Q1 2018
SouthEastAsia news Joyent Opens New Data Centers in Singapore and South Korea Expansion into Asia enables delivery of cloud infrastructure as a service combining best of public and private clouds.
Also in this issue... Thailand’s Robotics Market Proves that Automation is Here to Stay Thailand’s robotics and automation industry moves forward as public and private sectors join forces to accelerate development.
Editor’s Note
, Welcome to the Q1 edition of SE Asia News, providing you with the latest developments, up to the minute news and cutting edge commentary on this fascinating region and the latest changes it is undergoing. Welcome to the first edition of SE Asia News Magazine! Your source for the very latest deals, news and insight from across the South East Asia region. Kickstarting this edition, we discover more about Hyundai Motor Company, South Korea’s largest automaker, and Grab, the leading on-demand transportation and mobile payments platform in Southeast Asia. The two companies have recently announced a strategic partnership that will expand Hyundai’s innovative future mobility services in Southeast Asia. Also in recent news, Principal Financial Group and CIMB Group Holdings Berhad Berhad have announced that they have signed agreements for Principal to gain additional ownership of the CIMB-Principal Asset Management Group and CIMB-Principal Islamic Asset Management, pending regulatory approval. The joint ventures will continue to be co-managed by both companies. Elsewhere in this issue, we learn more about Curriculum Planning and Development (Singapore) Pte. Ltd. Who employs highly qualified educators to create and share resources with teachers, tutors and educators both in Singapore and overseas. Lastly, Malabar Gold & Diamonds, one among the largest five jewellery retailers globally is opening 11 new showrooms, across six countries in one day (12th January 2018) – including eight in the Gulf region, which takes the total number of outlets to 208 that are spread across nine countries. Here at SE Asia News, we truly hope that you enjoy reading this insightful edition and look forward to hearing from you soon.
Jessica Daykin, Editor Phone: +44 (0) 203 725 6842 Email: jessica.daykin@ai-globalmedia.com Website: www.seasia-news.com AI Global Media, Ltd. (AI) takes reasonable measures to ensure the quality of the information on this web site. However, AI will not assume any legal liability or responsibility for the accuracy, correctness or completeness of any information that is available through this web site. If errors are brought to our attention, we will try to correct them. The information available through the website and our partner publications is for your general information and use and is not intended to address any particular finance or investment requirements. In particular, the information does not constitute any form of advice or recommendation by us or any of our partner publications and is not intended to be relied upon by users in making or refraining from making any investment or financial decisions. Appropriate independent advice should be obtained before making any such decision. Any arrangement made between you and any third party named in the site is at your sole risk and responsibility.
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Contents
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4. News 6.
Malabar Gold & Diamonds - Passing Milestones
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Thinkterior - East Coast Children’s Interiors Studio Goes Global
10. Hyundai - Hyundai Motor and Grab Sign Strategic Partnership to Expand Mobility Service 12. FXTM - Fixed Income Markets To Dominate FX and Equities Moves 14. China’s Link to Global Innovation Network Receives a Boost 16. New Deal Highlights Importance of Southeast Asia For Financial Sector 18. Thailand’s Robotics Market Proves that Automation is Here to Stay 20. Water Meter Market in Asia-Pacific, Forecast to 2022 22. Pte. Ltd - Singapore-Based Company Offers Curriculum Planning Service for Teachers 24. Frost & Sullivan - Malaysian Automotive Market Recovers to Reach 601,000 units in 2018 26. Joyent - Joyent Opens New Data Centers in Singapore and South Korea 28. Pacific Prime - New Pacific Prime Thailand Office Opens to Expand Brand Presence in Asia
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NEWS
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Ecosystm Onboards Ex-IDC SVP Vernon Turner to Fuel Global Expansion
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NEWS
, Singapore headquartered technology research firm continues to extend presence in international markets.
On the 11th January, a disruptive technology research and advisory firm, Ecosystm has announced the appointment of analyst industry heavyweight Vernon Turner as Executive Analyst. Founded in 2016, private equity backed Ecosystm promises to democratise data availability and accessibility for technology buyers, vendors and analysts globally using a ‘research as a service’ model. In his new role, Vernon will join the Ecosystm research leadership team, as well as support the firm’s expansion into new markets. Prior to Ecosystm, Vernon spent the early years of his career managing IT departments at major global organisations in the banking and financial services sectors. This was followed by 18 years in senior leadership positions at global analyst firm IDC. Initially covering the ICT market – including Networking, Storage, Virtualisation, Data Centres and Servers – his remit later evolved to include disruptive technologies. In 2007, Vernon was appointed SVP, and in 2015, as IDC’s first ever research fellow, heading up the firm’s Internet of Things (IoT) practice. Vernon continues to sit on the IoT World Forum steering committee, and previously supported the governor for the state of Illinois to develop a Smart State Initiative. Commenting on the appointment, Amit Gupta, Founder and CEO at Ecosystm, said: “We are delighted to have Vernon join Ecosystm and our wider network of analysts. A globally-recognised veteran of the industry, I think it’s safe to say that few rival Vernon’s insight into technology trends. We look forward to shaking up the tech research industry together, and making his expert analysis
more widely available to the technology ecosystem.” Vernon Turner, Executive Analyst at Ecosystm added: “The analyst industry is one that has remained untouched for a long time, so I’m excited at the prospect of contributing to a new way to do research. Ecosystm levels the playing field, enabling all organisations, technologies and geographies to join the mix without compromising on the quality or depth of insights. It flips the traditional model on its head and I’m eager to see where that takes us.” The appointment follows the recent additions of Ullrich Loeffler as Chief Commercial Officer and Letchmy Ganapathy as Chief Data Officer to the leadership team in October and April 2017 respectively. Ullrich is charged with driving the firm’s growth strategy and optimising day-to-day operations. Meanwhile, Letchmy leads Ecosystm’s data research strategy and operations. Both fellow IDC alumni, Ullrich most recently served as Managing Director for IDC South Pacific, while Letchmy was previously a Research Director for IDC Asia Pacific.
