diversity of cuisines. In Asia, it offers one of the most sophisticated and world-­class dining scenes. Competition is fierce and Quandoo identified an opportunity to help businesses use this incredible platform to grow their business and stay ahead of the curve. We have been relentless in our efforts since day one and are proud of our position as market leaders – having gone against competition that have been in the market for up to five years.”

The company further established several alliances in the last year, partnering for example with Foursquare in Turkey. 

Singapore's F&B industry dives deep into value creation

Lee's presentation shared industry forecasts on the Asian food industry opportunity.

Singapore’s food and beverage (F&B) industry is shifting its focus away from productivity and onto value creation. Spearheaded by the Singapore Manufacturing Federation (SMF) and International Enterprise Singapore (IE Singapore), the industry is transforming as manufacturers look towards innovation, growth, and internationalisation.

Lee says Singapore F&B manufacturers have much to offer
the world.

From April 12 to 15, FoodAsia2016 will showcase a range of home-grown companies with first-of-a-kind creations as part of the Singapore Pavilion led by SMF. FoodAsia, a specialised exhibition dedicated to food and drink, is a part of Food&HotelAsia (FHA), Asia’s premier and most comprehensive biennial trade event for the food and hospitality industry. A total of 114 companies will be at the 1,857 sq m Singapore Pavilion, reflecting a 50% expansion compared to the previous event, with 24 others exhibiting in other events at FHA.

Asian F&B industry tipped for robust growth

The F&B industry is thriving in the Asia Pacific region as the world economy shifts from the West to the East. According to Euromonitor International, the region’s F&B ingredients industry is expected to have a CAGR of 4% over 2012 to 2017, accounting for 38% of global use of value-added food and drink ingredients by 2017. This prospect has attracted many foreign investors to expand into Asia, resulting in stiffer competition among local and regional F&B players. To compete, the Singapore F&B industry is looking toward creating long-term value and developing strategies that will set it apart.

“Despite a fall in global trade in 2015, Asia’s total trade with the rest of the world in packaged foods attained third spot in 2015, behind Europe and the Americas¹. Asia Pacific is also projected to have the second-highest growth rate for packaged foods in the next five years². So even with a modest economic outlook for 2016, there are pockets of opportunities in the region. It is thus imperative for Singapore companies to look beyond our market, innovate and transform their business models, in order to sustain future growth. With a strong ecosystem of food companies in place, the Singapore food and beverage industry is at a prime spot to ride this growth trajectory,” says Lee Yee Fung, Group Director for Lifestyle Business at International Enterprise (IE) Singapore.

Prima is introducing wholegrain LaMian (noodles) in
laksa and curry flavours. One pack will fulfil an adult's 
minimum recommended daily intake for whole grains. The 
steamed noodles are made with 51% Superfine Wholegrain 
flour, and come with Prima Taste paste. The halal-certified packs 
do not contain added MSG or preservatives, and have no 
artificial colouring or flavouring. Typical instant noodle packs 
offer fried noodles and powder-based seasoning.

Lee shared Euromonitor figures on the packaged foods opportunity, nothing that the Asia Pacific CAGR is 4.8% from 2015 to 2020, second only to the Middle East and Africa at 4.9% for the same period. Australasia comes in fourth with a 1.9% CAGR. Lee also pointed out that Asians have become more sophisticated consumers, with Asia projected to make up 66% of the global middle class population by the year 2030, according to Kharas and Gertz.

Instead of going for the cheapest product, Asian consumers are demanding quality, convenience and safety in their food. "These are opportunities going forward and as food manufacturers we should think about how to capture those opportunities," he said, pointing to Singapore's advantages of infrastructure and a tradition in food safety as plusses. Inherent strengths, Lee said, include free trade agreements, an emphasis on food safety, and excellent business infrastructure, including global connectivity and Singapore's leading position as a financial hub.

Value creation and internationalisation 

New products and solutions that will be showcased by Singapore food manufacturers at FoodAsia2016 range from ready-to-cook meals, premium chocolates, and canned fish otah.

