Exporters to get helping hand to cope with demand slump

Indonesian exporters, especially labor-intensive ones, may get some much-needed support - in the form of relief on debt payments and capital expenditure subsidies - to help them cope with rapidly weakening global demand.

The Coordinating Ministry for the Economy will soon hold a three-way meeting with the central bank and representatives of export intensive companies, which are seriously affected by falling demand in exports due to the global crisis.

"The coordinating minister along with Bank Indonesia will summon all of the exporters whose businesses are severely affected by the crisis," a deputy to the Coordinating Minister for the Economy, Edy Putra, said on Wednesday.

The country is being hit by the global economic downturn, with exports nose-diving by 20 percent in December last year from a year earlier as overseas demand shrinks.

Despite this, Indonesia still managed to increase the value of full-year exports by around 20 percent in 2008 with US$136.76 billion of exports up on the $114.1 billion recorded in the previous year.

But the outlook for exports for 2009 is already bleak and seems to be getting much more gloomy with January non oil exports plummeting by around 46 percent.

Economists have predicted that the impacts of the global economic crisis would reach its peak in Indonesia by mid-2009.

"We are worried that the decline in exports would eventually affect the banking sector, that is why we also invited BI to attend. During the meeting, the government will try to find solutions for exporters' liquidity problems to avoid risks of defaulting on credits," Edy said.

"The assistance can be in the form of some relief for debt payments, training for dismissed employees, tariff protection measures and capital expenditure subsidies," Eddy said.

Full details on these measures are not yet formulated. he said.

The weakening rupiah rate against the US dollar also makes it more difficult for exporters to repay their export credits to the banks.

"We are now studying which sectors are suffering the worst impact from the global crisis.

"There are many factors such as declining demand for certain commodities or probably their buyers are collapsing as well. On the supply side, there could be a massive rise in production costs because of the weakening rupiah," Eddy said.

Edy suggested that sectors using dollars for their capital expenditure but earning their income in rupiah were the most severely affected while other sectors, such as the automotive sector, were only at the stage of `having a headache'.

"Some of these affected sectors include textiles, plastics, chemicals and steel. I think we can use the metaphor of being in `intensive care' for the steel sectors," he said.

Edy said that the government would not use some of the budget in the proposed stimulus plan to bail out the exporters.

"Stimulus is only a temporary solution. We want it to be sustainable," he said.

"Basically, there are three instruments that the government can use to solve these kind of issues. They are the fiscal, monetary and regulation instruments, for this we are utilizing our regulatory instruments."

The government set up Rp 71.3 trillion ($6.31 billion) for the stimulus package last month to stimulate the economy during the crisis. This is still subject to House of Representatives' approval.

The package was originally valued at only Rp 27.5 trillion.

The stimulus focuses on tax savings with a value of Rp 43 trillion, around Rp 13.3 trillion for waived taxes and import duties for businesses and certain households, as well as subsidies and government spending of Rp 15 trillion to help businesses. (hdt).

Source: http://old.thejakartapost.com/

Singapore seeks to export IT solutions to govts

Singapore, proud of its success on modernising its public services with information techonolgy, is looking to export "eGovernment" solutions to other countries.

State-owned IDA International was launched on Tuesday to work with private Singapore IT firms to expand their business by supplying IT solutions to foreign governments keen to adopt the "Singapore model", officials said.

Information&Communications Minister Lee Boon Yang said Singapore had established government-to-government collaboration with countries around the world from Brunei to Bahrain and Brazil and hoped to turn those into tangible business.

"Our achievements in eGovernment services are highly regarded by many countries. They see Singapore, with our wealth of experience, tested capabilities and proven solutions for a wide range of applications, as a good partner for their own infocomm plans," Lee said in a speech to mark the launch.

The island state is trying to build its services industries and is looking for ways to help cushion the blow of its worst-ever recession, as demand for its manufacturing exports slumps.

Source: http://news.alibaba.com/article/

Guangdong Government Launches Trade Website

The local government has launched a website to provide information and services for Guangdong-based companies dealing in international trade.

