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Feb Newsletter: APAC Economic Development, FDI, Trade & Investment

Dear Friends & Colleagues,

As the Year of the Rabbit begins, we eagerly anticipate a fantastic February and the upcoming WAIPA-United Nations ESCAP Asia Pacific IPAs FDI & Investment Conference, hosted by the UN in Bangkok on the 21st and 22nd of February. Regional IPAs will exchange their experiences on promoting FDI for sustainable development and build their capacity to promote FDI in the digital economy and address climate change (Plus I have the honour of Chairing the program) – the program is free to attend, PM me for details.


HEADLINES: 6 Things To Know About Trade This Month | China FDI – Is The Worst Over | ASEAN Outlook 2023 | How IPAs Can Reach UN SDG’s | FDI In A Time Of Crisis | Singapore Elite Visa | Industries To Watch In SE Asia | Intro To Indonesian SEZs | APAC Dominates Semi-Con | & Much Much More.....


United Nations ESCAP and WAIPA are joining hands to bring together investment promotion agencies from around the Asia Pacific. Speakers include Invest India, Invest HK, BKPM, Invest Fiji, BOI Pakistan, BOI Sri Lanka, Invest Nepal, Uzbekistan Ministry of Investments & Foreign Trade, Cambodia Development Council, BOI Thailand, ASEAN Secretariat, IFC, FDI Center, UK DIT, ARTNET as well as capacity building workshops on Digital FDI & Innovation + Proactive Investment Promotion.


WAIPA & OCO Global are completing the launch of the IPA Innovation Index 2023 - Final Call for survey participation. Themed; “The Future of FDI: How to Attract, Measure and Sustain Quality FDI”, the report will look at current best practices in FDI, the future of FDI, and the implications for IPAs from both emerging markets and developed economies.


NEWS: Our summary of the top stories for the economic development, FDI, trade & investment community in Asia Pacific


From chip disputes to the EU's carbon border tax: 6 things to know about international trade this month

1 Trade records, or trade depression?

2 EU carbon border tax raises questions

3️ EU-Chile trade deal could boost clean energy

4️ Where next for semi-conductor trade

5️ Singapore and South Korea sign a digital trade deal

6️ Brexit toll on British trade


As companies reconsider their investment portfolios, three strategies will determine which countries catch their eye.


- The ASEAN region will remain one of the fastest-growing regions of the world in 2023 but economic growth will likely fall marginally from 2022.

- The second half of the year will likely see conditions that are more conducive to organic growth as falling inflation provides central banks with greater rate flexibility. This should complement increasing economic activity in China.

- The ASEAN region will remain attractive to foreign direct investment, with trends in commercial and state investment likely to remain consistent throughout the year, despite a more challenging macroeconomic environment.


Greenfield FDI is expected to decline in 2023 after growing yet again in 2022. The economic turmoil of 2022 will finally begin to impact FDI levels, especially in H1 2023, but can countries recover quickly?


Foreign direct investment (FDI) into China is set to increase in 2023, analysts tell fDi, following record low levels of greenfield investments in 2022, as multinationals balance diversification with consolidation in the country.


- The UN's Sustainable Development Goals will help build a better world for all — but meeting them costs money and requires investment.

- Countries like India have long used Investment Promotion Agencies (IPAs) to attract foreign investment, but now IPAs are also being used to direct that investment toward sustainable development.

- Indicators including manufacturing, climate change and health are all beneficiaries of this method of attracting investment.


The Indonesian government said it was negotiating with United States carmaker Tesla amid reports that both parties were getting closer to an agreement to build production facilities in Indonesia.

Coordinating Maritime and Investment Affairs Minister Luhut Pandjaitan told Reuters on Thursday that negotiations between the two parties are “still ongoing”.


Southeast Asia is home to several promising industries across its regional economy that will report quicker than the global average growth in 2023. Despite a concerning macroeconomic backdrop, various factors will continue to pull in investment and businesses to the region.


City-state is competing with places such as Hong Kong, Thailand for foreign talent - Singapore's new five-year visa program targeting elite talent will help the city-state lure foreign investment, a senior executive at the government's investment promotion agency said in a recent interview.


State and private companies from Saudi Arabia have been boosting their outbound campaigns as investment becomes the country’s favoured tool for soft power in the Middle East and Islamic world.


The semiconductor industry has suffered significant shortages during the pandemic, meaning it is still highly dependent on Asia-Pacific.


There is a growing recognition in Washington of the important role Malaysia plays in building a resilient global supply chain, US senior official for Asia Pacific Economic Cooperation (Apec) Matt Murray said.


Indonesia Investment Authority (INA) attracts nearly USD4 billion in infra investments During 2022, the Indonesia Investment Authority (INA) attracted around USD3.8 billion in infrastructure and green energy investments from various sovereign wealth funds (SWF) as well as public pension funds. Some of the key investors during the year included, Abu Dhabi Investment Authority (ADIA), China Investment Corporation, Singapore-based Temasek and Malaysia-based Khazanah Nasional Berhad.


RESOURCES & REPORTS: Our monthly summary of the key resources and reports that matter – follow the links to download for free.


Indonesia’s government has made the development of the country’s special economic zones (SEZ) a priority policy with the aim of attracting over US$50 billion in foreign investment over the next decade, particularly for SEZ-oriented manufacturing.


Visualizing Remittance Flows and GDP Impact By Country The COVID-19 pandemic slowed down the flow of global immigration by 27%. Alongside it, travel restrictions, job losses, and mounting health concerns meant that many migrant workers couldn’t send money in the form of remittances back to families in their home countries.


A little over one year ago, congestion at America’s West Coast ports were making headlines, and the global cost of shipping containers had reached record highs 🚢 - Today, shipping costs have come back down, with some routes approaching pre-pandemic levels. The graphic shows just how dramatically costs have fallen in a short amount of time


UPCOMING EVENTS 2023: A quick snapshot of some of the essential events to add to your diaries in 2023, we look forward to meet you at many of them in person!


· WAIPA Asia Pacific IPAs Investment Conference, 21-23 February, UN Conference Centre, Bangkok, Thailand - For details email: andrewk@kwconfex.com

· UNESCAP Trade, Investment & Innovation Week, 22-24 February, Bangkok, Thailand - For details email: andrewk@kwconfex.com

· 2023 SelectUSA Investment Summit, 1-4 May, National Harbor, Maryland, USA https://www.selectusasummit.us/Home

· Annual Investment Meeting (AIM), 8-10 May, Abu Dhabi, UAE https://aimcongress.com/

​Annually we support over 100+ international businesses, governments, multilateral agencies, trade donors, and trade organizations to deliver Asia-Pacific projects through our networks with regulators, donors, investment promotion agencies, economic development organizations, governments, investors, and business communities to facilitate investment. Feel free to reach out for details andrewk@kwconfex.com


SERVICES

- FDI & Investment Promotion - Trade, Export & Market Access Programs - Research, Policy & Strategy Development - Capacity Building


Linkedin Community (4500+): https://www.linkedin.com/company/kw-group/

Warm Regards, Andrew Keable

Managing Director, KW Group, Regional Advisor Asia Pacific, World Association of Investment Promotion Agencies (WAIPA)




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