NEWS
Around Asia Pacific in seven stories… ECONOMY
AUSTRALIA FORMALLY SIGNS TRADE DEAL WITH INDIA
FINANCE
HDFC BANK TO MERGE WITH HDFC LTD INDIA’S LARGEST PRIVATE lender, HDFC Bank, is merging with its largest shareholder, HDFC Ltd. The deal with housing finance firm HDFC Ltd, which owns around 21 percent of the lender, will create a financial services conglomerate with a balance sheet worth upwards of $230 billion, tapping into the growth in demand for credit as the economy bounces back from the COVID-19
pandemic. It will also build on HDFC Bank’s substantial base of 68 million customers and could propel the newly formed entity to become the second-most valuable listed company in India. The merger will further synergise the two lenders, allowing them to leverage the strength of their combined balance sheets, increase product cross-selling, and aid in expansion.
SIGNED IN A virtual ceremony, the Australia-India Economic Cooperation and Trade Agreement signifies the two nations’ intent to establish closer trade relations. Tariffs have been removed on more than 85 percent of Australian goods exported to India, including wool, copper, coal, as well as some critical minerals and non-ferrous metals. It will also see 96 percent of imported Indian goods enter Australia duty-free, as both countries continue to work on establishing a full free trade agreement in the future. It comes as the Australian government pursues diversified export markets and reduced dependence on its biggest trading partner, China.
T R AV E L
MALAYSIAN BORDERS REOPENED TO VACCINATED TRAVELLERS AFTER TWO YEARS of tight travel restrictions, Malaysia has fully reopened its borders and removed COVID-19 quarantine rules for passengers that are fully vaccinated. The Southeast Asian nation has had some of the strictest curbs on entry in the region to try and contain the virus, with returning Malaysians 6 | APAC Outlook issue 55
subject to quarantine requirements and most foreign nationals banned from travelling to the country altogether. However, the reopening of its borders marks the beginning of Malaysia’s transition to the endemic stage of COVID-19, in line with the likes of neighbouring Singapore, Thailand, and Indonesia who have also now eased most travel restrictions. The revised rules are expected to attract two million tourists to Malaysia.