The companies will be able to use the site for various document and license applications as well as provide updates on the latest government trade policies and news on the global markets. It will also serve as a platform for submitting suggestions and seeking advice from foreign trade officials.

“The website is one of several measures we have taken to help local firms cope with the global financial crisis, which has a huge impact on Guangdong because of its close involvement in foreign trade,” Vice-Governor Wan Qingliang told Xinhua during the launch.

As China’s strongest export player, Guangdong has been hard hit by slowing demand due to the global credit crisis. Imports and exports amounted RMB36.6 billion in January, down 31 percent compared to the same period last year. Thousands of workers were laid off as factories were forced to shut-down because of dwindling orders.

Last year, the province’s GDP reached RMB3.57 trillion, a decrease of 4.6 percent.

Foreign trade is expected to drop further in the first quarter of the year as companies import less goods because of slowing export demand. Guangdong contributes one-third to the country’s total and foreign trade only grew by 7.8 percent to US$683.3 billion last year compared to 2007’s increase of 20.3 percent, said a draft government report released last week.

According to China Daily, the province will begin focusing on developing new markets in Africa, Southeast Asia, the Middle East and South America.

Source: http://www.china-briefing.com/news/2009/

Guangdong Government Launches Trade Website

The local government has launched a website to provide information and services for Guangdong-based companies dealing in international trade.

The companies will be able to use the site for various document and license applications as well as provide updates on the latest government trade policies and news on the global markets. It will also serve as a platform for submitting suggestions and seeking advice from foreign trade officials.

“The website is one of several measures we have taken to help local firms cope with the global financial crisis, which has a huge impact on Guangdong because of its close involvement in foreign trade,” Vice-Governor Wan Qingliang told Xinhua during the launch.

As China’s strongest export player, Guangdong has been hard hit by slowing demand due to the global credit crisis. Imports and exports amounted RMB36.6 billion in January, down 31 percent compared to the same period last year. Thousands of workers were laid off as factories were forced to shut-down because of dwindling orders.

Last year, the province’s GDP reached RMB3.57 trillion, a decrease of 4.6 percent.

Foreign trade is expected to drop further in the first quarter of the year as companies import less goods because of slowing export demand. Guangdong contributes one-third to the country’s total and foreign trade only grew by 7.8 percent to US$683.3 billion last year compared to 2007’s increase of 20.3 percent, said a draft government report released last week.

According to China Daily, the province will begin focusing on developing new markets in Africa, Southeast Asia, the Middle East and South America.

UPDATE 1-Thai Jan exports may have fallen over 20 pct-finmin

Thai exports may have fallen more than 20 percent in January from a year earlier due to the global economic slump, Finance Minister Korn Chatikavanij said on Wednesday.

"The world economy has yet to hit bottom," he told reporters after a meeting of economic officials. "January exports may have dropped more than 20 percent as a result of the slowdown in global and regional economies."

On Tuesday, Singapore reported its non-oil exports fell 34.8 percent in January from a year earlier as the financial crisis hit demand for Asian exports.

Thai trade data from the customs service is due on Thursday. Its data shows that exports in December dropped 14.5 percent from a year earlier.

Bank of Thailand trade data, regarded as more accurate by the market because it is based on financial settlements, is due on Feb. 27.

Prime Minister Abhisit Vejjajiva said the Bank of Thailand felt the baht was still competitive for exports.

"The central bank said it would keep the baht's moves in line with trading partners' and rivals' currencies, not only against the dollar," he said after the meeting, in which central bank Governor Tarisa Watanagase took part.

The baht was at around 35.30/34 per dollar on Wednesday. It has eased 1.4 percent this year, less than many Asian currencies.

Dealers have said the central bank has intervened in the market to weaken the baht over the past two weeks to help exports, although the currency's move has not been substantial.

The government has introduced a series of economic measures, including tax breaks, cheap utilities and cash handouts -- part of a 300 billion baht ($8.5 billion) package -- to help the export-led economy avoid recession.