Volvo Will Bring Autonomous Electric Buses to Singapore Volvo Buses and Nanyang Technological University (NTU) in Singapore have signed a cooperation agreement on a research and development program for autonomous electric 12-metre buses. The program is part of the Land Transport Authority of Singapore’s drive to create new solutions for tomorrow’s sustainable public transport. For Volvo Group, this will be the first autonomous application in public transportation.
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Charles Reed Anderson, Strategic Advisor, Internet of Things
The Volvo Group has been conducting research into autonomous transport solutions for several years. The company has demonstrated concept vehicles for applications in confined areas like mines, quarries and for transport of newly harvested sugar-cane in Brazil. One more step towards the future was taken last year with an autonomous concept truck for hub-to-hub transportations in semi-confined areas like harbours and dedicated lanes on highways.
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Claus Mortensen, Principal Analyst, Digital Transformation and Cloud Computing
Volvo Group has also presented an autonomous, battery-electric, load carrier.
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Dr. Kaushik Ghatak, Principal Advisor, Supply Chain and Operations
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Mike Ghasemi, Principal Advisor, Retail and Hospitality
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Sash Mukherjee, Principal Analyst
Vernon’s appointment also adds to the rapid expansion of Ecosystm’s global network of analyst thought leaders including:
“We are seeing fast-growing interest in both autonomous and electric vehicles in cities all over the world. Together with NTU, one of the world’s leading universities of technology, and Singapore and its Land Transport Authority, we now have the possibility of testing various solutions under realistic
conditions. The technology developed in Singapore can contribute to future autonomous applications by Volvo Buses,” says Håkan Agnevall, President Volvo Buses. The basis of the program consists of two all-electric 12-metre Volvo 7900 Electric buses, of the same type that Volvo Buses already delivers today. Volvo and NTU will build the autonomous driving solution on Volvo’s platform.
“Our electric buses already make it possible for cities to improve their air quality and reduce noise levels. With our system approach to electromobility we in addition open up new ways for urban planning. When developing autonomous solutions for public transport we can really leverage the Volvo Group expertise in this rapidly developing technology field,” Håkan Agnevall says. One of the autonomous electric buses in the program will be used on Singapore’s advanced new test facility for autonomous vehicles and the second bus will be used for tests in the bus depot. The cooperative program between LTA, Volvo Buses and NTU is now underway and will initially last for two years. The jointly developed autonomous electric buses will arrive into Singapore in the beginning of 2019.
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Passing Milestones Malabar Gold & Diamonds Makes Historic Gain, opens 11 showrooms in a day across six countries; crossing milestone of 200 showrooms globally. Malabar Gold & Diamonds, one among the largest five jewellery retailers globally is opening 11 new showrooms, across six countries in one day (12th January 2018) – including eight in the Gulf region, which takes the total number of outlets to 208 that are spread across nine countries. This is for the first time that an Indian jewellery retailer has been opening such a large number of showrooms spread across six nations in a single day. The new showrooms would be located in Al Khail Mall, Al Hazana Lulu, Al Buhaira Lulu, Sahara Centre, Ajman City Centre in the UAE, Mall of Qatar, Lagoona Mall in Qatar, Muscat City Centre in Oman, AMK Hub in Singapore, Ampang Mall in Malaysia, and Warrangal in Telangana, India.
“The opening of 11 showrooms in a single day across six countries reflects our strong conviction and confidence in the overall growth of the gold and diamond sector, despite challenging circumstances in certain markets. We are getting wide acceptance in the global market place. This is also one of the reasons we are expanding our global presence. Our core business values such as adherence to transparency, honesty, quality along with our value added services, product designs that suited to every class of customers’ taste cutting across age group are the key factors that give us global acceptance,” MP Ahammed, Chairman of
Malabar Group, told the media at a packed press conference in Dubai. Currently, Malabar Gold & Diamonds has 197 showrooms of which 90 showrooms are in India and other 107 showrooms abroad. The rapid expansion of showrooms across geographies is part of the Group’s strategy to fast expand its global footprint. In FY2017 alone, Malabar Group has opened 27 showrooms across nations.
