Market

Thai military slashes budgets amid backlash
17May mmBy Brian ThompsonNo Comments
Market

Thai military slashes budgets amid backlash

Thailand's armed forces have made budget cuts and suspended artillery purchases, as millions of Thais suffering from the adverse economic impact of the coronavirus outbreak await cash handouts from the government. The Thai army was the latest branch of the armed forces to slash its 2020 budget last Wednesday by about 10 billion baht (S$439 million), out of the total of 18 billion baht cut by the Defence Ministry. It also halved its planned 900 million baht procurement of more than 100 Stryker armoured infantry carriers from the United States and suspended purchases of other artillery, army spokesman Winthai Suvaree told a press briefing. "It's a high figure compared with other ministries. All the non-committal budgets have been cut," said Colonel Winthai. The government has asked each mini...
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16May By Team FPNo Comments
Market

Indonesia asks big internet companies to pay value-added tax on sales of digital products and services

Big internet companies have been asked by the Indonesian government to pay value-added tax on sales of digital products and services from July, a move that other countries may also adopt as they seek to boost revenues following the coronavirus pandemic.Indonesia will impose a 10% VAT on digital products sold by non-resident internet companies with a significant presence in the Indonesian market, including streaming services, applications and digital games, beginning July 1, as per a regulation published on the finance ministry's website.Earlier, Indonesian authorities had said services by streaming platforms like Spotify and Netflix would be among those subject to the new tax.  The COVID-19 pandemic has accentuated a push by governments around the world to tax internet giants, who could se...
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Coronavirus: Musk defies orders and reopens Tesla’s California plant
12May By TheGreenZoneNo Comments
Market, USA

Coronavirus: Musk defies orders and reopens Tesla’s California plant

Tesla has reopened its only US electric car plant in California, despite local orders against manufacturing. On Monday, the company's chief executive Elon Musk tweeted that production had restarted and he would be "on the line with everyone else". US states and local governments are trying to determine the best way to open up after lockdown. Mr Musk previously vowed to move the firm's headquarters out of California if the plant was not allowed to reopen. He has been vocal about the lockdown orders in recent weeks. Mr Musk recently celebrated plans to relax restrictions across the country, writing on Twitter: "FREE AMERICA NOW". He has also dismissed as "dumb" concerns about the coronavirus. While the state has eased restrictions to allow manufacturing, Alameda County, where the Fremo...
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Coronavirus lockdown to slash Malyasian retail sales by 61 per cent
4May By Team FPNo Comments
Asia, China, Market

Coronavirus lockdown to slash Malyasian retail sales by 61 per cent

The six-week long coronavirus lockdown is expected to slash Malaysian retail sales by 60.7 per cent this month as non-essential stores are forced to close. Retail Group Malaysia, which calculates data on behalf of the Malaysia Retailers Association, estimates that retail sales for the full year will drop by 5.5 per cent, should the government’s Movement Control Order be lifted at the end of this month. It has already been extended from 18 March until 28 April. RGM’s MD Tan Hai Hsin told The Edge that the majority of the nation’s retailers are recording zero sales this month. “This has never happened before in history”. While online sales have surged in Malaysia since the coronavirus struck the nation, and consumers are spending more on food and groceries, categories like jewellery, ...
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Indonesia Central Bank Says Yields Bid Too High at Government Bond Auction
4May By Team FPNo Comments
Asia, China, Market

Indonesia Central Bank Says Yields Bid Too High at Government Bond Auction

JAKARTA — Bond investors should not bet on Indonesia selling debt at higher yields, as the amount to be raised for the rest of the year will be manageable and capital inflows will push yields lower, central bank governor Perry Warjiyo said on Wednesday. Warjiyo's comments come a day after the government raised 16.62 trillion rupiah ($1.08 billion) at its regular bi-weekly auction, below target, despite total incoming bids of 44.4 trillion rupiah. The government called for a greenshoe option auction on Wednesday for a maximum of 23.8 trillion rupiah, covering for the target it did not meet the previous day. Warjiyo told an online news conference the central bank bought 2.3 trillion rupiah in Tuesday's auction as a non-competitive bidder and may purchase more in the additional auct...
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Grab: From business-school project to game-changer in Southeast Asia
4May By Team FPNo Comments
Asia, China, Market, Singapore

Grab: From business-school project to game-changer in Southeast Asia

Ride-hailing app brings financial security to drivers and new technology to region SINGAPORE -- In Malaysia, taxi drivers not using meters were once a common sight. And women, fearful of possible assaults, avoided riding alone in taxis. Seeking to transform the taxi industry in their home country, Anthony Tan and Tan Hooi Ling founded the ride-hailing app Grab in 2012. In the eight years since then, Grab has grown into a leading provider of social infrastructure in roughly 340 cities across eight countries in Southeast Asia. The two began developing a plan to start a business when they were students at Harvard Business School. Their idea for a ride-hailing app, for which they found inspiration from a lecture on balancing the pursuit of corporate profits with social contributions,...
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Southeast Asia’s private equity investment slows in 2019, outlook gloomy
4May By Team FPNo Comments
Asia, China, Market

Southeast Asia’s private equity investment slows in 2019, outlook gloomy

Private equity investment in Southeast Asia declined to US$12 billion last year after reaching a record high of $14 billion in 2017, with COVID-19 posing a risk to investment this year, a global consulting firm says. According to “Southeast Asia Private Equity Report” published by Bain & Company, last year’s private equity investment in Southeast Asia was driven by the internet and technology sector, which represented over 60 percent of all deals, especially in Indonesia. However, the COVID-19 pandemic and the global recession in 2020 will challenge private equity investment this year as investors look for ways to protect their investments and reemerge stronger after the crisis, the report said. “In preparation for this period, general partners are looking at the global finan...
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