The economy expanded by 6.7 percent in April-June, down from 6.8 percent in the first quarter and in line with a 6.7 percent rate tipped in an AFP survey of economists.

Despite the quarterly deceleration, growth was still higher than the annual target of around 6.5 percent set by the government.

China faced an “extremely complex environment both at home and abroad”, said Mao Shengyong, a spokesman for the national statistics bureau, noting growth remained strong.

China is facing a multi-front battle to defend its economy, fighting to cut its debt mountain while the yuan and local stock markets tumble in the face of the trade conflict.

“We should also be aware that external uncertainties are increasing and economic restructuring is in a phase of overcoming difficulties,” Mao said.

The impact of the deepening trade conflict with the United States was yet to fully kick in, according to analysts, who added however that Beijing’s battle to rein in pollution and spiralling debt levels had crimped growth.

Both Washington and Beijing slapped new tariffs on $34 billion of each others’ goods earlier this month.

Washington raised the stakes last week by threatening to impose fresh tariffs on another $200 billion in Chinese goods, with Beijing vowing it would retaliate once again.

Warning signs

Signs of a further slowdown are mounting.

Investment in fixed assets continued to slump in the first half of the year, slowing to 6.0 percent, down 1.5 percent from the first quarter and marking the slowest pace since data collection began in 1999.

Factory activity also slowed in June, dropping from an eight-month high.

Trade data last week provided a bright spot, showing China’s export machine held up in the face of the mounting tensions — but analysts warned the numbers may have been inflated by exporters pushing out shipments early to beat the scheduled tariffs.

The yuan, meanwhile, has been sliding, though a weaker currency might help exporters facing the US tariffs.

Beijing has indicated it would ease up on its tough fight against debt, which analysts have blamed for the growth slowdown.

China should continue making progress on that front while “maintaining stability”, Mao said.

In June, China’s central bank said it would reduce the reserve requirement ratio for most banks in an effort to free up funding for small firms.

Ye Htut Aung, deputy director-general at the Department of Civil Aviation (DCA), said in an exclusive interview that both Myanmar and Japan are busy working out the financing details. Myanmar seeks to obtain an official development assistance (ODA) loan from Japan to develop the US$1.5 billion (Bt50 billion) new airport that will substantially improve the aviation capacity of the country.

“The details about cooperation will be submitted to Japan’s cabinet in September. Once approved by the cabinet, there will be a call for tender in Japan so Japanese firms can be involved in the implementation of the project,” Ye Htut Aung said.

According to the official, the project has been actively discussed by the transport ministers from both countries He expects the ODA process to commence in early 2019, and after that, it will take more than five years to construct the new airport.

A consortium led by Korea’s Incheon International Airport Corporation was originally selected to implement the project after they won a public tender.

Later, a consortium of Singapore’s Yongnam Holdings, Changi Airports International and Japan’s JGC Corporation was named by the DCA as the successful tenderer for the design, construction and management of Hanthawaddy International Airport on the basis of a public-private partnership in October 2014. Earlier this year, Yongnam Holdings said in an announcement that the framework agreement signed between DCA and

the consortium had expired and had not yet been renewed “as certain issues remain unresolved”.

“When the Korean firm submitted the proposal, they had said they would undertake the project at their own costs. But in discussions with us after they won the tender, they said they could proceed only after getting development loans, and wanted the Myanmar government to guarantee the loan,” said Ye Htut Aung.

“So, we opened a new call for tender but they did not win again,” the official explained.

Hantharwady International Airport is designed to accommodate 12 million passengers after completion of the first phase, with capacity to expanded to 20 million after phase two and 30 million once fully completed. To be built on more than 9,000 acres (3,600 hectares) of land in Bago, 80 kilometres away from Yangon, the airport will

specifically ease congestion at Yangon International Airport, now the main tourist gateway to Myanmar.

In a bid to facilitate rising passenger volumes at Yangon International Airport (YIA), Myanmar has made plans to improve its aviation infrastructure in cooperation with the private sector.

Yangon Aerodrome Company Limited (YACL), which operates and manages YIA, will close Terminal 2 by the end of this month for a year and a half to renovate and upgrade the existing infrastructure.

“Eleven airlines will move progressively from Terminal 2 of YIA to Terminal 1 with the opening of its inter-terminal connection earlier this month. We have had discussion with YACL about their renovation and relocation plans,” said Ye Htut Aung.

