Apac Insider issue 3

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APAC Insider Magazine / Issue 3

Levelling the Business Field The East Asia and Pacific region continued to make substantial gains towards women’s economic inclusion, despite barriers in some countries, says the World Bank Group’s Women, Business and the Law 2016 report.

Plus: News, Appointments, Profiles & more

DEEP & FAR Attorneys-at-Law 13th F1., No. 27, Sec. 3, Chung San N. Rd. Taipei 104, Taiwan, R.O.C. Tel: +886-2-2585-6688 Fax: +886-2-25989900/25978989 email@deepnfar.com.tw Deep & Far was founded in 1992 and is one of the largest law firms in this country.

The firm is presently focused on the practice in separate or in combination of all aspects of intellectual property rights (IPRs) including patents, trademarks, copyrights, trade secrets, unfair competition, and/or licensing, counseling, litigation and/ or transaction thereof. Since this firm edges itself into the IPRs field, the firm quickly comes to fame. As an illustration, this firm often is one of the largest sources from which foreign filing orders originate.

The fascinating rise of this firm begins from the founder of Deep & Far attorneysat-law, C. F. Tsai, who is the one first patent practitioner in this country who both has technological and law backgrounds and is qualified as a local attorney-at-law.

The patent attorneys and patent engineers in this firm normally hold outstanding and advanced degrees and are generally graduated from the top five universities in this country and/or the university in the US. Our prominent staffs are dedicated to provide the best quality service in IPRs. As a proof, about one half of top 100 incorporations in this country have experiences of seeking patented their techniques, but more than one fifth of the top 100 incorporations are/were clients of this firm.

Furthermore, Hi-Tech companies in the science-based industrial park located at Hsin Chu play an important role in booming the economy of this country. About one half of which have experiences in seeking patented their techniques, and out of more than 60% of the patent-experienced companies in that park have ever entrusted their IPR works to this firm.

We have experienced in seeking IPR-protections for our clients in more than 100 territories all over the world. We have thousands of IPR-cases respectively prosecuted before official Patent Offices of major industrialized countries.

This firm not only is the most competent in IPR-related matters in this country but also is very familiar with IPR-practices in major industrialized countries. As a matter of fact, this firm oftentimes tries and makes precedents of new claim-drafting styles. While we might have become wonderfully famed locally with remarkable appreciation and respects, we would like to extend our services for internationalized or quality service-requiring foreign conglomerated giants, corporations or individuals. We strongly believe that we will win more

www.deepnfar.com.tw

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Contents 4. News

Profiles 12. Benchmark Supply Chain Solutions Pvt. Ltd. 16. Katsaros & Associates

Features 18. Is the Philippines Going to Be the next Top Southeast Asian Startup Scene?

20. The Milken Institute Launches Inaugural Best-Performing Cities China Report 24. Asia-Pacific Growth Hinges on Consumption via Reform 26. Substantial Progress, Despite Barriers, to Women’s Economic Advancement in East Asia and Pacific

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APAC Insider Magazine / Issue 3

news

Green Energy Awards Seek Sustainable Energy Pioneers in Asia

Ashden has launched its call for entries for the 2016 Ashden Awards, offering the chance for sustainable energy pioneers in developing countries in Asia to receive global recognition for their efforts.

Entry to the awards is free, with six international winners receiving awards totalling £130,000 at a prestigious ceremony in London on 9 June 2016.

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The Ashden Awards aim to uncover the most exciting sustainable energy trailblazers in Asia and elsewhere which are breaking new ground in increasing access to clean, safe energy.

Since the Awards were established in 2001, some 39 enterprises and programmes in India, Pakistan, Bangladesh and Sri Lanka have won one of the internationally renowned awards, including 27 from India. The Indian winners have even formed their own organisation, the Ashden India Renewable Energy Collective, aiming to eradicate the vicious cycle of energy poverty in India and act as a unified voice for the sustainable energy sector.

The Sarhad Rural Support Programme (SRSP) in Pakistan won an Ashden Award this year for having built 189 micro-hydro schemes, bringing electricity to around 365,000 people and transforming communities in the process.

SRSP’s CEO Masood Ul Mulk said: “It was like dawn breaking after a long gloomy night and the first rays of sun shining on white mountain peaks to hear that we were selected for an Ashden Award for making electricity accessible to communities whose life, already overwhelmed by isolation, had been made more miserable by floods, war and terrorism”.

There are two new international awards in 2016, one recognising efforts to use sustainable energy technologies to increase access to water in areas where it is currently lacking, and the other celebrating sustainable solutions that are changing how people travel around.

