This, based on data from Visa Inc, was driving the growth of electronic payments in the country.

In a briefing on Thursday, top Visa officials said card usage in the country, an indicator of “electronification” of payments, added 4.6 billion pesos (Bt3.4 billion) and 3,460 jobs to the domestic economy from 2011 to 2015.

Last year, the payment volume of all Visa cards in the Philippine grew by 8.6 per cent. The payment volume of domestic premium Visa cards expanded at 33 per cent.

Visa accounts for 22 per cent all active cards in the domestic market, but premium Visa cards accounted for 46 per cent of total payments in 2015.

“Over the years, Visa has introduced a series of cards to help Filipino consumers enjoy the convenience of electronic payments,” said Stuart Tomlinson, noting that his company teamed up with Citibank in 2001 to launch the first premium Visa card in the Philippines.

“The card created a new segment at that time,” he said, noting that today there were now nine partner banks issuing premium cards “to cater to the growing affluent community”.

Premium cards give holders higher credit limits, more attractive lifestyle privileges – from golf to dining to shopping and a higher level of reward programmes and priority customer services compared to regular cards.

The “affluent” consumer market is defined as the segment that’s one tier below the high-networth individuals. They are typically defined as individuals who earn more than P1 million yearly, although some banks bring the threshold down to P500,000, depending on strategy.

Affluent customers tend to travel a lot and have greater spending power. Based on data from Visa, affluent Filipinos outspend the average cardholders by 169 percent. The largest portion of affluent spending goes to retail (18.7 per cent), travel (18.66 percent), supermarkets (13.8 per cent), restaurants (6.8 per cent) and fuel (4.68 per cent).

“The growing affluent are also avid travelers,” Tomlinson said. “Visa is confident that our growing premium platform will enable our cardholders to make the most of their travel, providing discerning Filipinos with bespoke benefits they are not aware are out there.”

Based on Filipinos’ card spending, the top 10 outbound destination and the respective growth rates of travellers in 2015 were: USA (39 per cent), Singapore (39 per cent), United Kingdom (41 per cent), Hong Kong (24 per cent); Japan (97 per cent); France (22 per cent); Australia (30 per cent); Thailand (52 per cent); UAE (57 per cent) and Italy (42 percent).

Citing a study on the affluent market, one out of five opts for personal guided tours and customized itineraries. Over the past two years, the number of those who travel alone has more than doubled, and most of them select spontaneous and passion activities such as sports. Shopping in large malls accounts for the second most popular travel activity.

Most affluent travellers choose to stay in five- or four-star hotels and typically value complimentary stays, early check in and late check-out as important benefits.

There could be some strengthening of the ringgit in the coming weeks even as investors flee to safe-haven assets on “Brexit” worries.

Global financial markets continue to digest the impact of Britain’s vote to leave the European Union, as well as the implications the move would have on monetary policy and fiscal stimulus.

A technical analyst said the ringgit would likely trade higher against the US dollar and pound sterling.

“There’s a mild upside against the US dollar and stronger upside against the sterling,” he said. However, he said there would be an element of caution in the markets because of the uncertainties.

Oil prices have hovered in the US$50-a-barrel level for some weeks now, and the ringgit has hovered at around 4 to the US dollar, mirroring the crude-oil price movement.

Gold and higher-rated sovereign bonds, including US Treasuries, Japanese government bonds, bunds and the Swiss franc have been the assets of choice for investors looking for shelter from the uncertain trading landscape. Another element that underscores the challenges ahead would be the US Federal Reserve’s decision on the benchmark interest rate.

At this point, analysts believe US policymakers will not vote to raise interest rates because of the slowdown in global economic growth and the impact this will have on the US economy, where job creation has fallen since March. Analysts say a rate increase is not likely before 2018.

US data have come in quite mixed, given the improved readings on private consumption and lower inflation against the backdrop of a lower-than-expected first-quarter economic growth.

This could leave a little bit of breathing space for policymakers in Malaysia, where economic growth shows a downtrend, with weak exports and tepid growth in private consumption as well as private-sector investment.

There has been speculation that Bank Negara could cut the benchmark overnight policy rate to support growth, given that inflation, which peaked in the January-to-March period, has stabilised.

