Singapore, Kazakhstan promote bilateral trade

Singapore and Kazakhstan have exchanged a bilateral investment treaty to support greater investment flows between both countries.

The treaty protects the interests of investors from Singapore and Kazakhstan and gives them more confidence to leverage investment opportunities in either country. Under the terms of the treaty, Singapore companies operating in Kazakhstan will enjoy protection on their investments on top of that already accorded under Kazakhstan’s domestic laws, and vice versa. The Kazakhstan-Singapore treaty will also grant investors from both countries:

 Non-discriminatory treatment compared to other foreign investments (most favoured nation treatment);

 Fair and equitable treatment and full protection and security based on customary international law;

 Protection from illegal expropriation*;

 Non-discriminatory compensation for losses arising from war, armed conflict and civil strife;

 Freedom to transfer capital and returns in and out of country; and

 Access to international arbitration for investment disputes.

Singapore's Senior Minister of State for Trade and Industry Dr Koh Poh Koon commented that there is still headroom for bilateral trade growth. “Emerging markets such as Kazakhstan have strong potential for growth. Kazakhstan’s rapidly improving economic reforms, highly literate workforce and growing urban middle class present opportunities for Singapore companies. I strongly encourage our companies to venture into Kazakhstan and the rest of Central Asia,” he said.

2018 marks 25 years of bilateral relations for the two countries, Dr Koh revealed in a speech at the Kazakhstan-Singapore Business Forum. "Kazakhstan’s forward thinking leadership embraced globalisation early on, participating in the ebbs and flows of shifting global supply chains, and linking markets from Europe to Asia. Kazakhstan stands at the crossroads between the East and West, and the North and South. As the world’s economy moves East, Kazakhstan can be a key node connecting China, Central Asia, Europe and possibly even Southeast Asia," he said.

"The opening of the Astana International Financial Centre (AIFC) in July this year is a notable step that could help build up Kazakhstan as a Eurasian commercial and financial node that would eventually serve as the pathway for investments and other economic opportunities in the region." 

Kazakhstan is Singapore’s most significant economic partner among the five Central Asian states of Kazakhstan, Kyrgyzstan, Uzbekistan, Turkmenistan and Tajikistan. Minister Koh said bilateral trade in goods amounted to S$133.6 million last year, while bilateral trade in services grew 16% over the last five years to reach S$40 million in 2016. Bilateral investment grew approximately 30% over the same five-year period.

Kazakhstan is also part of the Eurasian Economic Union (EAEU), a customs union formed by Russia, Armenia, Belarus, Kyrgyzstan and Kazakhstan. Singapore is in the process of negotiating a free trade agreement with the EAEU and will build on the current agreement as a foundation to the negotiations.

*This refers to a public sector authority taking property from a private sector owner for public use or benefit.

Singapore, Jiangsu deepen bilateral economic opportunities

The Singapore-Jiangsu Cooperation Council (SJCC) will drive more opportunities for Singapore and Jiangsu companies in third-party market collaboration, trade and logistics, and financial services, contributing to the Singapore-Jiangsu economic partnership and advancing the Belt and Road Initiative (BRI). Thirteen memoranda of understanding (MoUs) relating to these areas were signed.

Singapore Minister for Finance Heng Swee Keat, Co-Chairman of the SJCC said, “Singapore and Jiangsu have enjoyed a good and longstanding relationship. Building on this strong foundation, Singapore will continue to partner Jiangsu in supporting the development of the BRI. This will open up opportunities for companies to increase cooperation in third-party markets, trade and financial connectivity.” 

At the meeting, Enterprise Singapore signed an MoU with the Suzhou Industrial Park Administrative Committee (SIPAC) to facilitate more partnerships between Singapore and Suzhou enterprises. Specifically, the agreement covers collaboration on the BRI, connectivity, logistics, and professional services support for internationalising Chinese companies. Enterprise Singapore will also connect Jiangsu enterprises to relevant Singapore partners in legal, financial and other professional services.

Further promoting third-party market collaboration, the China-Singapore Suzhou Industrial Park Development Company* (CSSD) and Sembcorp will partner to develop industrial parks in Southeast Asia. CSSD will leverage its experience gained from the Suzhou Industrial Park** (SIP), while Sembcorp contributes knowledge and experience in this region. 

As Jiangsu companies internationalise, Singapore stands to benefit as an international business hub and regional springboard. These companies can utilise Singapore’s established financial market and international connectivity to expand their operations abroad, especially in Southeast Asia***. Singapore companies providing logistics solutions and professional services such as legal and financial services could also see more opportunities to collaborate. 