Korn has said the measures should ensure economic growth of 2 percent this year after an estimated 3.6 percent in 2008.

Prime Minister Abhisit said the government planned to invest about 2 trillion baht over the next 3-4 years in several projects involving public infrastructure, tourism, education and healthcare to boost the economy in the medium and long term.

These projects would be financed by state spending, borrowing and partnership with the private sector, he said, without going into detail.

Source: http://news.alibaba.com/article/

Google's PowerMeter to reduce electricity use

Internet search engine Google seems all set to bring power grids into the digital age - it is to soon launch a PowerMeter to help families "reduce their domestic electricity consumption".

According to Google, using a special widget embedded on their personalised iGoogle homepage, people will be able to monitor the PowerMeter software through their computers, which will help them see where to cut down on electricity use.

In fact, the PowerMeter will analyse the electricity consumption information captured by "smart meters", and then translate it into easy-to-understand information, it said.

Ed Lu, a member of Google's engineering team, wrote on the search engine's blog: "In a world where everyone had a detailed understanding of their home energy use, we could find all sorts of ways to save energy and lower electricity bills.

"It may not sound like much, but if half of America's households cut their energy demand by 10 per cent, it would be the equivalent of taking eight million cars off the road."

In fact, the PowerMeter is currently in development, and is being tested among select members of Google's own staff before eventually being introduced to the wider public, media reports said.

According to Lu, Google's mission is to organise the world's information and make it universally accessible as well as useful to people.

"We believe that detailed data on your personal energy use belongs to you and should be available in an open standard nonproprietary format. You should control who gets to see your data and you should be free to choose from a range of services to help you understand it and benefit from it," he wrote.

Source: http://www.zeenews.com/sci-tech/net-news/

Cambodian Garments Record 7 Percent Growth in Exports

Garments, the backbone of Cambodian exports were able to register 7 percent growth in 2008 to $3.15bn from its previous year. Even in 2008, the US continued to be the largest market for Cambodian garments by importing products worth $1.95bn. The EU and Canada with $631mn and $202mn respectively became second and third largest buyers during the same period.

Few years ago more than 60 percent of Cambodian garments were supplied to the US. But today the European countries and Canada are showing greater interest in Cambodian garments as they are cheaper and maintain country specific standards. Canadian imports from Cambodia have witnessed 20 percent growth from in its previous year.

Cambodian Commerce Minister Cham Prasidh stated that about $213mn increase in exports was an encouraging development during global slowdown. Taking into account, the US the largest trading partner of Cambodia which is experiencing deep depression, the current growth is regarded as better than anticipated. Prasidh added that the country’s garment industry was in good shape even now as they were able to attract large orders from the international market.

According to sources, the Cambodian garment industry is not without its own problems which are the direct fallout of global recession. They are facing similar issues those which are confronted by other garment exporting nations in the region including China, Vietnam and Indonesia.

Lately, the international buyers are quoting very low prices for their products which are in reality below the production cost. And this in turn has forced many shops to shut down their businesses.

Some data show that more than 50 firms have closed down, out of about 400 garment factories in the country. As a result, more than 25000 workers are out of job, and the industry fears that since there is no clear sign of any recovery of global economy in near future, the unemployment is likely to rise significantly. However, an official from the Association of Southeast Asian Nations' Federation of Textiles and Apparel (AFTEX) said that they were pinning hopes on the stitch in time by the government in finding new markets for their products.

Source: http://www.toboc.com/tradenews.aspx

Plastic Is Fantastic

Plastic is the new green to consumers trying to survive the economic downturn. As people shift from cash to cards, credit card companies like Visa and MasterCard are benefitting -- at least until the consumer slowdown catches up to them.

In the last two days, Visa (nyse: V - news - people ) and MasterCard (nyse: MA - news - people ) have posted earnings that beat analysts' expectations. The companies are benefiting from increasing unemployment and falling wages that have forced consumers to stick to tight budgets and rely on credit and debit cards. But, the two companies expect the economic slowdown to catch up with them in 2009 as consumer spending stays weak.
Visa lowered its outlook for annual revenue growth to a high single-digit gain from a previous estimate in the range of 11.0% to 15.0% growth. MasterCard said 2009 revenue growth will not meet its objective of 12.0% to 15.0%, due to the slowdown in consumer spending worldwide.

