AEC Feed

The Indonesian government and Bank Indonesia (BI) predict that inflation in June will reach around 0.5 per cent, compared with 0.39 per cent in May.
The inflation rate is in line with the government’s target, said Coordinating Economic Minister Darmin Nasution on Monday.
 “The rate is slightly higher but it’s still in our range,” he said as quoted by tribunnews.com. “The contribution of the food sector is a bit higher than the contribution of the other sectors, but generally, the source of inflation is spreading quite equally. 
“In previous years, inflation was mainly caused by food. This year it is also generated by things such as housing and administered prices.” BI deputy senior governor Mirza Adityawarsa said inflation during this year’s fasting month was lower than last year. “Inflation during the fasting month can sometimes reach above 1.5 per cent. So it’s very good if the month-on-month inflation rate reaches 0.5 per cent,” he said. - The Jakarta Post

End of Del Monte feud paves way for deals
Philippine food conglomerate Del Monte Pacific Ltd. (DMPL) has ended a long-running legal squabble with Middle East-owned Fresh Del Monte Produce over licensing and product distribution rights, allowing the two groups to start working together.
In a disclosure to the Philippine Stock Exchange yesterday, DMPL, led by the Campos family, announced a series of new joint ventures with Fresh Del Monte, all meant to expand refrigerated offerings across all distribution and sales channels. Part of the burgeoning partnership is to introduce a new retail food and beverage concept modelled after Fresh Del Monte’s successful business in the Middle East.
These joint ventures will initially focus on the US market with the potential for expansion into other territories where the businesses of the respective groups complement each other, DMPL said.
The collaboration is also seen to greatly increase scale of the Del Monte brand by expanding into more high-quality, healthy and convenient product options for consumers. – Philippine Daily Inquirer

Singapore property seen still struggling
Despite renewed momentum in Singapore’s property sector and signs that the earnings downgrade cycle has bottomed out, the city state’s economy is likely to be sluggish in the coming months in line with prospects for the world as a whole, said banking group Credit Suisse.
This comes amid weak oil prices and a competitive telecommunications sector, which are holding back earnings recovery. Meanwhile, export demand is expected to deteriorate as well, which will hit the Singapore dollar, according to Credit Suisse's mid-year prognosis.
“Manufacturing companies would be most affected by (the drop in export demand). Beyond that, I think that if you look at domestic sectors - retail, auto - it's been quite weak already,” said Credit Suisse's Asia-Pacific investment strategist for equities, Suresh Tantia. - The Straits Times

Australians scout Hau Giang for opportunities
The Australian Chamber of Commerce in Vietnam says it is studying investment opportunities in the southern province of Hau Giang.
Truong Canh Tuyen, deputy chairman of the provincial People’s Committee, said the province was attracting investments in high-tech agriculture and farm product processing.
Tuyen expressed hope that Australian firms would invest in these sectors.
Plantation makes up 70 per cent of the province’s agricultural production; 20 per cent is husbandry and 10 per cent is fishery. Phil Johns, director of Auscham Vietnam, said the association wants to sign memoranda of understanding with Hau Giang province as a base to boost cooperation. - Viet Nam News