The Monetary Authority of Singapore (MAS) and the China Securities Regulatory Commission (CSRC) agreed to strengthen supervisory cooperation and facilitate the development of their capital markets, during the second MAS-CSRC Supervisory Roundtable held in Singapore on Tuesday.

The MAS and CSRC discussed regulatory developments in the derivatives markets and their respective frameworks for supervising fund managers. They also deliberated on enhancing information-sharing arrangements for derivative products through an upgraded memorandum of understanding.

The roundtable was co-chaired by MAS deputy managing director Ong Chong Tee and CSRC’s vice-chairman Fang Xinghai.

The roundtable is one of the key outcomes of Chinese President Xi Jinping’s state visit to Singapore in 2015. He had called for securities regulators from both sides to hold regular high-level dialogue sessions. The inaugural roundtable was held in Chongqing, China, in April last year.

“As global capital markets become more interlinked, it is important for supervisory authorities to promote greater understanding of their respective regulatory frameworks,” Ong said.

”With growing cross-border capital market activities taking place between China and Singapore, the MAS-CSRC Roundtable provides a good platform for both agencies to exchange views on potential areas for supervisory cooperation on a regular and timely basis.” – The Straits Times

Pertamina secures gas supply from ConocoPhillips’ Corridor Block

Indonesia’s sate-owned energy giant Pertamina has signed a gas sale and purchase agreement with American oil and gas giant ConocoPhillips to secure a gas supply totalling 65 trillion British thermal units (BTU) from the latter’s Corridor Block in South Sumatra within the period from 2018 to 2023.

The gas supply will be used to fuel the operations of Pertamina’s Dumai refinery in Riau Islands, which has a capacity to produce 175,000 barrels per day (bpd). Pertamina has planned to upgrade the facility so that it can produce 300,000 bpd in 2024 with an investment value of around US$5 billion (Bt166 billion).

“This is a strategic step for us to minimise the fuel costs coming from the operation of our refineries,” Pertamina gas director Yenny Andayani said in a statement on Friday.

Under the agreement, the Corridor Block will first supply 57 million standard cubic feet per day (MMSCFD) of gas from 2018 to 2020. The figure will later increase to 120 MMSCFD between 2021 and 2023.

The gas will be transmitted through the Duri-Dumai pipeline, which is being jointly developed by Pertamina and state-owned gas firm PT Perusahaan Gas Negara with a total investment value of $76 million.

The Duri-Dumai pipeline, slated for completion by October 2018, will span 67 kilometres with a capacity to transport 140 MMSCFD of gas. – The Jakarta Post

Manufacturing output picks up as demand rises in Philippines

Manufacturing picked up in October ahead of the holiday season although the weaker peso that month pushed costs higher, the latest Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI) showed.

At the start of the fourth quarter, the PMI score increased to 53.7 from 50.8 in September, “signalling a marked pickup in the pace of improvement in operating conditions,” global research firm IHS Markit said in a statement on Thursday.

A PMI score of above 50 indicates an overall increase in manufacturing activity.

The PMI reading for October was also “well above the third quarter average,” IHS Markit noted.

“Growth in both output and new orders picked up noticeably, prompting firms to step up input purchases and hiring. Anticipating greater demand, companies also built up stocks of inputs and finished goods, while increased staff numbers helped them keep on top of workloads in October,” IHS Markit said.

After two months of marginal growth, there was a flurry of activity in the Philippine manufacturing sector at the start of the fourth quarter, IHS Markit noted.

Demand for Filipino manufactured goods strengthened noticeably, with order book growth picking up to a five-month high, it said.

“Greater demand lifted production volumes, which in turn prompted firms to hire more workers,” said Bernard Aw, principal economist at IHS Markit.

However, Aw warned that “further weakening of the peso poses a problem for manufacturers, especially those that rely on imported inputs for production.”

The peso hit fresh 11-year lows in October.

As such, “input cost inflation picked up sharply, which led firms to raise prices in order to preserve profit margins,” Aw said. – Philippine National Inquirer

Vietnam Airlines offers low |prices for regular travellers

National carrier Vietnam Airlines has launched a promotional programme named “Flying to Thailand, Malaysia and Singapore” with preferential prices of only US$35.2 (Bt1,170) per ticket from Vietnam. The programme offers attractive fares for regular travellers from Vietnam and will end on March 31, 2018.

When the customer buys two or three economy class tickets at the same time, the price of the second ticket will be reduced by up to 30 per cent and the price of the third ticket can be discounted by up to half of the price of the first ticket. These tickets must all have the same customer name, with the same itinerary, and the conditions are applicable for travel from now until the promotional programme ends.

Passengers have a variety of flight options on Vietnam Airlines to these destinations, with frequencies of one to two daily flights to Malaysia, five flights per day to Singapore and six flights per day to Thailand. — Viet Nam News

Indonesia up in arms over EU’s |negative campaign against palm oil

Indonesia’s trade minister, Enggartiasto Lukita, called on palm oil stakeholders to join hands to fight the European Union’s negative campaign against palm oil-based products at a conference in Nusa Dua, Bali, on Friday.

