Archive | International Economy News – Asia RSS feed for this archive

S’pore, US among top destinations for rich Chinese migrants – The Straits Times 4 Nov 11

About 60 percent of the rich Chinese people, each of whom has a net asset of at least 60 million yuan (S$12.12 million), said they intended to migrate from China, a report has found. About 14 per cent of them have either already migrated from China or have applied for migration. The three most favoured […]

Leave a Comment Continue Reading →

Strong demand in Asia seen slowing next year

Business Times – 20 Mar 2008 This poses risks as firm US recovery unlikely: consultancy  (SINGAPORE) Domestic demand in Asian countries this year look strong, but may slow down in 2009. This may present risks to regional countries as the US economy is unlikely to make a strong recovery next year, according to consultancy firm […]

Leave a Comment Continue Reading →

China faces ‘very severe’ unemployment

20m new jobseekers expected every year: labour minister (BEIJING) China’s labour minister yesterday admitted that the booming economy faced a ‘very severe’ unemployment situation as millions of new jobseekers join the market every year. The flood of new entrants in both urban and rural areas will continue for a long time, labour and social security […]

Leave a Comment Continue Reading →

Inflation likely to have hit 8.3% in Feb: Bank of China

Reports of bank’s estimate trigger speculation of interest rate hike (BEIJING) China’s inflation likely hit a new 11-year high of 8.3 per cent last month on the back of rising food prices, state media reported yesterday, triggering speculation of a modest hike in interest rates. Severe winter weather which crippled transport networks, and the Chinese […]

Leave a Comment Continue Reading →

India losing its status as world’s top outsourcing hub

China, Morocco and EEurope among new locations for global IT services providers INDIA’S position as the No. 1 low-cost outsourcing destination is under threat, with China, Morocco and eastern European nations such as Hungary emerging as the sought-after locations by nformation technology (IT) services providers, a recent study has shown. The study by Pierre Audoin […]

Leave a Comment Continue Reading →

China losing competitive edge in some industries: survey

(SHANGHAI) China is fast losing its manufacturing competitiveness in some industries, and companies need to upgrade their operations there to stay profitable, according to a survey released yesterday. The study comes amid reports that thousands of manufacturers, both Chinese and foreign, are shifting operations away from coastal regions, where labour and other costs are eroding […]

Leave a Comment Continue Reading →

Malaysian economy grows 6.3% in 2007

Strong domestic demand boosted fourth-quarter growth to 7.3% THE Malaysian economy expanded 6.3 per cent in 2007, with strong domestic demand propelling fourth-quarter growth to 7.3 per cent. According to figures released by the central bank yesterday, growth was broad-based in all economic sectors. The services sector continued to be a key driver, expanding 9.1 […]

Leave a Comment Continue Reading →

China’s economy leads world: poll

(WASHINGTON) More Americans believe China, not the United States, is the world’s top economic power, according to an opinion poll.The Gallup World Affairs survey found that four in ten Americans say China’s economy leads the world; only 33 per cent picked the United States.In 2000, the United States was top in the poll, with the […]

Leave a Comment Continue Reading →

China no more the source of cheapest goods

Rising costs hit its competitive edge, forcing some firms to relocate overseas (SHANGHAI) The teddy bears selling for US$1.40 each in Shanghai’s Ikea store may be just about the cheapest in town, but they’re not made in China – they’re stitched and stuffed in Indonesia. The fluffy brown toys reflect a new challenge for China: […]

Leave a Comment Continue Reading →

ECONOMIC REVIEW: Japan downgrades growth assessment

ECONOMIC REVIEW Japan downgrades growth assessment TOKYO – JAPAN’S government yesterday downgraded its assessment of Asia’s largest economy for the first time in 15 months, saying the recovery was losing steam due to slowing United States growth. A monthly report from the Cabinet Office acknowledged that exports and industrial output are cooling, while consumer spending […]

Leave a Comment Continue Reading →

Rising costs squeeze Chinese factories

SHANGHAI – THE teddy bears selling for US$1.40 (S$1.97) in Shanghai’s Ikea store may be just about the cheapest in town, but they are not made in China: They are stitched and stuffed in Indonesia.The fluffy brown toys reflect a new challenge for China. Its huge economy, which has long offered some of the world’s […]

Leave a Comment Continue Reading →

Rising inflation across Asia mauls S’pore Reits

Trusts may still get big lift from higher rents, higher hotel rates, say analysts SOARING inflation across Asia has sucked the life out of real estate investment trusts (Reits), whose high-yielding dividends have made them wildly popular among investors in recent years. Reits, in general, have fallen about 32.5 per cent in value from their […]

