Read more about January’s business and international news
Hackers target corporate documents
The year 2014 saw a series of data breaches at US corporations that sought customer credit card numbers, user passwords, internal documents and emails.Hackers broke into Sony’s network and exposed employment and salary records,and embarrassing private emails between Hollywood executives. Home Depot said 56 million payment cards had been stolen and 53 million email addresses pilfered. A data breach at JPMorgan altered 76 million households and 7 million email businesses. Hackers took customers’ personal information affecting up to 154 million active users. Target’s US sales were ‘meaningfully weaker’ after a late 2013 data theft carried into 2014.
Low pay, zero-hour contracts rise in UK
New figures have revealed the dramatic spread of low-paid, insecure and casual work across the British economy since the financial crash of 2008. Then, one in 20 men and one in 16 women worked in the casualised labour market. Today, one in 12 of both men and women are in precarious employment, which includes zero-hours contracts, agency work, variable hours and fixed-term contracts, according to new TUC data. The number of men engaged in casualised labour market rose to 1.06 million from 655,000 in 2008 and that of women increased to 1.08 million in 2014 from 795,000 in 2008.
RMG sector targets $50b exports, leather $5
The country’s garment industry is expected to fetch US$50 billion foreign exchange by 2021. The target was set at the recently held Dhaka Apparel Summit. Garment manufacturers and exporters, leading global brands, investors, experts and policymakers drew a roadmap to help increase earning from RMG exports. Bangladesh may also churn $5 billion from exporting leather, leather goods and footwear in four years. Leather exporters expressed the hope at the third global social responsibility conference, organised by BGCCI and GIZ at a city hotel in Dhaka.
China leading the world in innovation?
Chinese firms filed roughly the same number of applications for “invention” patents as their counterparts in Japan and America. By 2013 the Chinese figure had nearly doubled even as the rates in the other two countries held steady. The growth has been attributed to the out growth driven by the 12th Five-Year Plan and the associated Chinese National Patent Development Strategy. Of the desired 2m filings, many will be for “utility” or “design” patents, which are said to be less substantial than “invention” patents. Almost all filings over the past three years have come from local firms, not from the Chinese divisions of multinationals.
India, a bright spot in Asia-Pacific
There is a sharp turnaround about India’s image as an investment destination among overseas analysts. Ratings agency Standard & Poor’s (S&P) has called India the only bright spot in the Asia Pacific region in an otherwise shaky finish to year 2014 with all other economies losing momentum. The reason for its sunny outlook for India was PM Narendra Modi’s government that, the agency said, has picked up the pace of reform after a “modest” start. The agency said that while China’s economy continues to slow, Japan is in “technical recession” and trade-dependent economies continue to suffer from lack of external demand.
Myanmar incentivising energy investors
State-owned energy firms in Myanmar will seek foreign partnerships to improve operations and open up downstream energy operations to investment. So, the energy industry, an important component of Myanmar’s economy, is likely to prove an attractive prospect for overseas investors.In addition to the privatisation proposals, the energy agency would offer nine new offshore blocks for exploration, in a further bid to bolster Myanmar’s reserves and help meet rising domestic demand in the long-term.In October, the World Bank upgraded its forecast of GDP growth to 8.5 % for the fiscal year, from 7.8% previously, thanks to rising domestic demand and increased FDI inflows.
Most banks in Cambodia underperforming
Majority of Cambodian banks are underperforming, providing poor returns on their shareholder investment. Average return on equity last year for 39 banks was just 6%, according to a report by investment firm Mekong Strategic Partners (MSP). Only four other big banks – Acleda, Canadia, Cambodia Public Bank and ANZ Royal – are said to be in a state of conform. Some banks who have been in the market for 20 years are not earning enough revenue to cover their costs.Given Cambodia’s risk profile, a 15% return on equity is an acceptable level for banks to target. But only five banks posted 15%return.
Incentives to sweeten economic zone deals
The government plans to provide numerous tax benefits in the proposed five economic zones to attract both foreign and domestic investments. Land developers and unit investors would be offered competitive packages. Incentives include tax holiday and duty-free import of vehicles. The investors may not need to pay income tax for their employees for 10 years. Economic zones are the newest version of export processing zones; the government will provide land and utility, while investing companies will develop infrastructures. The five zones will be developed on 8,827.99 acres of land and they are expected to create jobs for 1.5 crore people by 2021.
Mangroves’ economic potentials not yet fully tapped
A lack of carbon finance mechanisms, appropriate policy interventions, and rapid mangrove deforestation are responsible for failure to tape economic and social benefits of mangroves, says a UN report.Ninety percent of mangroves are found in developing countries and many are under threat. UNEP estimates the cost of the destruction of carbon-rich mangroves, which are being cleared 3–5 times faster than terrestrial forests, at $42 billion in economic damages annually.The management of coastal wetlands is a no-regrets approach, with many additional ecosystem service benefits such as fisheries production and shoreline protection, which promote adaptation in coastal communities.
Regional connectivity on tourism emphasised
South Asian countries can integrate their tour packages to lure more tourists for visiting attractive spots. Such a call came from the third Asian Tourism Fair held in Dhaka recently that recommended promotion of inter-regional tourism. Nepal has Mount Everest and Bangladesh has Cox’s Bazar and CHT that can feature an ideal tourist package. As tourists often make plans to visit multiple destinations, the SAARC countries can offer an ideally suitable common package at affordable rates. The SAARC region is one of the most diverse regions, which has been blessed with scenic beauty, historic and cultural heritage sites, foods and hospitality.
