NEWS

Around Asia Pacific in seven stories…

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.

ECONOMY

AUSTRALIA FORMALLY SIGNS TRADE DEAL WITH INDIA

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.

TRAVEL

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 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.

TECHNOLOGY

STARLINK SATELLITE SERVICE TO LAUNCH IN THE PHILIPPINES

IN A FIRST for Southeast Asia, the satellite broadband service of Elon Musk’s Space Exploration Technologies Corp (SpaceX) will launch in the Philippines.

SpaceX, whose business permit application is currently being processed, is setting up a wholly-owned subsidiary in the country as it looks to deploy three gateways in the first launch phase.

There is no specific timeline or investment figure for the launch of SpaceX’s proposed project, which will provide the Philippines with internet services using its Starlink LEO satellite network constellation. Comprising in excess of 1,400 satellites, Starlink enables internet access in remote regions or when communications are disrupted in the event of a natural disaster.

ENERGY & UTILITIES

JAPAN CONTEMPLATES GASOLINE SUBSIDY PROGRAMME EXPANSION

TO EASE THE burden of rising energy and fuel prices, Japan is considering expanded subsidies as part of a fresh relief package.

Japan implemented the temporary subsidy scheme in January to alleviate the sharp rise in gasoline and other fuel prices, caused by tightening global supplies and exacerbated by the Russian invasion of Ukraine.

There are concerns that the weakening of the Japanese yen, on top of escalated oil and natural gas prices amid the Ukraine crisis, is having a negative impact on business activities and daily life in Japan.

Any expansion to the subsidy programme may consist of a lower base price and raised payment ceiling. Alternatively, the scheme could combine with a lifted freeze on tax trigger clauses.

CONSTRUCTION

Iluka Resources to build $750 million refinery

INTERNATIONAL MINERAL SANDS company, Iluka Resources (Iluka), is building Australia’s first rare earths refinery to diversify the country’s supply of critical minerals.

Production of light and heavy rare earths from the Eneabba refinery in Western Australia begins in 2025.

Rare earths projects have faced a number of financial setbacks worldwide over the past decade. To ensure the project goes ahead, Iluka has set the refinery up as a separate entity and negotiated a risk-sharing agreement with the government.

Per year, the plant will have the capacity to produce 5,500 tonnes of neodymium and praseodymium, and 750,000 tonnes of dysprosium and terbium.

FOOD & DRINK

Barry Callebaut unveils expanded chocolate factory

THE EXPANSION OF Barry Callebaut’s factory in Campbellfield, Melbourne, has been completed, underlining the company’s ongoing commitment to Australia.

The investment further strengthens the regional footprint in Asia Pacific of the world’s leading manufacturer of high-quality chocolate and cocoa products.

New factory lines have added significantly to the total production capacity of the factory and its range of offerings, which now include liquid chocolate, buttons, as well as specialties such as coatings and fillings.

With this expansion, Barry Callebaut is well-positioned to become Australia’s leading chocolatier, able to serve the country’s entire food industry from global and local manufacturers to artisanal and professional users.