One example of innovation is frozen "Hargow Crystal Skin” in a retail pack, which is the first of its kind globally. Developed by Tee Yih Jia Food Manufacturing, the pastry to make hargow (Chinese shrimp dumplings), is traditionally handmade. Quality can be inconsistent, and it has to be made fresh each time to remain pliable. This product can be thawed as required, and offers a consistent, tender yet chewy skin after steaming. Tee Yih Jia anticipates that it will reduce food preparation times significantly and will benefit home cooks, restaurant owners, dimsum manufacturers.

Tee Yih Jia is introducing frozen hargow skins for more consistent hargow, every time. These are the first frozen hargow crystal skins in the world.

Source: Tan Seng Kee Foods (TSK). TSK is known for its Kang Kang (康康) fresh, preservative-free shelf-stable noodle range. The company is launching Express Meal Kits, which incorporate its noodles together with sauces for laksa, curry mee and the non-spicy prawn mee. All products are halal and have a shelf life of a month. 

Tan Seng Kee Foods (TSK), already well known for Kang Kang (康康) noodles, will be introducing Express Meal Kits based on the fresh, preservative-free noodles. These all-natural and preservative-free pasteurised fresh noodles have a shelf life of three to four weeks without refrigeration, six months in chilled conditions and 12 months if frozen. The company is launching Express Meal Kits, which incorporate its noodles together with sauces for laksa, curry mee and prawn mee. All three flavours were chosen for their popularity, with the prawn mee offering a non-spicy alternative for those who prefer it.

The Factory Chocolat is offering matcha flavoured luxury chocolate-covered fruit. The freeze-drying process preserves the antioxidant and vitamin content of the fruit.

The Factory Chocolat, manufacturer of a range of freeze-dried fruit chocolates, will be unveiling its Gourmet range at FoodAsia2016. It is one of the local companies that have successfully expanded and exported its products overseas, to Mainland China, Hong Kong, Indonesia, Taiwan, Thailand, and Vietnam. The company will introduce matcha (green tea) flavoured fruit chocolates, presented in premium packaging. Each fruit is carefully coated in a thin layer of dark chocolate and then white chocolate, and finally rolled in matcha powder from Japan that has been specially chosen to complement the chocolate and the freeze-dried fruit.

“FoodAsia2016 is a good platform for us to introduce our new product as it presents a catchment with so many visitors coming from different parts of the world. It creates export potential for our product,” says Ronald Ng, General Manager of The Factory Chocolat.

SMF has in place several initiatives that aim to help local F&B manufacturers create value and internationalise, including the Working-in-Partnership (WIP) Programme. WIP allows local food exporters to consolidate their efforts and ship their products directly to overseas supermarkets. This does away with middlemen, helping food companies reduce operational costs, while leveraging on the strength of collective branding.

“Innovative practices and technology as well as strategic alliances are important pillars for the Singapore F&B industry to create value, stay competitive in the global and local market, and contribute towards a diverse global food industry. The Singapore Pavilion at FoodAsia2016 allows exhibitors to build networks and distribution channels. SMF helps to make the internationalisation process easier for our exhibitors through the Hosted Buyers Programme, whereby buyers from all parts of the world are brought to meet the exhibitors directly. We are seeing some positive results of food companies’ efforts to expand overseas, especially as the Made in Singapore brand becomes increasingly recognised for food safety and high quality, ” says Sunny Koh, SMF Deputy President and Chairman of SMF Food & Beverages Industry Group.

Koh speaks at a media preview of Food&HotelAsia.

Koh emphasised that both retailers and manufacturers have to transform, and the value chain trimmed. "Retailers facing challenge of operational costs, low margins and strong competition from e-commerce channels," said Koh. "For exporters, gone are the days where you sit in the office waiting for orders to come."

Internationalisation is the answer, Koh said, noting that food manufacturers can get help from fellow SMEs; government support; as well as from trade associations and chambers.

He shared that the Working-in-Partnership (WIP) Programme allows manufacturers to share the costs of shipping their food products in the same container, which is then sent to the port closest to the customer. The initiative helps SMEs to achieve internationalisation faster and more easily, he noted, and does away with logistics middlemen to narrow the price between e-shop and physical shop.

"Singapore products in China are selling at two to three times the Singapore retail price. WIP consolidation can cut retail prices down," he said. Soy sauce, for instance, may cost S$5.30 a bottle locally, but RMB78 (S$16.28) in China. "With WIP we can cut it down to RMB32.15 (S$6.71), and penetrate the market better, in a more efficient way," he said.

