AEC Feed

The creation of the Asean Economic Community is good news for Russian businesses, according to that country’s deputy minister of economic development.
In an e-mail interview with The Brunei Times, Deputy Minister Alexey Vedev said the AEC’s goal of creating a single economic space and a common market would help Russian companies find new opportunities in the Asean region.
Vedev said the AEC would significantly contribute to socio-economic growth of Asean members through liberalisation of services and investment, reduction of technical barriers to trade, harmonisation of standards and free movement of skilled labour.
“These trends will lead to simplification of foreign trade within the single economic union, improve [the] overall business and investment climate, facilitate business contacts, and most likely create additional demand for different kinds of products, including high-tech innovations,” Vedev said.
He said such trends would help Russian companies “find a new window of opportunities for development and mutual cooperation”.
Vedev also said he hoped the AEC would develop the Asean-Russia Trade and Investment Cooperation Roadmap, which was elaborated on within the framework of the Asean-Russia Dialogue Partnership and dedicated to specific projects in Russia and Asean. – The Brunei Times

China volatility due to ‘crisis of confidence’

Recent market volatility stemming from uncertainties over China’s prospects has been the result of a “crisis of confidence” in the country’s institutions and financial system, former GIC chief investment officer Ng Kok Song said at a conference on Thursday.
GIC is a sovereign wealth fund established by the Singaporean government. Ng, now founding partner and chairman at Avanda Investment Management, said China’s long-term growth outlook was still strong, though there was room for reform and concerns lingered over rising debt levels. He was speaking at the fourth annual Credit Suisse Global Mega-trends Conference, held at the Fairmont Singapore.
Ng, who was on a panel with Robert Parker, Credit Suisse senior adviser for investment, strategy and research, spoke about the investment outlook for this year, given patchy global growth and low to negative interest rates.
Both panellists agreed that China was probably not headed for a hard landing. But there will likely be more volatility ahead as the country manages its transition towards slower, more sustainable growth. – The Straits Times