In response to the EU campaign, Indonesia would take strong action by disrupting import commodities from Europe, such as milk powder, he added. “If the EU disrupts palm oil production, we will disrupt milk powder imports,” he told reporters on the sidelines of 13th Indonesian Palm Oil Conference.

Enggar also threatened to stop palm oil exports to Europe for a month, if the EU keeps putting pressure on Indonesia.

He said the EU’s negative campaign against palm oil products, based on environmental issues and health concerns, was unfair and baseless.

Oil palm plantations in Indonesia have been strictly controlled through sustainable practices and the consumption of palm oil has also been proven to be healthy, Enggar said.

Palm oil is a crucial commodity for Indonesia as it accounts for 12.5 per cent of the country’s total export earnings of US$18 billion (Bt598 billion) last year. From January to August this year, it reached $15 billion. – The Jakarta Post

“We want to redefine global trade… I look forward to the rebirth of the new Silk Road,” said Malaysian prime minister Najib Razak at the event, which was also officiated by Jack Ma, founder of Alibaba.

“With DFTZ, small businesses can use the digital way to sell and buy things. They can also buy global and sell global,” said Ma.

The first phase of DFTZ is a warehousing facility close to Kuala Lumpur International Airport to be operated by national courier, POS Malaysia.

The former cargo terminal has already been transformed into a full-fledged warehouse with sorting, shelving and pick-pack facilities that deploy automated guidance vehicles. The facility will initially serve Lazada, the region’s largest online retail mall. Alibaba holds an 83-per-cent stake in Lazada after injecting US$2 billion (Bt66.5 billion) in investments into the Singapore-based start-up.

Najib and Ma, who was made digital economy adviser to the Malaysian government last November, also held a ground-breaking ceremony to mark the zone’s second phase, to be jointly developed by Malaysia Airports Holdings and Cainiao Network, Alibaba’s logistics arm. This facility will begin operations in 2020. Both facilities hope to halve border clearance and handling times for cargo to three hours.

At the launch, Alibaba went live with its electronic trading hub, which will help Malaysian businesses in e-commerce, logistics and cloud computing, as well as in exporting their goods.

Responding to questions about Alibaba’s plans in the region after Malaysia’s DFTZ, Ma said: “We are interested in building infrastructure… Next is cloud computing for small businesses. Third is training courses for young people to learn how to do business.”

“We expect most Asian currencies to hold up well against the US dollar in 2018, supported by healthy external positions and strong export demand. The main exceptions are those with significant external vulnerabilities (Sri Lanka and Pakistan) and where the domestic political situation may deteriorate (the Philippines and Thailand),” Capital Economics said in its October 31 Emerging Asia Markets Monitor report titled “Asian equities bounce back.”

Capital Economics projected the peso to close this year at the 52:$1 level, before sliding to 55:$1 in 2018 and 2019.

Data showed that as of end-September, the peso weakened the most compared with other currencies that depreciated against the dollar, including those of Bangladesh, Indonesia, Sri Lanka, Malaysia and Singapore.

In contrast, the currencies of South Korea, India, Taiwan, China and Thailand strengthened against the greenback year-to-date.

“If companies are to invest, they need a stable and predictable business environment. While Rodrigo Duterte has not been the disaster for the economy that some feared, there are signs the new president’s war on drugs, his erratic policymaking style and the worsening security situation in the south of the country is starting to weigh on investment prospects,” according to Capital Economics.

Group chief executive officer Jeffery Goh Wee Keng said the nacelle beams – housings for the plane’s engine or fuel systems – are now undergoing prototype qualification by the customer.

“We are producing in Bukit Minyak half of the nacelle beams for the Pratt & Whitney engine used in the new Airbus A320neo aircraft,” he says. Samee has also secured projects for the Boeing 787, Airbus A350XWB, Airbus320ne and Boeing 737max.

“We’ve started delivery of various components for the Boeing 787 and Airbus A350XWB,” he said.

“For the Airbus 320neo, we have started delivery of the casings, while delivery for Boeing 737max has not started yet.”

Goh says the Bukit Minyak production facility will eventually be equipped with nine machines.

Goh said the group was looking at investing more in the facilities in Bayan Lepas and Bukit Minyak.

“The aerospace segment of the group would likely receive a higher allocation,” he said.

Goh said Samee has started delivery of the casings for the Airbus 320neo.

For the 2017 financial year ended March 31, Samee invested 82.8 million ringgit for the group operations, of which 78 million ringgit was spent for the aerospace business.

“Next year, when the new plant ramps up production, we can see the contribution from aerospace moving up,” he said.

The group has projected that its revenue from the aerospace industry would account for about 60 per cent of its 2018 revenue, which should remain stable.

On the slowdown in orders for the Airbus380, Goh said Samee makes only casing for the aircraft. “The impact is minimal as the orders for the new projects are picking up. Currently, the orders for AirbusA380 are at low production rates.” .

On the equipment business, Goh said the group had enlarged its presence in the front-end semiconductor sector, reducing the contribution from hard disk drive test equipment.