SIPAC also signed MoUs with the Singapore Exchange (SGX) as well as banks DBS, OCBC and UOB to promote collaborations in fintech and facilitate investments into Singapore and Jiangsu. Additionally, Phillip Capital Management signed an MoU with the Bank of Suzhou to establish an onshore fund management joint venture in the SIP, bringing best international practices and service offerings to Jiangsu. 

In line with both Singapore’s and Jiangsu’s common focus on promoting innovation, Sembcorp signed an MOU with Clean Energy Centre**** , DuralitePower and Nanjing College of Aerospace Engineering to set up a collaborative innovation centre for smart drone surveying technology for environment protection.

Oriental Energy Singapore International Trading will partner the China Eastern Central Western Demonstration Area for Regional Cooperation Cooperation to develop clean energy and a new materials processing base in Lianyungang.

On the talent front, Business China signed an MOU with the Jiangsu Youth Federation of Entrepreneurs to explore more exchanges and collaboration opportunities between young entrepreneurs and enterprises from Singapore and Jiangsu. The Jiangsu Youth Federation of Entrepreneurs will also set up an innovation and entrepreneurship centre on the Singapore Nanjing Eco Hi-Tech Island***** (SNEHTI), to facilitate exchange of ideas between Singapore and Jiangsu entrepreneurs and youths. 

The Singapore University of Social Sciences will also be collaborating with Jiangsu’s Soochow University on student exchanges, joint research collaborations, and cultural exchanges.

In his speech, Minister Heng shared that Singapore’s total trade with Jiangsu in 2017 was RMB78.4 billion, a 15.7% year-on-year increase. Singapore’s investment in Jiangsu province totalled RMB8.3 billion RMB6 in 2017. This is an increase of almost 20% from 2016. As of the first half of 2018, Singapore’s total cumulative investment into Jiangsu has reached RMB189.4 billion7 .

"Jiangsu accounts for approximately 30% of Singapore’s investment in China, and has consistently remained as the top investment destination for Singapore in China," he said in his opening speech at the meeting in Singapore. "Singapore is committed to partner Jiangsu in supporting China’s economic priorities."

The SJCC is supported by Enterprise Singapore, the secretariat for the council. It will also look at furthering innovation and startup collaboration. 

*CSSD is a joint venture between Singapore-Suzhou Township Development and the Suzhou United Development Company. 

**The SIP began in 1994 as a bilateral project between Singapore and China. 

***In 2017, Jiangsu companies invested in 175 projects in Singapore with an estimated value of S$1.99 billion. 

****The Clean Energy Centre is a research centre in Temasek Polytechnic that aims to provide research & development capabilities and technological knowhow for Singapore’s clean energy industry. 

*****The 15km² project on Nanjing’s Jiangxinzhou island is jointly developed by Singapore Consortium and Nanjing city government. It aims to be a showcase of international, high-tech and sustainable development.

IE Singapore unveils plan to help trading sector digitalise, IE Singapore to merge with SPRING

The Wholesale Trade Industry Transformation Map (ITM) has been unveiled by Minister S Iswaran, Minister for Trade and Industry (Industry) at International Enterprise (IE) Singapore’s event Digitalisation of Trade – New Mindsets, New Skillsets.

The ITM will help companies digitalise to enhance global growth and productivity, and targets to create 10,000 new jobs by 2020. Comprising over 34,000 firms, the wholesale trade industry provides livelihoods for more than 325,000, accounting for 9% of Singapore’s workforce in 2016¹. Wholesale trade will drive economic growth for Singapore

In 2016, wholesale trade contributed S$47.3 billion (12%) to the nation’s GDP². The industry continues to grow strongly as Asia’s rising population, urbanisation and consumerism³ drive trade flows to meet the region’s increased demand for food, infrastructure materials, fuel and electronics, and more. However, wholesale trade is highly susceptible to global trends such as rising protectionism as it is an externally-oriented sector. Technological advancements are also transforming the global marketplace, business models and job functions.

Said Lee Ark Boon, CEO, IE Singapore, “Asia’s boom in urbanisation and consumerism presents new opportunities. ‘South-South’⁴ trade is also growing much faster and Singapore is well-positioned to play an important role. However, external volatility and digital technology are changing how trade is conducted. Companies need to transform business models and be equipped with new skillsets. A strong core of Singaporean talent and companies will underpin our sustainability and long-term success.”

