As usual, winners are the big businesses... and employees are the losers

[Rogue Trader]

SMEs 'at risk' in new Asean single market

BreadTalk Group is one of 10 Singapore companies identified in the BCG report as best positioned to take advantage of the AEC.

Chia Yan Min
The Straits Times
Wednesday, Sep 10, 2014

There will be clear winners and losers when the ASEAN Economic Community comes into force next year, according to a new report.

The increased competition will hit small and medium-sized enterprises (SMEs) across South-east Asia.

On the other hand, companies that already have a strong presence regionally stand to benefit most from a more integrated ASEAN, the report from the Boston Consulting Group (BCG) said.

The ASEAN Economic Community (AEC), which is due to come into force by the end of next year, aims to create a single market and production base across the region, with minimal barriers to trade and investment.

The report also includes a survey of more than 230 business leaders and senior government officials, both within and outside the region, who were polled on their views about ASEAN.

It found that 80 per cent of those polled regard the AEC as a good business opportunity and believe it will accelerate growth in their industries.

However, the same percentage of respondents said they are bracing themselves for tougher competition when the AEC comes into force.

While 70 per cent of the poll's respondents said they believe more intense competition will encourage ASEAN companies to internationalise, 81 per cent said they expect SMEs to lose out.

BCG partner and managing director Michael Meyer, and its senior partner and South-east Asia head Vincent Chin, speaking to The Straits Times, said SMEs need to be "of a certain quality" to expand regionally.

Said Dr Meyer: "If you operate in a protected domestic market, you might not have the managerial capabilities and level of sophistication needed to compete internationally."

National agencies such as enterprise development agency Spring Singapore and trade agency IE Singapore can play a role in helping SMEs become resilient enough to reap the benefits of a more integrated ASEAN, said Mr Chin.

Dr Meyer and Mr Chin co-authored the report with BCG senior partner and managing director Bernd Waltermann and Ms Evelyn Tan, the firm's lead knowledge analyst for its Global Advantage practice area.

The survey also compared levels of optimism about the AEC across ASEAN countries.

Malaysian companies were found to be the most optimistic about integration, while the Indonesian ones were the least upbeat.

Malaysian companies are keen on greater access to the larger ASEAN market beyond the country's relatively small population of 28 million, said Mr Chin.

But Indonesian companies are apprehensive because of the anticipated influx of competitors into the country, as the region becomes increasingly integrated.

BCG's report, which will be officially launched next month, also identified 50 ASEAN companies best positioned to take advantage of the AEC.

There are 10 Singapore companies in the list, including BreadTalk Group, UOB, CapitaLand and Swiber Holdings.

The companies generate annual sales of at least $500 million, are growing and profitable, and hold top market positions across ASEAN in their respective industries. These companies, and the rest of the private sector, will lead the way in integrating ASEAN through their efforts at regional expansion, said the report's authors.

Mr Jimmy Koh, the group head of investor relations at UOB, said the bank has almost 500 branches and offices across South-east Asia to support clients keen on expanding in the region.

The local lender is on track to generate 40 per cent of its profits from outside of Singapore by next year, said Mr Koh. "As our home market matures, we will see slower growth in the longer term and that makes our regional strategy even more crucial."


[email protected]

This article was first published on September 08, 2014.
Get a copy of The Straits Times or go to straitstimes.com for more stories.

 

[Runifyouhaveto]

Recently, a media & advertising in CBD area retrenched (nearly) the whole company.

From my understanding, most of the staff from company B got re-hired under company A's payroll, but it was no longer perm-job but 6 to 24months contract. They lost all their benefits, but the pay is $100-300 more.

Insiders told RUN that actually it was a actually corporate takeover but as media & advertising firms have little/no tangible assets, they rehired the staff under another firm to reduce employee-benefits obligations.

 

[Rogue Trader]

ASEAN Economic Community: What is in it for us?

im Yan Liang

Monday, Nov 23, 2015

Under the ASEAN Economic Community (AEC), a Singapore-based manufacturer relying on raw materials from, say, Indonesia or Vietnam, would benefit from more affordable goods as tariffs come down.

He would also find it easier to export his goods, and at lower cost too, with lower tariffs and simplified Customs procedures. Meanwhile, service providers should gain easier access to ASEAN countries as barriers to markets are lifted.

These are among the benefits for Singapore firms and businesses, highlighted by the Ministry of Trade and Industry (MTI) in its recently published guide to the AEC.

Not only traders and service companies stand to gain. Investors could also benefit through more transparent regulations and eased restrictions on foreign ownership.

Skilled workers in certain sectors can find more job opportunities in the region.

The consumer is set to gain too, with a wider choice of goods and services that are cheaper.

