Posts tagged India
Aircraft maintenance, repair and overhaul (MRO) is earmarked as a Malaysian growth industry and has full government support under the Economic Transformation Programme (ETP). To achieve its stated vision of becoming RM193.3 billion (US$65 billion) industry by 2020 and making Malaysia a regional MRO hub, however, the industry needs to make big leaps in policy & procedure improvement, availability of skills, and build a spare parts infrastructure.
MAS Aerospace Engineering (MAE), a division of national carrier Malaysia Airlines (MAS), is the company best positioned to achieve the goal and seems to have a good understanding of improvement points. The company made RM2 billion ($663.8 million) in revenue in 2010, 40% from its parent company and 60% through third-party and joint venture services. It is the third-largest airframe MRO company in the world, and says 75% of the world’s top airlines are on its client list.
Business TImes reports MAE is currently in talks with potential joint venture partners in China, and recently opened a facility with partner GMR Group in Hyderabad, India, its first outside Malaysia. Asia-Pacific, China and India accounted for 23% of the global MRO market, or RM29.6 billion ($9.8 billion), the company said.
On the homefront, MAE said that to properly develop MRO leadership, Malaysia needed more licensed aviation engineers and more training centers to produce the engineering skills required. There is also a feeling among the country’s top aviation schools that aviation engineering isn’t being promoted effectively enough as a vocation, and that the industry needed greater public awareness of its economic importance before it could develop and keep up with increasing speed and complexity.
source & article: Business Times
Australia’s international trade development agency Austrade is encouraging local firms to get involved in a series of major transport proposals across Asia. The region’s emerging big hitters have realized the importance of solid infrastructure to support their booming economies and logistical needs, especially airport expansion and roadway construction.
Among the projects Austrade has flagged for attention are Indonesia’s US$255 million Ngurah Rai Denpasar Bali International Airport expansion and accompanying expressway, due to open before the 2013 APEC Summit, new expressway and metro line projects in Vietnam, and development of numerous transport plans and policies for the Philippines. There’s also the $2.3 billion Phase 2 of Thailand’s Suvarnabhumi Airport improvement involving a third runway and new passenger terminals. As well as the Southeast Asian projects, giants China and India are also active in the infrastructure boom, with Beijing planning a second airport and India investigating dedicated freight rail corridors (DFCs) and over 70,000km of proposed new roadways.
Austrade’s Senior Export Adviser Stan Roche said Australian companies could offer their expertise in several areas, not only in design and engineering but also in finance advisory and expertise in dealing with public-private partnerships (PPP). There were also other opportunities in related fields like security systems and technology.
Indonesian President Susilo Bambang Yudhoyono is off on a business-heavy three day trip to India this week, looking to bring back US$15 billion in new investment deals and a raft of signed agreements.
On the agenda are meetings with Indian Prime Minister Manmohan Singh, Vice President Mohammad Hamid Ansari, and the chairwomen of both India’s major political parties, Sonia Gandhi and Sushma Swaraj. Yudhoyono will also be the chief guest at India’s Republic Day celebrations on 26 January. The business highlight is a planned 500-attendee event on Tuesday at which the President and hosts will sign 17 government-to-government, and 15 government to business, memoranda of understanding designed to streamline investment and trade deals between the two countries.
Trade volume between India and Indonesia has tripled over the past 5 years, from $4 billion in 2005 to $12 billion last year. India’s expected further investment will assist further with Indonesia’s grand plans to upgrade its infrastructure and develop the resources sector.
Indian biotechnology companies are continuing to establish operations in Malaysia, drawn by its biotech and research friendly initiatives. Biocon is about to join them, investing US$161 million in a strategic partnership. Others who have already begun operations in Malaysia include Avesthagen, Geneflux and Stempeutics Research.
Malaysia’s biotechnology policies done much to draw in foreign companies and make the country an international hub for R&D and production. There is a 10-year tax holiday, fewer restrictions on investment and access to other markets in ASEAN through free trade agreements. Even seemingly minor details like uninterrupted power supply, decent roads and cold logistics facilities can appeal to companies in countries like India, where there is plenty of innovation but often not enough appropriate or biotech-specific infrastructure to support it. Even though biotech in India is growing at around 30%, the capital-intensive industry is not attracting the kind of overseas interest seen in Malaysia.