The Wholesale Trade ITM has been developed in collaboration with a wide range of key stakeholders, covering industry players, trade unions, trade associations and government agencies. It charts out strategies to ensure the sector remains relevant by:

Building trade connectivity through digital marketplaces and platforms

Digital business-to-business (B2B) e-commerce transactions are expected to reach US$6.7 trillion by 2020⁵. To overcome disruption and tap this growth, Singapore needs to build a conducive environment for digital marketplaces and platforms to flourish. The ITM includes plans to accelerate global trade connectivity, facilitating and capturing value from e-commerce trade flows, as well as increasing SMEs’ market access and productivity through digital marketplaces and platforms. Key initiatives include:

ASEAN Digital Trade Facilitation Platform: this is led by the Singapore Logistics Association (SLA) and in partnership with GeTS Global, and expected to be ready in Q417.

 Fosters collaboration among ASEAN logistics associations; facilitates customs clearance through a single window.

 Allows companies within the region to move goods across regional borders in a more efficient and cost-effective manner.

Cross Border Cognitive Supply Chain Solution: A digital trade platform by GeTS Global and IBM Asia Pacific, collaboration agreement signed at the ITM launch event.

 Enables 350,000 connected trading partners (such as Bridgestone, Goodyear, Olam and Toyota) on IBM's Supply Chain Business Network (SCBN) to do automated customs declaration at 18 customs nodes across the world, including Singapore, China, Indonesia, Thailand and the US.

 Equipped with cognitive capabilities and predictive analytics to help traders mitigate disruptions, risks and costs. E.g. in bad weather conditions, it will recommend an alternative source for the obtaining of goods and alternative routes for shipment to ensure timely delivery.

Work with trade associations and private enterprises to help SMEs list on digital marketplaces, enabling them to access new markets and enjoy economies of scale through shared services on these platforms.

Strengthening enterprise capabilities and growing a vibrant ecosystem of wholesale trading enterprises in Singapore;

A new government agency, named Enterprise Singapore, will be formed through the merger of IE Singapore and SPRING. This underscores the government’s commitment to adapt and strengthen its support for enterprises. Leveraging IE Singapore’s core strengths in internationalisation and SPRING’s expertise and levers in helping SMEs, the newly-formed agency will offer companies a holistic and integrated network to build capabilities and access overseas markets opportunities. Going forward, Enterprise Singapore will be the lead agency driving the transformation of the wholesale trade industry.

Developing industry-ready talent equipped with deep skills for digitalisation and internationalisation.

The transformation of the wholesale trade industry will create new opportunities for the workforce. Demand for specialised talent with digital skillsets such as digital marketing, global supply chain and data analytics will grow as companies address new business models. Companies will require talent with regional market exposure, connections and experience. The range of roles with greater demand include Digital Marketers, Data Analysts, Regional Business Development Managers, Risk & Compliance Officers and Supply Chain Specialists.

There are ongoing partnerships with Workforce Singapore (WSG), National Trade Union Congress, institutes of higher learning and industry players to identify job opportunities and prepare PMETs and students for careers in wholesale trade.

The Wholesale Trade ITM skills framework, to be completed by the second-half of 2018, will provide industry-validated insights into the skillsets required for the future of trade.

At the PMET level, relevant Professional Conversion Programmes (PCP) and tertiary programmes will provide local PMETs with opportunities to re-skill and move into new positions in wholesale trade. The PCP provides a structured pathway for more Singaporeans to be equipped with fundamentals of international trade with foundation skills and knowledge in supply chain management, trade finance, risk management, logistics and operations management. Importantly, it will prepare them with skills for the future, like trade analytics and e-payment systems.

New academic programmes have been added to existing ones with SMU and Nanyang Technological University to develop talent for the trading sector. Key initiatives include:

Certificate/ Minor Programme in International Trade

 IE Singapore and the Singapore University of Social Sciences (SUSS) have signed a memorandum of understanding (MOU) to develop a Certificate/Minor Programme in International Trade.
 The programme is primarily targeted at PMETs looking to develop specialised skillsets in international trade. It covers areas such as digitalisation, analytics and regional cultural intelligence.

PCP - South East Asia Ready Talent

 IE Singapore, WSG and the Singapore Business Federation (SBF) signed an MOU at the ITM launch to develop a PCP to nurture a pipeline of talent with regional market knowledge.
 The structured programme includes a training curriculum for financial savviness, business and language, with participants having opportunities to network with industry leaders and learn on the job.
 It includes market experience through overseas attachments and projects, preparing them for regional positions in Southeast Asia.

PCP - International Trading Executives

 IE Singapore, WSG, the Singapore Management University (SMU) and International Chamber of Commerce (ICC) Academy launched this in 2016.
 To date, 65 mid-careerists have successfully found employment in trading companies. SMU is working towards a target of 100 PMET placements per year and will incorporate more digitalisation relevant modules for future runs.

Diploma in International Trade & Business

 IE Singapore and Ngee Ann Polytechnic signed an MOU at the ITM launch to jointly develop a Diploma programme in International Trade & Business.
 The first wholesale trade-related diploma programme in Singapore, it will incorporate modules on digital business solutions and analytics.
 First intake, estimated to enrol 120 students, will begin in April 2018.