"With consumers under considerable pressure from the contraction of credit, net worth and jobs, we suspect sentiment around MasterCard will remain very weak until consumer spending stabilizes," Bruce Harting, an analyst at Barclays Capital, wrote in a research note.

According to a report by Fitch ratings service, credit card delinquencies are reaching record highs. Payments at least 60 days late have increased 0.5%, to 3.75%, in January, the highest rate since 1997.

But the number of transactions the credit card companies are processing has increased as consumers rely more heavily on debit cards as a means of controlling their spending. MasterCard reported a 6.0% increase, to 5.5 billion, for transactions in the recent quarter, while Visa's transactions jumped 13.0%, to 14.5 billion.

Despite the less-than-sunny outlook from both companies, shares jumped on the news that they both beat expectations. Shares of MasterCard were up 13.8%, or $19.34, to $159.49, on Thursday afternoon, while Visa gained 9.8%, or $4.84, to $53.97.


Source: http://www.forbes.com/2009/

Satyam seeks CLB nod

Fraud-hit Satyam Computer Services Ltd has sought the approval of the Company Law Board (CLB) to conduct a public auction for induction of a strategic investor in the company.

The company has written to the CLB and has sought the approval for the same. The petition has been admitted by CLB and the hearing on the issue will continue tomorrow.

In its petition, Satyam has asked CLB to permit it "to devise a plan which provides for transparent, open and competitive process for continued operation" of the company in the interest of its all shareholders.

The company would also consider making "preferential allotment of equity shares or other securities for financing" its operating and capital costs and other financial needs without holding any Annual General Meeting, the petition said.

Satyam submitted that once the plan was approved and functional, the funds received by it would be kept in a 'no-lien account' wih the IDIBI Bank and Bank of Baroda, which recently gave the company Rs 600-crore loan towards working capital needs, and would be used for revival of the company. The company has also sought approval for raising its authorised share capital to 120 crore equity shares without holding any AGM.

At the end of last fiscal ended March 31, 2008, the company's authorised equity capital stood at 80 crore shares.

Satyam has also asked CLB to permit it to "conduct a transparent, open and competitive price bid auction" following relaxation of strict provisions of takeover norms by SEBI and to receive requests for pre-qualification of bidders for participation in the company as strategic investors.

The Satyam board, which was formed as per the CLB orders, would have full discretion to accept or reject such requests and furnish the pre-qualified bidders with the confidential information about the company on payment of a refundable fee of Rs 5 crore.

Source: http://www.tribuneindia.com/2009/

Google Sued for Antitrust

A wannabe B2B search engine company called TradeComet.com has sued Google for antitrust charging Google with predatory conduct aimed at driving it out of business by "imposing massive, unjustified price increases" on its keyword search rates.

It claims Google raised its prices 10,000% after identifying it as a competitor. Its property SourceTool.com was initially spending $500,000 a month with Google and getting 650,000 visits a day, even becoming a Google "Site of the Week."

TradeComet CEO Dan Savage, a publishing type out of Ziff-Davis and McGraw Hill, claims the price hike cut his traffic by 99% "virtually overnight" and that the operation is "no longer competitively viable." He wants damages.

Source: http://search.sys-con.com/

Zahara Travel launches Oman's first travel portal

This new initiative proves to be yet another step towards making life easier for travelers. Now a person can simply log on to Zahara Travel's website and plan their trip.

Wide choices of Flights, Hotels, Holiday Packages, Car Rental etc are available from Zahara's leading worldwide supplier chains thus providing the web browser great freedom to take their own decision. The portal serves both B2C and B2B solutions 24/7 in the comforts of home, office or outdoors.

Mr. M. Sasi, CEO, Alawi Enterprises said, we are very happy to see the path breaking initiative our group company Zahara Travel has taken. During the time when Oman is making huge leaps towards e-management and e-governance, such a venture I am certain will add value to the travelers all around.