“We are now doing more work on making components for equipment used in front-end semiconductor manufacturing,” he added.

On the group’s first quarter for the 2018 financial year ended June 30 2017, Samee posted 13.2million ringgit in profit before tax on the back of a 133.4 million ringgit revenue, compared to 10.8 million and 27 million in the previous year.

Samee’s revenue for the first quarter was lower at 133.4 million ringgit, compared to 156.2 million in the fourth quarter of the 2017 financial year.

“The decrease to the contraction in revenue from the aerospace and equipment manufacturing segments by 12.8 million ringgit and 10.0 million ringgit respectively as a result of lower demand from customers during the quarter,” he said.

“We expect the revenue from the aerospace industry which accounts for about 62 per cent of our group revenue to remain stable.”

At that time Filipino diners were unaccustomed to the pungency of soft cheeses and were instead partial to hard cheeses but over time, the local market came to appreciate the variety and people learned that cheese culture was part of the French art de vivre, which echoes the Sofitel brand.

“Seven years ago, the Cheese Room might have failed. People said ‘Filipinos don’t like cheese. It would never work.’ Sometimes, it’s about doing the right thing at the right time,” says Laker, who wears two hats as area manager of AccorHotel Philippines and Sofitel general manager.

Talk about timing. AccorHotels, a French multinational hospitality company, had only one luxury brand, Sofitel, in Pasay City in 2013.

Since then, its portfolio has diversified into different brands in various locations.

“The Philippine economy has been growing. We’re just getting our share, and making sure that we stay dominant in the market,” says Laker.

The businessman’s hotel, Novotel Manila Araneta Centre, has become a favourite place for functions in Quezon City. The second Novotel property will soon be up and running in Mactan, Cebu.

A mid-size businessman’s hotel, Mercure Manila, is located in the Ortigas CBD.

In the same district, AccorHotels is managing Joy-Nostalg service apartments.

Laker explains that the two hotels complement each other since Mercury is a full-service hotel for short stays while Joy-Nostalg caters to long-staying guests.

It also reflects the variety of hotels under AccorHotels Philippines.

The MGallery Admiral Bay Manila on Roxas Boulevard, meanwhile, will be a boutique hotel that exudes an Old World charm.

“We try to match the brand to the location,” says Laker.

Last year, AccorHotels purchased the Fairmont Raffles Hotels International Inc, the Canada-based company that handles the premium brands Fairmont, Raffles and Swissotel.

It aims to gain more influence in the luxury market with the addition of FRHI’s premium brands and reputation.

While Laker oversees Sofitel, Novotel, Mercure and Joy Nostalg, he considers himself a “support mechanism” to the managing director of Fairmont/Raffles.

“My role is to assist him within the AccorHotel network. I’m like a buddy,” he says.

VIP guests

As Sofitel’s GM, he has been busy with hotel reinvestments through renovations and adding services to attract the market.

The newly renovated Spiral maintains its status as the country’s “mother of all buffets”.

In keeping with the times, the once-famous nightspot Sieta Pecados has been transformed into the state-of-the-art Snaps Sports Bar, which welcomes guests and airline crew who arrive after midnight.

To enhance the luxury concept, Sofitel boosted the health and wellness services from hairdresser Philippe Tordjman, a nail spa, a renovated gym and spa and Vietura Wellness Institute, which specialises in non-invasive aesthetic procedures. As major sources of revenues, the rooms and the banquet facilities have also been spruced up.

Due to these factors, Sofitel has been the hotel of choice of presidents and other VIPs. It also welcomed celebrity guests like Madonna, Mariah Carey and Michael Buble.

As a resort hotel, the 609-room Sofitel has been attracting a largely leisure market while 30 percent are group businesses.

Some 60 per cent of the market is domestic – wedding clientele, holidaymakers, meetings and conferences and a strong balikbayan market.

At the helm of the hotel is a 48-year-old hotelier with an impressive resume.

Laker helped his previous hotels win awards in several categories from best restaurant, best resort or hotel and best general manager from industry and World’s Top New Hotels from Conde Nast, for running a luxury resort in Thailand.

“For me, number one is that the hotel is performing well. Getting recognised with awards is just a bonus,” he says.

Laker values the guest satisfaction awards from independent sites such as TripAdvisor. “When you get votes from the clients, it means you’re looking after the clients, the product and hotel,” he says.

He cites Spiral for getting the Traveller’s Choice of Fine Dining Restaurant Asia from TripAdvisor.

“It’s purely from the guests speaking from their experience. Clients spend their money and give their most honest feedback. You can always put forth a submission into an awards system. But if you get an honest feedback from guests, it’s more rewarding,” he explains.

In 2011, at his previous posting at Sofitel Fiji, the hospitality magazine HM named him Best General Manager For the South Pacific.

Laker explains the award is given by industry peers and his organisation.

For Sofitel Manila, the reward for his leadership is the boost in gross operating profit.

Aside from innovation, a hotel must always provide a top quality product at a good price to ensure return guests. Regular customers help contribute to the profit.

“It’s always cheaper to maintain a client than to find a new one,” he says.