Overseeing all this is the Malaysian Biotechnology Corporation (BiotechCorp), which says Biocon’s investment and development of high-end biopharmaceutical products will help implement Phase II of the National Biotechnology Policy: the ‘science to business’ phase.
source & article: The Economic Times
Malaysia and India will increase trade and investment cooperation with the signing of the CECA free trade agreement, to come into effect on 1 July 2011.
CECA, or the Comprehensive Economic Cooperation Agreement, should help the two countries meet a trade target of RM 46.5 billion (US$15 billion) by 2015, with infrastructure projects and investment flows playing a large part in the new environment. Indian Prime Minister Manmohan Singh, who is visiting Malaysia this week, says inadequate infrastructure in his country is a constraint on economic development and welcomes Malaysia’s expertise in building and road construction. Other useful targets for CECA-related activities will be the capital market, energy including oil, gas and renewables, and information/communications technology.
Both India and Malaysia have much to offer each other: Malaysia will gain access to India’s enormous market and India can use Malaysia as a gateway to other Asean nations. India is also negotiating a separate regional treaty; the Asean-India Trade in Goods Agreement.
source & article: The Edge Malaysia
An article in today’s Sydney Morning Herald examines the impact of an integrated ASEAN economy, mostly from an Australian and trade perspective. Were the dreams of ASEAN’s planners to come true by 2015 or sometime soon after, it would have a dramatic effect on other regional economies as Southeast Asia build massive transportation infrastructures, harmonized customs and immigration regulations, and opened up the energy and telecommunications markets:
It is the kind of seismic change in regional economic development that, if implemented, will force all sorts of changes in local laws, regulations and procedures.
Moves towards an EU-like integration are driven and influenced by the rapid growth of China and India, increasing competition as well as new investment opportunities in both directions. Smaller countries are finding it harder to get headlines and export industries in Australia may also need a cultural adjustment to transact more effectively with the region.
source & article: Sydney Morning Herald
Yahoo! is placing its big bets on mobile being the internet’s future, particularly in Asia, as people ‘leapfrog’ into high speed mobile services without first experiencing desktops.
Thanks to the increasing sophistication of mobile software, plus higher data speeds and lower service/device costs, Asia’s number of mobile internet users has grown and will continue to grow dramatically. It now accounts for over a third of the world’s mobile internet users with Indonesia, Malaysia, Philippines, India, Thailand and Vietnam leading the advance. India’s 550 million mobile devices far outnumber its 50 million desktop PCs.
Yahoo! Mobile has its eyes on the large young populations of India and Indonesia, among others. At the CommunicAsia 2010 event in Singapore this week it announced a new, low-cost mobile device offering fast access to a suite of Yahoo! services like messaging and mail. Last month they announced a strategic alliance with Nokia to provide access to maps and navigation services, and recently acquired Indonesia’s mobile focused social network Koprol.
There have been radical shifts in thinking towards mobile in the past two years, they said, and the company needs to get the attention of “tens and hundreds of millions of users” over the next few years.
source & article: Yahoo! Singapore
Malaysia has continued to liberalize its banking sector by issuing a commercial banking licence to Bank of Baroda, one of India’s largest banks. The new licence comes as Malaysia and India approach a Free Trade Agreement, hopefully by the end of this year.
“The Minister of Finance has approved the issuance of a commercial banking licence to a locally incorporated company to be established by Bank of Baroda (40 percent), Indian Overseas Bank (35 percent) and Andhra Bank (25 percent),” Bank Negara said in a statement.
New rules have been in place since April 2009 to make Malaysian banking more diverse and open to foreign interests, issuing nine new bank and insurance licences and easing foreign ownership limits for non commercial banks. Licences for 15 foreign owned commercial banks and six Islamic banks have been issued in total.
source & article: ChannelNewsAsia.com