As well as the financial award, Ashden also provides winners with a wide-ranging package of support, tailor-made to their needs which could include business mentoring, sales and technical training, introductions to investors and help with communications.

For further information and to apply for a 2016 Award, visit ashden.org/apply/international Or contact Awards Administrator: + 44 20 7410 7023 email: internationalapps@ashden.org

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news

Carbon Neutral Project Is First in Australia to Receive Prestigious Gold Standard Certification

Carbon Neutral has achieved global recognition with the first Australian carbon emissions reduction project to receive Gold Standard certification.

Over the past eight years, Carbon Neutral has established innovative large-scale reforestation projects which extend across 10,000 hectares of the Western Australian Wheatbelt – in the process creating Australia’s largest revegetation project based on carbon capture and biodiversity.

Following a lengthy and rigorous process which involved significant investment, Carbon Neutral’s native reforestation project has been awarded prestigious Gold Standard certification by the Geneva-based Gold Standard Foundation.

The recognition comes as Carbon Neutral is experiencing growing demand for reducing carbon emissions from Australian businesses, including some of the nation’s leading corporates.

Carbon Neutral CEO Ray Wilson said: “Australian companies now view environmental responsibility as a critical component of their business, and they are increasingly being measured on their performance by consumers, investors and auditors.

“However, many companies are currently investing in emissions reduction projects overseas, as a result of a shortage of suitable home-grown projects. Carbon Neutral gives Australian businesses the opportunity to do something positive for the environment, as well as assist our regional communities through the creation of jobs and related economic benefits.”

Achieving Gold Standard certification – the premium international standard – recognises the Carbon Neutral project’s environmental, social and economic credentials.

David Shelmerdine, President of The Gold Standard Foundation, said: “Our rigorous process ensures integrity and transparency for any company that purchases credits from Gold Standard projects. For Carbon Neutral’s reforestation project, achieving Gold Standard certification verifies its multi-faceted benefits — from global climate security to restoring habitats for native biodiversity, and even supporting local communities socio-economically.

“We are delighted that these benefits are now being realised in Australia, and that Australian companies can support a Gold Standard-calibre project in our own backyard by purchasing carbon credits.”

Carbon Neutral develops biodiverse reforestation projects on degraded, semi-arid agricultural land that no longer supports viable farming practices.

“In the region where we operate, over 90% of land has already been cleared,” Mr Wilson said. “Carbon Neutral is helping to return the environment to its origins, planting up to 40 native tree and shrub species which are matched to the environment.

“Very importantly, this reforestation program creates a large-scale habitat for over 450 native species, including endangered and declining flora and fauna, in the Yarra Yarra Biodiversity Corridor which is one of only 35 biodiversity ‘hotspots’ worldwide, as recognised by Conservation International.”

For further information see www.carbonneutral.com.au

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APAC Insider Magazine / Issue 3

news

Call for Wind Power to Solve Vietnam’s Summer Energy Shortage

“If multiplied by the wind sites’ potential along Binh Thuan and Ninh Thuan provinces coastline, wind power could well be a solution for southern Vietnam’s energy shortage, as well as its coal and diesel dependence. We can easily foresee between 500 and 700 megawatts installed in the next 4 years if the financing conditions improve.”

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This is the view of Olivier Duguet, CEO of The Blue Circle, Singapore-based developer of wind projects in Southeast Asia.

Actually, the coal reserves at Duyen Hai 1 and Vinh Tan 2, the two largest thermal power plants in South Vietnam are running as low as 10 days of consumption. According to Truong Duy Nghia, Chairman of the Vietnam Thermal Science and Technology Society, “the South will suffer an electricity shortage if the two plants don’t have coal to run”.

Electricity demand in Vietnam is forecasted to increase by 11.4% per year for the period 2016-2020 and the peak demand to reach 800 million kWh in 2030. The Master plan VII sets renewable energy target at 5.6% of total primary energy consumption

by 2020 and 9.4% by 2030. Within renewables, the Government’s target for wind power is 1,000 megawatts installed by 2020 and 6,200 megawatts by 2030.

The power situation will be very tense in South Vietnam until the end of August following potential pollution of the UNESCO World Heritage site Ha Long Bay from floodwater runoff of open pit coal mines earlier in the month.

Far from environmental disaster and power disruption, wind energy could be a useful complement to balance the grid, lower fossil fuel consumption as well as CO2 emissions.

On its two sites under development in Binh Thuan and Ninh Thuan provinces, The Blue Circle has two wind measuring mast installed. Given the wind speeds recorded between 7 July and 7 August on these two met masts, the Singapore-based wind engineering team has assessed that an installed wind power project would have produced 18,200 MWh during the last month, according to the two sites’ expected sizes and conditions.

