manufacturing

Winning in a bipolar world

The world economic order will undergo further change in this coming decade. How can investors stay ahead, and what should they avoid? The Edge Singapore speaks to three veteran market analysts to find out.

SINGAPORE (Dec 27): This past decade, the US stock market defied almost all cautious predictions and enjoyed its biggest and longest bull run ever. Despite the run being described as a “tired old bull” from as early as three years ago, US equities, fuelled by cheap liquidity, have chalked up 11 years of growth — and counting.

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Southeast Asian countries to win from the trade war in the medium term

SINGAPORE (Nov 4): Today, one in five manufactured goods globally comes from China — a great leap from its 3% contribution in 1996. The rapid rise of China’s export engine, especially in manufacturing, and its ambition to produce the highly prized “high-tech goods” set out in its “China Manufacturing 2025” strategy, appears to be the key motivation behind the US-led trade war against China.

The question today is whether other economies in Asia can really benefit from such a trade war, and the answer very much depends on the time frame analysed.

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A gloomy world, but don’t forget the silver linings for Asean

SINGAPORE (Sept 30): Asean economies certainly face growing challenges in maintaining robust economic growth in the next year. Despite signs of the US and China reaching a limited trade deal, businesses across the world remain despondent enough to cut back on their spending, thus slowing the world economy. After all, yet more downside risks are proliferating — Middle East tensions could cause oil prices to spike, the Brexit process looks ever messier, China’s economy keeps slowing, and large emerging economies such as India, Argentina, South Africa and Turkey face growing difficulties.

Signs of end to tech slump offer hope to Asia’s economies

(Aug 2): The worst may soon be over for an electronics slump that has dogged Asia’s export-driven economies.

Goldman Sachs Group Inc. economists said a rebound in technology exports is overdue, citing gradual improvement in South Korean trade and evidence the memory-chip cycle is reaching its low point.

While South Korean semiconductor shipments plunged 28% by value in July, they rose 15% by volume. The nation’s inventories of semiconductors fell a second straight month in June, a sign that orders are picking up.

China's responses have an impact on all investors

SINGAPORE (Jun 3): During the 19th century, China was a punching bag for Western powers. It is remembered by many Chinese as the “Century of Humiliation”, and there is a determination not to allow a repeat of this situation. This means China is not going to roll over to the increasingly belligerent demands of US President Donald Trump.0

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Nike, Adidas, call tariffs 'catastrophic' in open letter to Trump

NEW YORK (May 21): Nike Inc., Adidas AG and other footwear giants urged President Donald Trump to reconsider his tariffs on shoes made in China, saying the policy would be “catastrophic for our consumers, our companies and the American economy as a whole.”

In all, 173 companies signed an open letter to the president, dated Monday and posted on the industry trade association’s website. It was also sent to Treasury Secretary Steve Mnuchin, Commerce Secretary Wilbur Ross and National Economic Council director Larry Kudlow.

Natural Cool makes foray into F&B industry with million-dollar acquisition

SINGAPORE (Feb 19): Natural Cool Holdings, the air-conditioning and switchgear specialist, is venturing into the food and beverage (F&B) industry by acquiring the business and assets of Yummy YM and SFB Global for $0.98 million.

Yummy and SFB Global are the manufacturers, distributors and retailers of cooked-food products and beverages & confections, respectively.

The former company is 70% owned by Leong Yew Meng, who is also the sole director and shareholder of SFB Global.

Singapore has a shipping rival less than 30 kilometres away

SINGAPORE (Feb 1): Indonesia wants to re-position its Batam island as an alternative shipping and manufacturing hub to Singapore with a potential to draw US$60 billion ($80.8 billion) in new investment.

Batam and nearby islands -- located at less than 30 kilometers south of Singapore -- have attracted about US$20 billion dollars of investment and they were declared a free-trade zone in 2007. It’s home to thousands of local and foreign firms producing goods from computers to oil rigs.

Bright spots to be found in bleak 2019 global growth outlook: Fitch

SINGAPORE (Jan 18): Fitch Ratings says decent US domestic demand and real GDP growth of over 6% for China are still two achievable scenarios in 2019, in spite of market concerns of a sharp downturn in growth this year.

According to a note issued by Fitch on Thursday, the ratings agency says the broad contours of its Dec 2018 Global Economic Outlook (GEO) forecasts for 2019 – which entail above-trend growth in the US and policy easing preventing growth dipping below 6% in China – still look intact.

December early indicators show China slowed for a seventh month

BEIJING (Dec 28): China’s economy slowed for a seventh straight month in December, as the trade war, subdued domestic demand and decelerating factory inflation combined to undercut growth.

That’s the signal from a Bloomberg Economics gauge aggregating the earliest-available indicators on business conditions and market sentiment. The data suggest the government’s stimulus approach and the trade war truce with the US have yet to have much effect on the nation’s growth trajectory.

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