The renovation of Terminal 2 is part of the firm’s plan to improve airport infrastructure to provide visitors with a seamless experience linking the airport’s two international terminals. Relocation of 11 airlines – Biman Bangladesh Airlines, Air Asia, China Airlines,

Jetstar Asia, Malaysia Airlines, Myanmar National Airlines, Nok Air, Qatar Airways, Thai Airways International, Thai Smile Airlines and Viet Jet Air – to Terminal 1 will happen this month.

The airport is strategically located between India and China with two-thirds of the world’s population within a range of six hours flying time, including Tokyo, Dubai, Singapore, Beijing and New Delhi.

Serving 28 international airlines and 24 international destinations, the airport handled a total of 5.92 million passengers in 2017, according to YACL.

“We usually receive an average of nearly 11,000 passengers at the YIA. The visitor arrivals has surged when compared to the past few years, but it is yet to exceed our capacity. At YIA, we are able to receive more than 10 million passengers a year, and YACL has committed to expand the capacity to 20 million,” he said.

According to the official, the other two international airports – in Mandalay and Nay Pyi Taw – usually receive much fewer passengers than their capacity. The former averages 3 million while the latter has up to 5 million passengers.

To date only   five international airlines fly to Mandalay, handling over 1,100 passengers per day, and only two international airlines fly to Nay Pyi Taw – from Bangkok and Kunming.

Likewise, Myanmar has planned to open new domestic airports in Muse and Myauk-U, with construction open for tender next month. Upgrading of the existing domestic airports is also on DCA’s radar. Currently, only 31 of the existing 69 domestic airports are operational.

In a bid to improve capacity of the staff working in the aviation sector, Myanmar is cooperating with All Nippon Airlines to send outstanding ground staff to Japan to be intensively trained for two years. Over 30 local staff have been trained under the programme, and the third batch of trainees will be sent later this year, after three

months training in Myanmar.

 In a study conducted by Workday and global market intelligence firm, IDC, titled ‘The Drive for the Digitally-enabled Workforce’, it was revealed that employees in Korea (62 per cent) felt most at risk, followed by employees in Hong Kong (57 per cent) and Singapore (50 per cent). New Zealand (31 per cent) and Australia (39 per cent) felt the least at threat.

The study was based on a survey with over 1,400 employees in eight countries across the region: Australia, Hong Kong, Japan, New Zealand, Malaysia, Singapore and Thailand. It comes as there is an overwhelming trend towards digitalization in Asia Pacific, with at least 60 per cent of its GDP (excluding Japan) being digitalised by 2021.

The study also found that 43 per cent of employees in APAC plan to switch jobs within the next year. The country with the highest forecast employee turnover in the next year is Singapore at 46 per cent.

“Digitalisation brings both threats and opportunities. Businesses across the region need to accelerate reskilling initiatives and engage employees proactively to prepare them for the digital challenges ahead,” said David Hope, President, Workday Asia Pacific.

BOT governor Veerathai Santipraphob, acknowledging the institution’s interventions to head off currency depreciation to an extent that can affect the financial markets and businesses, said the reduction in the reserves also reflected changes in the values of a mix of currencies that makes up the country’s reserves.

The BOT’s interventions have been in the line with its policy since Thailand adopted a floating exchange rate regime.

Movements in the baht – up or down – that are deemed to be rapid, can affect the markets and the business sector. As a means of reducing such impacts, the BOT makes interventions from time to time.

Changes in the foreign reserves have mirrored the central bank’s interventions in some periods, but the reduced figure is also the result of changes in the values of a range of currencies that comprise the foreign reserves, Veerathai said.

“When the figure for our foreign reserves changes in US dollar terms, it does not mean that this all comes down to the central bank making currency interventions. It could arise from the changes in value in the holdings of other currencies such as the euro,” he said.

Over the past one to two years, the BOT has been accumulating foreign reserves on expectation for this situation, he said.

Veerathai noted the growing concerns over the global economic system, including capital outflows from emerging-market countries when the monetary policy of the big industrialised countries changes. The accumulated foreign reserves have acted as a buffer to relieve any impact on the Thai economy and the business sector.

Veerathai said that the central bank has been closely monitoring tensions in the escalating trade war, particularly those involving the latest US measures, which could affect several countries.