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news

Leading Chinese LED Lighting Producer, Outrace, Launches Factory without Borders Program

Chinese LED lighting manufacturer, Outrace has announced the launch of the Factory without Borders program. Through its CRM+ERP system, Outrace will provide not only their key LED lighting clients in the U.S. and Brazil, but also LED lighting producers located anywhere on the globe, with cross-border real-time monitoring of the entire manufacturing and delivery process.

“As global LED market competition becomes increasingly intense in the Industry 4.0 era, Outrace, through its ‘Factory without Borders’ program, will enable customers to place orders online anytime and anywhere as well as check production, inventory and logistics distribution in real time,” Outrace managing director Zhang Jun told reporters. “’Factory without Borders’ will provide LED producers worldwide with OEM and ODM production management, aimed at benefiting global consumers with healthy and environmentally-conscious LED lighting solutions for residential use,” said Zhang Jun. The launch of the Factory without Borders program has been widely discussed among leaders across the Chinese LED industry. Analysts have given the program their blessing with a general consensus that this world-first and pioneering digitized and customized production program not only conforms to the general trend of the LED lighting industry but also enables Outrace to get a head start against its global competitors as the entire sector transitions into the Industry 4.0 era. At the same time, several of Outrace’s creative ideas that meet the demands of an Industry 4.0 environment, including the Internet of Things + RFID Application System and the Empty Bridge Automatic Transmission System are well positioned to gradually become realities.

Zhang has expressed the opinion, an opinion which reflects the viewpoints and general consensus of Chinese LED industry insiders, that transforming the industry into one that is smart, fully digitized and conforms to the tenets of Industry 4.0 is clearly the wave of the future, and to do so, means to create a highly flexible, customized, intelligent and globalized product and service production model at every link along the production chain.

As an emerging LED producer that chose to enter the industry by serving the high end of the market, a management philosophy that allowed for quick and nimble responses to changes in the marketplace and making sure that the company continuously remained at the forefront of technology, Outrace expects to, through its Factory without Borders program, become deeply involved in the highly competitive LED market on a global scale, with an initial focus on the US and Brazil, two countries that have a high concentration of producers.

The managing director further explained that Outrace has been focusing on the global market since its early days. The firm not only established research and development centres in Singapore and Taiwan, but has also actively participated in global LED industrial development and has repeatedly and consistently rolled out innovative products at the International Lighting Industry Exhibition in Sao Paulo, Brazil, the Lighting Show Africa in Johannesburg, South Africa and other international lighting industry events.

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APAC Insider Magazine / Issue 3

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Mindtree and MetricStream Partner to Simplify Regulatory Compliance for Financial Firms

Strategic Alliance to Support Multiple Regulations Through Cloud-based Solutions

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Mindtree, a leading digital transformation and technology services company, today announced that it has partnered with MetricStream, the market leader in Governance, Risk, and Compliance (GRC), to help simplify regulatory compliance for financial firms. Mindtree will leverage MetricStream’s Zaplet, a cloud-based open platform to build, deploy and manage a variety of GRC applications for financial firms globally.

Mindtree’s expertise in the financial sector combined with MetricStream’s market leadership in the GRC domain will enable clients automate and manage regulatory processes from trade validations to tracking. Together, the companies will co-develop a comprehensive trade-reporting framework to support multiple regulations such as the Dodd Frank Act, the European Market Infrastructure Regulation Markets in Financial Instruments Directive, and the upcoming Markets in Financial Investments Regula-

tion. This will enable financial institutions to reduce operational risks and avoid penalties levied for inaccurate reporting.

Kamran Ozair, Executive Vice President and Head of Banking, Financial Services and Insurance, Mindtree, said, “Increasing global commerce, digitization and fraud is putting tremendous compliance pressure on financial institutions. This partnership will allow us to provide robust compliance solutions and help clients simplify regulatory requirements and reduce associated expenses.”

Rajesh Raman, VP of Zaplet, MetricStream said, “In today’s environment, it has become imperative for financial institutions to have a robust compliance framework which enables them to operate efficiently and manage risks. MetricStream’s cloud-based Zaplet GRC platform provides such a framework and enables our partners to build solutions to meet these critical needs. We are extremely excited about our partnership with Mindtree.”

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news

As China Devalues Its Currency, Manufacturing-Sourcing Decisions Need to Be More Strategic than Ever

Deep, case-by-case analysis and tight project management are key in ‘a world of constant flux’.

