07 DECEMBER 2022View in Browser
 
 
 

This week's primary foreign investment news
from our ASEAN, China, India, Russia, Belt & Road and Vietnam Briefings.
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HEADLINES:

Curated by Chris Devonshire-Ellis

Big financial investment news from China this week as the first private pension scheme opens – we look at the opportunities arriving for foreign financial investors to cater for this market. Indonesia has increased the minimum wage for 2023, while we examine India’s Digital Rupee programme – just launched as pilot schemes in four cities. The Central Asian region is attracting interest; CIS trade is up on 2021, while intra-Central Asian connectivity is improving. After an initial dip, Russia is increasing it’s EU imports despite the sanctions, while we focus also on these geopolitical developments in this week’s BRI round up.

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CHINA
China Officially Launches New Private Pension Scheme – Who Can Take Part?
A select list of banks, wealth management funds, and insurance companies have officially been given the green light to launch private pension products in certain cities in China. The kick-off comes after many months of deliberations on regulations for the budding industry, which include requirements for companies’ participation as well as regulations on the products that can be offered. We discuss which companies and products can participate in the China private pension industry and how the industry may continue to develop beyond the initial pilot phase.
 
ASEAN
Indonesia Increases the Minimum Wage for 2023
Indonesia’s Ministry of Manpower announced that minimum wages across the country will increase by a maximum of 10 percent for 2023, under Minister of Manpower Regulation 18 of 2022 (MOM 18/2022). This was smaller than what labor unions had demanded with many demanding as much as a 25 percent increase, citing fuel, food, and housing inflation. We discuss the changes and impact on foreign investors.
 
CENTRAL ASIA
Kyrgyzstan, Turkmenistan To Increase Road Transport Connectivity As Middle Corridor Develops
At present, mainly, Turkmen permit forms are used by Kyrgyz carriers for transit through the territory of Turkmenistan to Iran, Türkiye, and the European Union. Bilateral trade between Kyrgyzstan and Turkmenistan must travel via Uzbekistan. The decision to develop road cargo transport between the two countries has four major effects that we discuss.
 
INDIA
India’s Retail Digital Rupee: Pilot Consumer Retail Tests Launched In Four Cities
India is piloting the retail digital rupee among closed user groups in four cities in the first phase – Mumbai, New Delhi, Bengaluru, and Bhubaneshwar – with four banks participating, namely State Bank of India, ICICI Bank, Yes Bank, and IDFC First Bank. More cities and banks will subsequently participate.
 
MIDDLE EAST
The UAE Launches A.I. Based Employment Contract Registrations
The UAE Ministry of Human Resources and Emiratisation (MoHRE) has launched an automated system to complete employment contracts without human intervention. The smart system aligns with the National Artificial Intelligence Strategy 2031, which aims to position the UAE as a global leader in artificial intelligence (AI) by developing an integrated framework to be adopted in vital areas in the UAE.
 
COMMONWEALTH OF INDEPENDENT STATES
Russia-Commonwealth of Independent States Trade Up 6.8% In 9M 2022
The Commonwealth of Independent States (CIS) includes Armenia, Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan and Uzbekistan. It is not a Free Trade Group with common tariff and duty agreements between all members, but rather acts as a looser conglomerate whereby members agree specific bilateral trade agreements between each other. Collectively, the CIS has a GDP (PPP) of US$5.5 trillion and a population of 239 million. GDP per capita (PPP) is estimated to be US$22,500 – about double that of China.
 
RUSSIA
2022 European Union Trade With Russia: Increases & Decreases YTD
The Russian State-Owned Statistics Agency RIA Novosti has claimed that many EU countries have increased their bilateral trade with Russia, citing data from the European Union’s own trade intelligence. France for example has increased its exports to Russia by 25%. Another example is Portugal, which has increased its exports of goods to Russia by almost ten times as of August 2022, and has also increased its imports by €79 million per month.
 
BELT & ROAD INITIATIVE
Belt And Road Weekly Investor Intelligence #110
All the latest international investment intelligence from across China’s Belt and Road Initiative.
 
 
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