Koh added that the WIP programme, already working with companies in Thailand and Myanmar, is set to expand. "By going direct some of the Singapore products in Thailand can retail at almost same price as (those from) local manufacturers," he said.

This year, FHA expects to attract more than 65,000 trade attendees from more than 90 countries and regions. In collaboration with IE Singapore, SMF will be inviting more than 130 buyers from over 60 companies across 18 countries and regions to meet Singapore exhibitors through scheduled business matching sessions.

“We are pleased that more local exhibitors are taking up booth space this year. It is a testament to their confidence that the convergence of buyers and exhibitors from across the globe at FoodAsia forms a budding marketplace for the Singapore food sector to develop partnerships and broaden their network with the relevant buyers,” said Ting Siew Mui, Project Director of Lifestyle Events at Singapore Exhibition Services, organiser of FHA.

FHA will see many firsts in 2016, including a significant number of new exhibitors from Singapore, such as Boon Tong Kee, Fraser & Neave, Lam Soon, Owl International, Super Group and Yeo Hiap Seng. There are exhibitors from Singapore both at the Singapore pavilion and outside it. Individual exhibitors include Aalst Chocolate, Cocoaorient, Delifrance Singapore, Euraco Finefood and Foodxervices.

Interested?

FHA2016 will run from 12 to 15 April 2016 at Singapore Expo (Halls 1 to 9 Annex) from
10am – 6pm (12 – 14 April 2016) and 10am – 4pm (15 April 2016)
The event is open to business and trade professionals only

Read the WorkSmart Asia blog post on what's new at FHA

1 According to International Trade Centre, total trade of packaged foods between each region and the rest of the world are as follows: Europe (US$416 billion), Americas (US$295 billion), Asia (US$197 billion), Middle East and Africa (US$88 billion), and Oceania (US$40 billion).
2 According to Euromonitor, Asia Pacific’s market size for packaged food is expected to grow at a 4.8% five-year CAGR till 2020. This is the highest growth rate projected after the combined Middle East and Africa region.

CoAssets adds SME projects to crowdfunding portfolio, looks towards Australia

Singapore crowd funding company CoAssets has announced that it has extended its crowdfunding platform into the SME sector. Through the company's lead generation platform, which allows registered users to view, research, and ultimately invest in real estate or SME projects, Singaporean SMEs can now immediately connect with investors, bridging a funding gap in the business funding sector.

Getty Goh, CEO, CoAssets said, "Given our proven track record with real estate crowdfunding, and the growing demand for business loans in Singapore, we decided to extend our platform to the SME sector. We are an alternative source of capital for property developers and SMEs, both in Singapore and abroad, and look forward in facilitating their search for competitively priced capital in a timely fashion."

In addition to its advances in the Singapore market, the company is looking to expand the reach of its business crowdfunding arm into Australia, via its wholly owned subsidiary. The company recently became a Corporate Authorized Representative of the Melbourne Securities Corporation, allowing CoAssets to target the Australian business and real estate crowdfunding market. With the start of operations in Australia, CoAssets will solidify its regional expansion with presence in five key markets: Singapore, China, Indonesia, Australia and Malaysia.

Goh said that recent financial results are encouraging and set the stage for the company's transition onto the Australian main board this year. "As flagged in November 2015, CoAssets sees its Australian operations as a key driver of future growth. The company will now be operating its leading crowdfunding platform in five countries, targeting a combined population of 1.5 billion+, and an addressable market estimated to be US$100 billion annually. The Australian Government has set a big focus on financial innovation, including crowdfunding, and given our success throughout the region, the time is right for us to expand our offering in Australia," Goh said.

CoAssets further announced that Singapore's Ex-Chief Artillery Officer, Colonel Lawrence Lim, will be their Chief Operating Officer (COO) from 4 May 2016. As COO, Colonel Lim will drive CoAssets' day-to-day operations, while Goh further implements the company's operational strategy.

To date, CoAssets has brokered deals worth more than S$44 million in total. 

National Bank of Kuwait opens a new branch in Saad Al Abdullah City

National Bank of Kuwait (NBK) has a new branch in Saad Al Abdullah City, its third in the Al Jahra Governorate. The opening of the new branch comes in tandem with the bank's strategy to strengthen its domestic presence and better serve its customers.