Leave a Comment Continue Reading →

Japan’s exports improve despite US slowdown

Rising import costs due to surging oil, gas prices cause big trade deficit in Jan IN TOKYO FACED with slowing demand in the US market, Japan’s exports still managed to improve last month on the back of solid sales to other parts of Asia and to Europe. But surging oil and natural gas prices pushed […]

Leave a Comment Continue Reading →

MAS fears Asia will hurt if US engine seizes

A negative spiral can take hold, affecting even the real economy (SINGAPORE) A sharp and deep recession in the United States will hit Asian economies, warned Heng Swee Kiat, managing director, Monetary Authority of Singapore (MAS), yesterday. And in his first public comment on the global financial turmoil, Mr Heng said the credit crisis has […]

Leave a Comment Continue Reading →

China, wary of social unrest, scrambles to contain food prices

It wants to avoid mistakes of 1988 as inflation hits 10-year high of 6.9% (HONG KONG) Rocketing food prices in China have sown deep concern among the communist leadership, ever wary of social unrest, as they fumble to control inflation without repeating past mistakes, analysts say. Overall inflation in China is running at a 10-year […]

Leave a Comment Continue Reading →

Indian govt struggles to keep food prices down

Surge in global food prices hits millions of people in India (NEW DELHI) Anand’s restaurant has served flat bread, lentils and vegetables to loyal customers every day for four decades but for the past year he’s been on the receiving end of almost non-stop complaints. ‘They argue because we’ve raised prices. But we had to […]

Leave a Comment Continue Reading →

2008 not necessarily like 2007: UBS

(ZURICH) UBS AG does not expect 2008 to be a year like 2007, when the Swiss bank wrote down US $18 billion in bad credits and posted the first loss since its creation, its chief executive was quoted as saying yesterday. ‘I view the environment as difficult due to great uncertainties related to the US […]

Leave a Comment Continue Reading →

IMPROVING OUTLOOK: UBS expects this year to be a better one

ZURICH – UBS does not expect this year to be like the last, when the Swiss bank wrote down US$18 billion (S$25.5 billion) in bad credits and posted the first loss since its creation, its chief executive officer (CEO) was quoted as saying yesterday. ‘I view the environment as difficult due to great uncertainties related […]

Leave a Comment Continue Reading →

Asia won’t catch flu if US gets a cold, says MM Lee

With China and India propelling it, Asia won’t be ‘unduly disadvantaged’ by a recession in the US ASIA – propelled by the twin engines of China and India – will not be ‘unduly disadvantaged’ if a recession hits the United States, said Minister Mentor Lee Kuan Yew last night. ‘I believe this may be the […]

Leave a Comment Continue Reading →

China’s economy may grow around 10% in 2008: IMF

Its MD says a faster pace of appreciation of yuan is needed to address economic challenges (BEIJING) China’s economy is likely to grow around 10 per cent this year despite a global slowdown stemming from the US sub-prime mortgage crisis, Dominique Strauss-Kahn, managing director of the International Monetary Fund (IMF), said yesterday. Mr Strauss-Kahn said […]

Leave a Comment Continue Reading →

Priority is curbing inflation: PM Singh

Rising prices last year caused Congress party to lose power in three states (NEW DELHI) Indian Prime Minister Manmohan Singh said that inflation hurts the poor the most, indicating that controlling prices was the government’s top priority. ‘There have been some impatient editorials about the sacrifice of growth at the altar of inflation,’ Mr Singh […]

Leave a Comment Continue Reading →

IMF predicts 10% growth in China

Beijing – THE International Monetary Fund (IMF) still sees China’s economy expanding 10 per cent this year. ‘The current financial crisis, which began in the United States housing market, is spreading to affect the real economy in the US and elsewhere,’ IMF managing director Dominique Strauss-Kahn told reporters in Beijing yesterday. ‘There will be some […]

Leave a Comment Continue Reading →

Japan’s growth beats forecasts, but economists remain cautious

TOKYO – JAPAN’S economy grew at double the expected rate in the last quarter of 2007, but some economists saw this as the last hurrah before a slowdown this year. Strong capital spending and exports helped drive quarterly growth to 0.9 per cent, compared with a forecast 0.4 per cent rise, government data showed yesterday. […]

Leave a Comment Continue Reading →

Jakarta to cut 2008 growth forecast on downside risks

(TOKYO) Indonesia will cut this year’s growth forecast amid greater ‘downside’ risks stemming from record oil prices and a global economic slowdown, Finance Minister Sri Mulyani Indrawati said. South-east Asia’s largest economy is expected to grow between 6.4 per cent and 6.5 per cent in 2008, lower than the 6.8 per cent expansion predicted earlier […]

Leave a Comment Continue Reading →

China faces economic, political woes on price fears

(CHONGQING, China) China is supposed to be getting richer, but for Liu Gaohua, rising prices on everything from cabbages to houses mean life is only getting tougher. ‘It’s hard to get by day-to-day,’ said the resident of Chongqing, a western Chinese industrial city on the upper reaches of the Yangtze river. ‘We eat less pork […]