Especially in the wake of China’s recent devaluation of the yuan, companies need to be more strategic than ever in their manufacturing-sourcing decision-making, focusing on clear-headed, case-bycase analysis and tight project management. That’s according to a new study, including a survey of almost 250 senior-level executives in North America and Western Europe from manufacturing and distribution companies across 15 broad industry groups, released today by AlixPartners, the global business advisory firm.

The AlixPartners study finds a continued appetite for “nearshoring” – i.e., moving production near, or to, its ultimate end-market. A total of 32% of the executives in North America (the U.S. and Canada) and Western Europe say their companies have recently nearshored manufacturing production or are in the process of doing so, with 40% of North American business leaders saying so.

Meanwhile, among North American respondents, 55% cite the U.S. as the most attractive nearshoring destination, up from 42% in last year’s survey, when the U.S. placed No. 1 for the first time. Mexico – long the nearshoring favourite in this survey – came in second, at 31%, up as well from last year’s survey (28%), but down dramatically from 49% in the AlixPartners survey of just three years ago.

One potential reason for the fluctuation in the outlook toward Mexico could be a lack of certainty regarding safety and security issues. According to the survey, only 42% of North American respondents expect improvement in those areas in Mexico, down from 55% in last year’s survey.

By comparison, 61% of European business leaders in the survey say they expect an improvement in safety and security in Eastern Europe, their top preferred nearshoring destination (chosen by 38% of respondents, vs. 16% for Western Europe, 15% for Turkey, 7% for North Africa and 6% for the Middle East).

With issues like safety and security complicating the nearshoring picture, it’s perhaps not surprising that the survey finds what appears to be less urgency for nearshoring today than in the past. According to the poll, only 21% of North American and European executives say that nearshoring decisions are more important now than a year ago – though 76% say such decisions are “about the same” in importance as a year ago, with 82% of North American respondents saying so.

The availability of skilled labour further complicates nearshoring decisions today, says the survey. In fact, that was the No. 1 challenge cited by both North American and European respondents, with 48% of Europeans and 42% of North Americans pointing to it, up from 33% in last year’s survey for the latter.

Other challenges near the top of the list: maintaining product quality (cited by 38% of respondents overall and 33% of North Americans), working through local government regulations (32% overall, and 27% of North Americans) and personnel-management and labour-law issues (26% overall, and 24% of North Americans).

However, the AlixPartners study also suggests that the benefits of properly addressing and working through nearshoring issues can be great. According to the survey, the average estimated savings from nearshoring cited by all respondents was 8.5%, with 13% saying they expect to save 20% or more.

Among North American respondents, the average estimated savings was 8.3%, up from 6.4% in last year’s survey.

Foster Finley, Managing Director at AlixPartners and head of the firm’s operations practice in the Americas, said: “Recent moves by China to devalue the yuan make already-complex manufacturing-sourcing decisions all the more complicated. These actions prove, as do what I’ll call the nuanced results in our survey, that the world of manufacturing and supply chains is world of constant flux, and that in such a world there’s no substitute for deep, strategic, case-by-case analysis and tight project management.”

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APAC Insider Magazine / Issue 3

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The Conference Board Leading Economic Index(R) (LEI) for Japan Declined

The Conference Board Leading Economic Index(R) (LEI) for Japan declined 0.1% in July to 104.2 (2010 = 100), following a 0.8% increase in June, and a 0.1% increase in May. At the same time, The Conference Board Coincident Economic Index(R) (CEI) for Japan, a measure of current economic activity, declined 0.1% in July to 98.4 (2010 = 100), following a 0.6% increase in June, and a 0.1% decline in May.

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The Conference Board LEI for Japan decreased in July. Its six-month growth rate remains in positive territory, but has slowed considerably compared to the last half of 2014. The CEI also declined, and as a result its six-month growth rate has turned slightly negative. Despite slight declines in both indexes in July, the positive six-month growth and widespread strength in the LEI suggests that the current economic contraction is unlikely to persist through the end of 2015.

About The Conference Board Leading Economic Index(R) (LEI) for Japan The composite economic indexes are the key elements in an analytic system designed to signal peaks and troughs in the business cycle. The leading and coincident economic indexes are essentially composite averages of several individual leading or coincident indicators. They are constructed to summarize and reveal common turning point patterns in economic data in a clearer and more convincing manner than any individual component -- primarily because they smooth out some of the volatility of individual components.