“Despite the bull-run of cryptocurrency, introduction of GST in India and VAT in UAE and Saudi Arabia, we believe that the gold and diamond trade will sustain growth in the long run and will remain as the best commodity for investment and as a saving instrument in addition to being used as jewellery. As consumers adjust to the new tax regimes in different countries, we believe, the market will record stronger growth as people adjust their budgets for ornaments,” added Abdul Salam KP, Group Executive Director of Malabar Group. “In 2018, we will be opening more showrooms as well as manufacturing units. This will fuel our vision to become the top jewellery retailer in the world.” Shamlal Ahamed, Managing Director of Malabar Gold & Diamonds’ International Operations, said, “In 2018, we will be expanding into new horizons, marking our presence in countries such as the US, Sri Lanka, Brunei, and Bangladesh. As part of its global expansion
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plans, Malabar Gold & Diamonds will be opening another 50 showrooms in this year in different formats in various countries.” It has decided to organize a grand ceremony at Lulu Al Hazana in Sharjahto celebrate crossing the milestone of 200 showrooms globally. The upcoming showrooms of the group are at Abbasiya (Kuwait), Mannarkad, Mall of Travancore (Kerala), Forum Mall - Bangalore (Karnataka), Himayat Nagar - Hyderabad, Kondapur - Hyderabad, Karim Nagar(Telangana), Noida (UP), South Extension (Delhi), Vashi - Mumbai, Thane - Mumbai, Kolhapur (Maharashtra), Rajkot, Surat (Gujarat) and Ludhiana (Punjab). In India, the company currently operates manufacturing units in Kerala, Tamil Nadu, Karnataka, Telangana, Maharashtra, West Bengal and in Saudi Arabia, Qatar and UAE. Asher O, Managing Director - India Operations of Malabar Gold & Diamonds, said, “The group is planning to set up more showrooms as well as manufacturing units in the country, eventually generating more employment opportunities and enhancing initiatives like `Make in India’ being implemented by the Government of India.” Malabar Group believes that the most successful companies are those which integrate
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Passing Milestones
sustainability into their core business. The group is always proactive when it comes to CSR activities right from the inception. The key focus areas of the CSR initiatives of Malabar Group are in the areas of Health, Education, Women Empowerment, Housing and Environment. The organization has kept aside 5% of its profit for the CSR activities in all the regions that they operate. The group, which currently has showrooms across GCC, India, Malaysia and Singapore undertakes several welfare activities with the association of like-minded organizations in the respective regions.
Malabar Gold & Diamonds makes historic gain, openning 11 showrooms in a day across six countries; Crossing milestone of 200 showrooms globally.
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East Coast Children’s Interiors Studio Goes Global Children’s Design Studio Thinkterior LLC Expands into Asian Markets. Recently, Thinkterior LLC has set up a partnership in Singapore and Thailand to take its bespoke design services aimed at children to the Asian market. Thinkterior’s Creative Director, craftsman and all round great guy, Chris Jones, has over 14 year’s experience in designing, fabricating and installing truly ‘one of a kind’ bespoke interiors and outdoor play solutions. Just Google “Cool Kids Interiors” and one of Chris’ creations will
feature in the top search results with design blogs and Pinterest feature many of his designs. Jones has many clients in the USA and has some previously delivered projects for customers in Italy, Thailand and more recently Dubai.
“After my recent Dubai project, I really feel the potential is there to expand Thinkterior LLC into new markets and Asia is the area I want to target next. My partners in Asia will help me market my services to clients and with the
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logistics and project management of these new projects.” “At Thinkterior we create imaginatively designed spaces for children of all ages, from newborns to teens. Whether your child wants to be an intrepid explorer or a fairytale princess, our interiors create the backdrop for your child’s imagination to run wild and to create an environment that is truly creative, engaging and most of all, fun.” Thinkterior’s philosophy is simple; each concept they
create incorporates the following elements: fun, adventure, creativity and excitement. This approach combined with high quality materials, handmade craftsmanship and strict safety guidelines ensure each child has a space that they will love for years to come.
“Our designs resonate with parents and children, no matter what part of the world they are in and our attention to detail, quality and focus on safety makes our products very marketable outside of the US.”
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East Coast Children’s Interiors Studio Goes Global
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Hyundai Motor and Grab Sign Strategic Partnership to Expand Mobility Service Investment to help Hyundai expand mobility service in Southeast Asia On the 10th January, Hyundai Motor Company, South Korea’s largest automaker, and Grab, the leading on-demand transportation and mobile payments platform in Southeast Asia, announced a strategic partnership that will expand Hyundai’s innovative future mobility services in Southeast Asia. The strategic partnership will help Hyundai explore new opportunities in the sharing economy and enhance its capability to lead future mobility in one of the world’s fastest-growing markets, Southeast Asia.
Division, which was established last year to spearhead Hyundai’s future innovation. “We will continue expanding collaboration with leading mobility service providers in the world.” Grab’s Series G financing marks the company’s latest and largest fundraising round and significant investors including Didi Chuxing, SoftBank and Toyota Tsusho have participated in the funding together with Hyundai.
The two companies will jointly explore ways to develop and provide innovative services to Southeast Asian customers, including a new mobility service platform that will utilise Hyundai’s eco-friendly models such as the IONIQ Electric.
“As we move into the next stage of Grab’s growth, we look forward to collaborating closely with Hyundai to continue innovating new mobility solutions for Southeast Asia. We are pleased to welcome Hyundai to our global network of strategic partners, and we are confident that we have an alliance of strong partners to push forward into Grab’s next phase of long-term growth,” said Anthony Tan, Group CEO and Co-founder of Grab.
“Hyundai’s strategic investment in Grab marks the beginning of an exciting new partnership between the two parties, bringing Hyundai one step closer to realizing its vision for future mobility. Grab’s expertise in the Southeast Asian market coupled with Hyundai’s eco-vehicle leadership will bring innovative services to customers,’’ said Dr. Young Cho Chi, Chief Innovation Officer and head of Strategy & Technology
Focusing on its ‘open innovation’ spirit, Hyundai has been bolstering its efforts to transform people’s lives with disruptive technologies and services that materialize its visions for future mobility – clean, connected and freedom in mobility. Enhancements in mobility services include car-sharing, -hailing and –pooling, all of which benefit users by freeing them from existing mobility limitations.