The opening ceremony was attended by Retired Lieutenant General, Fahad Ahmad Al Amir, the Governor of Al Jahra, Mohammed Al Othman, Deputy General Manager, Consumer Banking Group and Ghadeer Al Awadhi, Assistant General Manager, Consumer Banking group along with NBK officials.

“NBK has maintained its leading position in the market by constantly investing in its local network to ensure the reach of products and services to a wider segment of customers.” said Salah Yousef Al Fulaij, NBK-Kuwait Chief Executive Officer. “NBK enjoys the largest banking network in Kuwait with more than 68 branches.”

Rising Indonesian incomes and living standards create new opportunities

Economic growth in most Southeast Asian economies, including Indonesia, has slowed recently. But in the medium and long term, Indonesia remains highly attractive to companies operating in emerging markets due to increasing affluence and urbanisation, says the Boston Consulting Group (BCG).

To capture this opportunity, companies need a detailed understanding of the brand preferences, shopping behaviours, and purchasing decisions of Indonesian consumers across demographic segments. A series of research reports released by BCG provides just such in-depth findings that can guide companies in three core industries: consumer durables, fast-moving consumer goods (FMCGs), and financial services.

The three publications summarise the findings of an extensive quantitative and qualitative survey of more than 3,000 consumers across all socioeconomic groups in 19 locations throughout Indonesia. A central element of all three reports is identifying the key demographic groups within the country—from “young professionals” to “modern housewives”—which each unique habits, preferences, and needs.

“Companies need a targeted approach that understands each group in order to apply the right points of influence for their brands,” said Edwin Utama, a BCG partner and a co-author of the reports. “Those that try to apply a one-size-fits-all approach will struggle.”

Vaishali Rastogi, a Senior Partner at BCG and another coauthor added, “Indonesia’s economic expansion has clearly hit some turbulence lately. Despite these bumps, Indonesia is still a growth story, with a consumer base that is growing larger and more economically empowered each year. But growth will not be straightforward for companies. That makes it even more important to use a targeted approach and to rely on deep insights into the behaviour of shoppers in key demographic segments.”

Interested?

Download the report

posted from Bloggeroid

Singapore's Budget 2015 supports businesses

Source: Ministry of Finance, Singapore. Infrastructure investments were also announced as part of Budget 2015.

The measures announced in yesterday's Singapore Budget 2015 by Deputy Prime Minister and Minister for Finance, Tharman Shanmugaratnam for businesses included more training help, tapering off aid for business restructuring, freezing of foreign worker levies other than for manufacturing and construction, as well as boosting innovation and expansion.

Training and development 

"We will invest continually in Singaporeans, throughout their careers," said Shanmugaratnam. With SkillsFuture, the government will help Singaporeans learn at every age and develop mastery and flair in every field. The SkillsFuture measures specific to businesses are:

· SkillsFuture Earn and Learn Programme. Fresh polytechnic and ITE graduates will be placed in jobs and receive a salary while undergoing institution-based and structured on-the-job training that leads to an industry-recognised qualification. Both trainees and employers will receive substantial support from the government.

· Targeted support for career progression. According to Shanmugaratnam, these will support individuals who wish to develop the specialist skills required for future growth clusters. 
"For example, they may include software developers, satellite engineers or master craftsmen. The awards can also support those who already have deep specialist skills and wish to develop other competencies such as business and cross-cultural  skills," he said. 

According to the Minister, the growth clusters Singapore will focus on are:

• Advanced manufacturing, including advanced robotics and additive manufacturing (3D printing); 
• Applied health sciences, such as developing new medical devices and better nutrition, and transforming healthcare delivery; Smart, sustainable urban solutions, from water and waste management to transport and urban planning; 
• Logistics and aerospace, capitalising on air and seaport infrastructure and investing in new technological platforms; and 
• Asian and global financial services. 

SkillsFuture Study Awards will be introduced in phases, starting this year, and will be awarded to about 2,000 recipients per year eventually. SkillsFuture Fellowships will also be introduced from 2016, to develop Singaporeans to achieve mastery in their respective fields. About 100 fellowships will be awarded each year.

