NEWS

Around Asia Pacific in seven stories…

LOCAL GOVERNMENT

Kishida elected as Japan’s new Prime Minister, parliamentary election scheduled

HEALTHCARE

AUSTRALIA COMMITS TO COVID-19 ANTIVIRAL PILLS AFTER RECORD CASES IN VICTORIA

AUSTRALIA’S PRIME Minister, Scott Morrison, has recently committed to ordering 300,000 courses of Molnupiravir - the world’s first oral antiviral medication in the fight against COVID-19. The announcement comes as Victoria recorded the highest number of positive COVID-19 tests of any Australian state since the pandemic began in early 2020.

With Merck set to produce 10 million courses of Molnupiravir before the end of 2021, South Korea, Thailand, Taiwan, and Malaysia are also in talks to buy the treatment once approved. The Philippines is already running a trial of the medicine.

Molnupiravir is considered a breakthrough in preventing the spread of COVID-19. Individuals who are most at-risk are recommended to take one pill twice a day.

ECONOMY

Chinese property firms face financial uncertainty

PROPERTY DEVELOPERS Sinic Holdings and Fantasia Holdings have joined major real estate giant Evergrande in financial turmoil. All three companies have failed to make debt interest payments in recent weeks.

Hong Kong-based property company Hopson Development are expected to buy a controlling stake in Evergrande. The deal would provide funds of around $5 billion to ease payments to debtors, including investors, suppliers, and customers.

Some tension remains over the deal due to the potential impact any result could have on the global economy.

The Chinese Government have indirectly signalled a willingness to protect individual citizens from financial ruin, should an agreement not be reached.

FUMIO KISHIDA, recently elected as Japan’s new Prime Minister (PM) by the ruling Liberal Democratic Party, has called a parliamentary election for October 31st to cement a new mandate for improving the nation’s response to the COVID-19 pandemic.

Kishida replaces outgoing PM Yoshihide Suga, whose approval ratings remained low following a surge in COVID-19 cases following the Tokyo Olympics. Suga struggled to avoid criticism since the beginning of the pandemic and was roundly condemned for allowing the delayed Olympics to take place while COVID-19 remains a major threat.

The new PM is supported by popular predecessor Shinzo Abe and has included many of Abe’s political allies in his new cabinet.

TECHNOLOGY

Singapore expected to benefit from digital economy boom

THE ASEAN region is benefitting from significant investment into its digital infrastructure. In particular, Singapore is expected to lead the way as a regional hub for data, with the nation developing a reputation as a key data centre.

Singapore’s status as the most attractive regional data hub comes from its robust data privacy and cyber security policies, as well as a strategic location connecting other significant population centres throughout the continent.

Regional competitors, including Indonesia, are also seeing investment into data centre construction, with further markets developing in the Philippines, Malaysia, Thailand, and Vietnam. Such growth in other ASEAN nations will eventually reduce Singapore’s head start, but the region as a whole will undoubtedly benefit.

ENERGY & UTILITIES

Potential energy crisis looming in China

A COMBINATION of extreme weather conditions, increasing demand for Chinese exports as the global economy reopens, and a national focus on reducing carbon emissions has left China on the cusp of a potential power shortage.

China has long produced most of its own electricity via its coal-powered plants, but a 10-year inventory low and ongoing tension with Australia - the most convenient source for meeting demand - leaves China facing significant economic slowdown going into the fourth quarter of 2021.

China has relied on deals with the likes of Indonesia, Mongolia, and Russia since its relationship with Australia declined, but Chinese demand may be higher than these nations can supply.

BUSINESS TRAVEL

AUSTRALIAN BORDERS SET TO RE-OPEN AFTER 18 MONTHS

18 MONTHS have passed since Australia implemented a ban on overseas travel, accompanied by a strict arrivals quota that left thousands of citizens stranded abroad.

PM Scott Morrison announced that the return of international travel is “within weeks”, as several states close in on an 80 percent vaccination target. New South Wales is expected to be the first state to reach the target, potentially making it a pilot study for further relaxation of COVID-19 restrictions on travel moving forward.

Re-opening international borders would undoubtedly boost the nation’s economy, allowing fully vaccinated Australians to travel abroad.

BUSINESS TRAVEL

BALI TO REOPEN TO TOURISTS FROM OCTOBER 14TH

THE INDONESIAN island of Bali will partially re-open to international tourists on October 14th. Bali is heavily reliant on tourism and will soon permit travel from China, Japan, South Korea, New Zealand, and the United Arab Emirates for the first time since spring 2020.

Despite the re-opening, all foreign nationals will be required to show proof of hotel room reservations as part of a mandatory eight-day quarantine at their own expense. Indonesia has reported a significant reduction in COVID-19 cases after becoming a global hotspot for positive cases throughout July and August. Cases are now at their lowest since August 2020, representing an impressive effort to ensure public health safety.