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Hyundai has been enhancing its mobility services in world’s major locations as it is committed to offer smarter value to customers to cope with rapidlyshifting market paradigm in automotive industry. Partnering with WaiveCar, Hyundai in January 2017 launched a carsharing program that runs on advertising money, using IONIQ Electric model in the U.S. In October, Hyundai opened its first company-operated electric car sharing service in metropolitan Amsterdam, Netherlands and later in November handed over the first fleet of IONIQ hybrid models for the new Stadtauto (meaning ‘city car’) car sharing service in Vienna, Austria. IONIQ is the world’s first model that offers three electrified powertrainhybrid, plug-in hybrid and pure battery electric - in a single body type. Grab operates the largest transportation network in Southeast Asia and is one of the most frequently used mobile platforms in the region with over 3.5 million daily rides. The Grab app has been downloaded onto over 77 million mobile devices, giving passengers access to the region’s largest land transportation fleet comprising over 2.3 million drivers. Grab now offers private car, motorbike, taxi, and carpooling services across 8 countries and 168 cities in Southeast Asia.
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Hyundai Motor and Grab Sign Strategic Partnership to Expand Mobility Service
Hyundai Motor and Grab Sign Strategic Partnership to Expand Mobility Service in Southeast Asia
SOUTH EAST ASIA NEWS / Q1 2018 11
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Fixed Income Markets To Dominate FX and Equities Moves Hussein Sayed, Chief Market Strategist at FXTM (www.forextime.com/ uk/) talks us through recent market developments with a key focus on Asia and how the region’s year is shaping up. The outstanding performance for equities which sent many major indices to record highs may have just paused. Asian stocks were trading broadly lower on Thursday after Wall Street notched its first daily decline in 2018. It was neither economic data nor earnings that prompted the declines, but rather the selloff in U.S. Treasuries which sent 10-year yields to a 10-month high. The jump in government yields was triggered by reports that China is recommending slowing or halting the accumulation of Treasuries. Although China has reduced U.S. debt holding in the past, we haven’t seen an announcement of this nature. However, China’s foreign exchange regulator
stated on Thursday that the report could be based on erroneous information. So far, it seems that the news from China is politically driven and an indirect message to President Trump who is contemplating trade sanctions against China as a response to the massive trade deficit. Given that the U.S. is poised to boost its debt in 2018 to fund the deficit widened by tax reforms, the result of China selling off a considerable share of its Treasury holdings, would likely precipitate the beginning of a bond bear market. Treasuries steadied in Asia trade and 10 year yields declined six basis points from highs of 2.60%. Whether we’ll see another test of this critical level will likely depend
on tomorrow’s U.S. CPI report. If the data surprises to the upside, market participants will have to adjust their expectations of Fed tightening. Although interest rate projections have so far impacted only the short end of the yield curve, inflation expectations will drive the longer end, thus, the inflation report tomorrow should be of great importance. With the Cboe’s VIX trading below 10, investors seem unfazed about the spike in yields. However, another sharp spike in interest rates will bring equity valuations into question which may trigger a long-awaited correction in stocks. Although higher long-term yields ought to be good news for the U.S. dollar, this is only true when they are moving
FIXED INCOME MARKETS TO DOMINATE FX AND EQUITIES MOVES
TIME IS MONEY. INVEST IT WISELY. 12 SOUTH EAST ASIA NEWS / Q1 2018
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Fixed Income Markets To Dominate FX and Equities Moves
TIME IS MONEY. INVEST IT WISELY. for good reasons, such as economic expansion and the return of inflation. If news breaks that China slows or halts the purchase of Treasuries, expect the dollar to continue selling off, particularly against the Yen. However, it is a sad day for the Crypto world. Bitcoin, Ethereum, and Ripple all fell double digits on Thursday. After the Legendary investor Warren Buffett warned that cryptocurrencies would come to a bad ending, South Korea’s justice minister said the government was working on a bill to ban cryptocurrency trading. If the bill is passed by the country’s parliament, expect to see further selloff as more regulators are likely to join the clampdown on digital currencies.
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China’s Link to Global Innovation Network Receives a Boost Chengdu hi-tech zone of China accelerates to integrate into the global innovation network. Recently, on January 10th, 2018, during the period of French President Emmanuel Macron’s first visit to China, Chengdu Hi-tech Zone of China announced to join hands with French telecare company SeniorAdom and Sigfox, the world’s leading IoT connectivity service, to develop the project of “SinoFrench Cooperation·Chengdu International Intelligent Aging Service Demonstration Community”. Just a day earlier, Brunel University London and National Physical Laboratory of Britain (NPL) also cooperated with local Chinese enterprises to officially set up the “ChinaUK Institute of Innovative Quality Engineering and Smart Technology” in Chengdu Hi-tech Zone Pilot Free Trade Zone. This institute will form an alliance of international top scientists by closely cooperating with world first-class scientific research institutions and colleges. This cooperation form of setting up “alliance” with international scientific research institutions and science parks is by no means unique. Located in the inland of western China, Chengdu Hi-tech Zone Pilot Free Trade Zone is now showing its strong intention of open-up and cooperation. This year is the 40th anniversary of China to launch the reform and opening-up. Two months ago, Chinese government proposed to endow greater autonomy and right of reform to pilot free trade zone so as to form an “ openingup pattern of linking inside and outside while bilaterally benefiting east and west”. In 2017, China set up 7 new inland pilot free
trade zones including Sichuan, the homeland of well-known giant pandas, after Shanghai, Guangdong, Tianjin, and Fujian. Last April 1st, Sichuan (Chengdu) Hi-tech Pilot Free Trade Zone was officially set up and then in May, they launched a global top science park partnership program (TSPPP), expecting to set up an exchange and cooperation mechanism connecting global famous science parks and enterprises in terms of technology, capital, and industrial chain. 22 science parks including Sophia Antipolis of France, Barcelona Innovative Industrial Park of Spain, and Amsterdam Science Park of Netherland co-set up “World First Class S&T Parks Champions’ League” in Chengdu Hi-tech Zone and the concept of “community with a shared future for Science Park” has been widely recognized. Last October, Sophia Antipolis of France and Chengdu Hi-tech Zone signed an agreement on mutual establishment of innovation centers; last November, Chengdu Hi-tech Zone and New Jersey Association of Trade & investment Promotion of United State signed a Memorandum of Understanding on jointly setting up liaison offices to promote the cooperation between Chinese and American enterprises. By the end of 2017, Chengdu Hi-tech Zone had already set up 18 offshore innovation bases abroad. The Business & Innovation Centre for China-Europe Cooperation, which the ChinaUK Institute of Innovative Quality Engineering and Smart Technology is about to settle in, is a new window for western