Leave a Comment Continue Reading →

Growth may slow for first time in 3 years

Govt forecasts India’s economy to expand 8.7% as higher interest rates cool consumer demand (NEW DELHI) India’s government expects economic growth to slow for the first time in three years, as higher interest rates cool consumer demand for homes, motorcycles and electric appliances. Asia’s third largest economy is forecast to expand 8.7 per cent in […]

Leave a Comment Continue Reading →

ECONOMY WATCH: Asia not immune to global market turbulence: ADB chief

Bank will help region if drastic slowdown occurs, by changing ‘lending priorities’ IN TOKYO WITH the US economy poised on the brink of possible recession this year, the dangers of economic shocks being transmitted to Asia via trade and financial linkages are very real, Asian Development Bank (ADB) president Haruhiko Kuroda warned yesterday in Tokyo. […]

Leave a Comment Continue Reading →

The markets are leading Asia to ruin

Europe’s successful politically-led integration model is showing Asia the way ahead – if its leaders would only be willing TOKYO WHILE Europe goes from strength to strength as a united continent with a strong economy and a currency to match, Asia continues to wander directionless waiting fearfully to see whether it will be spared the […]

Leave a Comment Continue Reading →

Asian CEOs bullish on 2008 prospects: PwC

ASIAN CEOs are more confident about business prospects in the year ahead, despite a fall in confidence globally, a PricewaterhouseCoopers (PwC) survey has found. ‘Many companies in Asia continue to be the engine of economic growth that has been driving prosperity for more than a decade,’ PwC said. As a result, 56 per cent of […]

Leave a Comment Continue Reading →

Asia more stable now than in 1997

ASIAN banks and markets here are a lot more stable and better placed for long- term growth, despite the sub-prime fears. Lorraine Tan, S&P’s vice-president for Asian Equity Research, sees Singapore banks, in particular, as being very stable in a market where there is widespread fear of a financial sector collapse brought on by the […]

Leave a Comment Continue Reading →

Asian CEOs more upbeat than their Western peers

DESPITE a general decline in confidence levels, Asian chief executive officers (CEOs) are more upbeat than their Western counterparts, says a new PricewaterhouseCoopers (PwC) survey. The annual survey, conducted late last year, found that 50 per cent of CEOs were ‘very confident’ about revenue growth over the next 12 months, compared to 52 per cent the […]

Leave a Comment Continue Reading →

Asian exporters brace themselves for slowdown

Companies changing how they operate rather than wait for things to get worse HONG KONG – ASIAN exporters are already feeling the effects of a United States economic downturn – effects that may be magnified by a weak US dollar, volatile world markets and fears that more bad loans may be ticking in the coffers […]

Leave a Comment Continue Reading →

Overheating of Asian economies likely: Lehman

Better growth rate will attract massive capital inflows GOOD economic news now could lead to tough times later, an American investment bank is warning. The bank, Lehman Brothers, says that a soft landing for the global economy could lead Asia ex-Japan economies to overheat later this year or into next year. Lehman’s chief economist Asia […]

Leave a Comment Continue Reading →

Soros warns of worst financial crisis since WWII

(VIENNA) Billionaire investor George Soros said the world was facing the worst financial crisis since World War II and the United States was threatened with recession, according to an interview by the Austrian daily Standard. ‘The situation is much more serious than any other financial crisis since the end of World War II,’ Mr Soros […]

Leave a Comment Continue Reading →

Governments urge calm in face of market turmoil

Ministers in Asia and Europe advise investors to stay rational and not overreact HONG KONG – GOVERNMENTS urged calm yesterday while calling for international cooperation to cope with a global slide in stock markets sparked by fears of a United States recession. Asian markets experienced a day of heavy losses, with Hong Kong share prices […]

Leave a Comment Continue Reading →

Recession in US, Europe could shake Asia, S’pore

Region still relies heavily on world’s biggest markets, say economists A RECESSION in the United States and Europe would badly hurt Asian economies, including Singapore’s, which still rely heavily on these two export markets for growth, according to economists. Indeed, analysts at Lehman Brothers believe economic growth in Singapore could slump to as low as […]

Leave a Comment Continue Reading →

Analysts see Asian economies weathering a US recession

Reason: Asia is now less dependent on the US economy (BANGKOK) Asia would be able to weather any recession in the United States, analysts say, because rising trade and investment within the region make it less dependent on the US economy than in the past. While a severe downturn in the US would drag on […]

Leave a Comment Continue Reading →

CHINESE ECONOMY’S SUPER-GROWTH

‘Growth’ problems won’t go away yet THE Chinese economy, having chalked up an average growth rate of 9.7 per cent for over two decades, sustained another year of double-digit growth last year, at 11.5 per cent. This was first announced by Premier Wen Jiabao on Nov 20 last year whilst visiting Singapore. Soon after this, […]