Citigroup analysts said in a report dated July 6 that the improving outlook for the developed markets “continues to offer global markets a semblance of hope despite the despondent post-Brexit outlook”.

They noted that US equity markets had put in an “impressive performance” on July 5 as sentiments rose after the better-than-expected data from the Institute of Supply Management showing an improvement in the services and manufacturing indices.

“It is worth noting that the aggregated G10 economic surprise index is already at its high for the year and within a whisker of its two-and-a-half-year high-water mark, even as the aggregated emerging-market surprise index continues to fall,” they added.

The Group of 10 are France, Germany, Belgium, Italy, Japan, the Netherlands, Sweden, the United Kingdom, the United States, Canada and the 11th member, Switzerland.

“This improving economic outlook in the developed world continues to offer global markets a semblance of hope despite the despondent post-Brexit outlook. This is also supported by expectations of more monetary easing and a steadfastly dovish Fed,” the Citigroup analysts said, noting that the release of the minutes of the June Federal Open Market Committee meeting helped reinforce the view that US policymakers might have paused the rate-normalisation cycle.

Wen said on Thursday that CRBC’s Myanmar office was notified last week that it had won the bid for the Eindu-Kawkareik Road Improvement Project, Lot 1 and Lot 2.

The project is the first state project the new democratically elected Myanmar government has publicly awarded to a Chinese company after coming to power, and also the first project funded by the Asian Development Bank that CRBC has won in the country in recent years.

The 65-kilometre Eindu-Kawkareik road project, located in Karen state in southern Myanmar, is part of the GMS’s East-West Economic Corridor.

As an important road in the economic belt, it will not only play a key role in connecting Myanmar and Thailand, but will also be effective in promoting the economic development of eastern Myanmar, Wen said.

He noted that most of the |Asean countries depended on trade in commodities, energy and agricultural products. “However, the shortage of infrastructure facilities such as roads, bridges and bulk|ports has affected government |revenues and people’s living standards within the region.”

As it is still in the early stage, no financial figures regarding the project have been released by the Myanmar government yet.

Luo Renjian, a researcher at the Institute of Transport Research at China’s National Development and Reform Commission, said building such a road with four lanes would cost between US$600 million and $700 million (Bt21.1 billion to Bt24.6 billion) based on the current market prices in developing countries.

With more than 50 branches and offices in more than 50 countries and regions in Asia, Africa, Europe and the Americas, CRBC says it has established an efficient operation and development management network in global markets.

The company’s business mainly focuses on contracting for such projects as roads, bridges, ports, railways, airports, tunnels, water conservation, municipal works and dredging.

Fang Qiuchen, president of the China International Contractors Association in Beijing, said continued foreign and domestic investment in infrastructure, including roads and town expansion, were key factors for sustained economic growth in countries and regions, especially Africa and Southeast Asia.

CRBC, which is also building the 472km Mombasa-Nairobi standard-gauge railway, has signed deals worth $500 million with Kenyan contractors, creating more than 38,000 jobs in the process, according to the Kenyan government.

State price-management agencies will face many challenges in the second half if they are to meet the National Assembly’s target of keeping inflation under 5 per cent, experts said at a conference.

Reports from the General Statistics Office show that the Consumer Price Index (CPI) rose by 0.46 per cent last month, the highest June increase recorded in the past five years.

Compared with December 2015, the index has increased by 2.35 per cent.

Addressing the conference on price movements, representatives of the Finance Ministry’s Pricing Management Department expressed concern that inflation in the current half of 2016 would be under pressure by the state-budget balance, continuous price rises in healthcare and education services in accordance with market mechanisms, and the central bank’s policies on regulating foreign exchange and interest rates.

Nguyen Loc An, deputy director of the Ministry of Industry and Trade’s Domestic Market Department, said global political volatility and decreasing demand in importing countries would negatively affect prices of many products, including oil. In the domestic market, unexpected price rises in some cities and provinces are also expected as the country is nearing a season of storms and floods.

However, An expects prices will not go up strongly, as the government has instructed relevant agencies to prepare sufficient supplies.