The ten components of The Conference Board Leading Economic Index(R) for Japan include: • Operating Profits • Dwelling Units Started • Business Failures • Index of Overtime Worked • Stock Prices (TOPIX) • Six-Month Growth Rate of Labour Productivity • Tankan Business Conditions Survey • Money Supply • Yield Spread • New Orders for Machinery and Construction

Fund Management Experts in Asia and Africa WINNER Asian Fund of Hedge Funds 2014

21/F Chuang’s Tower, 30-32 Connaught Road Central, Hong Kong Tel: +852 2253 6296 www.skyboundcapital.com

APAC Insider Magazine / Issue 3

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Benchmark Supply Chain Solutions Pvt. Ltd.

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We are a 3 PL company offering global and cost effective freight solutions with a key focus on warehousing, transportation- distribution, international freight forwarding, custom clearance, supply chain consulting, project logistics with specialised industrial cargo solutions and benchmark learning centre. We provide excellent services to our global customers, meeting and exceeding their global supply chain needs through unparalleled commitment on quality in our systems and people.

Powered by cutting-edge technology, we ensure that your transport and storage requirements and inventory management needs are met while providing real-time visibility at all levels to help you control your logistics costs, stock levels, streamline purchases and improve your order cycle time. Along with the growth of global trade, the logistics industry has also evolved over the years. The industry has become truly global in the sense that most of the companies have now grown from single point location to companies with multiple locations with both national and overseas presence.

Over the years, our industry has attracted more educated professionals, leading to higher standards of professionalism. Also there is increased awareness amongst the corporate players that a forwarder can beat the cost when compared to them managing the process internally. At one time, it was enough for freight forwarders to move cargo on time from one destination to another.

Whilst the major responsibility of the forwarder still remains the same, the globalisation and expansion of larger firms means that most companies today have to be self-reliant to provide a complete spectrum of all logistics needs across the world. The increase in international shipping, furthered by global mobility (categorised by the employment of factories abroad as a cost cutting technique), new technology tools, enhanced security regulations and demanding consumers required the development of a sophisticated handling system. In a global scenario, customers benchmark our services in India against the best players in the world. Today the customer expects reduced delivery times and they demand a state of art warehousing and distribution network. They also demand IT-enabled real time information systems about the movement of goods.

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APAC Insider Magazine / Issue 3

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Freight forwarders have to match the best global standards to retain their business. The introduction of Pallet network enabled the industry to adapt to the fluidity of e-commerce, providing greater customer service, as the customer could now track and watch shipments online. The adoption of best logistics practices has meant better control over delivery times, reductions in freight forwarding costs and move towards better customer service. Benchmark has emerged as a recognized national leader in supply chain consulting, analytics, and market intelligence. Our mission is extremely simple: To enable companies in capturing the maximum value from their supply chain.

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Our specialties include supply chain design, sales and operations planning (S&OP), logistics operations, transportation, service supply chain, and packaging optimization. With locations across India and overseas, we serve companies across the world in a borderless fashion. We believe in innovative services and we are one of the very few companies in our region that provides an integrated solution encompassing logistics, re-engineering of business processes and floor plans, automation through material handling equipment and IT. We take great pride in the capabilities generated by the firm in designing and operationalising complete supply chain structures of our clients from the ground up. Our core differentiating factor happens to be our unique decision making approach — employing specialised knowledge, well researched content and powerful technologies to support decision makers with objective insight.

The poorly developed infrastructure in the country is the root cause of delays, bottlenecks, increased transactions costs and overall escalation of logistics costs. The new government in India has targeted the cause and initiated many schemes to boost the investments in infrastructure. Another major road block faced by the industry is the fragmented structure of the logistics industry.

Increased global competition is forcing the companies to align, consolidate and match global standards. All of these are positive signs and Indian companies are fast adapting to compete globally. We are working in an industry that is in a constant state of flux and it is becoming more competitive with each passing day. Since its inception, our company has witnessed substantial growth that has contributed towards the company’s increased confidence and has enabled us to enhance our activities geared towards progressively developing a wide network of customers on a global scale. In the current economic climate, increased market awareness through consistent media exposure is the best way to let your potential customers know what you can do for them and how well you can do it.

Company: Benchmark Supply Chain Solutions Pvt Ltd Email: info@benchmark-supplychain.com Web Address: www.benchmark-supplychain.com Address: C-398 J K Plaza Sector 7 Ramphal Chowk, Dwarka, New Delhi, India

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APAC Insider Magazine / Issue 3

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Katsaros & Associates

Katsaros & Associates currently work exclusively in providing migration advice for businesses and preparing ‘decision-ready’ visa applications for clients.

They offer their clients a streamlined service ensuring their expectations are met in record times. They specialise in employer sponsored visas, partner visas, student visas and have a growing branch focused on business visas.