· Under the SkillsFuture Leadership Development Initiative, collaborations with strategic companies will be stepped up, to develop a pipeline of Singaporeans to take on corporate leadership roles and responsibilities.

· Industry collaboration. To uplift the broad base of companies, and to help Singaporeans develop their careers, the government will work with employers, unions, and education and training providers to develop and implement Sectoral Manpower Plans (SMPs) in all key sectors by 2020.

To help SMEs overcome the constraints they face in developing capabilities and capacity, the government will also work with industry partners to develop a shared pool of SkillsFuture Mentors with specialised, industry-relevant skills which SMEs can tap on.

More details on these initiatives will be provided subsequently.

Restructuring support

Shanmugaratnam noted that Singapore's productivity level is 13% higher today than the start of the national restructuring journey in 2010. "This is an average growth rate of 2.5% per year. All of this gain was achieved in 2010 (11.6%) and 2011 (2.3%) as we recovered from the recession, and growth has been negligible in the three years since then," he said.

More productivity is possible, especially when globalising companies are compared against those firms which only compete locally, he added. "There is a stark difference between productivity growth in industries where our businesses compete internationally, and in those where businesses compete mainly in the domestic market, such as construction, retail and F&B. 

"Over the past five years, our outward-oriented sectors saw productivity growth of over 5% per year on average, compared to less than 1% for our domestic-oriented sectors. Further, employment growth has been mainly in the domestic-oriented sectors. This is essentially why our overall productivity growth has lagged," he said.

"Every sector can achieve a lift in productivity, but it is especially important for our domestic sectors. It will only happen as firms rethink business strategies, seek to break the mould by finding new ways of growing their revenues, and take full advantage of government incentives for upgrading. Our tight labour market itself will motivate businesses to do so. We know that this major upgrading is possible in our domestic industries where productivity has lagged, because there are leaders internationally who have done it."

As businesses may need more time to adjust to rising costs as they restructure, the Transition Support Package will be extended by two years but provided at reduced support levels.

· The Wage Credit Scheme will be extended to 2017, to give employers more time to adjust to the tight labour market. Gross monthly wage increases of at least S$50 in the qualifying year (2016 to 2017), up to a gross monthly wage level of $4,000, will qualify for 20% co-funding.

In addition, gross monthly wage increases of at least S$50 given in 2015 and sustained in 2016/2017, and wage increases given in 2016 and sustained in 2017, will continue to be co-funded at 20%.

· The 30% Corporate Income Tax (CIT) Rebate will be extended for Year of Assessment (YA) 2016 and YA2017, with a reduced cap of S$20,000 per company per YA. The reduced cap will ensure that more support is focused on SMEs.

· The Productivity and Innovation Credit (PIC) Bonus will be phased out after YA2015 as it was intended as a transitional measure and has been successful in spreading the culture of productivity amongst SMEs. Businesses will continue to benefit from the PIC scheme which has been extended till YA2018, and the PIC+ scheme introduced in Budget 2014.

Foreign worker levies 

As the net inflow of foreign workers (excluding construction) has slowed significantly, the Government will defer this year’s round of announced levy increases for S Pass and Work Permit Holders, with the exception of Work Permit Holder levies in the Manufacturing and Construction sectors. 

Shanmugaratnam stressed that the government is not changing its stance on reliance on foreign talent. "..to avoid any misunderstanding, let me affirm unequivocally that while we are adjusting the pace of our foreign worker measures, we are not changing direction. It remains crucial for Singapore that we restructure towards reducing our reliance on manpower, and find new and more innovative ways to do business," he said.

"Our basic approach remains unchanged. We have to stay the course in reducing reliance on labour and especially unskilled foreign workers. However, we will continue to calibrate our foreign worker policies as informed by evidence on the pace of inflows, the quality of workers being employed, and the progress being made in raising productivity, sector by sector."

Strengthening support for innovation

Shanmugaratnam noted that Singapore's public investments have catalysed S$8.6 billion of industry R&D since 2011. He lauded local electronics manufacturer Dou Yee International as an innovation success story. "From a small trading business, it has transformed itself into a dominant player in the electrostatic materials industry with an annual turnover of S$300 million. It did this through R&D and a longstanding partnership with A*STAR. Most recently, Dou Yee has worked with A*STAR to develop smart plastic packaging that extends the freshness and shelf-life of food," he said.