The government will also maintain reasonable price increases in public services, An said, forecasting that the CPI this month will rise at the same rate as in June.

Economist Nguyen Tri Long suggested that authorities be cautious in regulating inflation in the coming months given unexpected factors that may cause inflation to rise in the second half.

Besides higher prices for public services and adverse weather, Long said, a rising money supply, foreign-exchange pressures and costlier imported products might be other reasons for higher inflation.

Long said the inflation-control target might not be met if the money supply is not strictly controlled. State price-management agencies must therefore pay due attention to inflation.

Long suggested that in the future, money policies be coordinated closely with macroeconomic stability.

He also said some regulations must be adjusted to tighten lending rules in order to avoid risks for real estate and financial markets.

SBV head urges caution

The governor of the State Bank of Vietnam (SBV), Le Minh Hung, last week urged caution in price controls, warning of great pressure to raise lending rates in the future.

Speaking at a government teleconference, Hung said that aside from existing price-control measures, prudent management of other macroeconomic activities was also needed to avoid affecting interest rates.

While most of the capital for the economy comes from bank credit, the demand for raising capital through government bonds has also increased. Hence proactive and flexible management is necessary to keep lending interest rates stable, he said

President Sakorn Suksriwong said the CLMV market – Cambodia, Laos, Malaysian and Vietnam – was expanding dramatically, as evidenced by factors such as the growth of the real-estate industry in Cambodia and the new era of Myanmar opening up to foreign investment, while there was also good growth in other Asean markets.

As a result, the demand for designers is growing rapidly, especially in the hospitality industry, for which Thailand is famous in the international market, he said.

Many Thai brands and products are receiving acclaim from customers in the design market globally, such as in the fields of furniture, accessories and gadgets.

“Compared to 10 years ago, when Western fashion brands were very famous among shoppers in Thailand and neighbouring countries, the shopping trend and consumer behaviour have changed significantly in the past five years.

“Consumers prefer to select quality products, which truly reflect their uniqueness and characteristics, from house brands or local brands. This new trend has built up more than 50 per cent of local brands’ market growth. Therefore, these factors will firmly increase the demand for designers in the Asean market,” he said.

Sakorn said Thailand’s capacity to develop new professional designers was, however, still inadequate in terms of meeting market demand.

Even though many institutes provide various fashion and design programmes for their students, there are still many limitations.

Public schools offer these programmes at reasonable tuition fees, but the number of students who can join is limited due to inadequate subsidisation by the government.

Private schools, meanwhile, can accept an unlimited number of students, but the tuition fees are much higher, he said.

CIDI Chanapatana, founded in 2000 as a social enterprise, is therefore committed to providing world-class design courses, its president said.

With its reasonable tuition fees, more students can access the programmes, while the institute is also sustainably operated.

Its programmes provide the students with an international standard curriculum at one-third of the average market tuition fee, he said.

The total fee is Bt190,000 for a two-year programme, which he said was very attractive and affordable, especially as many of the students are from abroad.

“Our students actually come from many countries, such as the US, the UK, Italy, Germany, Singapore, China and Austria. The number of students from countries in Thailand’s neighbourhood, such as Indonesia, Vietnam, Laos and Malaysia, is also increasing.

“To promote our programmes, we invite them to attend our ‘Open House’ event at CIDI Chanapatana. The event includes an introduction to the courses and our institute’s milestones, a panel discussion with successful alumni and a one-on-one discussion session with alumni and existing students, so they can understand more about the courses.

“The number of participants attending the event has increased this year, with the registration rate for foreign visitors at 20 per cent and the rate for Thai visitors at 80 per cent. Given this success, we have improved our ‘Open House’ event to cater to the increasing number of foreigners. We also promote our programmes through online media in order to directly hit the target group, instead of organising roadshows,” Sakorn said.

CIDI open house

The “2016 CIDI Open House” event will be held twice this month, on July 9 and 22, at CIDI World, CIDI Chanapatana in Bangkok.

Sakorn said potential students included career-switchers who had not studied design in earning their previous degree, due to their studies being influenced in another direction by their families or social trends.