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Our firm is focused on maintaining its high standards whilst providing our clients with speedy services. Despite the many challenges we have encountered, we continue to thrive in the migration industry and are determined to continue to grow and become one of the most recognized firms within our industry. From our experience, the global mobility industry is definitely organic in that it changes continuously, adapting and responding to external forces.

Whether it is the government departments, industry bodies, regulatory organisations or practitioners and clients, all parties are contributing to the evolving nature of the industry. This specifically poses an enormous challenge for existing and new firms in that it necessitates openness and innovation as a core element of each firm’s business model. For those firms set in archaic and traditionalist mind sets, failure is inevitable. With our service, there is a unique demographic seeking our service which is linked to the nationalities of those migrating to our part of the world, their settlement processes, the ethnic enclaves they form and the communities and sub-communities they establish. All this creates a very unique type of ‘client’ who seeks a specific service; in a specific way and within a specific timeframe.

What sets us apart from other firms is our ability to continuously evolve and develop within the industry; adopting technological advances as they surface. I believe that by embracing technology, we are at the forefront in providing our clients with the best, most accurate and efficient service akin to none other currently available in our industry. Of course, communication goes hand in hand with technology and we have been able to utilise technology to provide our clients with unparalleled levels of communication; through traditional forms, email and telephone; through to social media tools, Facebook, Twitter, Instagram; through to new messaging tools, WhatsApp, WeChat, Viber, etc.

What lies ahead for the company is the intention to further innovate and market ourselves. We really want to become a known practice where clients will recognise our brand. We will continue to push the boundaries and innovate to ensure that we grow and develop. Our biggest fear is to become stagnant and we are determined to work hard and steer clear of this.

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Company: Katsaros & Associates Web Address: www.katsaros.com.au Address: Level 1, 488 Bourke Street, Melbourne VIC 3000 Telephone: +61 3 9670 3663

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APAC Insider Magazine / Issue 3

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Is the Philippines Going to Be the next Top Southeast Asian Startup Scene?

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The tech startup scene is blossoming all around the world, and the Philippines is no exception. With the country dubbed the second fastest growing economy in Asia, foreign investors are setting their sights on the Philippines, entering into joint ventures with small but promising startups and slowly making the country their production hubs in ASEAN. Though the Philippine startup scene is young, it isn’t devoid of fresh ideas and talented minds. For instance, entrepreneur Aisa Mijeno founded Sustainable Alternative Lighting Corporation (SALt), whose main product is a lamp that runs for eight hours powered by one cup of saltwater. Xurpas Inc., one of the earlier generations of homegrown Philippine tech companies, had its initial public offering last year in the Philippine Stock Exchange.

“The Philippines can become a leader in using technology to address emerging market problems,” said Earl Valencia, president and founder of the IdeaSpace Foundation, a Manila-based incubator and accelerator program that supports technology entrepreneurs in the country.

Venture capitalists from Japan, Singapore, and the United States are eyeing Philippine tech companies, aiming to use the youthful, tech-savvy, and English-speaking Philippines as a springboard to jump into other emerging markets like Indonesia and India.

Similarly, various foreign business missions from Russia, Egypt, and the Netherlands seem to also be attracted to the country. “Foreign investors are actually looking at using the Philippines as a hub for ASEAN that is how PCCI is marketing the Philippines also,” said Alfredo Yao, president of the Philippine Chamber of Commerce and Industry.

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Among the foreign companies that have already invested in the Philippines include Lenddo, which uses social media to build credit scores for people with no credit history, enabling them to get bank loans for the first time.

Considering that 80 percent of Filipinos don’t have bank accounts, this could prove to be beneficial for the middle classes.

There is also foreign tech enterprise M6 Ltd., which recently launched the Born2Invest app that delivers 80-word business and finance news summaries from a lineup of trusted financial sources and makes these available in one clutter-free app. Many of its team members are based in Manila. The company is also planning to partner with local media organizations in the delivery of up-to-date financial news.

“We’re actually here to join venture with you and make sure that your news is being read by the people who matter on the device,” said Dom Einhorn, founder and chief marketing officer of M6. “We’re in a position where we will be able to get you incremental readers for your publication, always crediting the source and making sure that you’ll be able to capture a good portion of that market share that’s rapidly dwindling and falling wayside.”

By launching here in the Philippines, M6 plans to make Born2Invest a dominant player in the business news production and syndication space among emerging economies. Within the next six months, the app is expected to be translated to more than 50 languages and break into more than 150 markets.

With a combination of actionable ideas, burgeoning economy, and skilled entrepreneurs, the Philippines is on its way to becoming a true leader in the ASEAN tech startup scene.