"In our next Research, Innovation and Enterprise five-year plan, we will step up efforts to help companies develop, test and commercialise new products and solutions. More details will be provided later in the year."

· To support SME innovation, the Capability Development Grant (CDG) will be made more accessible to companies via a simplified application process for projects below S$30,000. The CDG’s enhanced funding support level of up to 70% of qualifying costs will also be extended for three more years, to 31 March 2018.

· To promote industry collaborations, SPRING’s Collaborative Industry Projects will be extended to all industry sectors to develop productive and innovative solutions. The Partnerships for Capability Transformation (PACT) scheme will also be enhanced to foster collaboration between large companies and SMEs in their supply chain.

· The National Research Fund will be topped up by S$1 billion this year, with greater efforts to help companies develop and commercialise new products.

· To ensure that promising companies have access to capital that they need to grow, the government will:

• Top up the Business Angel Scheme (BAS) by S$75 million and increase the co-investment cap to S$2 million per company for BAS and SPRING’s Startup Enterprise Development Scheme (SEEDS) to reduce early-stage funding gaps for startups. 
• Pilot a venture debt risk-sharing programme to provide 50% risk-sharing to selected financial institutions for such loans, over an initial period of two years. The aim is to catalyse about 100 venture debt loans, totalling approximately S$500 million. 

Expanding overseas

To support internationalisation, the government will:

· Raise the support level for SMEs for all activities under IE Singapore’s grant schemes from 50% to 70% for three years, to 31 March 2018*.

· Enhance the Double Tax Deduction for Internationalisation scheme to cover qualifying manpower expenses incurred for Singaporeans posted to new overseas entities.

· Introduce a new International Growth Scheme to provide qualifying companies a 10% concessionary tax rate on their incremental income from qualifying internationalisation activities. The scheme will expire on 31 March 2020.

Encouraging mergers & acquisitions

To help companies acquire scale through mergers & acquisitions (M&A), the government will:

· Increase the tax allowance for acquisition costs from the current 5% to 25% of the value of acquisition, with the cap on the allowance remaining at S$5 million per YA. In addition, companies will be able to claim M&A benefits for acquisitions that result in at least 20% shareholding in the target company, down from the current threshold of 50% shareholding. Also, the M&A tax allowance scheme will be extended till 31 March 2020.

· Extend the scope of IE Singapore’s Internationalisation Finance Scheme to cover overseas M&A financing.

More details will be announced at the Ministry of Trade and Industry’s Committee of Supply.

Read more about the Budget for 2015 here.

*These are the Global Company Partnership (GCP), and the Market Readiness Assistance (MRA) grants. The current support level for both these schemes is up to 50%, except for four activities: design, branding, intellectual property, and M&A, which are supported at 70% from 1 Apr 2012 to 31 Mar 2015.

Euromonitor shares four pillars to a successful entry into emerging markets

Global market research company Euromonitor International has released Succeed in Emerging Markets: Selection, Strategy and First Steps, an e-book focusing on a four pillar model to assist in entering emerging markets.

The first pillar is market, and it incorporates macroeconomic stability, consumer market size, growth and openness.

The second pillar in Euromonitor’s strategy is population and focuses on demographics. This assists in understanding how a business product or service will fit into a competitive landscape.

The third pillar focuses on access, or the reality of market entry. If a country is not easily accessible, businesses will not successfully produce goods in the market or reach consumers. Other topics discussed within the access pillar are infrastructure, Internet, partners and the retail landscape.

The final pillar reviews the business environment in a particular market, with emphasis on the regulatory environment and corruption.

According to Euromonitor’s Head of Strategic, Economic and Consumer Insight, Sarah Boumphrey, “Too many companies perform inadequate amounts of research prior to launching a product or service in a new market. This is problematic because some markets simply might not work. Utilising Euromonitor’s four pillar model before entering new markets provides a better understanding of the needs of consumers and the business environment in countries of interest.”

Euromonitor’s four pillar market entry strategy model should be tailored on a case-by-case basis based on sector-specific and business-specific factors to ensure the best information is used for each business.

Download a complimentary copy of the white paper about market entry in emerging markets here.