A growing number of investors across the world are looking at this type of investing, according to Arisa Kishigami, head of ESG (environmental, social and governance) for Asia-Pacific at global index provider FTSE Russell.

They are becoming more aware of the need to respond to global risks such as environmental sustainability and climate change, she said.

“A few years ago, investors were hesitant to embrace ESG strategies due to questions on the contribution to positive investment returns,” she said recently.

“But the interpretation has been changing such that ESG factors are now increasingly considered investment-relevant and as part of the investment process.”

Kishigami added that this had also been the case for the Asean market, which has been steadily gaining traction among investors.

To cater to growing demand, FTSE Russell since 2001 has rolled out several ESG-focused indices with various exchange partners in Asia, including the latest FTSE4Good Asean 5 Index, which was launched last month.

Developed with the Asean Exchanges, the index comprises stocks listed in Singapore, Malaysia, Indonesia, the Philippines and Thailand. It had a net market capitalisation of US$165.15 billion (about Bt5.9 trillion) as at April 29, with an annual dividend yield of 3.66 per cent.

Of the 47 constituent stocks, five are listed in Singapore: City Developments, CapitaLand, Singapore Exchange, CapitaLand Mall Trust and CapitaLand Commercial Trust.

Companies on the index have met a rigorous assessment using more than 300 indicators covering the three pillars of environmental, social and governance standards to achieve an overall cumulative score.

Kishigami said the index aimed to serve institutional investors who are interested in monitoring, supporting and investing in Asean companies that have better ESG disclosure and action.

“It can also help companies to understand what investors are looking for today, especially in terms of ESG practices.” –

As part of India’s Act East policy, the country’s commerce and industry minister Nirmala Sitharaman led the high-level business delegation. It was the first high-level business interaction at ministerial level by a foreign country after the Htin Kyaw administration took office.

According to the minister, there are many rooms for cooperation in areas such as power and renewable energy, agriculture, livestock, fisheries, timber and pulses trade, education and skills-building, IT and engineering, healthcare, textiles, automobile industry, tourism and hospitality, construction, banking and finance. She invited Myanmar businesses to hold roadshows in key cities of India, and committed to speeding up road and connectivity projects including those in the border areas.

“India gives high priorities for strengthening relations in the neighbourhood, and in that, Myanmar ranks high. We expect greater cooperation and greater business-to-business interactions. There are calls for improving trade between India and Myanmar. But, connectivity has remained as an issue,” she said.

“I expect to have a better working relationship, greater engagement, and deeper participation of Indian businesses with Myanmar… I expect more things to happen between India and Myanmar, based on sea connectivity, air connectivity, etc. I also expect to look at more Indian investment in Myanmar.”

Joining the delegation were 25 businesses from India and during the 3-day visit, they had discussions with more than 40 Myanmar business leaders.

Sitharaman also held talks with Myanmar’s construction minister Win Khaing, commerce minister Than Myint and , industry minister Khin Maung Cho. They discussed issues related to procurement of pulses, easy access to Indian pharmaceutical companies and products, Indian investment in infrastructure, capacity enhancement and upgrading border infrastructure.

“In the discussions, we highlighted that there should be a level-playing field. India should also be given access to the Myanmar market as much as many of the Asean countries have been given. We highlighted some of the goods of which the duty on the Myanmar side is very high. Hopefully all these will be figured out and trade should improve,” she said.

The minister added that both countries are keen on improving trade relations and a lot of efforts have been put to ease the border regulations. India offers zero tariff on 96.4 per cent of items for Myanmar under its Duty Free Tariff Preference scheme besides Asean-India Free Trade Area. A visa fee waiver is now available for Myanmar nationals applying for Indian business and employment visas.

The India Embassy in Myanmar’s data show bilateral trade value was worth $2 billion in the 2014-15 fiscal year, making India the fifth largest trade partner of Myanmar.

India still ranks low in investment in Myanmar. According to the Directorate of Investment and Company Administration, at the end of April, combined investment since 1988 at US$732.65 billion were only 1.15 per cent of total foreign direct investment that Myanmar has received from over 40 countries.

Indian Ambassador to Myanmar Gautam Mukhopadhaya cited the lack of information, connectivity, and financing as the three fundamental obstacles to Indian businesses. The delegation played a pivotal role in re-familiarising India with Myanmar and bringing Indian industries to realise the value of Myanmar as trade and investment partner, he said.

“India is not so well-connected to Myanmar. For example, there are only three flights a week to India while there are 100 flights to Thailand, about 90 flights to China, about 15 flights to Singapore, about 30-40 flights to Malaysia. So if you see trade and investment figures in comparison with connectivity, it is still not bad.”

The information deficit and connectivity will be addressed through more business events and engaging with Union of Myanmar Federation of Chambers of Commerce and Industry. He expects Indian banks can become the engines of trade and foreign investment financing as well as development financing. He sees oil and gas sector as the most promising industry for Indian investment in the near future.

After presiding over the opening of “THAIFEX-World of Food Asia”, which runs until Sunday at Challenger, Muang Thong Thani, Bangkok, Somkid said Thailand had strong capacity to develop its food supply chain to make more value-added products.

“Thailand’s strengths in the food industry are a great variety of raw materials and highly experienced producers. The government in cooperation with private enterprises will encourage more modern technology in food processing to add value for the products,” he said.

About 45 per cent of Thai food exports are unprocessed raw materials. That proportion should decrease in the near future after the country adopts more modern technology and promotes more innovation.

Tomorrow, Somkid will witness the signing of a memorandum of understanding to establish “Food Innopolis”, the city of food innovation.

More than 30 agencies including nine government units, 13 food companies and 12 universities will sign the MoU to develop foods for the future and create bio-based industries that keep Thailand competitive and benefit the entire value chain.

The project will support innovation in developing food quality, food ingredients, packaging, information technology and logistics so that Thailand has high potential truly to become the “Kitchen of the World” in the near future, Somkid said.

With more value-added products, he expects that food exports will grow by 10 per cent this year.

Vantanee Seang-U-Tai, managing director of Lucky Union Foods, said the company would invest about Bt20 million for quality and product development this year, as well as building a new laboratory to create new products under the innovation-promotion plan.

With strong demand for Thai food and trust in quality, while the problem of illegal, unreported and unregulated (IUU) fishery practices has been declining, Lucky Union Foods expects 20-per-cent revenue growth to Bt1.6 billion this year.

Rojjanin Phatchararuangkij, managing director of Smile Heart Foods, an exporter of processed seafood products, said his company had forecast 20-per-cent export growth this year.

With rising health consciousness, the company will invest in research and development on producing new healthy foods to serve such consumer concerns as obesity.

Smile Heart Foods will also automate some of its production line and adopt new technology to reduce labour costs.

Vittavat Tantives, executive vice president for corporate marketing at Charoen Pokphand Foods, said CPF had paid high attention to food innovation. It will gradually introduce innovative products in its sausage, ready meal, chicken, egg and shrimp lines.

Normally, the company invests about 1 per cent of its sales revenue in R&D, he said.