Read more about October’s business and international news
Domestic job market shrinking
The country has witnessed shrinkage in private jobs in recent years, the Board of Investment data suggested, underlining low investment and slow economic growth. The private sector accommodated 5.03 lakh new jobseekers in 2010-11, 4.51 lakh in 2011-12 and 3.09 lakh in 2012-13. Only 1.27 lakh new jobs were created in seven months of the 2013-14 fiscal year. Almost 75% of the employment opportunities are created by the private sector and more than 2 million youths enter the job market every year. The finance minister, in his budget speech, set some targets to generate employment.
Asia’s prospects hinge on tackling 5 challenges
Asia faces five challenges as it pursues sustained economic growth. They are, according to the IMF’s Finance & Development magazine: overcoming the middle-income trap, improving its institutions and governance, coping with an aging population, curbing rising inequality, and promoting financial development. Asia’s economy is expected to surpass those of the United States and Europe combined in less than two decades. Thus the 21st century is believed to belong to Asia. That, however, depends crucially on choosing the right policy mix to contain risks and secure growth, says the IMF.
Corporate India for reviving investor sentiment
Boosted by Modi’s victory, India’s industry bosses have pitched for a conducive tax environment and a bold statement of economic reforms in the forthcoming budget to promote growth. The India Inc called for expediting roll out of goods and services tax and implementing the direct taxes code. In a meeting with finance minister Arun Jaitley, the participants wanted him to address issues that had adversely impacted investments during the UPA government. The minister was said to have indicated that there would not be any populist measures in the budget. Premier Narendra Modi already spoke of ‘bitter medicine’ to revitalise the economy.
Global private wealth rises to US$152tln
The Asia-Pacific region, excluding Japan, has led to the surge in global private wealth with a 31% jump to $37 trillion in 2013. The amount of such wealth held by households worldwide surged more than 14% to $152 trillion boosted mainly by rising stock markets, according to a report by Boston Consulting Group. It takes into account cash, deposits, shares and other assets but not businesses, real estate and luxury goods. The number of millionaire households also rose sharply. In the Asia-Pacific, the key driver is China, which alongside India, has high saving rates.
Foreigners under NBR surveillance
Following allegations of tax evasion by some foreigners working in Bangladesh, the National Board of Revenue has decided to widen vigilance to ensure proper collection of tax. Field-level tax offices have been directed to determine incomes of those foreigners and impose taxes in keeping with the laws. The NBR asked the employers to inform their foreign employees about tax obligations. Foreigners are subjected to 25% tax on income, the rate which is set to go up to 30% next fiscal year. The tax authorities do not have the figures of foreigners serving here with a permit or working illegally.
Developing nations lead renewable energy expansion
The number of developing nations with policies to support the expansion of renewable energy has increased six-fold from 15 in 2005 to 95 this year. The Renewables-2014 Global Status Report said expansion of markets, manufacturing and investment illustrates that it is no longer dependent upon a small handful of countries. The success has been attributed to robust policies coupled with continuing technological advances, falling prices, and innovations in financing, which have made renewables increasingly affordable for a broader range of consumers. However, China, the US, Brazil, Canada, and Germany continue to remain the top countries for total installed renewable power capacity.
Japanese workforce on the wane
Japan’s population, currently 127 million, will decline by a third over the next 50 years, its government forecasts. This may threaten premier Shinzo Abe’s initiative to pull out of a deflationary trend. A rapidly-shrinking working population is bound to struggle to support a growing number of old people. Japan needs to raise its birth rate to cope with labour shortages and develop robots to work on factory floors and in care homes for the elderly. A government panel recommends that the average Japanese woman should have 2.07 children over her lifetime, up from the current level of 1.41to keep the population from falling below 100m.
Coke’s new version to tackle obesity
Coca-Cola is going to launch a new version of its bestselling soft drink with less sugar and calories in the UK as part of an industry effort to tackle obesity. Coca-Cola Life, first piloted in Argentina and Chile last year, is sweetened natural ingredients rather than artificial sweeteners. The company says the new drink would help meet its pledges made under the government’s voluntary anti-obesity drive. Critics claim the new drink still contains higher sugar. An extract from the stevia plant, native to South America, is already used in the company’s Sprite and Glacéau vitamin water.
Investors returning to East Asia markets
The demand for emerging East Asia’s local currency bonds may continue to increase in view of economic growth prospects. However, Thailand’s bonds could buck the trend given recent political upheavals, according to ADB’s Asia Bond Monitor. It warns, despite the recent improvements, markets could still be jolted by the ongoing tapering in US quantitative easing, the slowdown in economic growth in China or moves by the European Central Bank to counter the threat of deflation. Emerging East Asia is defined as China; Hong Kong, Indonesia; South Korea; Malaysia; Philippines; Singapore; Thailand; and Vietnam.
Walmart to improve customer service with tech
Technology, data and information are opening new doors for the retailer to serve customers saving money, new CEO of Walmart says. Doug McMillonhas outlines the company’s long-term strategy and ways to move ahead in a rapidly changing retail world. Walmart has often trailed big online competitors like Amazon.com that can offer similar bargains on certain items and promise rapid delivery. Company executives are optimistic about the future. In its most recent quarter, sales increased only 0.8% and profit declined 5%. Still, Walmart had $473 billion in revenue last year, roughly equal to Argentina’s GDP in 2012.