1 Source: Ministry of Manpower

2 Source: Department of Statistics

3 The United Nations projects that the population in Southeast Asia−the world’s third largest growth region behind China and India−will grow from 616 million in 2013 to 760 million in 2040, an increase of almost 25%.

4 Refers to countries in the southern hemisphere, namely in Africa, Asia and Latin America.

5 https://ww2.frost.com/news/press-releases/global-b2b-e-commerce-market-will-reach-67-trillion-usd- 2020-finds-frost-sullivan/ 

Dubai Chamber of Commerce honours SME Exporter of the Month winners

The Dubai Chamber of Commerce and Industry has recognised members that have demonstrated outstanding export performance during the last nine months of 2016.

The SME Exporter of the Month ceremony honoured nine trading companies, namely Universal International, Moon Flor General Trading, Signature Snacks, Al Khoud Trading, Raheeq Alasal Trading, Rais Hassan Saadi Logistics, Orient Links Co, Mohamed Abdulrahman Al Bahar, and Rayhan Al Sharq General Trading.

The companies were recognised for their exceptional performance in the following categories: company with the highest export value, company with the highest number of export markets, company with the highest number of certificates of origin issued, and recent start-up company that has reached the highest export value during a particular month.

“The recognition earned by the selected companies goes a long way in motivating Dubai Chamber members and other businesses in the emirate that operate in the realm of trade. At the same time, it allows us to take the pulse of the trade sector and learn more about business practices that serve as enablers for success and sustainable growth,” said HE Hisham Al Shirawi, 2nd Vice-Chairman, Dubai Chamber. He added that the initiative establishes new standards for other traders in Dubai, and also enhances the competitiveness of the emirate’s business community.

Dubai Chamber originally launched the Exporter of the Month initiative in 2009 as Exporter of the Quarter, to recognise the outstanding exporting companies in Dubai.

The magic of port cities unveiled at the Asian Civilisations Museum

Source: ACM website. View of Singapore from Mount Wallich, Singapore, 1856, by Percy Carpenter, is one of the exhibits at Port Cities: Multicultural Emporiums of Asia, 1500 –1900.

 Traders and migrants, jewellery and cottons, languages and commerce – port cities mix people, merchandise, and ideas. The Port Cities: Multicultural Emporiums of Asia, 1500 –1900
special exhibition paints a picture of life through photographs, paintings, fashion, luxury goods, and everyday objects at the Asian Civilisations Museum. 

Interested?

The exhibition ends 19 February 2017. The Asian Civilisations Museum is open from 10am to 7pm (daily) other than on Fridays, when it opens from 10am to 9pm. 

Watch the video introducing Port Cities: Multicultural Emporiums of Asia, 1500 –1900

Check ticket prices

Download the programme booklet (PDF) 

Dubai Chamber of Commerce and Industry opens office in Shanghai

As part of its strategy to reach out to promising markets and promote Dubai as a global business and trade hub, the Dubai Chamber of Commerce and Industry has opened its seventh international office in Shanghai, China.

HE Hisham Al Shirawi, 2nd Vice- Chairman, Dubai Chamber, said: “China is our top trading partner and we have worked hard to strengthen trade relations with the country over the last decade. The opening of the Chamber’s Shanghai office, our first in China, a testament of our efforts to improve trade relations with the country and Southeast Asia. The move also falls in line with objectives outlined under the Dubai Plan 2021 to strengthen the emirate’s status as a leading business hub and an attractive investment destination.
“We are confident that establishing a presence in this market will lead to new relationships and partnerships with Chinese businesses and bring about mutual benefits and economic growth. It will also help Chinese companies to expand their reach to markets in Africa, using Dubai as an access point,” he said.

HE Al Shirawi also noted that Dubai and China both enjoy a strategic geographic location and easy access to surrounding markets in the GCC and East Asia. The UAE is located along the ‘China – Central Asia – West Asia economic Corridor’ that passes through the Commonwealth of Independent States (CIS) region, a priority investment and trade region for Dubai.

“China’s plans to recreate the Silk Road through the One Belt One Road (一带一路) initiative have boosted its trade flows with Central Asian countries and beyond. Therefore, the UAE and Dubai play a critical role as an investment and trade hub along the New Silk Road with strategic access to the Middle East, Africa and South Asian (MEASA) markets,” said HE Al Shirawi.

“Due recent economic trends, Chinese companies are now looking abroad for new trade opportunities. We are seeing a growing number of Chinese businesses investing in Dubai’s real estate and manufacturing sectors, which is supporting the growth of the private sector,” he added.