After graduation, many of them they realise their real preference and passion, so they decide not to work in the field of their educational background and opt instead for a career in the design industry.

They cannot re-enrol for another degree from their universities, hence they turn to CIDI Chanapatana to get the necessary education and skills to pursue such a career, he said.

Another category comprises the dream-chasers, who have already had some working experience in the design industry but wish to improve their skills in order to get ahead in their design careers, he said, adding that the course would give them the necessary tools to be successful as professionals in marketing, creativity and production.

“Our programme is flexible and adjusted to market needs. The original curriculum from Italy requires only four semesters, as Italian |designers are usually not required to be capable of working on each and every process in product development.

“Thai and other Asean designers are different in that they have to be able to do everything from scratch, from researching, designing and developing to marketing their products. Therefore, the institute added an extra semester to ensure the students learn all the basic skills for their professional work,” he explained.

Meanwhile, the lecturers at CIDI Chanapatana are recruited based on their global experience.

They all have working experience in Europe, where most design industry leaders originate from, while some also have work experience from other parts of the world.

This is to ensure they can share up-to-date insights with students, which will enhance the learners’ design ideas and provide them with internal inspiration, Sakorn said.

“We aim to be the leading design-education provider in Asean. We are collaborating with the Istituto Europeo di Design in Milan, one of the top-10 world-famous design institutes; NABA [Nuova Accademia di Belle Arti], the owner of the Domus Academy in Milan; and the Royal College of Art in London, for its interior design programme.

“These collaborations will be a great bridge to open up and share our vision, knowledge and resources with world-leading design countries, and will be another step in making Bangkok a design education hub of Asean,” CIDI Chanapatana’s president said.

Human Resources Minister Richard Riot said the new minimum wage rates announced by Prime Minister Najib Razak in October last year when he tabled the 2016 Budget gave employers eight months to get their house in order.

“Claims that they are not prepared because the economy is not good is also unfounded,” he said in a statement.

The minister said last year’s labour productivity indicator showed an upward trend at 75,538 ringgit ($18,699) against 73,091 ringgit in 2014, while foreign direct investment amounted to 43.4 billion ringgit in 2015.

“Employers must honour the new rates for minimum wage without any delay,” he said in response to the Malaysian Employers Federation’s claim that many employers were ill-prepared to implement it as the current economic situation was not conducive for most employers.

The minimum wages are according to region, at 1,000 ringgit per month or 4.81 ringgit per hour for Peninsular Malaysia, and 920 ringgit per month or 4.42 ringgit per hour for Sabah, Sarawak and Labuan.

For workers paid on a piecework, tonnage, trip or commission basis, the monthly salary shall not be less than 1,000 ringgit in Peninsular Malaysia, and 920 ringgit in Sabah, Sarawak and Labuan.

The order will involve all employers in the private sector, regardless of the number of employees they have, except domestic helpers.

Riot said the government had studied all views and recommendations submitted by the National Wages Consultative Council before setting the new rates and had taken a balanced approach where the interests of both employers and employees were looked into.

Enforcement will be carried out to ensure employers heed the order and those who flouted it would be liable to a fine and even a jail term.

Indonesian Trade Minister Thomas Lembong said the border trade agreement in Nunukan and Entikong, both in Kalimantan, had been established since 1970. Both governments intended to update the agreement to better suit recent developments.

“We target to submit the renewal of the 30-year-old border trade agreement before the leaders’ meeting at the beginning of August,” Thomas said after the meeting in Jakarta on Thursday.

The reinstatement of both the JICT and the BTA, Thomas added, was important because Malaysia is Indonesia’s biggest trading partner in Asean, with a total trade of $16 billion in 2015, while Malaysia’s total investment in the country during 2010 to 2015 reached $8.9 billion.

“During the latest meeting between President Joko “Jokowi” Widodo and Malaysian Prime Minister Najib Razak, both Indonesia and Malaysia agreed to increase trade with an aim to reach $30 billion in the near future. It’s quite a big target set by our respected leaders,” he asserted.

Malaysian Minister of International Trade and Industry Datuk Seri Mustapa Mohamed added that aside from BTA modernization, both countries also agreed to enhance their cooperation in herbal product-trade facilitation, crude palm oil (CPO) standardisation and halal certification.

