“This will help the entire business world, especially SMEs, to start businesses,” Jokowi said in Jakarta on Thursday, adding that the time required to start a business had been cut to 132 days from 1,566 days, while the required permits had been cut from nine to six.

Jokowi explained that it had previously taken 13 procedures, 47 days and Rp 6.8 million to Rp 7.8 million to start a business; the government has slashed that to seven procedures, 10 days and Rp 2.7 million.

The fourth point concerns tax payments. Currently, taxes are paid manually, in 54 installments. In the latest package, tax payments are brought online, with installments cut to 10.

Regarding contract enforcement, Jokowi said lawsuit settlements had been simplified, with resolution simplified to eight procedures with 28 days.

On electricity, meanwhile, the President said it would take four procedures to subscribe to a new grid for 25 days from a previous five procedures within a period of 80 days.

The government has also cut export-processing time from four and half days to a maximum of three. In addition, the cost of exports, which was previously US$424, will be slashed to $83, Jokowi said.

In terms of resolving insolvency, Jokowi said the cost, previously calculated based on the value of the debtor’s assets, would be calculated based on the value of debt ( through a negotiation scheme ) or on the value of settlement ( through a settlement scheme ).

Chinese Vice-Foreign Minister Liu Zhenmin yesterday (April 28) said it was “necessary” for members of the 10-nation grouping to reaffirm their commitment to the DOC, which has not been fully implemented.

This comes at a time when Asean and China are negotiating a legally binding Code of Conduct (COC) to prevent conflicts in the sea, where China has overlapping claims with Asean members Vietnam, the Philippines, Brunei and Malaysia.

However, former Asean secretary-general Ong Keng Yong questioned the need for the statement. “Why is there a need for another statement when there already is the DOC that Asean members have agreed upon, reiterated and reaffirmed over the past 14 years?”

Ong, executive deputy chairman of the S. Rajaratnam School of International Studies, told The Straits Times: “Asean members will have to re-examine the wording, tone and thrust of the joint statement to determine if it is the same as that in the DOC.”

Liu was speaking at a press conference to wrap up a two-day meeting in Singapore of Chinese andAsean diplomats. Chaired by the Singapore Ministry of Foreign Affairs Permanent Secretary Chee Wee Kiong and Liu, it discussed how to implement DOC guidelines and improve Asean-China cooperation.

Singapore is the current coordinator for the Asean-China dialogue partnership, which is celebrating its 25th anniversary this year. Chee announced a series of activities to mark the anniversary, including a commemorative summit.

But tensions are expected to rise when the Permanent Court of Arbitration in The Hague gives its ruling by early June on a petition brought by the Philippines against China’s claims in the South China Sea.

Liu said China does not recognise the tribunal and will not accept its ruling, adding that the DOC continues to be the “common basis” to address territorial issues.

In a move said by senior Singapore diplomats to divide Asean on the ruling, China reached a consensus with three Asean states on the South China Sea, including that the disputes are not an issue between China and Asean as a whole. While Asean does not take sides in the claims, it takes the stance that the grouping and China should manage these disputes together to prevent conflicts through the COC.

Ong responded to Liu’s remarks on Tuesday that China was shocked by his comments – that the consensus amounted to China meddling in Asean’s internal affairs – at a forum in Jakarta on Monday. “I was in a forum, responding to a question from the floor… it was said in my private capacity and not as an MFA official,” he said.

SME Association of Malaysia national president Michael Kang said lifting the ban was “urgent”, claiming that 12 per cent of his member companies have been forced to fold or downsize because of the freeze.

“Our association members are projected to lose 30% of revenue in the next 12 months if this goes on. They don’t have enough workers to keep up production and collect orders. We hope Zahid can announce this as soon as possible,” he said.

Though he applauded the government for listening to their grouses, Kenneth said stakeholders should have been engaged with in the first place before the freeze was implemented.

“We need the foreign workers because no locals want to work in these businesses. Frankly, they should have talked to the necessary organisations first because this has affected many business people,” he said.

Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) secretary-general Low Kian Chuan hoped for good news, which could mean businesses could finally get back into full gear after a two-month slump.

“We welcome this, we thought this was going to be indefinite so some companies had to take drastic measures by reducing operations and orders. Now if we can get workers, companies can get back to business as usual,” he said.

Malay Merchants and Entre-preneurs Association (Perdasama) vice-president Datuk Naim Mohamad said if workers were allowed in again, companies and employers must provide better lodging for them and impose tougher security on their movements to curb social ills and public fears.

“We need foreign labour, but it has become a matter of sentiment because there are social problems and crime attached to it. If the industry is willing to guarantee and take care of these problems, then everyone wins,” he said.