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China to comprehensively open to and cooperate with Europe. Since launched in last May, it has already signed settlement agreement with 17 European institutions such as European Business & Innovation Center Network (EBN), European Teach Tour Investment Agency Union, The Austrian Economic Chambers, Economic Development Agency of the German State of North Rhine-Westphalia (NRW), The Mediterranean Region of Montpellier of France, Sicily Region of Italy, Czech Technical Center, China-UK Development Center, and The Russian Union of Innovation and Technology Centre (RUITC). In addition to vigorous development of international cooperation, Chengdu Hitech Zone Pilot Free Trade Zone is trying to change the stereotyped impression of the world to government departments in inland China to strengthen innovation in terms of management method. At present, it has basically formulated an investment management mechanism by taking Negative List as the core and the handling time of foreign-investment enterprise establishment and change shortens from over 20 working days to within 3 working days. Innovation is also reflected in the field of finance. Chinese third internet bank -- XW Bank has been set up in Chengdu Hi-tech Zone Pilot Free Trade Zone. Even though it has neither fixed banking outlets nor operation counters, 24-hour financing service would be provided to customers online. So far,
Sichuan XW Bank has already applied for 25 patents in terms of evaluation of credit risk, and financial open platform, and achieved automated approval process. Now, it only costs tens of seconds of handling each debt. Overall, compared to pilot free trade zones in coastal region, transportation logistics is a great obstacle for inland free trade zones. However, Chengdu has already found the key to solve it. In 2017, Chengdu-Europe international train has already connected 14 overseas node cities, and comprehensively set up international logistics channel of Y-shape to the heart of Europe at the west, to Russia at the north, and to Association of Southeast Asian Nations (ASEAN) at the south. As for aviation, Chengdu has opened 104 international flights. In 2017, its inbound and outbound passengers surpassed 5 million, ranking first in western China. Now, the second international airport of Chengdu is under construction, which will make Chengdu become the third city in China that owns two airports after Shanghai and Beijing. Owing to its time-honoured history and profound traditional culture, Chengdu is now standing out from all cities in western China. It will be basically built as an international hub in 2020 facing to Europe westward and to Asia southward.
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China’s Link to Global Innovation Network Receives a Boost
China’s Link to Global Innovation Network Receives a Boost
SOUTH EAST ASIA NEWS / Q1 2018 15
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New Deal Highlights Importance of Southeast Asia For Financial Sector Principal and CIMB Group to realign ownership stakes in joint ventures across Southeast Asia. Principal Financial Group and CIMB Group Holdings Berhad have announced that they have signed agreements for Principal to gain additional ownership of the CIMBPrincipal Asset Management Group and CIMB-Principal Islamic Asset Management, pending regulatory approval. Once complete, Principal will increase its ownership stake to 60 percent with CIMB retaining 40 percent ownership in the entities. The joint ventures will continue to be co-managed by both companies.
continues to be an integral part of our regional banking business. This shareholding realignment will ensure that our asset management joint venture with Principal achieves its maximum potential and continues to be sustainably value-accretive to CIMB,” said Tengku Dato’ Sri Zafrul Aziz, Group Chief Executive Officer, CIMB Group. “Scale and extensive investment expertise are important to this business and we believe this strategic realignment will enhance the value proposition of the joint venture to enable us to serve our customers better.”
“Southeast Asia is a growing and important region for Principal as we focus on bringing long-term saving and investing products to the market,” said Pedro Borda, president of Southeast Asia and India for Principal. “By increasing our ownership stake in the CIMBPrincipal joint ventures, we will be better able to bring our global asset management expertise and experience to bear while still leveraging the multi-channel distribution power of CIMB to continue to serve our customers.”
Principal helps people and companies around the world build, protect and advance their financial well-being through retirement, insurance and asset management solutions that fit their lives. The firm’s 15,000 employees around the world are passionate about helping clients of all income and portfolio sizes achieve their goals – offering innovative ideas, investment expertise and real-life solutions to make financial progress possible.
This transaction is expected to be completed in the second quarter of 2018 and is subject to the relevant regulatory approvals across the region. Principal will pay CIMB up to MYR470.3 million (approximately US$117 million1) for the additional ownership stake.
“As a leading ASEAN universal bank, asset management
CIMB Group is Malaysia’s second largest financial services provider and one of ASEAN’s leading universal banking groups. It offers consumer banking, investment banking, Islamic banking, asset management and insurance products and services. Headquartered in Kuala Lumpur, the Group is now present in nine out of 10 ASEAN nations (Malaysia, Indonesia, Singapore, Thailand, Cambodia, Brunei,
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Vietnam, Myanmar and Laos). Beyond ASEAN, the Group has market presence in China, Hong Kong, India, Sri Lanka, Korea, the US and UK. CIMB Group has the most extensive retail branch network in ASEAN of over 900 branches as at 31 December 2017. CIMB Group’s investment banking arm is also one of the largest Asia Pacificbased investment banks, offering amongst the most comprehensive research coverage of more than 700 stocks in the region. Additionally, CIMB Group operates its business through three main brand entities, CIMB Bank, CIMB Investment Bank and CIMB Islamic. CIMB Group is also the 92.5% shareholder of Bank CIMB Niaga in Indonesia, and 94.1% shareholder of CIMB Thai in Thailand. The group is listed on Bursa Malaysia via CIMB Group Holdings Berhad. It had a market capitalisation of approximately MYR60.4 billion as at 31 December 2017. The Group has 38,000 employees located in 15 countries. The new ownership and governance structure will strengthen the joint ventures’ capability to provide specialized and differentiated products and services to meet customer needs. It will further align existing investment management teams with the asset management arm of Principal, Principal Global Investors, and leverage the firm’s global distribution capabilities and asset management franchise.