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APAC Insider Magazine / Issue 3

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The Milken Institute Launches Inaugural Best-Performing Cities China Report

Which cities in China have the most dynamic economies and why? The Milken Institute’s inaugural Best-Performing Cities China Report, unveiled at a recent press briefing in the Sofitel Wanda Beijing Hotel, identifies the urban areas with the most exceptional economic performance in the country.

The institute’s research provides a data-based ranking of 266 Chinese cities at the prefecture level and above. The index rankings are divided into two categories: the largest-cities group includes 34 first- and second-tier cities; the small and medium-sized group includes 232 third-tier cities. The two groups are separately ranked based on actual economic performance, rather than projected success.

The Best-Performing Cities China index has nine components, taking into account both short term (one year) and middle term (five years) measurements. To better measure future growth, the index weighs jobs and income growth, gross regional product (GRP), foreign direct investment (FDI), and the strength of high value-added industries in each city. This approach yields a more detailed assessment and sheds light on the factors behind the cities’ growth.

Chengdu surpasses Shanghai, Beijing and Shenzhen to be the strong No. 1 among first- and second-tier cities with its outstanding and unrivalled performance: the capital of Sichuan Province secured Top 10 positions in seven of the index’s nine components. Advantages such as human capital, central government support, established industries in high-end aerospace and aircraft design and a more recently developed electronics manufacturing sector are driving Chengdu’s recent success in economic growth. Except for Chongqing, most of the top ten first- and second-tier cities in economic performance are part of the urban clusters of the Yangtze River Delta, the Pearl River Delta, and the Jing-Jin-Tang. The Institute concludes that the future will largely depend on the development of urban clusters and small and medium-sized cities. As a result, inland China still possesses great potential for growth.

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APAC Insider Magazine / Issue 3

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Suzhou

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As for the ranking of third-tier cities, Jiangsu Province surpasses Zhejiang and Guangdong provinces to dominate in the Top 10, with Suzhou at No. 1. Seven of the Top 10 best-performing third-tier cities are in this coastal province and all are part of the Yangtze River Delta economic zone. They have all benefited from Shanghai’s proximity, as well as an influx of talent and technologies. The remaining three cities in the Top 10 third-tier cities (Qingyang, Ji’an, and Yichang) are inland but serve as transition points between west and coastal China. The majority of the Top 10 cities in this group fared well in the index components for recent job and wage growth. This indicates that their lower business costs, larger market potential and strategic locations together explain their recent economic success.

“Our data-driven analysis reveals that Chinese cities with the most dynamic economics share some important factors,” says Perry Wong, Managing Director, Research at the Milken Institute and co-author of the report. “Among them are diversified industries, a focus on high-tech, improved transportation networks, continued efforts to develop infrastructure and the talent pool, and the ability to attract foreign investment.”

This year marks the first time the Milken Institute has launched its Best-Performing Cities series with a report focused on China. The Milken Institute has long recognized cities and urban regions as an engine of growth for national economies. In 1999, the Institute launched one of its most recognized publications, the annual Best-Performing Cities ranking in the United States, providing an objective measurement of regional economic performance in the U.S. With the establishment of the Singapore-based Milken Institute Asia Center, and supplemented by the China Report, the Institute firmly believes that Asia and China will contribute an ever-larger portion of growth in global prosperity in the 21st century.

“China will contribute an ever-larger portion of growth in global prosperity for the rest of the century,” says Wong. “The recent slowdown of China’s economy indicates that a new approach for economic development -- one centred on technology, private investment, and consumption -- should take a leading role in the future. By benchmarking the performance of Chinese cities and regions, the Milken Institute hopes to highlight China’s growth opportunities.”

The inaugural China Report provides fresh insights into Chinese cities’ economic dynamics and their performance. Although east coast cities still dominate the best performance rankings, with government support and further urbanization development prospects, Chinese inland cities possess great potential for growth as well.

“We plan to update Best-Performing Cities China each year,” says Wong.

“Just as the Milken Institute’s annual analysis of the economic performance of U.S. cities has helped inform regional development for nearly 20 years, we expect Best-Performing Cities China to find a unique and valued informational role in China and beyond.”

To download the full report, including an interactive table of all 266 cities, go to www.best-cities-china.org

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APAC Insider Magazine / Issue 3

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Asia-Pacific Growth Hinges on Consumption via Reform Greater structural reform within APEC member economies is needed to drive household consumption and ensure resilient, inclusive growth across the Asia-Pacific amid rising uncertainty in global markets, a new policy brief from the APEC Policy Support Unit explains.

