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Alibaba still in talks to set up logistics hub for South East Asia in Thailand

According to eMarketer’s report, e-commerce revenues in six largest markets in Southeast Asia would reach $14 billion in 2016, around 40 per cent up from $10.5 billion in 2015.

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Chinese e-commerce giant Alibaba Group is said to be in talks with the Thai and the Malaysian governments, seeking the best location and conditions to set up a regional distribution and logistics hub for South East Asia.

In response to last week’s media reports saying that the group would set up the centre in Malaysia, Thailand’s Industry Minister Uttama Savanayana insisted that Alibaba is still interested in establishing its regional logistics hub in Thailand and it will finalise its investment plan by the end of this year.

“Thailand is the best location for developing the regional distribution and logistics system as it connects to Cambodia, Laos, Myanmar, Vietnam and Malaysia,”

he said, adding that “Thailand’s consumer market is larger than Malaysia’s, and we are forming a free-trade zone for product distribution to our neighbouring countries.”

The Chinese conglomerate has expanded its business empire outside China aggressively. It acquired the significant stakes in SingPost’s unit Quantium Solutions International, an end-to-end e-commerce warehouses and logistics services provider in Asia Pacific, in July 2015.

Nine months after the acquisition, Alibaba took a $1-billion control stake in Singapore-based e-commerce platform Lazada, underlining its determination to be a significant player in the Southeast Asia.

Alibaba’s entry makes the competition in e-commerce business fiercer especially for  existing e-commerce service providers like Ninja Van, aCommerce and the logistic giant DHL.

Southeast Asia’s appetite for online shopping has increased continuously in line with a smartphone penetration and is forecasted to surge from 175 million units in 2015 to 230 million units this year.

According to eMarketer’s report, e-commerce revenues in six largest markets in Southeast Asia would reach $14 billion in 2016, around 40 per cent up from $10.5 billion in 2015.

The post Alibaba in talks to form logistics hub to strenghten its e-commerce biz in SEA appeared first on DealStreetAsia.

DEALSTREETASIA Pte. Ltd. is a news and intelligence platform providing reports on investments, mergers, acquisitions, private equity, venture capital, investment banking and the business of startups across the Asian region.

DEALSTREETASIA Pte. Ltd. is a news and intelligence platform providing reports on investments, mergers, acquisitions, private equity, venture capital, investment banking and the business of startups across the Asian region.

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Ecommerce

Pakorn Peetathawatchai, President, The Stock Exchange of Thailand (SET)

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Pakorn Peetathawatchai, President, The Stock Exchange of Thailand (SET)

What measures has SET taken to support listed companies’ compliance with ESG standards?
PAKORN PEETATHAWATCHAI:

PAKORN: When we first began promoting ESG-compliant investments, we were met with little interest. We attributed this to a lack of clear data to showcase the economic benefits of ESG investment, and perhaps limited clarity as to what constitutes a sustainable or ESG-compliant investment. The launch of the THSI list and, subsequently, the SETTHSI Index, was designed to address this. Our most recent data, comparing returns for the SETTHSI Index with the broader SET and SET100 indices from April 2020 to April 2021, underscores the economic benefits of these investments: the group compliant with ESG standards outperformed the other two indices on every data point. 

As of May 2021 Thailand was home to CG and ESG assets under management totalling BT54.8bn ($1.7bn) across 50 funds – up from 23 funds in 2019. Meanwhile, of the BT187.1bn ($5.9bn) raised in green, social and sustainability bonds since 2018, BT136.4bn ($4.3bn) was raised in 2020 – 83% from the government and the remainder from development banks and private players. This rising demand, in a move to manage risk and generate returns, has been complemented by growing supply and promotion: supply from ESG-compliant businesses aiming for resiliency and sustainable growth, as well as promotion from regulators highlighting investment opportunities with good CG and SD practices. Indeed, the pandemic has been a catalyst in shifting the view of ESG compliance from a luxury to a requirement in the new normal.

In what ways can enhanced standard-setting and regulatory mechanisms overcome the remaining barriers to improved ESG performance?

PAKORN: A multi-stakeholder approach is crucial for enhanced ESG performance – not only in Thailand, but around much of the globe. This can also help to address the standout incumbent challenge: access to reliable, wide-ranging ESG data. For example, the 2020 update to the 56-1 One Report established clear ESG standards and triggered online and offline capacity-building programmes to support listed firms’ compliance. SET is developing an ESG data platform with a structured template to promote the availability of comparable data, maximise value added from corporate sustainability disclosures, and foster collaboration between the business value chain and stakeholders. This is expected to support Thai companies along their ESG journey in an economically sustainable way, result in a greater number of sustainability-focused products and services, drive sustainable investing in the Thai investment community and ultimately “make the capital market work for everyone”, as outlined in the SET’s vision.
 

 

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Asean

China Sustains Huge Ecommerce Development Investment Flows into ASEAN

What Asia Investment Research showed us that there were China outbound investments into several ASEAN markets, led by Singapore, and followed by Indonesia, Malaysia, Thailand, and the Philippines. Collectively, these markets saw circa 30 investments n Q3, or about 15 percent of total Chinese outbound volume. 

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ASEAN Inbound Investments from China show strong trends in developing digital trade infrastructure.

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