Indonesia to cap interest rates on credit cards

“To encourage consumption, BI will cap the maximum interest rate on credit cards to around 2.2 per cent per month, or 26.95 per cent per year,” BI Deputy Governor Ronald Waas said on Saturday.

The central bank is drafting a regulation to enforce the cap, after approval from the board of governors on the issue. “We hope to issue it this year,” Roland said.

The latest cut to the maximum limit was concluded in 2012, setting the cap at 2.95 per cent per month, or 35.4 per cent per year.

BI has been campaigning for a less cash-bound society since August 2014. 

The number of credit cards in Indonesia continues to grow, reaching 16 million in 2015. In terms of volume, the country saw 857,000 daily transactions in July this year. – The Jakarta Post

 

Laos’ service sector 

shows rapid growth 

Laos expects the service sector to grow by 9 per cent this year, accounting for 40 per cent of gross domestic product. 

Dr Khamlien Pholsena, deputy minister of planning and investment, said recently that in the first nine months of this year growth in the sector had reached 8 per cent, accounting for 39.8 per cent of GDP, an increase of 10 percentage points compared with the same period in 2015. 

Khamlien also said the value of Laos’ trade with other countries had now exceeded US$59 million. 

The growth in trade has accelerated with increased exports of bananas, tobacco products, electricity, electronic equipment such as cameras, bronze, and sweet corn. 

Banks have provided credit for investment in the production of various goods to the extent of 5.2 billion kip (Bt22 million), or 80 per cent of the government’s plan. 

Laos expects GDP to grow by 7.5 per cent this year as planned. 

The tourism sector is also expected to reach the growth target of 4.7 per cent this year. 

The Tourism Development Department of the Ministry of Information, Culture and Tourism reports that Laos received 4.3 million visitors in 2015, an increase of 4 per cent over 2014. 

According to the Lao National Committee for Special Economic Zones, almost 300 companies from Laos and overseas are now investing |in SEZs in Laos, with total registered capital of almost $8 billion, of which $1.62 billion has been spent. |– Vientiane Times

 

Johor seeks to 

emulate South Korea

Johor is looking at South Korea as the model to develop the state as the next medical-tourism destination in Asean.

Mohamed Khaled Nordin, chief minister of the state in southern Malaysia, said South Korea’s success in positioning itself as a leading medical-tourism destination was worth emulating.

“South Korea is far ahead compared with other countries in the region when it comes to medical-tourism-related services,” he told reporters during visits to two private medical centres in Seoul, Daejeon Wellness Hospital and DK Medical Centre, on Saturday. |– The Star

 

Foreign investors 

return to Malaysia

Foreign investors returned to the Malaysian stock exchange with the strongest inflow in 10 weeks, according to MIDF Research. 

“Last week, foreigners bought 733.4 million ringgit after they offloaded 565.9 million ringgit the week prior amid a three-day trading week. Foreigners’ participation rate remained relatively strong last week at 921.36 million ringgit, albeit lower than the 1,214.63 million ringgit recorded the week before,” it said in its weekly report. 

MIDF said the increased buying last Thursday was mainly due to the strong crude-palm-oil price, which hit 2,909 ringgit per tonne – the highest in four years, benefiting listed plantation companies with upstream operations. The ringgit was also the strongest in the week on Thursday at 4.1095 against the US dollar. – The Star