Author: OBG Admin

Chaim Zach-Managing Director and CEO-Agric International Technology and Trade; Kabiru Rabiu-Group Executive Director-BUA Group; and Aliyu Abbati Abdulhameed-Managing Director

Weathering the storm: The countries of Asia Pacific must work to equip themselves to handle the effects of climate change

Posted OBG AdminPosted in Uncategorized

  Recent years have seen the issue of climate change and its potential ecological and economic effects move more clearly into the spotlight. It is now widely accepted that the planet cannot sustain current high-carbon industrial and consumer behaviours. With scientific knowledge on the subject now better informed and more reliable, economic models used to forecast the fiscal impacts of a steadily destabilising environment are also more sophisticated. The result is consensus that climate change will have major economic and social impacts; the uncertainty now

Pham Hong Hai-CEO-HSBC Vietnam

Key connections: A raft of promising bilateral agreements prepares the country for additional regional partnerships

Posted OBG AdminPosted in Uncategorized

  Indonesia’s government is pursuing a raft of trade deals to complement the successful ratification of the Indonesia-Australia Comprehensive Economic Partnership Agreement, which took place in February 2020. The bilateral agreement is viewed as a win for Australia’s grain exporters, who will enjoy an initial 500,000-tonne quota for feed grain, coupled with pledges to invest in flour milling and other food industries. The deal also helped pave the way for Australia’s Monash University to establish Indonesia’s first foreign campus. This landmark event indicates that President

Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Industrial gains: Proposed regulatory changes and tax breaks are aimed at enhancing the attractiveness of special economic zones

Posted OBG AdminPosted in Uncategorized

  Indonesia has pledged to make special economic zones (SEZs) a policy priority. The zones are seen as a way to boost industrial activity and job creation, particularly in more remote, less developed regions. The goal is to draw more than $50bn in investment into SEZs over the next decade, and methods include enhancing the incentives available and allowing public and private sector entities to propose SEZ plans. The strategy is seen as a timely one, as it aims to capitalise on supply-chain readjustments in

Pham Hong Hai-CEO-HSBC Vietnam

Recruitment drive: Major changes to the labour law are being debated, with the goal to harness higher volumes of foreign investment

Posted OBG AdminPosted in Uncategorized

  With President Joko Widodo, better known as President Jokowi, voted in for a second term in 2019, the focus in early 2020 was on key structural reforms – the kind of changes which could be difficult to adjust to but at the same time create new opportunities in sectors that are seen as underperforming, such as manufacturing. Draft versions of omnibus laws have been proposed to reform key areas such as tax, regulation, and, controversially, labour laws. Despite opposition from labour unions, the government

Amin Al Husseini-CEO-Oman Arab Bank

The hunt for Asian unicorns: Innovative tech start-ups are emerging across South-east Asia

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  The innovative tech scene in South-east Asia has garnered international attention. A jolt occurred in the international tech industry in early 2018, when the Singapore-based ride-hailing app Grab announced that it would take control of the Southeast Asian operations of its US-based competitor, and global first-mover, Uber. The purchase, which gave Uber a 27.5% stake in Grab, put the spotlight on the increasing competitiveness of tech start-ups across the region. Similar to larger companies, many of the 11 firms in South-east Asia that have achieved “unicorn” status – that is, start-ups valued at more than $1bn – have had to adapt their businesses in

George Richani-CEO-Al Ahli Bank of Kuwait

Encouraging consolidation: Efforts are under way to establish a stronger system that has fewer but more competitive players

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  Consolidation is one of the biggest ongoing issues in Indonesia’s banking sector, representing a challenge for the authorities but also an opportunity for investors. The hundreds of financial sector licensees across the archipelago amount to a huge supervisory obligation for the country’s two regulators: Bank Indonesia, the country’s central bank, and the Financial Services Authority (OJK). The authorities would like to see a shorter roster of licensees, with most institutions bigger in size and capacity. Benefits The benefits of a banking sector with fewer

Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Digital alternatives: Cashless options provide new ways to reach the unbanked population and encourage growth opportunities for fintech firms

Posted OBG AdminPosted in Uncategorized

  The role of cash is declining in Indonesia, due in large part to the significant growth of online payment choices. This comes as the Covid-19 pandemic has encouraged more people around the world to opt for cashless transactions to limit the spread of the virus, a trend that may continue to boost cashless transactions in Indonesia and other countries in the coming years. While the state is not actively pursuing the goal of a completely cashless society, it sees great potential in digital alternatives

Éric N’guessan-Managing Partner-EY Côte d’Ivoire

Banking on growth: Bancassurance remains a strong and trusted segment, while digital developments provide new avenues for sector growth

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  Bancassurance has emerged as a high-growth segment for insurance sales in recent years, as banks seek new revenue sources and diversification of their customer portfolios. In January 2019 the Indonesia Life Insurance Association (AAJI) forecast that total life insurance premium generated through the bancassurance channel would grow by 15-30% that year, based on the proliferation of partnerships between life insurers and banks, and a deepening product portfolio. AAJI said that as of September 2018 bancassurance had contributed life insurance premium of Rp59.2trn ($4.2bn), equivalent

Éric N’guessan-Managing Partner-EY Côte d’Ivoire

Energy remix: A revised plan for electricity generation aims to expand the use of renewables alongside coal

Posted OBG AdminPosted in Uncategorized

  Indonesia had planned to add 35 GW of new capacity by the time President Joko Widodo, better known as President Jokowi, concluded his first term in 2019. This target has not yet been achieved, and the government has reappraised its outlook for the sector in its Electricity Supply Business Plan (RUPTL) 2019-28. Several elements of the state’s strategy remain the same as the previous plan, RUPTL 2018-27, including the use of coal as the preferred feedstock for generating power, and a desire for foreign

Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Multiple approaches: Commercial incentives and improved data sharing are being implemented in an effort to boost oil output

Posted OBG AdminPosted in Uncategorized

  Oil production has been in steady decline for much of the past two decades in Indonesia, but the state aims to reverse this trend and achieve a production target of 1m barrels per day (bpd) by 2030. This will require investment from both domestic and foreign players, with policymakers searching for the right mix of state control and commercial incentives to achieve this. The upstream exploration required to boost production has been flagging, with the number of exploration wells dropping from 38 in 2017