Category: Uncategorized

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

Balancing act: New policies should shore up the sector against challenges

Posted OBG AdminPosted in Uncategorized

With oil and gas prices currently experiencing a sustained low, the Sultanate’s economy has been facing some challenging times. Declines in GDP and a shrinking of government revenues and expenditures have also affected the banking sector, as consumers and businesses act more cautiously and the need for project financing dwindles. Yet the Sultanate’s banking sector is also seen by many as the key to driving future economic growth. Under the country’s long-term development plan, Wawasan 2035, diversification away from oil and gas is key, with a shift to high-value, innovative private sector businesses in services and manufacturing being a principal pillar of the strategy. Recent

Peter Wong-Deputy Chairman and Chief Executive-HSBC

Capital gains: Johor Bahru is in the midst of a significant makeover

Posted OBG AdminPosted in Uncategorized

Just 1 km across the water from Singapore, Johor Bahru (JB) has long been in the shadow of its glamorous neighbour, but now both the local and federal governments are stepping up efforts to transform the city of 1m people into a vibrant 21st-century metropolis. JB is in the midst of a major makeover, both as one of the five development zones of the Iskandar Malaysia project and as one of four “growth catalyst cities” identified in the 11th Malaysia Plan, which charts the country’s economic development up to 2020. These cities were chosen according to factors including population size, GDP contribution, major infrastructure and

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Growth driver: The state is attracting further investment in critical sectors

Posted OBG AdminPosted in Uncategorized

The Sabah Development Corridor (SDC) was launched in 2008 and covers the whole of Sabah. It is now entering its third phase of development, which is likely to create more opportunities for foreign investors, particularly in the areas of tourism, hydrocarbons and palm oil-related ventures. By 2025 the goal is that the initiatives under the SDC will have tripled Sabah’s GDP per capita and increased total GDP by four times. The Sabah Economic Development and Investment Authority (SEDIA), which is driving the SDC project, says the target is to push the state’s average growth rate to 9% a year. According to the Malaysian Investment Development

Much in common: Connecting Islamic finance with socially responsible investing leads to attractive growth opportunities

Posted OBG AdminPosted in Uncategorized

There is no denying that the Islamic capital market is increasingly attracting global attention as an alternative means of raising capital and investing, as the array of sharia-compliant products continues to expand, offering high-quality and financially efficient structures in the international market. New products and innovative solutions continue to be developed, as key markets active in Islamic finance, such as Malaysia and the Middle East, support development and promotional efforts, and Islamic finance continues to garner acceptance and recognition across the globe. The Principles Malaysia,

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Working together: New platforms are facilitating SME and industry networking

Posted OBG AdminPosted in Uncategorized

Under the 11th Malaysia Plan (11MP), which lays out Malaysia’s economic path until 2020, manufacturers are being encouraged to undertake more research and development (R&D) to improve their products and processes. Since many Malaysian manufacturers are small, the government is also increasing the opportunities available to small and medium-sized enterprises (SMEs) for collaboration. Assistance Hub The Steinbeis Malaysia Foundation was set up as part of the Malaysian Innovation Agency in 2014 to help smaller companies looking for expertise not only in R&D, but also in business advisory, devising financial plans, intellectual property and raising equity funds. Modelled after Germany’s Steinbeis Foundation, Steinbeis Malaysia has its

Mohammed El Etreby-Chairman-Banque Misr

Luxury on sale: The apartment segment has seen a slowdown in transactions

Posted OBG AdminPosted in Uncategorized

The residential property sector has been affected by Bank Negara Malaysia’s cooling measures and poor consumer sentiment, creating a slowdown in transactions across the board. But the outlook for 2016 and 2017 is especially difficult for the condominiums and apartments segment, which has become an increasingly popular slice of the property market. In the second half of 2015, sales of apartments and condominiums rose by 120% on the same period a year earlier, from 779 to 1844, according to the Real Estate and Housing Developers’ Association. The segment accounted for more than half of all property transactions in the third quarter of 2015, according to

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

Money in motion: Overseas remittances and healthy tourism receipts are helping to keep capital circulating

Posted OBG AdminPosted in Uncategorized

Worker remittances have been growing over time and now play an important role in the country’s international capital flows. They surpassed $7bn in 2014, up from about $2bn in 2006. Despite levelling off in early 2015, they then reached $8.2bn in 2015, which remains a large portfolio for a $75bn economy. Historically, workers’ remittances have been essential for the stability of the economy. They have brought in preciously needed foreign reserves during a time of war, and have also been seen as a hedge against

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

A key strength: A focus on niche products and apparel manufacturing exports has reached a new level of intensity

Posted OBG AdminPosted in Uncategorized

An apex industry and the largest foreign exchange earner, Sri Lanka’s apparel manufacturing sector stands as one of the country’s greatest strengths. A focus on quality and value addition over volume and cheap production has seen the industry record years of growth in exports and revenues, particularly in the lingerie, swimwear and sportswear segments, while a reputation for maintaining stringent ethical and environmental standards makes the country a preferred source market for a host of major brands. Although the industry was hurt by suspension of

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

A hot topic: The regulator is introducing liquidity frameworks in line with Basel standards

Posted OBG AdminPosted in Uncategorized

Thanks in large part to the dirham’s peg with the dollar, the record low interest rates at the US Federal Reserve have meant that Abu Dhabi’s banks have operated in a highly liquid market. This scenario has been further strengthened by the plentiful supply of deposits flooding into the UAE from countries such as Syria, Egypt and Tunisia. However, a drop in government deposits, tighter liquidity, higher interest rates, and domestic and global economic slowdowns could constitute serious challenges. The liquidity issue is likely to be a hot topic in the industry for some time. On the regulatory front, the past year has seen significant

Stuart Tait-Regional Head of Commercial Banking-Asia Pacific

Higher standards: Reforms have improved labour conditions and safety

Posted OBG AdminPosted in Uncategorized

Currently, the construction industry is the largest employer by sector in Abu Dhabi, accounting for 29.5% of the employed population in the emirate in 2014 according to the Statistics Centre – Abu Dhabi (SCAD), up from 22% in 2013. (https://www.hitc.com) Rise In Wages Total sector wages stood at Dh29bn ($7.9bn) in 2014, up from Dh27.6bn ($7.5bn) in 2013. Labour costs have been rising in recent years; salaries rose by 22.7% year-on-year in the third quarter of 2015 according to SCAD, building on substantial rises earlier in the year. “Labour costs increase rapidly as you move up into the echelons of skilled workers,” said David Stones,