Leave a Comment Continue Reading →

US hurdles force Dubai state fund to look to China

Istithmar among such funds seeking out less developed markets to avoid excessive scrutiny DUBAI government investment agency Istithmar is considering investments in China, after being rebuffed in the United States, The Wall Street Journal reported yesterday. Istithmar comes under the umbrella of state-owned Dubai World, which also includes Dubai Ports World (DP World), a container […]

Leave a Comment Continue Reading →

US recession fears send Asian markets into a tailspin

STI, Hang Seng suffer big drops; bank and tech stocks, energy and base metal prices also hit STOCK markets across Asia plummeted yesterday amid fears that a gathering financial storm in the United States might tip the global economy into a recession. Hong Kong was the worst hit as the Hang Seng Index plunged an […]

Leave a Comment Continue Reading →

MARKET TUMBLE: Bank stocks hit by US recession, sub-prime fears

Sell-off symptomatic of broader sell-down, slowing in S’pore’s economy: analysts BANK stocks were clobbered yesterday on continuing concerns of a possible recession in the United States, subprime lending woes and a general slowing down of the Singapore economy. This comes on the back of the news that Citigroup reported its biggest loss in its 196-year […]

Leave a Comment Continue Reading →

Goldman Sachs cuts Asia’s growth forecast

Expected US recession seen eroding demand for region’s exports (SINGAPORE) Goldman Sachs Group has lowered its growth forecast for Asia on concern that an expected US recession will erode demand for the region’s exports. Asia, excluding Japan, will expand 8.3 per cent this year, down from an earlier estimate of 8.6 per cent, Hong Kong-based […]

Leave a Comment Continue Reading →

Markets brace for news of big losses by banks

Citigroup could write off US$24b, lay off 20,000 staff (LONDON) Major American banks are expected to unveil substantial losses and secure more cash from abroad in what is shaping up to be a pivotal week for the global credit crisis. Citigroup could write off as much as US$24 billion and lay off 20,000 workers in […]

Leave a Comment Continue Reading →

China increases penalties for price-fixing to fight inflation

Firms that hoard goods can be fined up to one million yuan: Cabinet (BEIJING) China’s Cabinet yesterday sharply increased penalties for price-fixing, expanding an anti-inflation campaign that has failed to cool a surge in politically sensitive food costs. Food costs soared by 18.2 per cent in November, pushing the overall monthly inflation rate to 6.9 […]

Leave a Comment Continue Reading →

Big China firms’ bonds better: ING

(HONG KONG) Investors in Chinese property bonds should adjust their portfolios in favour of larger, diversified firms and cut their exposure to smaller developers which are focused on fewer cities, ING Bank said in a report yesterday. The bank advised bond investors to remain invested in bigger firms like Shimao Property Holdings, Agile Property Holdings […]

Leave a Comment Continue Reading →

EU seeking partnership with China in Africa

Proposal comes as Chinese presence is eroding Europe’s influence in region LONDON – THE European Union has announced that it is seeking Chinese cooperation in Africa. EU Development Commissioner Louis Michel has pledged to present Beijing with an ‘African partnership’ when he visits China in March. But Mr Michel, a former Belgian foreign minister known […]

Leave a Comment Continue Reading →

Slowing Europe may be bigger concern for S’pore, region

FOR Singapore and other Asian economies that are heavily dependent on exports, a decelerating Europe may be a cause for greater concern than a slowdown in the United States. While the US economy will slow down in the first half of the year, it is unlikely to sink into a recession, said Deutsche Bank chief […]

Leave a Comment Continue Reading →

50% chance of recession in Japan: Goldman

View contrasts with upbeat reports from World Bank, OECD on major economies IN TOKYO JAPAN’S economy could follow that of the US into recession this year, investment bank Goldman Sachs warned yesterday, underlining a growing gulf between analysts in the private and public sectors over prospects for the global economy in 2008. A senior Bank […]

Leave a Comment Continue Reading →

Japan only has itself to blame for its economy

However it is hardly alone in shooting its economy in the foot By WILLIAM PESEK JR AS ECONOMISTS buzz about a Japanese recession, officials in Tokyo are racing to assign blame. An unfolding global slowdown is the most mentioned excuse. Fallout from the US sub-prime debacle is a close second. Surging oil prices also are […]

Leave a Comment Continue Reading →

Developing nations to lift world economy amid US slowdown

They will be the biggest drivers of global growth as pace slows to 3.3% this year: World Bank DEVELOPING nations will be key in helping the global economy mitigate the drag from a slowing United States. With their domestic economies coming into their own, poor countries will be the world’s biggest growth driver this year, […]