Dubai’s non-oil trade with China has grown steadily in recent years and was worth AED176 billion in 2015. There are currently 2,829 Chinese companies registered with Dubai Chamber.

Malaysia welcomes investment from companies eyeing AEC

Malaysia is ready to provide support for companies to capitalise on the ASEAN Economic Community (AEC) as it is already the preferred hub for many global companies planning to expand into Southeast Asia, said Minister of International Trade and Industry, Dato’ Sri Mustapa Mohamed.

“As Southeast Asia's economic growth flourishes, attention on ASEAN as a competitive and lucrative marketplace, providing access to over 630 million consumers, is rising. We have recently introduced the Principal Hub Scheme to facilitate and incentivise international companies who want a business-friendly launchpad to expand into ASEAN. In addition, our advanced integration levels in the AEC are an important bridge to strengthen trade links and economic ties with our ASEAN neighbours so that we can leverage on the rising demand for seamless interconnectivity that is vital for doing business successfully today,” he said.

"Malaysia adopts an ecosystem approach whereby concerted efforts have been put in place to promote the entire value chain of industry clusters and enhance delivery enablers to support the value chain. A strong and comprehensive ecosystem improves production and logistical efficiency; reduces the cost of doing business and supports greater flow of trade and investment. The importance of the ecosystem approach is further entrenched in the 11th Malaysia Plan (11MP). Under the 11MP, we will continue to ensure that there is a significant leap in investment activities. This ultimately contributes to enhancing the competitiveness of the country and improving the country’s attractiveness for FDI.”

The minister noted that ASEAN has a part to play. “As the region seeks to deepen a nd widen trade ties under the AEC to capture a greater share of global trade, it is essential for ASEAN to work on strengthening and aligning structural reforms related to ease and certainty of doing business, regulatory and legal frameworks, as well as financing and investment facilitation measures across the region,” he added.

“The private sector will continue to be a key driver for the AEC’s realisation and we must now look to implementing long-term strategies, plans and projects, with the due consideration and involvement of industry, government and civil society in the planning and decision-making process," commented Dato' Sri Abdul Wahid Omar, Minister in the Prime Minister's Department.

HKTDC fairs for gifts, premiums, printing and packaging attract over 60,000 buyers

Source: HKTDC. 

The 31st Hong Kong Gifts & Premium Fair  and 11th Hong Kong International Printing & Packaging Fair attracted more than 60,000 buyers from 134 countries and regions, said organisers the Hong Kong Trade Development Council (HKTDC). Around 50,000 buyers visited the Gifts Fair, while over 14,000 buyers attended the Printing & Packaging Fair. Markets such as the Chinese mainland, Malaysia, the Philippines, and Indonesia saw growth.

"In the face of a fluctuating global market, suppliers should promote their brands and products even more proactively, while distributors and retailers should seek out new competitive products," said Benjamin Chau, HKTDC Deputy Executive Director. "Showcasing top-quality items and providing a diverse range of choices, the two fairs are the ideal platform for both promoting and sourcing products."

The HKTDC organised a total of 171 buying missions from 75 countries and regions for the two fairs, comprising more than 13,200 buyers. At the fairground, business matching services were also provided to foster business opportunities and partnership-building. Moreover, in view of the keen demand for small-order sourcing, the HKTDC Small Orders display at the Gifts Fair featured over 360 showcases offering more than 2,500 products available for orders of between five and 1,000 units. A total of 23,000 business connections were generated during the four-day fair.

Chau also noted that, during the Gifts Fair the HKTDC signed a memorandum of understanding (MoU) with Thailand, a key ASEAN country, to strengthen business promotion and cooperation between Hong Kong and Thailand. This includes offering a top-quality promotion platform for Thai products through the HKTDC's fairs and online promotion services, covering sectors such as garments, fashion accessories, textiles, food and agricultural products.

Decorative gifts, figurines lead market growth

The HKTDC commissioned an independent onsite survey during the Gifts Fair, interviewing some 920 buyers and exhibitors about their views on market prospects and product trends. The survey found that the industry is cautiously optimistic about the gifts market this year. Close to half of the respondents expect overall sales to remain the same in the coming year with 20% expecting sales to improve. Thirty-seven per cent of respondents expect production costs and sourcing costs to increase. More than 60% of respondents, however, do not expect to raise free on board (FOB) selling prices or retail prices, suggesting that they will not transfer increasing costs to customers. 

Source: HKTDC. Tian.

As to the market with the highest growth potential, most respondents pointed to the Chinese mainland, followed by Hong Kong and Korea.