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New Deal Highlights Importance of Southeast Asia For Financial Sector
CIMB Group and Principal have partnered in the region since 2004 and have successfully grown their operations across Malaysia, Singapore, Indonesia and Thailand. The CIMB-Principal Asset Management group of companies has more than MYR70 billion in AUM and is one of the largest asset managers in the region. CIMB-Principal Islamic Asset Management has been managing Islamic institutional mandates since 2008 and is the sole end-to-end Islamic asset management boutique of the CIMB Group and Principal Financial Group.
SOUTH EAST ASIA NEWS / Q1 2018 17
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Thailand’s Robotics Market Proves that Automation is Here to Stay Thailand’s robotics and automation industry moves forward as public and private sectors join forces to accelerate development. On the road towards an advanced economy under the Thailand 4.0 model, the public and private sectors have been making concerted efforts to accelerate the growth and development of the robotics and automation industries and technologies. These efforts focus on human resources development, knowledge enhancement, information sharing and industrial support networks in tandem with tax and non-tax incentives provided through the Thailand Board of Investment (BOI). Speaking to more than 300 participants at a recent seminar on “Driving Thai Economic Development through the Automation and Robotics Industry,” Chokdee Kaewsaeng, BOI’s Deputy Secretary General, explained that the government paid attention to both the demand and supply sides in designing effective investment incentives so as to create the right financial ecosystem in the Kingdom. Such incentive packages are offered for both existing and new investment projects. On the supply side, BOI’s investment incentives are offered to a wide range of business activities related to the robotics and automation industries and technologies: conceptual design solutions; engineering designs and system integration methods to control system configurations; procurement and manufacturing; as well as assembly, installation and commissioning. Supporting industries eligible for incentive packages include the production of telecommunication
equipment and parts; the operation of electronic controls and measurements for industry, agriculture and medicine; the manufacturing of vehicular and scientific tools; the installation of security control systems; and the engineering of high-value software solutions. Incentives provided to these businesses include exemptions of import duties on machinery as well as corporate income taxes, depending on the types of businesses and other incentives involved. On the demand side, incentives are afforded to both new investment projects and existing investments aimed at increasing current production efficiencies. The incentives range from a waiving of corporate income taxes for three years on the current revenues of an existing project as well as exemptions of import duties on machinery when the tax exemption cap does not exceed 50 per cent of the investment capital. In case of at least 30 per cent of the total investment capital has been made on local automation systems, corporate income tax exemptions will be expanded to 100 per cent of the investment capital. In addition, investors will be eligible for other incentives depending on their respective industry. At the same time, other parties are engaged in the nurturing of relevant skills and capacities in order to support a widescale adoption of robotics and automation technologies across the nation. The Institute of Field Robotics (FIBO) at King Mongkut’s University of Technology, in
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Thonburi, has been offering courses on industrial robotics and automation systems. Teaching methods have been revamped in order to make them more efficient. Instead of offering only in-class lectures, the university is working closely with potential employers so as to offer opportunities for students to work and learn in real-world business environments through joint-apprenticeship programs. Similarly, newly designed courses enable students to better understand the relationships between different areas of study with the aim of helping them integrate knowledge and learning more holistically. At the end of their studies, students will be able to create industrial robots and automation systems that work well in real-world settings. Dr. Varin Rodphothong, from the Centre of Robotics Excellence (CoRE) at the Thai-German Institute, has welcomed these concerted efforts made by both the public and private sectors. “Without using robots, it is forecast that 85 per cent of domestic industries will lose their competitiveness in five years and 53 per cent of SMEs may have to shut down,” Dr. Varin notes. “The cooperation between the public and private sectors in encouraging the demand for and increasing the supply of robotics and automation systems will increase the overall productivity of Thai industry by 50 per cent with 200 billion baht worth of investment expected in the next five years,” the expert adds. “More importantly, the country will reduce its imports of industrial robots and automation systems by 30 per cent. By 2026 Thailand will become an exporter of robots
and automation system, we hope.” To support this transformative project, CoRE is aiding both manufacturers and users in four major areas: system integration (SI) certification; human resource development; consultant and technology transfers; and industrial prototype development and testing. On the private sector side, suppliers and developers of industrial robots and automation systems have joined forces to develop their own industries. To that end, a large number of associations, institutes and communities have been set up, including the Thai Automation and Robotics Association (TARA) and the Thai Robotics Society. Mr. Narakorn Ratchapolsitte, Vice President of the Thai Automation and Robotics Association, has said that the diversity of TARA members provides the association with a high capability to help robotics and automation system companies find the best solutions for their businesses and their customers alike. “TARA’s survey has shown that in the next one-three years, 50 per cent of Thai industry will have more readiness to adopt automation systems,” Narakorn explains. “In the short term, large companies are ready to go automated while small companies will need more than 5 years to become automated. This means the trend for industrial robots and automated systems in Thailand is strong and well-established.” As his final comment he adds: “The future is bright and it’s already here.”
