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Update alert

Indonesia's Jokowi sworn-in as president

Indonesia’s new president, Joko Widodo, formally assumed office today, with massive crowds supporting his inauguration in downtown Jakarta. Nevetheless, he faces two key litmus tests to his rule in the face of a stubbornly-united opposition - fuel subsidy reform and calls to abolish direct elections of regional governors.

20 Oct

Malaysia CPI eases below 3%, temporarily

Malaysia’s inflation rate eased to 2.6% YoY in September, however we expect it to exceed above 3.0% YoY again for the remainder of the year due to recent additional government subsidy cuts on October 1.

17 Oct

Philippine inflation eases, but pressures remain

The BSP can breathe a sigh of relief after September CPI eased back to within its target range of 3-5%. Nevertheless, there remains considerable potential for further upside pressures to both food and electricity prices in 4Q14 and 1Q15.

17 Oct

Macro

Vietnam’s infrastructure financing risks

Vietnam is currently undergoing a major infrastructure build-out as it seeks to overcome a recent downturn and bring its economy into the middle-income bracket. Nevertheless, it remains heavily dependent on foreign financing to achieve its ambitious targets. A prolonged spat with China poses a threat to Vietnam’s development and increases its dependence on Korea and Japan.

01 Oct

Big Call

Vietnam’s infrastructure financing risks

Vietnam is currently undergoing a major infrastructure build-out as it seeks to overcome a recent downturn and bring its economy into the middle-income bracket. Nevertheless, it remains heavily dependent on foreign financing to achieve its ambitious targets. A prolonged spat with China poses a threat to Vietnam’s development and increases its dependence on Korea and Japan.

01 Oct

Finance

Malaysian funds on the global hunt for yield

Government-linked funds are major participants in Malaysia’s capital markets: we estimate they control 30% of the MYR1.7tn local equity market, with the Employee Provident Fund alone making up about half of daily trading volumes. These funds are outgrowing the domestic market, but investments abroad have faced growing criticism over an alleged lack of transparency. 

03 Sep

Consumer

Hot competition in fast food and coffee

While international giants, including YUM! Brands, McDonald’s and Starbucks, are strong across Asean, our latest survey shows that local favourites offer robust competition. 

01 Oct

Capital Investment

Influx of top-grade office space in Kuala Lumpur

Office space in Greater Kuala Lumpur will increase 18m sq ft or more by 2017 as developers attempt to meet growing demand for new buildings, which are in short supply. However, this will result in a supply glut that will hurt demand for older, lower-grade space, and limit growth in rental yields for top-grade buildings.

01 Oct

Palm oil – biodiesel mandate to lift industry

With palm oil prices at five-year lows, moves by governments in Malaysia and Indonesia to push ahead with plans to increase the amount of palm oil in biodiesel could be a game changer. Corporates are also braced for a scramble for land in 2015 when a moratorium on forest clearance in Indonesia ends.

01 Oct

Indonesia hammers out mineral future

Indonesian metal miners may likely resume exports shortly following the government's reduction of the export tax. We note that the KPK has also begun to combat smuggling and we believe that this has had some impact on black market supplies of tin and possibly nickel. We believe that tin prices will likely rise as supply contracts, while nickel slips and aluminium and copper stay roughly level.

06 Aug

Myanmar gets connected

The opening of Myanmar’s mobile phone market has provoked fierce competition between Telenor and Ooredoo as the new licensees look to exploit a virtually untapped market. We expect rapid growth in the sector, though the telecoms companies will face significant logistical and regulatory challenges. 

06 Aug

Lift-off for Myanmar’s real estate and banking sectors

Our research looks at the rapidly advancing property market in Myanmar, where foreign developers are driving a construction boom, though legal deficiencies continue to provide reasons for caution. Similarly, the opening up of the banking sector is attracting strong foreign interest, though the government will carefully limit the activities of the first foreign licensees.

09 Jul

Latest Report

2014-10-02 Report

02 Oct 2014

Vietnam's dispute with China

Vietnam is currently undergoing a major infrastructure build-out as it overcomes a recent downturn. However, a prolonged spat with China is threatening the financing of this build-out.

Bottom line

20141001-Bottom-Line

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