The survey also analysed product trends in the gifts and premium market. Most respondents said they expect decorative gifts and figurines to have the strongest growth potential this year, followed by tech gifts, then advertising gifts and premiums. As for products, the industry generally believes that consumers are increasingly focused on product practicality and quality, followed by their pricing and cosmetic design.

Exploring business opportunities

Tian Guofeng, Director, Exhibition Department, China International Center for Economic & Technical Exchanges, Ministry of Commerce, said this was the first time that the Ministry had organised a delegation to the Gifts Fair, comprising 10 companies from Yunnan Province. "As the Hong Kong fair is not only the world's largest gifts and premium fair but also the most influential show of its kind, it will help Yunnan manufacturers develop overseas markets," said Tian. 

Source: HKTDC. Fukushima.

"Exhibitors from Yunnan Province are showcasing a wide variety of high-end products such as metal ware, silverware, wooden gifts, pottery, stone carvings and gunny handbags. Responses from buyers have been very encouraging."

Shosuke Fukushima, Director of Japan Pavilion, Business Guide-Sha, said that Japanese exhibitors achieved very good results at last year's fair, so they returned this year with 17 companies joining the Japan Pavilion, the largest-ever such delegation. "Japanese exhibitors are here showcasing all kinds of trendy products such as cosmetics, garments, stationery, toys and video games. The Hong Kong fair is an international trade fair where Japanese exhibitors can talk to many buyers and learn more about the market needs. More importantly, Hong Kong is a key gateway for Japanese companies to look for distributors and retailers from all over the world. We'll continue to organise the Japan Pavilion next year."

Hong Kong exhibitor Eco Concepts, which produces various green products with PLA (polylactic acid), was at the event for the fifth time. PLA is a type of biodegradable plastic that comes from renewable resources such as corn or tapioca. Phoebe Wong, Director of Eco Concepts, said the company had received a US$9,000 order from a Thai buyer on the first day of the event. 

"Through business matching services provided by the HKTDC, we have met with more buyers from Europe, probably because our products can meet their strict requirements in terms of environmental protection. On the first day of the fair, we have already got an order worth US$9,000 from a Thai buyer," said Wong.

Source: HKTDC. A wide range of product samples were on show.

Another Hong Kong exhibitor, Gianna Company, strives to inject new design elements into products. The company's Managing Director Lawrence Tong said the market trend towards innovative designs is prevalent. "We received onsite orders worth over HK$2 million in total from long-time clients. We have also established contacts with many potential buyers from various countries at the fair," said Tong.

Meanwhile, at the Printing & Packaging Fair, Hong Kong exhibitor Tommy Yu, Senior Manager of VersaTech Energy Innovation, and Environmental Consultant of The Hong Kong Printers Association, noted cleaner production is the way forward amid growing environmental concerns. The Hong Kong Printers Association made good use of the Hong Kong International Printing & Packaging Fair to promote new technology for cleaner production. "Many large-sized printers have taken the task seriously and we want to encourage more SMEs to join the wave through the exhibition. In the first few hours of exhibition, about 50 visitors including printing-related companies from Hong Kong, the Chinese mainland, the Philippines and Taiwan approached us. They showed keen interest in how new technology in cleaner production can work for printers."

New products and onsite orders

Sia Yew Ming, Senior Corporate and Trade Marketing Manager, Mediacorp TV Singapore, was a first-time visitor to the Gifts Fair. She came looking to develop products that are related to their TV programmes with a view to selling them to consumers through convenience stores and bookshops in Singapore. She said that, with so many suppliers at the fair, there was a great variety of products at competitive prices. She placed an order of 500 units of USBs and 500 units of power banks on the second day of the fair. "I have found a lot of new ideas and new products here. I have found 10 potential suppliers and will follow up after the show," she said.

B. Food Product International from Thailand sells food products domestically as well as to different markets worldwide including Asia and Europe under two major brands S-Pure and Betagro. Sakhorn Jullarat, the company's Product and Process Development Director, said, "We put strong emphasis on the quality and safety of the food we produce every day. This is our first visit to the Hong Kong International Printing & Packaging Fair. We've already found five potential suppliers for packaging items that will be used for our frozen and chilled food products. We can find a lot of interesting packaging products and ideas here. We would like to visit the fair again next year."

Interested?

Watch the associated video

Globebill to set up payment and bank card settlement system in KSA

Worldwide online payment provider Globebill has signed a bank card settlement cooperation agreement in Saudi Arabia as part of its drive to set up cross-border trade settlement facilities in countries along "One Belt and One Road" concept initiated by China.

Globebill will set up a payment and bank card settlement system in Saudi Arabia for issuing credit cards to individuals and enterprises, ensuring that the trade between China and Saudi Arabia can be paid and settled through Globebill's platform. Both sides have further agreed to jointly promote the implementation of Globebill's payment and settlement service and issuance of personal and corporate credit cards in the entire Middle East and North Africa region.