But there are challenges ahead, says Mr Kurt Wee, president of the Association of Small and Medium Enterprises. For one thing, local businesses and workers have to be more competitive.

Fortunately, Singapore has a reputation for quality and good service, and local brands, such as shoe retailer Charles & Keith and electronics firm Flextronics have shown that firms can succeed abroad.

But Mr Wee says local businesses should have branched into the region "since yesterday", to be large enough to compete with players serving larger home bases such as Indonesia and Thailand. "We may be better in quality, in brand, in service, but in business, size and weight matter," he adds.

"If our SMEs don't fight for a slice of the overseas domestic markets, you can run into a situation where, in the next few years, you'll find overseas counterparts have come in and swallowed up your market and our SME people can become just business managers."

SMEs are a major player in ASEAN. They account for more than 96 per cent of all enterprises and 50 to 85 per cent of employment in member states.

MTI noted that, with continued liberalisation of investment in ASEAN, Singapore companies will gain from more opportunities to take part in sectors previously restricted in some countries.

Local healthcare providers, for example, can have the assurance that they can fully own investments in medical and dental services in Vietnam. In Indonesia, when the next round of services liberalisation enters into force, consultancy services providers in engineering can also enjoy full ownership of their investments.

Singapore might also attract global multinationals or regional conglomerates to site offices or sign contracts here, creating opportunities for local legal and accountancy firms.

But the converse is also true. Foreign professionals can be expected to continue competing for local jobs, as jobs here pay better.

There is, however, cause for cheer. As Mr Wee sees it, there is regional demand for Singaporean professionals, who have a reputation for being trustworthy and dependable.

He advises those who want to give the regional job market a try to start by picking up regional knowledge about their industries, language skills, and an understanding of foreign business cultures and not just industry-specific skills.

"Mobility cannot be just about your job in Singapore: It has to be about your job within the region," he adds. "You have to bring your professional abilities to new levels, to bring that value-add and compete, whether it's in Singapore or abroad."

 

[Rogue Trader]

Where the fuck is Workers' Party to ask about any safeguard against Sinkie salaried workers or PMETs who might get the short end of the the stick in this ASEAN EC deal?

Where is Low thia kiang? Where is Sylvia Lim? Your voters need you to say something in parliament now!

 

[Leongsam]

Where the fuck is Workers' Party to ask about any safeguard against Sinkie salaried workers or PMETs who might get the short end of the the stick in this ASEAN EC deal?

We are now well into the 21st century. The concept of "safeguards" is so out of date. Learn to adapt or perish.

 

[Rogue Trader]

We are now well into the 21st century. The concept of "safeguards" is so out of date.

I was very careful about chosing the word "safeguard" instead of "assistance" or "safety net". Some regulation must be in place against fake CVs, phoney credentials, or unfair hiring practices happening in Sinkieland.

In a globalised economy where cross border barriers are becoming irrelevant, hiring safeguards are required more than ever before.

Learn to adapt or perish.

I presume this warning is for Workers party MPs...?

 

[Rogue Trader]

This is for those who are sitting on cushy jobs like lawyers/accountants/finance-related.. and believe there's nothing to worry about...

Your company will thank you for X years of service and replace you with cheaper candidates... because it is easier now.

Apec Summit
'Open up service sector to integrate economies'

PUBLISHED
NOV 20, 2015, 5:00 AM SGT

Chong Zi Liang In Manila

Prime Minister Lee Hsien Loong yesterday called on countries in the Asia-Pacific Economic Cooperation (Apec) to open up their service industry to further integrate their economies.

While such a move is not easy, PM Lee suggested the countries start by focusing on sectors that will smoothen trade flow, such as telecommunications and logistics.

He cited two instances when making his call at a session of the Apec Leaders' Meeting on the integration of economies.

One is that improving supply chains through swifter air transport will benefit the perishable goods business.

The other is that easing services that can be done digitally, such as financial, insurance, legal and accounting services, will let businesses operate more easily.

But such changes do not mean removing altogether a country's domestic regulation, said Mr Lee. It is still necessary to set rules according to each nation's priorities.

He said: "We are talking about efficiency, transparency and consistency in implementing regulations, and not allowing regulations to become a non-transparent opaque way of cooperation."

He praised the Philippines, the meeting's host, for developing the Apec Services Cooperation Framework that will establish a road map for a comprehensive liberalising of the service industry.

United States President Barack Obama and South Korean President Park Geun Hye made similar calls for freeing up the service sector. Services account for more than half of Apec's total gross domestic product of US$45 trillion (S$64 trillion).

Later, Mr Lee, at a press conference with the Singapore media, said the issue is complex as it involves concerns such as foreign labour influx, standards and rules recognising qualifications.