Leave a Comment Continue Reading →

When US sneezes, Asia now does not catch cold

THE axiom ‘when the US sneezes, Asia catches cold’ does not hold true any more. Asian economies have become less dependent on the United States market, though not completely immune to its changes. That, at least, was the consensus at the 6th Annual Business Outlook Forum, jointly organised by the Singapore Chinese Chamber of Commerce […]

Leave a Comment Continue Reading →

Inflation and trade surplus driving yuan: Central bank

BASEL (SWITZERLAND) – CHINESE central bank governor Zhou Xiaochuan has said the trade surplus and faster inflation are driving the yuan’s appreciation. The currency’s gains reflect ‘economic data’, Mr Zhou told reporters yesterday in Basel, where he was meeting Group of 10 central bankers. The surplus, rising prices and Chinese institutions selling currency reserves ‘may […]

Leave a Comment Continue Reading →

China’s growth, inflation expected to slow

SHANGHAI – CHINA’S economic growth and consumer price inflation are expected to slow moderately this year as cooling policies take effect and food supplies increase, a major government research institute forecast yesterday. Gross domestic product growth is projected to ease to 10.8 per cent this year from an estimated 11.4 per cent last year, the […]

Leave a Comment Continue Reading →

Bombs, security fears mar revelry as world greets 2008

(NEW YORK) Millions staged midnight parties at iconic landmarks around the world to ring in 2008, but bomb attacks and security fears quickly darkened New Year festivities in places. In New York, hundreds of thousands of revellers crowded the fabled Times Square, braving cold temperatures and stringent security measures to see Mayor Michael Bloomberg release […]

Leave a Comment Continue Reading →

Minister sees Japan’s economy continuing recovery next year

IN JAPAN JAPAN’S economy is likely to continue growing next year, Minister for Economic and Fiscal Policy Hiroko Ota suggested yesterday, dismissing growing fears that it could plunge into recession as a result of an expected global slowdown in 2008. But she acknowledged a number of longer-term challenges to the continued growth of the economy. […]

Leave a Comment Continue Reading →

Asia’s growth may slow in ’08

Emerging problems in major economies cloud outlook (SHANGHAI, China) Asia’s dynamic economic growth is expected to slow modestly next year as its biggest economies grapple with emerging problems, from inflation in China to appreciating currencies in India and Japan. The expected slowdown in the US economy – a vital export market – and higher oil […]

Leave a Comment Continue Reading →

Global economy facing threat of stagflation

Growth may slow to 4-year low and inflation could hit 10-year high WASHINGTON – THE world economy is facing the risk of stagflation – the double whammy of suffering both recession and faster inflation. Global growth this quarter and next may be the slowest in four years, while inflation might be the fastest in a […]

Leave a Comment Continue Reading →

IMF expects to lower global growth outlook

(ZURICH) The International Monetary Fund will lower its growth outlook as the continued credit crisis hurts the US and European economies, while global imbalances also weigh on growth, its top economist was quoted as saying. ‘Given this background, the numbers will indeed be weaker than in our latest World Economic Outlook,’ IMF chief economist Simon […]

Leave a Comment Continue Reading →

Potential and problems in Ho Chi Minh City

IN HO CHI MINH CITY BUSINESSMEN, some of them Singaporean, shared their optimism about Vietnam’s economy with Senior Minister Goh Chok Tong over lunch yesterday when he arrived in Ho Chi Minh City on the final leg of his week-long visit to the country. But the businessmen, among them executives from Singapore’s Keppel Land and […]

Leave a Comment Continue Reading →

Japanese business sentiment drops to 2-year low

Tankan survey results boost expectations that rate hike will be delayed to second half TOKYO – BIG Japanese manufacturers’ business sentiment has slipped to a two-year low, a Bank of Japan (BOJ) survey showed yesterday, reinforcing expectations that a rise in interest rates will be delayed to the second half of next year. Rising raw […]

Leave a Comment Continue Reading →

PECC sees slower Asia-Pacific growth in 2008

Think-tank forecasts 4.9% GDP growth this year and next (SINGAPORE) Asia-Pacific’s economic outlook is now more uncertain than any time since the 1997 Asian crisis, and the region is expected to post slower economic growth in 2008, according to one think-tank. In its latest State of the Region report, the Pacific Economic Cooperation Council (PECC) […]

Leave a Comment Continue Reading →

Asia at risk if US growth slows: ADB

Region still depends on outside markets despite growing intra-Asian trade IN TOKYO ASIA’S emerging economies are likely to be hit hard by any serious slowdown in the wake of the US sub-prime mortgage crisis, the Asian Development Bank warns in a report published yesterday. Asia still depends heavily on the US and other outside markets […]

