AEC Feed

Indonesian Textile Association chairman Ade Sudrajat has said that the textile industry had to cut production in the first half of 2017 because of weak consumer purchasing power.
Many shopping centers reported weak sales during the recent Ramadhan and Idul Fitri holiday seasons, which usually see the year's peak sales for textile products.
“Several companies have been cutting their production since the first half,” he said, as quoted by kontan.id, adding that the textile industry's electricity usage had declined by 20 percent in the first half of the year.
As part of efficiency measures, textile companies extended their Idul Fitri holiday period for employees to 20 days from two weeks, Ade added.
He also recorded many companies had also postponed their expansion plans, pending the availability of growth in overseas markets. – The Jakarta Post. 

Royal Group, SK’s E-Mart sign MoU for hypermarket
Cambodia’s conglomerate Royal Group signed a memorandum of understanding (MoU) on Friday to form a new joint venture with South Korea’s largest retailer, E-Mart Inc, to build a hypermarket – a massive retail outlet that combines a supermarket with a department store – in Cambodia.
The MoU was signed in Phnom Penh between Royal Group Chairman Kith Meng and Lee Gab-soo, CEO of E-Mart Inc, with participation from Commerce Minister Pan Sorasak and Korean Ambassador to Cambodia, Kim Weon-jin.
Rami Sharaf, senior vice president of Royal Group, said the two firms would hold further discussions of the joint venture structure, with him expecting that a finalised agreement would be signed later this year. If all goes as planned, he said “E-Mart Royal” could be operational as soon as the first quarter of 2019. |– The Phnom Penh Post

Laos, China seek investment, cooperation on infrastructure
Laos and China are seeking opportunities for investment and cooperation on infrastructure as part of supporting the One Belt One Road (OBOR) initiative. 
Some 28 businessmen from China, led by President of China International Contractor Association Mr Fang Qiuchen met with Lao businessmen to discuss and explore areas for investment and cooperation in Laos in Vientiane.
Laos and China have a long-standing close relationship, which in the past year has seen the leaders of the two countries have high-level exchanges and visits to expand and deepen bilateral cooperation.
In March, Lao’s President Bounnhang Vorachit attended the Belt and Road Forum held in Beijing, China, and the two governments signed a master plan on supporting the OBOR initiative, which will contribute to economic and trade cooperation in the two countries.
A developing country cut off from sea, Laos aims to graduate from Least Developed Country (LDC) status by 2020. Currently, Laos has a high demand to draw investors from overseas to invest and join with Lao businesses to develop the country, especially in basic infrastructure and other sectors.
Laos was in a period of development and was experiencing a high demand in construction of roads, buildings, hotels, hospitals, hydropower and other sectors, President of Lao National Chamber of Commerce and Industry Mr Oudet Souvannavong said. – Vientiane Times

AmBank Group gets serious about SMEs
The AmBank Group, which is in the midst of a possible merger with RHB Bank Bhd, is fast-tracking its efforts to grow its small and medium-sized enterprise (SME) segment, as it believes it has become one of the most lucrative segments within the banking industry.
Christopher Yap is the person tasked to grow the lender’s SME segment housed under what it calls its business banking division.
“Regardless of the backdrop of the merger, AmBank continues to work towards strengthening its growth trajectory,” the 44-year-old told StarBiz in an interview.
AmBank currently has one of the smallest SME asset bases in the country. “We’re about number seven or eight,” said Yap, who is managing director of the business banking division.
On the whole, the banking group’s total asset size of RM134.8 billion ranks it sixth among the country’s eight local banks. RHB Bank, at an asset size of RM236.7 billion, is currently number four in the country. – The Star