Relaying the main purpose of this launch, Gautam Broota, General Manager at Zahara Travel says,


'In the Internet world there is huge data and information available for today's travelers to choose from 24/7. We tied up with leading suppliers who have the best rate selections to enable clients to do their own research from the variety of options our portal provides. Being a reputed local company, the people in Oman can rely on Zahara and can also seek added services from us. The client having chosen the flights, hotels, holiday packages goes on to purchase thru a secure payment gateway, all of this in the comforts from where they may choose to be at any time of the day. Our portal will assist travelers, on a real time basis, with relevant and accurate information on everything pertaining to their travel needs. This means that they are able to know if the services they choose is available or not at that very moment.'

He further adds, 'As with several other pioneering initiatives this we feel with bring in rich value to the generation who are internet savvy. We dedicate the portal to the new generation who like to take things in their control and like to make their own considered decisions.'

For the local corporates in Oman we have a B2B solution and they are able to open their own online travel account to manage their own flight and hotel options, issue tickets and hotel vouchers, receive invoices and make the payments. Their account can be seen only by them thus providing them with total control and privacy.

To ensure safety for payments Zahara has tied up with reputed local payment gateway channel thus ensuring it is secure.

Source: http://www.ameinfo.com/185393.html

Travel retail executive promotes innovative sales tool

Jean-Marc Houssin, who has worked as a luxury brands supplier in the travel retail industry for more than 10 years, is promoting a new sales and marketing tool that aims to improve efficiency and cut costs.

Described as "a new media on a USB stick", the new Philm technology has been adopted by clients such as the Richemont brands, Nestlé, Ferrari, and the SIHH 2009 and Baselworld watch exhibitions.

"The principle is simple - it is a USB flash drive that can be updated with all kind of files and information online," Houssin explained.

"When you plug in the stick, there will be an automatic update available online. It's a bridge between offline and online, but specifically tailored for clients."

The Philm USB memory stick is claimed to offer a fully customisable user interface; fast, cost-efficient and eco-friendly distribution of documents thanks to the possibility of updating the contents of the stick via the web; integration of online reply, feedback and order forms; tracking of user behaviour and integration of Customer Relationship Management capabilities; and self-sufficient and easy-to-use photo show application.

Houssin said he had already gained interest from members of the travel retail community. "They were very interested about the benefits of our product and by the opportunity to save money, to gain efficiency and to contribute to the environment instead of printing a new catalogue every time," he enthused.

For details, contact Jean-Marc Houssin, Philm, tel: +41 78 865 14 15. Visit www.philm.com

Source:http://www.moodiereport.com/

Travel retail executive promotes innovative sales tool

Jean-Marc Houssin, who has worked as a luxury brands supplier in the travel retail industry for more than 10 years, is promoting a new sales and marketing tool that aims to improve efficiency and cut costs.

Described as "a new media on a USB stick", the new Philm technology has been adopted by clients such as the Richemont brands, Nestlé, Ferrari, and the SIHH 2009 and Baselworld watch exhibitions.

"The principle is simple - it is a USB flash drive that can be updated with all kind of files and information online," Houssin explained.

"When you plug in the stick, there will be an automatic update available online. It's a bridge between offline and online, but specifically tailored for clients."

The Philm USB memory stick is claimed to offer a fully customisable user interface; fast, cost-efficient and eco-friendly distribution of documents thanks to the possibility of updating the contents of the stick via the web; integration of online reply, feedback and order forms; tracking of user behaviour and integration of Customer Relationship Management capabilities; and self-sufficient and easy-to-use photo show application.

Houssin said he had already gained interest from members of the travel retail community. "They were very interested about the benefits of our product and by the opportunity to save money, to gain efficiency and to contribute to the environment instead of printing a new catalogue every time," he enthused.

For details, contact Jean-Marc Houssin, Philm, tel: +41 78 865 14 15. Visit www.philm.com

Source: http://www.moodiereport.com/

India jeera, pepper seen lower; turmeric up

India jeera futures are likely to open down on Tuesday as continuing arrivals keep a lid on prices, analysts said.