Naim suggested that employers track the movements of their workers via the GPS in their phones when they were off duty to prevent any crime or “moral issues” from happening.

Minister in the Prime Minister’s Department Datuk Seri Dr Wee Ka Siong applauded Dr Ahmad Zahid, saying that his comment proved that the Government was listening to local businesses.

“He (Zahid) is listening to their problems. The associations, from time to time, have submitted memos to him and he has been responsive. I’m sure his announcement will be for the betterment of the workers,” he said.

Similarly, a weighted 14 per cent of factory bosses think business will deteriorate, a sharp fall from the 29 per cent who predicted a slump in January.

Of the 433 manufacturers polled, 96 per cent responded, and individual responses were weighted by their contribution to employment and value added, said the EDB.

A weighted 12 per cent of the 1,500 service firms polled by the DOS from March to April were optimistic, up from 10 per cent in January.

A weighted 25 per cent of firms polled were pessimistic, down from 28 per cent in January.

The greatest pessimists were firms from the real estate industry such as property developers. The information and communications cluster and recreation and healthcare sector were the only two segments where optimists outnumbered pessimists.

But the slight uptick in optimism has good grounds – there is a chance that tourism could give the service sector a lift this year, said Credit Suisse analyst Gerald Wong.

Wong expects tourist arrivals to hit a record high of more than 16 million this year, above the Singapore Tourism Board’s (STB) expectations of between 15.2 million and 15.7 million, and better than the high of 15.6 million reached in 2013.

“We believe the market is underestimating STB’s extensive digital marketing efforts in China, which has kept Singapore a popular destination for Chinese tourists,” he said.

“The strong pick-up in tourist arrivals has been driven by Chinese tourist arrivals, which recovered strongly from mid-2015.”

A tourism rebound is also being bolstered by the rise in Changi Airport passenger volumes, Singapore Airlines passenger volumes and revenue per available hotel room compiled by the STB, Wong said.

Within the manufacturing clusters, precision engineering firms were the most upbeat, with semiconductor equipment and bonding wire firms anticipating higher orders in the next three months.

In its Commodity Market Outlook report issued yesterday, the Washington-based lender said supply disruptions in Iraq and Nigeria hiked oil prices in the first quarter.

Reuters reported yesterday front-month Brent crude futures traded at US$44.75/bbl at 0815 GMT, up 27 cents from their last settlement. US crude futures were also up 27 cents, at US$42.91/bbl.

“In addition, the United States reported that oil production in December fell year-on-year for the first time in several years, and the US Energy Information Administration projections show falling output accelerating in 2016,” the World Bank said.

The bank said a weaker US dollar and improving oil demand also contributed to the rally. That said, the oil market remains oversupplied with stocks near record levels.

Crude oil demand usually slows in late winter and spring due to refinery maintenance, so the bank expects current stocks to remain high, until demand picks up in the second quarter of 2016.

The World Bank expects oil supply to decline further later this year, mostly due to lower output by onshore US producers.

“Slowing output growth from higher-cost, short-cycle, unconventional oil in the US is expected to help rebalance supply. This output includes, but is not limited to, shale plays,” the bank said.

But the bank said it’s still uncertain as to how far production will decline or when it may start rising again.

“The recent oil price rally brought some relief to producers’ cash flow, and many hedged production forward at higher prices, thereby delaying supply rebalancing. Higher prices and continued efficiency improvements could further impinge on required rebalancing,” the bank said.

On the other hand, the industry borrowed heavily during the boom years and spent their cash flow. Many of these companies are encumbered with debt, selling assets, and entering into bankruptcy.

“With external financing increasingly closed, companies will need greater cash flow generation to fund drilling and completion of wells which will depend on the level of prices,” the bank said.

The World Bank said near-term upside risks to the price forecast include dwindling non-OPEC supply and Iran’s slow export growth. There are also risks of supply disruptions among key OPEC producers due to internal conflict and financial constraints.

Higher global demand, particularly from the transport sector, will also help reduce the large global stockpile.

Downside price risks include a slower rebalancing because of weak demand, and continued resilience of US producers to sustain output and develop uncompleted wells. A large increase in Iranian exports and higher production from the rest of OPEC members will sustain the surplus of global stockpiles, and thus continue to put downward pressure on prices.

Meanwhile, the World Bank expects natural gas prices to fall in 2016 on continued weak demand and surplus supply. Gas prices in the US are expected to fall by four per cent and average US$2.5/mmbtu due to high stocks.

However, strong growth in the power sector, rising exports, and slowing production growth are expected to underpin prices. Risks to the forecast are mainly to the downside, given a global supply surplus and forthcoming increases in new LNG capacity.