Major Japanese banks are teaming up with Southeast Asian financial institutions to increase their presence in the region.

By partnering with local entities that are well-versed in their nation’s regulations and trade practices, Japanese banks can reduce risk while taking advantage of business opportunities created by the region’s growing economy.

MUFG Bank and Security Bank were among banks participating at an event in Manila aimed at promoting cooperation between banks in the region. Also present were representatives of MUFG Bank’s Thai subsidiary, Bank of Ayudhya, and its Vietnamese partner, Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank). More than 200 business discussions were held among 88 financial institutions from four countries.

The growing economies of Southeast Asia offer a huge consumer market of more than 600 million people that is undergoing drastic change. – The Yomiuri Shimbun

US FED TIPPED TO KEEP POLICY RATE ON HOLD

Kasikorn Research Centre forecast that the US Federal Reserve meeting this week will choose to maintain the policy rate between 1.75 per cent and 2 per cent as the US economic recovery will be negatively impacted by the Trump administration’s trade war with China.

However, the centre believes that the Fed will increase its policy rate again this year.

SOUTH URGED TO EXPORT HALAL FOOD PRODUCTS

The Commerce Ministry’s International Trade Promotion Department is encouraging small and medium-sized enterprises in the South to produce halal food items for export.

Director-general Chantira Jimreivat Vivatrat said yesterday that the overseas market for halal food was valued at US$5.63 billion at the end of 2017, up 11.73 per cent from 2016.

The market’s continuing strong growth offers potential for Thai food producers to export their goods, she said.

MALAYSIA MULLS CURBS ON VEHICLE IMPORTS

The Malaysian government is reviewing the national automotive policy, which may include imposing conditions on the import of foreign vehicles.

Prime Minister Mahathir Mohamad said yesterday that while the government agrees with the practise of free trade, other countries worldwide impose conditions for their own markets. He cited the example of European emission standards, which defines acceptable limits for exhaust emissions of new vehicles.

“But here, any cars produced, even those made out of Milo tins can enter the Malaysian market, so it is very open,” said Mahathir in answering a question about the government’s plan for a third national car project. “As such we are looking into imposing certain conditions to disallow cars from (arbitrarily) entering local markets. This will allow brands like Proton to capture the local market.”

Mahathir said the national automotive policy would also be reviewed to ensure that local national car manufacturers like Proton and Perodua remain competitive. – The Star