The arrival season, which began in February, will continue through April.

The benchmark March contract NPEH9 ended down 1.95 percent at 11,328 rupees per 100 kg the previous session. It may open at around 11,288 rupees, an analyst said.


PEPPER:

Futures are likely to open lower on weak export demand amid increased production from Karnataka, analysts said.

Worries about a shift in export demand to countries like Vietnam, where pepper prices are lower, will also weigh on sentiment, they added.

The benchmark March contract NPEH9 ended down 0.53 percent at 10,890 rupees per 100 kg in the previous session. It may open around 10,850 rupees, an analysts said.

TURMERIC:
Futures may extend the previous session's gains on thin carryover stocks from last year's harvest, analysts said.

Source : REUTERS INDIA

Buyer for Satyam likely by month-end

As Minister for Corporate Affairs P C Gupta said today in Parliament that investigations in the Rs 7,800-crore Satyam fraud, allegedly by its chairman Ramalinga Raju have been handed over to the CBI, one of the members of the newly constituted board of the company said that a buyer for it may emerge by the month-end.

The board, which has been constituted by the government, has been looking for a buyer for the company which has been facing a financial crunch.

Senior member of the Satyam board, Deepak Parekh said here that a buyer was likely to emerge by the end of February when asked specifically whether he saw any buyer coming forward for the company. "Yes. By the end of this month," he said.

Satyam has already accelerated its plans to find a suitable buyer after India's market regulator amended takeover rules.

As part of the efforts to present the interested party with a suitable company, the software exporter has also got plans to downsize its work force, especially at the senior level.

Already two officials at senior level have quit and more resignations are expected to follow. Satyam, India's fourth-largest outsourcer, has been in news and facing the financial crunch since January 7 last when its founder Ramalinga Raju quit as chairman, revealing profits have been falsified for years and almost Rs 7,800 crore had been embezzled.

Later, the government dissolved Satyam's board and appointed six directors to save the company and its over 50,000 employees. The new board has appointed Goldman Sachs and Avendus, an Indian investment bank, to help find potential investors.

Source: http://www.tribuneindia.com/

Cargo movements fall at city port

The port of Belfast has suffered because of the global economic downturn, according to figures released on Wednesday.

The figures revealed that cargo movements in 2008 fell by 5.5% to 16.5 million tonnes.

This followed a six-year period of continued growth.

Container and oil traffic were each down by 5%. Construction sectors were worst affected with timber imports falling by 38% and steel by 21%.

However, there were some trading increases.

Projects

Scrap metal was up by 8.6% and fertiliser imports rose by 5%. The stone trade, benefitting from road maintenance projects in Great Britain, was up 4%.

Despite the slump, the Harbour Commissioners still want to make Belfast the leading port in Ireland.

"We are very much still committed to our £630m capital investment programme... to cater for a growing economy whenever that returns," said Commercial Director Joe O'Neill.

"We can cater for not just our existing customers.

"We can cater for a much wider customer base and a much wider geographical area within Ireland so we have very clear ambitions on that front."

Source: http://news.bbc.co.uk/

Determining Benefits from B2B e-Commerce: A Strategic Approach

A Request From A Powerful Customer To Exchange Information Electronically Is An Important External Stimulus To The Business Strategy Of A Supplier.

Prior Research Indicates That Sub-optimal Benefits, If Any, Are The Typical Result Of Such A Stimulus. In This Research, B2B E- commerce Alignment Between Business Strategy And IT Strategy Is Proposed As A Determinant Of Enhanced Business Benefits From Electronic Information Exchange.

A Multiple Case Study Approach In The Australian Automotive Industry Is Used To Examine This Proposition. As More Electronic Information Is Exchanged Using A Range Of Electronic Modes, Thus Creating Complex Interorganizational Systems, This Research Provides Insights For Suppliers About How To Achieve Greater Benefits From B2B E-commerce.

Source: http://findarticles.com/