Showing posts with label Southeast Asia. Show all posts
Showing posts with label Southeast Asia. Show all posts

Monday, February 17, 2020

Southeast Asia feels the burn as virus keeps Chinese tourists at home


Elephant parks unvisited, curios at markets unsold as tuk-tuks sit idle: Southeast Asia is facing billions of dollars in losses from a collapse in Chinese tourism since the outbreak of a deadly new coronavirus.

From Luang Prabang in northern Laos to Pattaya in Thailand, Hoi An in Vietnam and the Cambodian casino town of Sihanoukville, takings have plummeted as Chinese travelers find themselves subject to a host of restrictions at home and abroad.

"We haven't had any Chinese for 10 days since they closed the road from Yunnan," says Ong Tau, 47, from behind her stall of fruit shakes in the temple-studded Laotian colonial town of Luang Prabang.

"Business is down 20-30 percent... it will get worse."

Tour guides, mall workers and restaurant staff are all feeling the burn as Chinese -- the world's biggest travellers -- stay at home in the middle of a global health crisis.

"My friend has lost four or five big tour groups... they would have paid for his low season," said Tee, a guide in Luang Prabang, giving only one name in the tightly-controlled communist country, a mass of tuk-tuks standing idle behind him.

But in one of Southeast Asia's least well-resourced countries, there may be one bright side to the sudden economic pain.

"We don't know how to protect ourselves," he added. "The government doesn't tell people anything... so maybe less Chinese is a good thing for now."

Loans and job losses

The slump is being felt sharply in Thailand, where tourism authorities say arrivals from China -- usually close to one million a month -- have plunged by 90 percent so far this February.

At the Chang Siam Elephant Park in Pattaya, a few hours south of Bangkok, owner Nantakorn Phatnamrob fears he will soon be pressed into debt to float a business which has lost nearly $65,000 since the outbreak.

"People are afraid to visit," he told AFP. "If it stays like this, I will have to get a loan from the bank."

Crocodile farms and tiger sanctuaries -- controversial tourist beacons where visitors can pet the animals -- are also deserted, leaving owners to feed expensive star attractions.

The outbreak has also spooked western tourists at the height of peak season in what has already been a tough period for Thai tourism thanks to a strong baht.

Thailand anticipates shedding five million tourists this year, taking with them "250 billion baht (over $8 billion) in revenue", according to Don Nakornthab, director of economic policy at Bank of Thailand.

"Our hopes that the economy will do better than last year are very low... it's possible it could grow below 2 percent," he added.

That will spell bad news for the untold number of Thais working in the tourism sector.

Ma Mya, 22, who sells trinkets in Pattaya, says she may soon have to return to her home in northern Thailand.

"There's no more profit -- everything has gone bad."

Things can only get better

With so much riding on the seasonal influx, some Mekong countries are desperate not to deter those Chinese still traveling.

Thailand offers visa on arrival for Chinese tourists despite having one of the highest numbers of confirmed infections -- 34 -- outside of the mainland.

At least two of those cases were Thais who contracted the virus after driving infected Chinese passengers, raising fears that the economy was taking priority over tackling the health crisis.

For staunch Beijing ally Cambodia, where only one case of the virus has been confirmed so far despite a large Chinese presence, strongman leader Hun Sen has repeatedly played down the risk to his country.

Still, Cambodian tourism is taking a hammering.

Ticket sales at the famed Angkor temple complex in Siem Reap have fallen between 30 and 40 percent this year, while in Sihanoukville, a southern beach resort notorious for its casinos, the tourist take has shriveled.

"I used to make $100 a day," said Chantha Reak, a ride-hailing driver. "Now it's $10."

Businesses are praying for a bounce back if and when the virus is controlled.

With 10 million Chinese visitors each year, Thailand hopes the pain will ease in a few months.

Regular visitor Yen Ran, 25, from Chengdu, came to Pattaya despite the health warnings.

"I am a little concerned how other countries perceive us," she told AFP. "But when there's a cure, things will get better."

Source - TheJakartaPost

Wednesday, February 20, 2019

Aircraft manufacturers looks to Southeast Asia


Boeing Co. of the United States and other major international aircraft makers are moving to build manufacturing bases in Southeast Asia. 

Thailand and Malaysia are eager to attract industries from overseas, in the hope of developing their economies. This is presenting opportunities for small and midsized Japanese companies that manufacture airplane parts or provide other services to start operations in the region. 
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On-site inspection

Representatives of 30 small and midsized companies from Japan gathered in Bangkok on Feb. 12 to explore the possibility of starting business there. They listened to Thai government officials discuss investment plans and inspected local companies. 

“There are issues with the infrastructure environment and other things, but we hope to incorporate the vigor of this growth market,” said Tomaru Nakamura, managing director of Kyoto-based Asahi Kinzoku Kogyo Inc., which provides such services as special surface processing for airplane parts.

Thailand is planning to build a base for the maintenance, repair and overhaul (MRO) of aircraft in a special economic zone. Demand for MRO services is growing due to an increase in the number of airplanes flying in the region.

Europe’s Airbus has already decided to start operations in the zone, with Boeing Co., Rolls-Royce of Britain and other companies also considering investments there. 

