JAKARTA — Rattled by rapid oil price swings in recent months, Southeast Asian economies are on tenterhooks ahead of an OPEC meeting this week that is expected to result in a supply cut to boost prices. The recent plunge in prices — the benchmark Brent crude dipped under $60 a barrel last week — has benefited economies such as Indonesia and the Philippines that are net importers of oil. This is helping to blunt the inflationary effects of currency slides against the U.S. dollar in these countries, which are caught in the crossfire of the U.S.-China trade war. Oil rebounded as much as 5% on Monday after the U.S. and China agreed to a truce in their trade conflict. This latest move follows a 30% slide in crude last month, after it touched four-year highs at the start of October. While nations in the region welcome the break in trade tensions — Singaporean Prime Minister Lee Hsien Loong said on Sunday that he hoped to see the U.S. and China take further “constructive” steps — they have to be prepared for further volatility after the meeting of the oil producing cartel that starts on Thursday.
JAKARTA — Wages in Asia grew by an average of 3.5% last year, nearly ten times faster than the 0.4% increase seen among the wealthiest members of the Group of 20 countries, whose leaders will meet in Argentina later this week. Driven largely by Asian economies and China in particular, wages in the G-20’s emerging or developing economies — including Indonesia and India — have tripled overall in the two decades since the Asian financial crisis, according to a new report by the International Labour Organization. The disparity between developed countries such as Japan — where wages declined by 0.4% last year — and less-developed countries in Asia, is partly due to emerging economies growing much faster and enjoying lower inflation than other emerging or developing regions such as Africa, Latin America, Eastern Europe or the Middle East.
JAKARTA — Myanmar attracted the most foreign direct investment of any of the world’s so-called “least developed countries” in 2017, even as the nation’s reputation plummeted over its forced expulsion of tens of thousands of Rohingya Muslims. The $4.3 billion worth of realized FDI that went into the resource-rich Southeast Asian country put it on top of the global economy’s bottom division of 47 nations, according to a report by the United Nations Conference on Trade and Development. Myanmar edged out second-place Ethiopia, with Asian neighbors Cambodia and Bangladesh taking third and fifth spots. Even so the nations remain far behind Association of Southeast Asian Nations peers such as Indonesia and Vietnam.
JAKARTA — China is starting to build its largest offshore wind-power facility in the latest move in an accelerating shift in Asia away from solar to wind and other renewable energy sources. Work began in late October on the facility off Nanpeng Isle in China’s southern Guangdong Province. The project has a planned capacity of 400,000 kilowatts, and its developer, China General Nuclear Power Corporation, expects it to generate about 1.46 billion kilowatt hours of power annually when it goes on stream in 2020 Wood Mackenzie, an energy consultancy, sees wind-generated capacity in the region growing by a factor of 20 over the next decade, powered by Beijing’s plans for a 15-fold expansion. Guangdong plans to build 23 offshore wind farms by 2030, according to China’s official Xinhua News Agency. Meanwhile, Asia’s solar-powered electricity capacity is set to fall this year for the first time since 2001, as countries such as China cut subsidies.
NUSA DUA — U.S. Treasury Secretary Steven T. Mnuchin said Saturday that he was sticking with plans to attend a government-sponsored investment conference in Saudi Arabia this month despite the uproar over the disappearance of a prominent Saudi journalist, although he said he would reconsider that decision “if more information comes out.” Mnuchin said he was concerned about the fate of Saudi-born journalist Jamal Khashoggi, who entered the Saudi consulate in Istanbul, Turkey, last week and has not been seen since. Turkish investigators say Khashoggi, a well-connected Washington Post columnist who had become a critic of the powerful Saudi crown prince, was killed and his body dismembered by an elite Saudi security team. Saudi officials say Khashoggi left the consulate freely, but have not substantiated their claim.
NUSA DUA — Asia is not yet feeling the effects of growing trade friction between China and the U.S., due to the internal strengths of the region’s “solid” economies, according to Takehiko Nakao, president of the Asian Development Bank. The trade dispute “is not as damaging right away,” Nakao told the Nikkei Asian Review on the sidelines of the International Monetary Fund-World Bank meetings being held in Nusa Dua on the Indonesian island of Bali. “The Asian economies are solid,” Nakao said, but he also warned that any escalation of the tariff war between the world’s two biggest economies could hit Asian exporters hard. “If it escalates, if it damages supply chains, as East Asia is connected to [global] supply chains, it could have a dire impact,” Nakao said. The fear is that complex supply chains, in which multinational companies make or source parts for finished goods in countries across Asia before final assembly, often in China, could be disrupted. But for now, domestic demand within Asia’s bigger economies could offset the impact of the trade restrictions, Nakao said earlier at the forum.
SINGAPORE — “Yes, hello, fruits?” Shouting above the din, vendor Sini Mohamad leans forward into a conga line of office workers edging between dozens of lavishly provisioned stalls in Singapore’s Tekka Market. It is lunchtime, and crowds throng the market as dozens of hawker stalls dish out noodles, rice and curries. Most ignore Mohamad’s appeals. But he keeps at it, alongside stallholders selling meat, fish, vegetables and spices. The lunchtime crowd offers a fleeting chance for butchers and grocers to persuade passers-by to do a bit of grocery shopping before they head back to work, their palettes whetted by the aromas of spices and herbs clinging to the steamy market air.
JAKARTA — While European Union leaders were in the middle of another round of Brexit talks in Salzburg this week, the European Commission was pitching a plan to boost Europe’s infrastructure links with Asia. The commission, a key EU decision-making body, estimates that Asia needs 1.3 trillion euros ($1.5 trillion) a year in infrastructure spending over the next few decades. European infrastructure upgrades will cost a projected 1.5 trillion euros between 2021 and 2030, it said. EU foreign ministers will vote on the plan ahead of a meeting of leaders of 51 countries across Asia and Europe in Brussels next month. Financing details are hazy, with the commission suggesting that it draws on existing EU funds, loans from development banks and public-private partnerships. Some analysts say the plan — titled “The European Way to Connectivity” — suggests that the EU is proposing an alternative to China’s flagship Belt and Road Initiative, an ambitious collection of road, rail and port projects in 60 countries spanning Asia, Europe and Africa.
SINGAPORE — In an era of business buzzwords like “unicorn” and “fintech,” a commercial model built on spitting into a tube might not seem the most propitious idea. But Asia’s nascent DNA testing sector is likely to expand as related technology becomes more affordable and as scientific research advances. Behind the trend is the region’s growing affluence. As tens of millions of people move from the countryside to cities across Asia, so-called “lifestyle” conditions such as diabetes and heart disease become more commonplace as people eat more processed food and replace physically-taxing employment such as farming with sedentary office work. Peering into a person’s DNA can yield insights about susceptibility to particular health conditions or diseases — and a growing consumer awareness of such advances is driving much of the DNA sector’s Asian growth, note companies involved in testing.
JAKARTA — In contrast to Malaysia’s electoral earthquake in May, which resulted in the first opposition win since independence, last Sunday’s elections in Cambodia produced a predictable landslide victory for Prime Minister Hun Sen, in power since 1985. His Cambodian People’s Party claims to have won all 125 seats available, prompting Mu Sochea, an exiled opposition leader, to tell media in Jakarta that election day “marked the death of democracy in Cambodia.” The view from Malaysia: “Millions of Cambodians were denied a genuine choice, as the CPP’s victory was guaranteed even before the first ballot was cast,” said Charles Santiago, a member of the Democratic Action Party, which is now part of the new Mahathir Mohamad-led governing coalition, in a statement released on Monday.