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Thailand’s Robotics Market Proves that Automation is Here to Stay SOUTH EAST ASIA NEWS / Q1 2018 19
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Water Meter Market in Asia-Pacific, Forecast to 2022 Mergers and Acquisitions (M&A) expand service propositions, however, it is the unique business model that is key to success in the Asia-Pacific region. The Asia-Pacific (APAC) water meter market, comprising basic water meters, automated meter reading (AMR), and advanced metering infrastructure (AMI) technologies is growing steadily due to the region-wide focus on improving metering penetration and reducing non-revenue water (NRW) losses. The market is likely to grow at a modest Compound Annual Growth Rate (CAGR) of 3.5% between 2016 and 2022, propelled by the growing rate of metering in the region and the adoption of smart water metering in key developed nations. In addition to the analysis of market growth factors, this study offers insights into the broader trends influencing the water meter market and its participants.
Utilities have realized the importance of increasing cost recovery in ensuring the financial and environment sustainability of water supply. Strong private sector investment is also expected in the market due to a shift in the investment focus from China and India toward emerging markets. This environment of change has proved beneficial to the water meter market, with the region witnessing an increase in the pace of project implementation and a leapfrogging in adoption of smart metering systems. The water meter market in APAC is still nascent with a highly fragmented market. Water meter market leaders from Japan and Europe have already begun capitalizing on the largely underdeveloped Southeast Asian meter market.
Key companies in the region include Itron, Elster, Aichi Tokei Denki, Sensus, Arad, and K-Water. While Japan and Australia are currently the markets with the most activity, developing markets such as Indonesia, Singapore, and South Korea are expected to offer strong growth opportunity in the coming years. Frontier markets such as the Philippines and Vietnam will be fail-safe long-term bets. In terms of market segment performance, the market share of basic meters will gradually be eroded by smart metering technologies due to the need for better demand management and increased cost recovery from customers.
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Water Meter Market in Asia-Pacific, Forecast to 2022
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Singapore-Based Company Offers Curriculum Planning Service for Teachers Curriculum Planning and Development (Singapore) Pte. Ltd. employs highly qualified educators to create and share resources with teachers, tutors and educators both in Singapore and overseas.
Curriculum Planning and Development (Singapore) Pte. Ltd. offers a curriculum planning service to educators in Singapore and overseas, covering plans for elementary through pre-university level. The service is invaluable particularly to educators owning smaller establishments that might not otherwise be able to afford an equivalent range of textbooks and other resources and can therefore outsource this vital part of their educational delivery. The Singapore education system has been widely acclaimed for its success in nurturing students. The country recently topped an international ranking
compiled by OECD, with the report drawing attention to the correlation between a high-quality educational system and economic progress. The curriculum that has been created and developed in Singapore has proven highly effective in facilitating learning. Customized curricula, based on the Singapore syllabus, will be exported to the USA as well as other Asian countries. Curriculum Planning and Development (Singapore) Pte. Ltd. employs two former professors, both with doctorates, who are cognizant with the latest pedagogy and innovative trends in curriculum development, teaching and planning. Additionally, there is a team of
experienced senior teachers from diverse backgrounds.
“The curriculum planners we employ have a deep understanding of pedagogical issues so the curriculum design is well grounded and caters to diverse learner needs and the demands of content and teaching processes,” says CEO Anthony Fok. “Tuition centres that are relatively new in the private education industry may lack the financial resources and time to produce good quality curricula and worksheets, making it difficult for them to compete with bigger players in the industry. They can now access customized worksheets for the needs of their own students. We also
Singapore-Based Company Offers Curriculum Planning Service for Teachers Curriculum Planning and Development (Singapore) Pte. Ltd. employs highly qualified educators to create and share resources with teachers, tutors and educators both in Singapore and overseas.
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create our Singapore syllabus for international private schools overseas.” The service Curriculum Planning and Development (Singapore) Pte. Ltd. provides helps lessen the load for educators allowing them to focus on student motivation and effective management. The company also offers training for educators. Fees for this service vary according to the hours and manpower needed to complete the work; including resources such as videos, flash cards, worksheets, exam papers, activity lists, and teachers’ guides. For more information, please visit www.cpdsingapore.com.
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Singapore-Based Company Offers Curriculum Planning Service for Teachers
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Malaysian Automotive Market Recovers to Reach 601,000 units in 2018 Frost & Sullivan’s Mobility team forecasts Malaysia’s vehicle sales to grow 2.0% in 2018. Frost & Sullivan forecasts Malaysia’s vehicle sales to reach approximately 601,000 units in 2018 at a growth rate of 2.0 per cent. The Malaysian economy is expected to continue recording positive growth in 2018, driving consumer confidence throughout the year. Mr. Vivek Vaidya, Senior Vice President of Mobility at Frost & Sullivan says the strengthening Ringgit is likely to reduce the import costs of parts and Complete Built-Up (CBU) models, helping contribute to price stabilization in 2018. He added, “The launch of the Perodua Myvi in 2017 H2 as well as the launch of key models, including the highly anticipated Toyota CH-R in 2018, will also drive sales in 2018.” Conversely, Bank Negara Malaysia’s continuous efforts to improve the quality of loans may make it difficult for low income families, young buyers and SMEs to secure loans, affecting the Total Industry Volume (TIV) in 2018.
“Other factors like the National Automotive Policy (NAP), improvement in public transport infrastructure as well as growth of ridesharing will impact the automotive market in Malaysia in the long term but are unlikely to have any significant impact in 2018,” said Mr. Vaidya. He continued, “While persistent high household debt will continue
to encourage cautious spending, expected wage growth is likely to provide the requisite counterweight.” 2017 Review Vehicle demand in Malaysia went up by 1.6 per cent in 2017 as economic recovery and rising consumer confidence resulted in higher demand for passenger vehicles. However, commercial vehicle demand continued to contract for the 4th year in row amidst cautious business sentiment.