Leave a Comment Continue Reading →

Central bankers’ liquidity plan fails to impress Asian investors

China and HK biggest losers in Asia; STI down 2% (SINGAPORE) Investors in Asian stock markets, clearly sceptical that a plan by central banks to inject liquidity into the system to ease sub-prime pressure would work, yesterday braced themselves for an expected Wall Street sell-off by first dumping stocks throughout the region. The losses were […]

Leave a Comment Continue Reading →

China’s ’07 inflation may exceed 4.4%

Nov consumer prices likely at 6.5%, the highest in a decade (BEIJING) China’s 2007 inflation may exceed 4.4 per cent, driven mainly by rising food prices, China’s banking regulator said. ‘We will focus on preventing the structural rise in prices from transforming into overall inflation,’ Liu Mingkang, chairman of the China Banking Regulatory Commission, said […]

Leave a Comment Continue Reading →

Japan lowers third-quarter GDP forecast

Central bank will have no chance to hike rates until late next year, analysts predict TOKYO – JAPAN revised down yesterday third-quarter growth, surprising markets that had expected an upward revision and prompting many to predict the Bank of Japan (BOJ) would have no chance to raise rates until late next year. Soft capital spending […]

Leave a Comment Continue Reading →

China’s policy shift signals concerns about inflation

BEIJING – CHINA’S announcement that it will move to a tight monetary policy from what it called the prudent stance of the past decade may not mark a radical new departure. But the change in rhetoric suggests the Chinese leadership wants to signal concern about living standards as people fret about inflation. Analysts say the […]

Leave a Comment Continue Reading →

OECD warns of inflation risk in China

PARIS – CHINA’S economy faces serious inflation risks which, if unchecked, could fuel yet more speculation in stocks and property, the Organisation of Economic Cooperation and Development (OECD) said yesterday. Economic growth is likely to reach 10.7 per cent next year and 10.1 per cent in 2009, the OECD said in its twice-yearly Economic Outlook […]

Leave a Comment Continue Reading →

Thai Q3 growth faster than expected

(BANGKOK) Thailand’s economy grew faster than expected in the third quarter, buoyed by exports and a recovery in private consumption almost a year after a military coup. South-east Asia’s second-biggest economy expanded 4.9 per cent in the three months ended Sept 30 from a year earlier, compared with a revised 4.3 per cent gain in […]

Leave a Comment Continue Reading →

India can sustain 9% growth for third year: minister

(NEW DELHI) India’s 9 per cent economic growth may be sustained for a record third year on prospects of bumper crops and a retreat in crude oil prices, Finance Minister Palaniappan Chidambaram said. ‘If harvests are good, we are able to enjoy a bit of luck with crude oil, and we are able to moderate […]

Leave a Comment Continue Reading →

Developers planning RM9b KL riverside redevelopment project

(KUALA LUMPUR) A group of Australian and Malaysian firms plan to redevelop a riverside precinct of Kuala Lumpur at a cost of about RM9 billion (S$3.89 billion), the Malaysian Business Times said yesterday. The urban-regeneration project is backed by Australian bank Macquarie, Australian builder Leighton and two unlisted Malaysian firms, the paper said. Construction is […]

Leave a Comment Continue Reading →

Japan October inflation bucks downtrend

Markets cheered by other positive news but small, mid-size firms still hurting IN TOKYO JAPAN received more positive economic news yesterday when it was reported that consumer prices rose for the first time in 10 months during October, while household spending rose by 0.6 per cent during the same month. This came on the heels […]

Leave a Comment Continue Reading →

Oil price falls below US$90

(LONDON) The price of oil fell back below US$90 yesterday as the market speculated about the chances of an increase in Opec output at the cartel’s meeting next week, dealers said. They said prices also fell after it appeared more likely that an explosion on a key pipeline from Canada into the United States would […]

Leave a Comment Continue Reading →

China, India seen driving Asia’s wealth market

SG PRIVATE Bank is looking to China and India to drive Asia’s wealth markets, and the sub-prime crisis is a short-term hiccup, says chief executive Pierre Baer. The firm advises on some US$20 billion in Asian clients’ assets, posting an annual growth of about 30 per cent. It set up its Singapore office in 1998. […]

Leave a Comment Continue Reading →

Asia should be on inflation alert: JPMorgan

Countries that let currency strengthen will be better off (SINGAPORE) Inflation poses a bigger and more immediate threat to countries in Asia than a US economic recession, said a senior equity strategist. Emerging-market countries that allow their currencies to strengthen in the next 12 months are more likely to see sustained economic growth and escape […]

Leave a Comment Continue Reading →

Japanese Reits likely to be takeover targets

Those trading at less than their net asset value are likely to be bought out (TOKYO) Japanese real estate trusts and asset managers may be ripe for takeovers after share prices plunged and stricter compliance guidelines raised costs, said property managers including a local real estate executive at Morgan Stanley. Regulations to boost investor protection […]