The leaders, as a result, did not go into details but talked about it in principle. But he added: "If you're talking about integrating economies, you must find a way to move services into the framework."

It will bring new markets and big opportunities for Singapore as services, ranging from transport to banking, make up about 80 per cent of its economy.

Mr Lee, in his speech at the Leaders' Meeting, also noted that 2015 is a "milestone year for regional economic integration".

Among the achievements are the Australia-Japan Free Trade Agreement that came into force and the recently concluded Trans-Pacific Partnership (TPP) trade pact with members such as the US, Japan and Singapore.

Over this weekend, Asean leaders meeting in Kuala Lumpur will sign the declaration for an Asean Community to further boost economic cooperation.

"I hope we can keep up the momentum because they are pathways to realising an eventual Free Trade Area of the Asia-Pacific (FTAAP), which will give Apec substance, purpose and also benefit our countries," he said.

But there are multiple routes to realising the FTAAP, said Mr Lee.

They include the Regional Comprehensive Economic Partnership (RCEP), which involves 16 countries - all 10 Asean members plus China, Japan, South Korea, India, Australia and New Zealand.

The RCEP has not fully fulfilled its potential, said Mr Lee.

"We should double our efforts to level the RCEP up to other pathways like the TPP, both in pace and in substance, so that we can achieve truly regional economic integration," he added.

 

[mojito]

No worries. No signs of ministers and civil servant salaries going down. That is how we take care of our very best.

 

[JHolmesJr]

Given the endemic corruption in the other aec partners this will be a nice wakeup call...maybe singos will start embracing corruption too so we can all reap the same benefits.

 

[xebay11]

Recently, a media & advertising in CBD area retrenched (nearly) the whole company.

From my understanding, most of the staff from company B got re-hired under company A's payroll, but it was no longer perm-job but 6 to 24months contract. They lost all their benefits, but the pay is $100-300 more.

Insiders told RUN that actually it was a actually corporate takeover but as media & advertising firms have little/no tangible assets, they rehired the staff under another firm to reduce employee-benefits obligations.

I thought you will not post here again and said farewell? Wah Lau cannot be trusted, no integrity lah you.

 

[jw5]

You are replying to his post in Sep 2014.

I thought you will not post here again and said farewell? Wah Lau cannot be trusted, no integrity lah you.

 

[Dark Knight]

FTA or AEC most often than not only benefit politicians, the rich and powerful.
It allows those developed countries to exploit resources of raw materials and cheap labor from those under developing countries.
Sillypore will be much more crowded than before and you will find more FTs flooding in here to snatch up jobs from locals.
It doesn't bring the quality of life to the next level for all of us.

 

[frenchbriefs]

Where the fuck is Workers' Party to ask about any safeguard against Sinkie salaried workers or PMETs who might get the short end of the the stick in this ASEAN EC deal?

Where is Low thia kiang? Where is Sylvia Lim? Your voters need you to say something in parliament now!

70 percent has voted for PAP for the all green full ahead to do what they want.

 

[potato29]

Where the fuck is Workers' Party to ask about any safeguard against Sinkie salaried workers or PMETs who might get the short end of the the stick in this ASEAN EC deal?

Where is Low thia kiang? Where is Sylvia Lim? Your voters need you to say something in parliament now!

Where the fuck is Workers' Party???? 70% voted for this.

 

[harimau]

Business creates jobs, so that peasants like us could put food on our family tables!

Be thankful to Allah Akbar!

Stop blowing up shops and people!

Get a job!

 

[mojito]

70 percent has voted for PAP for the all green full ahead to do what they want.

Incorrect. Thr WP speaks up for the 70%, and they have no problems with this whatsoever.

 

[syed putra]

Singapore gahmen, not necessarily The people, will be the winner as south east Asia corporates dump their profit tax here as its the lowest in the region.

 

[mojito]

Singapore gahmen, not necessarily The people, will be the winner as south east Asia corporates dump their profit tax here as its the lowest in the region.

There cannot be more pay raises in the ministries without more taxes sir. That is how we improve the livelihood of singaporeans.

 

[Rogue Trader]

70 percent has voted for PAP for the all green full ahead to do what they want.

If the 6 oppo MPs say nothing in parliament, we might as well have ZERO oppo MPs in it.

"Workers" Party? Seems like they are more concerned about toeing Pap's line. They lost the 30% middleground in Sept because of that.

 

[potato29]

If the 6 oppo MPs say nothing in parliament, we might as well have ZERO oppo MPs in it.

"Workers" Party? Seems like they are more concerned about toeing Pap's line. They lost the 30% middleground in Sept because of that.

70% voted for it, when u go against it u think they vote for u?