This is the major risk to countries in East Asia and Thailand that are highly dependent on external trade, even though Thailand is not among the target countries of US action, the central bank chief said, citing the dispersed production chains of products that are sold as Chinese.

He said that unavoidable impacts of the US-China retaliatory measures could be felt on the supply chains as companies are linked.

Thailand may be the exporter of raw materials or intermediate goods that will be used to produce final products in the US’s targeted countries, he said. Therefore, some companies and some products could be affected.

Veerathai said that central banks in Asean, where the growth potential is satisfactory with inflows of investment from large businesses and commercial banks, have joined forces in several dimensions, including promoting the use of local currencies to set product prices. The BOT has teamed up with central banks in Indonesia and Malaysia for such initiatives.

Asean’s central banks have also promoted a scheme for qualified Asean banks, which will allow commercial banks in the region to open in Asean countries more easily and conveniently, he said.

The BOT has reached an agreement with the Malaysian central bank on this matter, which requires parliamentary approval from both countries.

Banks in Asean countries have also begun to share information relating to the prevention of financial strains, as well as coming together to encourage the adoption of financial technologies, Veerathai said.

Organised by the Ministry of Planning and Finance, the event focused around constraints related to policy consistency and implementation.

Central to the conversation was the Myanmar Sustainable Development Plan, which is currently being finalised and sets out a comprehensive approach to push for immediate reforms, crucial to boosting Myanmar’s economic performance.

“As stated in the Myanmar Sustainable Development Plan, economic stability and strengthened macroeconomic management are an indispensable prerequisite for peace, security and other goals of sustainable development,” said Maung Maung Win, deputy finance minister. “The MSDP is well timed to mobilise resources to pursue this goal of bringing stability to our nation.”

The event provided a forum to exchange ideas on economic analysis and policy recommendations laid out in the World Bank’s Myanmar Economic Monitor, “Growth Amidst Uncertainty”, released in May.

It said Myanmar experienced a broad-based increase in real GDP growth, from 5.9 per cent in 2016/17, to 6.4 per cent in 2017/18. The report indicates a favourable outlook with growth expected to increase to 6.8 per cent in 2018/19 and other economic variables set to improve. But it warns about downside risks, including uncertainty in global trade and commodity prices.

“Myanmar has the potential to grow even faster than its current rate,” said Gevorg Sargsyan, the World Bank’s Myanmar head. “The MSDP provides the framework to realise this potential by building human and physical capital and by harnessing innovative and creative power, including mobilising a dynamic private sector.”

The MEM also indicates that some risks have intensified, related to concerns over the slow pace of reforms and limited progress in addressing the Rohingya crisis in Rakhine State. In addition, there remain perceptions of bureaucratic inefficiency, centralised decision-making and protectionism.

Thailand hopes to become the biggest manufacturing cosmetic centre in Asia.

The July 12-14 event at Bitec Bangna is giving away special door prizes costing Bt2.4 million, organisers said.

Chang-Yeol Lim, the president of the Korea International Exhibition Centre, which is the organiser of the K-Beauty Expo, the biggest showcase of beauty products, technology and cosmetics in Korea, is the event organiser.

It will have booths from more than 150 companies from Korea, China, Taiwan, Japan, Australia and Thailand with at least Bt200 million expected to be spent in three days.

The exhibition will host entrepreneurs who participated in the Thailand Cosmetic Contest and the winner will be announced at the event.

Seminars will share and educate participants on innovation and technology.

Expenditure on radio shows rose 7.92 per cent to Bt409 million and on transit media by 24.88 per cent to Bt507 million.

Ad spending on outdoor media jumped by 8.70 per cent to Bt575 million, on in-store media 10.81 per cent to Bt82 million and on the Internet by 1.59 per cent to Bt128 million.

Ad expenditure on newspapers continued to decline, dropping in June by 20.16 per cent to Bt515 million, and by 35.8 per cent on magazines to Bt104 million.

Ad spending on cable and satellite TV stations declined by 18.22 per cent to Bt220 million and by 5.16 per cent to Bt662 million on cinema ads.

Total ad expenditure jumped 14.35 per cent year on year to Bt9.55 billion.

Total ad expenditure in the first six months of the year dropped 1.57 per cent to Bt51.72 billion.