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Compensating for ebbing trade flows is the underlying concern, according to the brief issued in conjunction with this week’s meetings of APEC Finance Ministers and Structural Reform Ministers in Cebu. Trade growth that is the traditional engine of Asia-Pacific economies has now lagged behind GDP growth in the APEC region three years running, it reports—the first time this has occurred since APEC’s founding in 1989.

“A ‘new normal’ characterized by slower trade growth is prompting Asia-Pacific economies to capitalize on household consumption as an emerging driver of productivity,” said Dr Denis Hew, Director of the APEC Policy Support Unit. “Putting more money in people’s pockets encourages spending and lifts economies, which is what structural reform can help to make possible.”

“The adoption of policies that promote the efficient use of resources within economies and support business development, job creation and increases in wages are a big priority moving forward,” Dr Hew continued. “It comes down to lowering complex behind-the-border barriers to business and social mobility on which next generation growth in the Asia-Pacific greatly depends.”

Significant economic and employment inroads could be attainable through stepped-up fiscal rationalization, financial reform, trade liberalization and development of institutions to improve the management of human, material and financial resources, the brief reveals. Policies that promote human capital investment and social protection are also described as priorities.

“Structural reforms not only contribute to productivity but they can also help to make growth more inclusive,” noted Emmanuel San Andres, an Analyst with the APEC Policy Support Unit and co-author of the brief. “There are particular gains to be made when it comes to opening up economic opportunities for women and vulnerable communities, increasing competitiveness, encouraging innovation and improving social protection.”

“The reform agenda within APEC is coming together which is promising, though the region’s economies are really only at the end of the beginning of this long, hard slog,” San Andres added. “The launch of the Renewed APEC Agenda for Structural Reform 2016-2020 will position member economies to cohesively tackle the difficult task of policy implementation that lies ahead.”

Current efforts are focused on enhancing science and technology education, competitiveness in the services sector, micro, small and medium enterprise participation in international production and supply chains, and infrastructure and connectivity across APEC economies. The brief calls for additional emphasis on policies that support social protection, innovation, entrepreneurship, career training and skills development to help fuel new and under-tapped sources of growth.

These assessments set the tone for the development of further reform measures by APEC Ministers here this week and the subsequent push for adoption within the region.

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APAC Insider Magazine / Issue 3

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Substantial Progress, Despite Barriers, to Women’s Economic Advancement in East Asia and Pacific

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The East Asia and Pacific region continued to make substantial gains towards women’s economic inclusion, despite barriers in some countries, says the World Bank Group’s Women, Business and the Law 2016 report.

APAC Insider Magazine / Issue 3

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The biennial report finds that every economy in the region with the exception of Taiwan, China, has at least one law that makes it harder for women to get a job or start a business. Brunei Darussalam and Malaysia are among the most restrictive economies in the region, with each having more than 10 restrictions for women making it harder for them to pursue economic opportunities.

The latest edition of the report covers 173 economies throughout the world. In the East Asia and Pacific region, it expands coverage to 18 economies, with the addition of Brunei Darussalam, Myanmar, Timor-Leste and Tonga.

The report finds a reversal in the move towards women’s economic advancement: in Lao PDR, the country’s labour code no longer mandates equal remuneration for work of equal value, as was previously the case.

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Elsewhere in the region, certain jobs are out of bounds for women in China, Fiji, Mongolia, Myanmar, Papua New Guinea, Thailand and Vietnam. Some of these restrictions are across entire industries, as in the case of mining in Papua New Guinea, while others are specific job-related tasks, such as driving certain kinds of agricultural tractors in Vietnam.

Only 16 of the 173 economies covered by the report have tax provisions that directly favour men, and seven of these are in the East Asia and Pacific region. They are Brunei Darussalam; Cambodia, Fiji, Indonesia, Lao PDR, Malaysia, and the Philippines.

Despite these disparities and setbacks, the report finds that the region has made substantial progress towards equalizing the field between men and women in the past two years. Examples of progress include Tonga, which recently enacted its first law providing protections to women against domestic violence. This leaves Myanmar as the only economy measured in the region which does not have legislation against domestic violence.

In the area of parental benefits Lao PDR introduced paid paternity leave and increased the length of paid maternity leave. Singapore introduced one week of paid parental leave and one week of paid paternity leave. Papua New Guinea and Tonga are the only economies in the region – and two of just four economies worldwide – that do not legally provide for any form of paid leave for women upon the birth of a child.

Economies in region also show innovative policies to support women’s economic opportunities. Singapore, for example, is one of only three economies in the world providing a specific tax credit or deduction to women. And, of 46 economies in the world that mandate non-discrimination in access to credit on the basis of gender, four (Hong Kong SAR, China; Mongolia; the Philippines; and Vietnam) are in East Asia and the Pacific region.

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