The Thai government hopes Japanese companies will help set up a center for the aircraft industry the way they did for the auto industry, a factor contributing to Thailand’s economic development. 

“The Japanese automobile makers who started business in Southeast Asia before others led the growth of auto manufacturing there,” said a vice secretary general in charge of special zone projects. “In aircraft manufacturing as well, we want to learn from Japan’s advanced technological skills, its ability to train personnel who maintain quality levels and other attributes.”

Topping N. America, Europe

The volume of airline passenger transportation in the Asia-Pacific region surpassed that in North America and Europe in 2017, according to the Japan Aircraft Development Corporation. Airbus and others believe about 40,000 airplanes will be needed in the next 20 years, most of which will be supplied to the Asia-Pacific region. 

While this could be a boon for parts makers, airplane parts must comply with strict safety standards. The need to obtain safety certifications for all parts is a major barrier to entry. 

Japanese companies hope to meet these demands by quickly building a parts supply network that utilizes the area’s cost-competitiveness.
Other nations as well
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Other Southeast Asian nations are also trying to draw aircraft-related businesses from overseas, a move resulting in fierce competition with rivals in the region. 

Singapore has been a leader in attracting foreign capital in the MRO field, with its hub airport that sees more than 65 million users annually.

Malaysia and Indonesia are actively trying to increase investments from overseas by highlighting their advantages, such as preferential treatment for foreign investments and low labor costs. 

Asia’s largest low-cost carrier, AirAsia Group Bhd., is headquartered in Malaysia. 
“MRO businesses have helped to grow related industries such as parts manufacturing and to create jobs,” said an official from the Malaysian Investment Development Authority.

Source - TheJakartaPost 

Friday, August 31, 2018

Cybercrime surges above $120-bn in Southeast Asia


Authorities must cooperate internationally, regulate at home, to stem online crime spree.

THE RAPID growth of Bitcoin-related scams and other cybercrimes has prompted the United Nations to urge member countries, including Thailand, to step up their legal safeguards against potential economic losses.

Cybercrime-related losses worldwide top US$600 billion (Bt19.6 trillion), said Julien Garsany, deputy regional representative of the UN Office on Drugs and Crime (UNODC).

Garsany told a Bangkok seminar on cryptocurrency and cyber-crime that the cost of economic and other damage to Asian countries alone ranges between $120 million and $200 million, making it essential for law-enforcement and justice officials in various countries to work together to tackle the issue.
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Thailand has also won support from the international community after an executive decree was issued recently to regulate all digital assets, including Bitcoin and initial coin offerings (ICOs).

Kittipong Kittayarak, executive director of the Thailand Institute of Justice, said criminals have now turned to using cryptocurrencies to commit crimes such as money laundering, terrorism financing and illicit ransom payments. They also use cryptocurrencies to pay for child pornography, malware, narcotics, weapons and human trafficking via the so-called “darknet”, whose computer server locations are unknown.

The number of cryptocurrency crimes in Thailand remains small so far but is expected to increase rapidly in the near future. The country needs to boost public awareness and readiness to tackle this issue, Kittipong said.

Justice Minister ACM Prajin Chantong told the seminar that a shortage of experts in this field means Thailand needs to expand its collaboration with other countries.

Dr Narin Phetthong, an Interpol specialist on criminal activity involving cryptocurrencies, said the most prominent cases in Thailand included a huge Bitcoin robbery in Phuket allegedly carried out by Russian criminals and the Bt800-million Bitcoin scam in which a Finnish owner of bitcoins was allegedly cheated by Thais.

Alexandru Caciuloiu, the UNODC’s cybercrime project coordinator, said criminal activity involving cryptocurrency could take many forms, including their use by prostitution rings to launder money and crypto-hacking in which computer servers are accessed without authorisation to mine Bitcoins and other digital units.
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 Regional operation

Narin said Interpol now has a regional operation in Singapore with a unit dedicated to cybercrimes in Asean countries. Owing to concerns on the expected rise of these crimes, Thailand’s Securities and Exchange Commission (SEC) is now tasked with regulating all digital assets in the country.

Bhume Bhumiratana, a consultant of SEC, said licensing and registration with the authorities is now required for several types of business involving digital assets, including cryptocurrency exchanges, dealers and brokers. Such regulator oversight could help prevent fraud and other wrongdoing, Bhume added.

Preventive measures such as licensing and “know your customer” (KYC) regulations imposed on banks and other financial institutions will allow the authorities to trace owners of digital assets used in criminal activities.

Poramin Insom, founder of the Zcoin and TDAX cryptocurrency exchanges in Thailand, said only 0.2 per cent of the Thai population currently use Bitcoins and similar currencies. He predicts that figure will grow 10 per cent over the next five years.

Poramin said the current regulations on all digital assets are good for the country and potential users, as well as investors who want to know the rules to avoid problems with regulators.

 However, authorities must avoid over-regulating digital assets and other new technologies as Thai innovators could be negatively affected, cautioned Prin Panitchpakdi, a member of SET’s board of governors and director of National Innovation Agency. 

Source - TheNation