Globebill is among the first batch of enterprises to provide such a third party payment platform. The company has an Internet payment license and a bank card acceptance license from the People's Bank of China, and was among the first cross-border e-commerce and foreign exchange payment pilot enterprises approved by Visa QSP and the China's State Administration of Foreign Exchange. Globebill mainly provides cross-border payment and financial services, establishing a financial channel for merchants and global trade.

According to Globebill, China is KSA's second-largest trading partner.

EU-Asean Business Council launches Agenda to boost trade between ASEAN and EU

The EU-ASEAN Business Council (ABC), the primary voice for European businesses in the ASEAN region, has launched a set of recommendations to boost the trade and investment relationship between ASEAN and the EU. The launch of the recommendations coincides with 26th ASEAN Summit taking place in Malaysia.

The Agenda for the promotion of trade and investment between ASEAN and Europe – which was presented to ASEAN Economic Ministers and EU Trade Commissioner Cecilia Malmstrӧm on April 26 in Kuala Lumpur, Malaysia – has been developed through a process of consultation between EU-ABC members and the wider European business community active in Southeast Asia. The EU is ASEAN’s largest source of foreign direct investment, and also ASEAN’s second-largest trading partner, after China.

Source: EU-ABC, Agenda for the promotion of trade and investment between ASEAN and Europe. ASEAN trade with external trading partners (% Total Trade), for the top 10 ASEAN trade partner countries/regions according to ASEAN, as of December 2014, .

The Agenda contains twelve recommendations covering:

1. Measures to promote trade, including the removal of remaining tariffs, elimination of non-tariff barriers, the implementation of the ASEAN Single Window and WTO Trade Facilitation Agreement, and the easing of customs procedures.

2. Measures to promote investment, including the protection of intellectual property (IP) rights, the harmonisation of standards across ASEAN, the liberalisation of foreign ownership rules and the easing of long term investment constraints;

3. Measures to boost competitiveness, including financial support for SMEs, facilitating the movement of skilled labour, developing the skills pool and increasing access to government procurement opportunities;

4. Measures to further promote strong trade and investment relations between the EU and ASEAN, including the creation of a formalised ongoing consultative and dialogue process.

“The EU-ABC has developed a set of specific recommendations that are designed to enhance the existing strong trade and investment relationship between ASEAN and the EU. These recommendations complement ASEAN’s existing workstream and form the basis of ongoing engagement and dialogue between ASEAN and the European business community," EU-ABC Executive Director Chris Humphrey said.

"It is through opportunities like this that we can explore further ways to boost trade and investment between our two regions. As ASEAN’s largest source of foreign investment and second largest external trading partner, European businesses have much to offer and will continue to engage constructively with their ASEAN counterparts as the region continues to integrate.”

Dubai World Central welcomes UAE-Japan partnerships via Japan Trade Centre

Source: Dubai World Central. Khalid Abdulla, Vice President, Licensing, Registration & Permits Approval, Dubai World Central, Usama Saleh, Vice President, Land Planning and Development, Dubai World Central, with Shogo Ishida, Director, JTC DWC LLC, during the inauguration of the Japan Trade Centre at Dubai World Central in January 2015.

Japan Trade Centre (JTC), a private-sector business-to-business platform dedicated to promoting Japan’s small and medium enterprises across international markets, is now operational at the Business Park in Dubai World Central (DWC). 

JTC DWC will serve a growing body of Japanese SMEs in the UAE, spanning various industries such as machinery, construction materials, electronics, food and beverage, textiles and jewellery. JTC is linked to a pool of over 2,000 Japanese business partners – including manufacturers and traders of approximately 30,000 diverse products – who are poised to promote their business in Dubai.

Welcoming JTC, Rashed Bu Qara’a, Chief Operating Officer of Dubai Aviation City Corporation, said: “As a gateway to the world, DWC is proud to open doors to the Japan Trade Centre. Located at the crossroads of three continents, we offer our business partners world-class infrastructure and a diverse, expanding economy.”

Shogo Ishida, Director of JTC DWC, said: “The UAE is Japan’s strategic trading partner and a natural springboard for its SMEs to enter the regional markets. The UAE has cultivated a fertile business ecosystem, which is why we chose to base the company in Dubai World Central. With our new offices, we are well positioned to support Japanese SMEs, many of which are actively looking to tap the Middle East as part of their growth trajectory.”

The establishment of JTC DWC is anticipated to further boost trade flows between the UAE and Japan, which totaled US$25.92 billion in the first half of 2014. In the same period, the UAE exports to Japan were worth US$21.34 billion while its imports amounted to US$4.59 billion, making the country Japan’s largest trading partner in the Arabian Gulf.