“Higher wages resulting from economic recovery led to improved consumer sentiment pushing up sales but were negated by restraints like accompanying inflationary pressures and stringent loan approvals,” Mr. Vaidya said. Passenger vehicles market share by OEMs in 2017 Passenger vehicles sales reached approximately 526,603 units in 2017, which is a 2.3 per cent increase over 2016. The MPV segment, backed by the strong sales of Honda BR-V, recorded a year-on-year growth of 27.2 per cent. The passenger car segment grew marginally while window vans and SUVs witnessed a decline in sales. Perodua continues to lead the passenger vehicle segment with a 40.1 per cent share while Honda claimed second position with a 21.1 per cent market share.
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“Despite losing some market share, Perodua continues to be the market leader in the passenger vehicle segment, driven by the high demand for its popular models, Axia and Bezza,” said Mr. Vaidya. “Honda witnessed significant increase in market share with strong sales of the newly launched Honda BR-V and Honda CR-V.” Commercial vehicles market share by OEMs in 2017 Mr. Vaidya said that commercial vehicle sales declined 4.5 per cent to 62,606 units in 2017. Unstable Ringgit performance impacted borrowings and operating costs while higher inflation rate led to cautious spending for commercial vehicles. He added, “However, economic growth and ongoing mega projects like the High Speed Rail (HSR) and Pan Borneo Highways acted as drivers for the late recovery towards the end of 2017.” Toyota continued to lead the commercial vehicles segment with a commanding share of 35.0 per cent. Toyota regained a large portion of the market share that it lost in 2016 thanks to strong sales of the Toyota Hilux. Isuzu and Nissan also strengthened their position with 19.1 per cent and 11.6 per cent market share respectively.
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Malaysian Automotive Market Recovers to Reach 601,000 units in 2018
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Joyent Opens New Data Centers in Singapore and South Korea Expansion into Asia enables delivery of cloud infrastructure as a service combining best of public and private clouds. Joyent, the open cloud company, has announced the opening of two new data centers in Singapore and South Korea. The company’s data center expansion into Asia enables Joyent to support the rapid, global adoption of the company’s Triton Private Regions, a next generation approach to cloud infrastructure as a service designed to deliver increased control and dramatic cost savings. Customers with large scale and predictable infrastructure requirements are driving demand for the service, which enables organizations to cut their current cloud costs by 50 percent or more.
“Joyent made these new data center investments in Asia to meet the needs of our customers who operate globally distributed
applications,” said Bill Fine, Vice President, Product at Joyent. “Our customers include Fortune Global 50 companies that want to use Triton Private Regions to run some of the world’s largest web, mobile, AI, machine learning and IoT applications. Triton Private Regions give them the ability to precisely calibrate the performance and security of their infrastructures while achieving unprecedented cost savings.” Built on the foundation of Joyent’s modern and open Public Cloud, Private Regions uniquely combine private cloud economics and control with the simplicity of a public cloud by creating dedicated, private regions for each customer. Companies can then focus on driving customer value through their core competencies, instead of investing time and
budget managing multiple cloud expenditures. The Singapore and South Korea data centers represent the first phase of Joyent’s expansion into Asia. Data centers already in operation and supporting Triton Private Regions include locations in Ashburn, Virginia, and Amsterdam. Joyent, a wholly-owned subsidiary of Samsung, is the open cloud company. With its Triton Kubernetes services and support, Joyent helps its customers build and operate modern cloud native applications across multiple clouds. Joyent’s Triton Private Regions provide low cost, dedicated cloud infrastructure that gives its customers the ability to own their data and control their cloud costs.
Expansion into Asia enables delivery of cloud infrastructure as a service combining best of public and private clouds.
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Joyent Opens New Data Centers in Singapore and South Korea
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New Pacific Prime Thailand Office Opens to Expand Brand Presence in Asia Global insurance advisory firm, Pacific Prime, has today announced the launch of its new Thailand office. Based in Bangkok, the office will serve as the company’s new push to expand insurance brokerage services in Thailand - for both local Thais and expats, and multinational businesses looking to cover staff on overseas assignments. Pacific Prime is a leading insurance brokerage with nearly 20 years of experience matching individuals, families, groups, and corporates with the best value insurance solutions. Headquartered in Hong Kong, its new Thailandbased office expands its ability to principally offer advice on individual and corporate health insurance. Walter van der Wal, Business Development Manager Thailand, says this new presence will broaden Pacific Prime’s capacity to serve both new and existing clients in Thailand. “It’s an exciting new opportunity for us, and one that’s been a long time in the making. We’re extremely appreciative of all the work our team has put into securing a license to operate in Thailand, and are now looking forward to rewarding those efforts by delivering local and international insurance solutions out of our Bangkok office.
insurance solutions, including local private medical insurance; international private medical insurance; corporate employee benefits solutions; travel insurance; insurance products for retirees; as well as accidental death and dismemberment policies. All of these will be backed by Pacific Prime’s reputation for comprehensive brokerage services, and supported by its global network of seven offices around the world. Alongside the new office in Bangkok, Pacific Prime Thailand has also launched its new website. From it, you can access its online insurance quote comparison tool, a range of information related to the company’s products and services, a list of guides and report resources related to simplifying insurance, and a catalogue of handy information in its official blog.
The new Pacific Prime Thailand office will be offering robust
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New Pacific Prime Thailand Office Opens to Expand Brand Presence in Asia
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