Leave a Comment Continue Reading →

Australian poll largesse risks high rates, inflation

(SYDNEY) Generous promises from Australia’s two main political parties ahead of tomorrow’s general election have stoked fears that interest rates, already at the highest in a decade, may go up even further than the market anticipates. Financial markets are pricing in a rate rise early next year, but analysts say investors might have to factor […]

Leave a Comment Continue Reading →

US sub-prime woes ‘should not deter Asian bond growth’

ASIAN bond markets must continue to grow and develop, even though it was their relative lack of sophistication that spared them from the worst of the United States sub-prime crisis. A conference on regional bonds in Singapore yesterday heard that the highly complex financial products used by American and European banks are still not that […]

Leave a Comment Continue Reading →

Asia must act quickly on monetary cooperation

TOKYO CORRESPONDENT THE US dollar is on the skids and it is time for Asia to put on its skates with regard to regional monetary cooperation. The connection between the two things should be obvious, although many Asian policymakers (including those in Japan who see themselves as leaders of the pack) continue to utter facile […]

Leave a Comment Continue Reading →

Asian stocks rebound as US dollar steadies

Hedge funds, traders snap up blue chips, hot China plays across Asia on greenback’s gain REGIONAL stock markets, including Singapore’s, made startling recoveries in late trading yesterday after nosediving early in response to a big drop on Wall Street. The Straits Times Index (STI) collapsed by 85 points right after the opening bell but finished […]

Leave a Comment Continue Reading →

Asia faces the inflation test

As long as economic policymakers act responsibly and transparently, Asia can avoid excessive price increases By WILLIAM PESEK JR ASIANS sure are unique; they don’t eat and they don’t use energy. That’s nonsense, of course, yet it’s how some are viewing Asia. Even as prices rise faster in some places than during the 1990s, investors […]

Leave a Comment Continue Reading →

China supports strong US dollar, says official

Beijing hopes for an orderly solution following recent market turbulence (CAPE TOWN) China supports a ‘strong dollar’ because it would be conducive to fostering a healthy global economic system, the country’s central bank governor Zhou Xiaochuan said yesterday. Speaking to reporters, Mr Zhou said that Beijing hoped for an orderly solution following recent market turbulence […]

Leave a Comment Continue Reading →

Howard faces bust despite Aussie boom

(SYDNEY) Australia’s economy is booming, so the question of why the opinion polls show the government heading for defeat in elections on Saturday puzzles Prime Minister John Howard. The conservative leader has gone from suggesting the electorate must be joking to complaining that Asian growth is getting the credit that is rightfully his for the […]

Leave a Comment Continue Reading →

S’pore, China to jointly develop eco-city

Tianjin Eco-City to be a model of sustainable devt (SINGAPORE) In a highly anticipated landmark signing at the Istana yesterday, the governments of Singapore and China inked a framework agreement to jointly develop an eco-city in Tianjin, which will deepen cooperation and bring bilateral relations to greater heights. The vision is for the Sino-Singapore Tianjin […]

Leave a Comment Continue Reading →

Inflation rising as Hong Kong looks to grow 6% this year

Govt revises target from 5-6%, but inflation hits 2.5% for first nine months IN HONG KONG HONG Kong’s economy is tipped to grow by 6 per cent this year as the city continues to enjoy strong domestic demand and low unemployment, but inflation has hit levels not seen since the 1997 handover. ‘The momentum for […]

Leave a Comment Continue Reading →

Trade among Asean nations drops to 21% of total exports

Fall raises question of whether 2015 target for a unified market can be met THE 10 Asean economies may be booming, but trade among member countries has fallen as a proportion of their total exports. This casts a worrying shadow on the region’s long-standing ambitions to become a unified economic market by tearing down trade […]

Leave a Comment Continue Reading →

US credit woes hurt foreign funds to Asia

While inflow is fast slowing for HK, China and India, S’pore is experiencing outflow THE flood of foreign funds surging into Asian bourses over the past four weeks has been reversed by the ongoing credit woes in the United States. Singapore has started experiencing an outflow, with a net sale of US$2.1 million (S$3 million) […]

Leave a Comment Continue Reading →

World Bank sees robust East Asia growth next year

But if oil prices hit new highs, region’s resilience will be tested, it cautions   IN TOKYO THE East Asian economies will continue to see robust growth next year despite a likely US slowdown, but new highs for oil prices will test the region’s resilience, says the World Bank.   The bank has, in its […]

Leave a Comment Continue Reading →

Credit crisis ‘unlikely to faze East Asia’

World Bank expects region to shrug off sub-prime woes, high oil prices to log in solid growth THE sub-prime crisis in the United States is not posing a significant risk to East Asia‘s rapid growth, according to the latest World Bank forecasts.   The region is expected to expand by a solid 8.2 per cent […]