Japan’s 4.2 million SMEs are the nation’s wealth generators, representing 99.7% of its companies, 70% of the work force, and more than 50% of its manufacturing industry*.

*Small and Medium Enterprise Agency, Ministry of Economy, Trade and Industry, September 2013.

EY outlines challenges hindering an effective AEC

Political, legal and organisational complexities and regulatory burden, as well as the lack of uniform and harmonised trading rules among the ASEAN nations, are hampering the progress of the 2007 ASEAN Economic Community (AEC) Blueprint, which seeks to achieve regional economic integration by 2015, says EY.

A new EY report, Trade Secrets: ASEAN economic community and inward investment, explores the progress of the AEC through the eyes of business, in particular, at the impediments to doing business in ASEAN. According to the “ASEAN Economic Community Scorecard 2012”, only two-thirds (67.5%) of the targets for an integrated economic region by 2015 have been met.

Mildred Tan, EY’s Asean Government & Public Sector Leader says: “This is perhaps unsurprising, given the economic diversity and varying growth maturity in each of the member countries. At the same time, we often see that national and local priorities supersede regional initiatives, obscuring wider goals. While macro problems persist, on the micro level, there are many areas where solutions can be applied.”

On the other hand, the business community has also been lukewarm towards the overall progress of the AEC. The reasons are three-fold: first, business require greater clarity on inter-government collaboration; second, the business community prefers to deal directly with each other; third, a need for stronger focus from governments on prioritizing and solving the problems, particularly those directly relating to investment and business operations.

“Businesses can be both the beneficiary and the facilitator of the AEC. Often, public-private consultation holds the key to unlock the value of any transformation. By examining the impediments to doing business in ASEAN from the business’ perspective, we hope to offer pragmatic policy and implementation recommendations to governments,” said Tan.

One of the biggest challenges that investors face in setting up businesses in ASEAN is the need for clarity and certainty in local laws, government policies and legal environment. Examples of such uncertainty are amendments to important legislations with little notice, arbitrary interpretation of laws or policies, and outdated rules and regulations.

Other issues that plague businesses and investors in ASEAN include complicated procedures and long delays in starting up businesses, multilayered approvals for licenses, legalisation of documents, regulatory requirements, foreign ownership restrictions, politics and bilateral relations.

Sophia Lim, Director of Corporate Secretarial Services – Global Compliance & Reporting at EY shares that the most logical and effective solution is to amend policies for ease of starting business. “Simplification and clarity are key. A three-pronged approach at the regional, national and local government is needed. ASEAN countries could look into the standardization of regulatory processes and information requirement, and having a one-stop registry exchange and an ASEAN business portal. There also needs to be continual dialogue between business and policy-makers, and among jurisdictions within the same country and across countries.”

Two of the important issues affecting intra-regional trade in ASEAN are the various entry barriers and the need for certainty in obtaining and retaining preferential tariff concessions under the ASEAN Trade in Goods Agreement (ATIGA).

Tariffs on imported goods are generally a barrier for businesses. In line with the ATIGA schedule, six ASEAN member states – Brunei, Indonesia, Malaysia, Philippines, Singapore and Thailand – have eliminated tariffs on almost all goods that are produced in the region, while newer members such as Cambodia, Laos, Myanmar and Vietnam are committed to eliminate tariffs on such goods by 2015, with some flexibility to extend the deadline to 2018.

However, the free flow of goods in ASEAN has yet to become a reality, given existing non-tariff barriers to cross-border trade. For example, while ASEAN has established a common eight-digit tariff classification system, in practice, it is still common for importing customs authorities to adopt differing product classifications and deny benefit of ATIGA preferential duties. This is on top of other gaps, including the disparity in the time taken for goods to clear customs checkpoints, which can range between four days and 26 days across ASEAN countries, resulting in unnecessary costs and inefficient and unpredictable supply chains.

Shubhendu Misra, Partner, Indirect Tax – Global Trade at EY in Singapore comments: “Having uniform and harmonised trading rules, as well as eliminating varying and often opaque administrative practices and protectionism, is important. This, combined with the inherent lack of trust in the trading community by pockets of customs administration, is curtailing the full benefits of free trade.”

Misra adds that the recent WTO Agreement on Trade Facilitation will provide an excellent reference for ASEAN to embrace and implement as part of the run-up to the AEC. “Many of the trade facilitation measures forming part of the WTO Agreement are in areas where ASEAN currently lacks. Early adoption by ASEAN on a unilateral basis would send a strong signal to the world that ASEAN is open for business,” he said.