Laos is asking Thailand to provide more assistance in terms of capacity building for Lao labourers and boosting skill standards in small and medium enterprises.

Easier access to financing and more business operation experience is also required, Lao National Chamber of Commerce and Industry (LNCCI) president Sisavath Thiravong, said.

Sisavath was speaking during the LNCCI Board Committee meeting with a delegation from the Thai Chamber of Commerce and Thailand’s Board of Trade on Wednesday. Skill standards in Laos are low compared to those in Thailand and other Asean countries|because of poor training standards, he said.

Recognising Thailand’s potential in terms of financial arrangements and experienced personnel, the LNCCI is now seeking cooperation and assistance in this field.

Laos has potential in natural resources, especially in the energy and mining sector, agriculture, and tourism, but still has a limited budget for development, Sisavath reported.

Laos also has large areas of agricultural land but most farmers lack the technical expertise to produce commercial crops for sale and export, especially when it comes to soil improvement for higher yields and better quality, he added.

Logistical cooperation is also essential to develop the transportation network in Laos to link with neighbouring countries, especially Asean countries, he noted.

Laos has many special scenic spots that attract visitors, as well as strong cultural traditions and historical legacies, but road access remains poor in many places, he added.

Various foreign companies are investing in hydropower projects, some of which are from Thailand.

Investment by each sector in previous years has created job opportunities for local people, developed infrastructure and improved people’s living conditions as part of socio-economic development, but more cooperation is needed to boost investment.

In terms of benefits, Laos should look to sustainable development and reducing environmental impacts.

Thai Chamber of Commerce Chairman and member of the Board of Trade of Thailand, Isara Vongkusolkit, on behalf of the Thai delegation, promised to provide cooperation and assistance for mutual growth and benefits.

However, both chambers |will need to formulate plans and coordination for each stage of implementation of the programme, he added.

Laos and Thailand have a longstanding friendly relationship, and trade and investment between the two countries is continuing to increase.

The Department of International Trade Promotion of the Ministry of Commerce reported that from |2008-2013 there were 290 Thai companies registered in Vientiane and 145 companies registered in the provinces.

Easier access to financing and more business operation experience is also required, Lao National Chamber of Commerce and Industry (LNCCI) President, Sisavath Thiravong, said.

Sisavath was speaking during the LNCCI Board Committee meeting with a delegation from the Thai Chamber of Commerce and Thailand’s Board of Trade on Wednesday.

Skill standards in Laos are low compared to those in Thailand and other Asean countries because of poor training standards, he said.

Recognising Thailand’s potential in terms of financial arrangements and experienced personnel, the LNCCI is now seeking cooperation and assistance in this field.

Laos has potential in natural resources, especially in the energy and mining sector, agriculture, and tourism, but still has a limited budget for development, Sisavath reported.

Laos also has large areas of agricultural land but most farmers lack the technical expertise to produce commercial crops for sale and export, especially when it comes to soil improvement for higher yields and better quality, he added.

Logistical cooperation is also essential to develop the transportation network in Laos to link with neighbouring countries, especially Asean countries, he noted.

Laos has many special scenic spots that attract visitors, as well as strong cultural traditions and historical legacies, but road access remains poor in many places, he added.

Various foreign companies are investing in hydropower projects, some of which are from Thailand.

Investment by each sector in previous years has created job opportunities for local people, developed infrastructure and improved people’s living conditions as part of socio-economic development, but more cooperation is needed to boost investment.

In terms of benefits, Laos should look to sustainable development and reducing environmental impacts.

Thai Chamber of Commerce Chairman and member of the Board of Trade of Thailand, Isara Vongkusolkit, on behalf of the Thai delegation, promised to provide cooperation and assistance for mutual growth and benefits.

However, both chambers will need to formulate plans and coordination for each stage of implementation of the programme, he added.

Laos and Thailand have a longstanding friendly relationship, and trade and investment between the two countries is continuing to increase.

The Department of International Trade Promotion of the Ministry of Commerce reported that from 2008-2013 there were 290 Thai companies registered in Vientiane and 145 companies registered in the provinces.