Leave a Comment Continue Reading →

China’s prosperity a boon for S’pore: MM Lee

Minister Mentor lauds efforts at greening Beijing before Olympics A GROWING and prosperous China is good for Singapore, Minister Mentor Lee Kuan Yew said yesterday.   Mr Lee, who is in Beijing to meet China‘s top leaders, made the remarks when he held talks with Chinese Foreign Minister Yang Jiechi. Trade and investment between the […]

Leave a Comment Continue Reading →

Credit crisis, inflation threaten world growth, says Fukui

GLOBAL economic growth is under increasing threat from two fronts – the United States sub-prime crisis and soaring commodities prices that may push up inflation. The warning came from Bank of Japan governor Toshihiko Fukui at a function in Singapore last night. He said the sub-prime turmoil could severely disrupt financial markets, which could then […]

Leave a Comment Continue Reading →

High oil price demands good policies

IT would be a fallacy to imagine that the prospect of a US$100 price tag for a barrel of oil will lead to a push for renewable fuels any time soon. Simply put, there is nothing definitive yet on the horizon offering a reliable, continuous and cheap alternative in the face of mounting energy demand. […]

Leave a Comment Continue Reading →

Japanese banks hit by fresh sub-prime woes

More sub-prime losses ahead for Japan’s banks, say analysts (TOKYO) Japanese financial firms were hit by fresh sub-prime woes yesterday as several banks posted profit slumps and two securities firms delayed a planned merger due to recent market turmoil. Japanese banks are also finding conditions increasingly tough at home as hopes of the central bank […]

Leave a Comment Continue Reading →

Putting Asian markets in perspective

While valuations are no longer cheap, it is not difficult to find stable growth companies with good cash flows and yields, says TAN LYNN DAH THIS has been a bountiful year for Asian equity markets, with Asian bourses scaling new peaks and regional economies enjoying prodigious growth. As one of the fastest growing regions in […]

Leave a Comment Continue Reading →

Inflation back to 6.5% in Oct as food prices rise

More monetary tightening, further rate hikes seen to rein in inflation (BEIJING) China’s consumer prices rose sharply in October, tying a decade- high monthly inflation rate of 6.5 per cent, the government reported yesterday, adding to pressure for measures to cool a politically sensitive surge in food prices. Food prices jumped 17.6 per cent in […]

Leave a Comment Continue Reading →

Still positive on Asian equities

Region will continue to expand at a respectable pace even if below-potential US growth extends into 2008. DESPITE a credit crisis emanating from the US and fresh highs in oil prices, global stock markets have broken records again this year. In Asia, especially since the August turmoil, investors have experienced impressive returns. Most regional equity […]

Leave a Comment Continue Reading →

RESERVE RATIO AT 20-YEAR HIGH – Regional fallout expected as China curbs lending again

BEIJING – ASIA’S financial markets are bracing themselves for the fallout after China ordered banks to put aside more reserves for the ninth time this year to cool a red-hot economy, stock and property markets. The 0.5 percentage point rise in banks’ reserve ratio will take effect on Nov 26 and bring the ratio for […]

Leave a Comment Continue Reading →

HIGH OIL PRICES – A bubble that’s hard to prick

OIL prices are testing US$100 (S$144) a barrel, a key psychological threshold. Once over that hump, how much higher will the price go? Of course, given oil’s limited supply and the world’s expanding appetite, lowpriced oil will never come again. That, however, is different from another consideration: Whether current high prices are truly reflective of supply […]

Leave a Comment Continue Reading →

Painful lessons from Asian crisis

MOKHZANI Mahathir surprised everyone when in April 2001 he declared that he was giving up his business interests in a bid to protect the family name in response to people who had accused his father’s administration of nepotism. Mr Mokhzani’s father is Malaysia’s fourth prime minister Mahathir Mohamad, now 82, who stepped down on Oct […]

Leave a Comment Continue Reading →

Sub-prime crisis: New push to review rating firms’ role

IN TOKYO US Securities and Exchange Commission (SEC) chairman Christopher Cox promised yesterday that regulators would ‘aggressively’ pursue the new mandate they have been given to review the role that rating agencies played in the sub-prime mortgage loan crisis. He was speaking at a briefing in Tokyo as new evidence emerged that the fallout from […]

Leave a Comment Continue Reading →

China’s trade surplus may top $43b in October

Figures due soon seen adding fuel to US complaints that yuan is still undervalued BEIJING – CHINA’S monthly trade surplus probably topped US$30 billion (S$43.3 billion) for the first time, adding fuel to United States complaints that the yuan is undervalued. The gap widened 29 per cent last month from a year earlier to US$30.8 […]

Leave a Comment Continue Reading →