The Chinese year of the Ox doesn’t seem to be bringing in a bullish year for Asian economies. As a precursor to the drastic slowdown in export dependant Asia, Singapore released growth figures for its fourth quarter in 2008. The service based economy, contracted for a third consecutive quarter leading Singapore deeper into recession, recording its slowest growth in seven years. Singapore is Asia’s third economy to fall into recession after Japan and Hong Kong.

Singapore’s economy grew by 1.5 percent in 2008, less than a fifth of its 7.7 percent growth in 2007 and slower than the 2.5 percent the government had predicted two months ago.

“If we are correct, 2009 will mark the most severe recession in Singapore’s history,” Citigroup Inc. analyst Kit Wei Zheng, who expects the economy to contract 2.8 percent this year told the AP. Read the rest of this entry »

In order to buffer themselves against the downturn and subsequent slump in exports, emerging Asia’s governments are taking some serious measures.

While the Indian government announced a second stimulus package within a month, lowering policy interest rates, easing overseas borrowing norms and increasing the foreign investment limit in corporate bonds to US$15 billion, other South East Asian nations also implemented changes.

Singapore, one of Asia’s worst performing economies will announce changes to boost the economy during their annual budget session, which has been pre-poned to January instead of February this year; China, which is feared to perform its worst in two decades is expected to announce several more measures to boost their economy soon too. South Korean and Malaysian leaders have also expressed interest in taking steps to stimulate the economy this month. Read the rest of this entry »

In an interesting discovery while digging into Asia’s varied architectural styles, i found amazing similarities between Kerala’s (South Indian State) traditional Nalukettu houses and traditional Japanese temples. Its a strange fact, endorsed by several architects in the region who have compared the layout, usage of space and shape of the houses and temples, but it is believed that the Nalukettu houses are influenced by the Japanese, history of how they were influenced however remains ambiguous.

The Nalukettu houses is quadrangular building constructed within a large compound usually the center of family life. Originally the abode of the wealthy Brahmin and Nair families, this style of architecture has today become a status symbol among the well to do in Kerala. The four wings surrounding the quadrangle courtyard follow the tenants of Vastu Shastra - specifically placed rooms to house a large joint family and their guests. Created using wood and tiles, the interior of the house is decorated with antiques made from teak, sandalwood, mahogany. However it is the traditional exterior of carved and slotted wood and has a close resemblance to East Asian gabled and thatched structures.

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Not surprising, three emerging Asian countries out of the top five were voted as the most likely to pay bribes to win business in other countries. In a survey conducted by anti-corruption organization Transparency International, Russia was voted the most likely to pay bribes, followed by China and India. Conversely, wealthier, more developed countries Belgium, Canada and the Netherlands were voted the least likely to pay bribes to win business in other countries.

In the previous Bribe Payers Index (BPI), published in 2006, India was named as the worst, followed by China and Russia, while Switzerland, Sweden and Australia got the highest scores.

Looking at the larger picture, experts who specialize in governance relate a country’s level of corruption to long-term economic growth and investment. In Asia, this means countries  such as Singapore and Hong Kong which have made concerted efforts to stamp out corruption have witnessed higher growth and FDI inflows as compared to country’s such as Myanmar which was ranked amongst the world’s most corrupt countries by TI. Of the emerging countries, Malaysia ranks high, followed by Thailand, Vietnam, Indonesia and the Philippines in that order.

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While lower oil prices signal a short term gain for consumers and businesses, it also means lower spending on renewable energy by businesses and a drop in income for countries that are increasing their share of renewable energy. Crude prices which soared this summer, have sizzled down to US$40 a barrel and are expected to tumble further.  Sinking oil prices also reduce the political will to push ahead with costly renewable energy projects and reduce the urgency to prioritize energy policy debates and incentives on topics ranging from auto efficiency to offshore drilling. Before renewable energy takes a backseat, and the world clamors after black gold again, 2point6billion takes a look at the various forms of renewable energy.

Renewable energy has a three fold role in emerging Asia - it helps nations develop while protecting the economy, it brings electricity to rural areas where natural resources used for renewable energy are abundant and fossil fuels can be difficult and expensive to procure and it provides a livelihood by creating rural businesses.

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China’s trade with India is growing faster than its trade with any other country. By 2015, both nations are expected to increase bilateral trade to become each others largest trading partners. China is already India’s largest trading partner, while India is one of China’s largest trading partners following Japan and the U.S.

China-India trade hit a record US$29 billion during the first half of 2008, growing at 69 percent year on year.  Sino-India trade clocked US$38.6 billion in 2007, trade sources told the Financial Express.

While India is known to import more from China than she exports to the middle kingdom, trade experts believe bilateral trade is on track. Sino-India trade is expected to reach US$60 billion by 2010, a target set by both Prime Ministers in 2005.

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Here’s wishing all 2point6billion readers a warm, Merry Christmas!! Enjoy the Asian version of popular Christmas songs we all know and love to sing!Click on the pictures to view the songs in their Asian avataar.

American auto sales plunged 37 percent in November, the worst in 26 years. European new-passenger-car sales slumped 26 percent in November and now its Asia’s turn. While auto sales have crashed in most Asian countries Japan has taken the hardest hit.

Optimistic forecasts say Japan’s car sales next year could fall to the lowest in 31 years. Sales of trucks, buses, cars and mini cars, may fall 4.9 percent to 4.86 million vehicles in 2009 from estimated 5.11 million in 2008, the Japan Automobile Manufacturers Association told Bloomberg. The tally would be the lowest since 1978 when automakers sold 4.68 million units.

Toyota, Japan’s top automaker that makes the Camry sedan and Prius hybrid, has already slashed its profit forecast for the fiscal year through March to US$5.9 billion, or about a third of its previous year’s earnings. Expectations are rife another downward revision is coming. Honda Japan’s second-largest automaker, cut its annual profit outlook 62 percent.

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Come the holiday season and the Asian tourism industry is sure to be thrice hit, once with reduced international travelers dampened by the financial crisis, twice by political instability in prime tourist locations such as Thailand and India and thrice by weakening local currencies. However Asian hospitality personnel are not too worried, while they know tourism arrivals will soften they also seem assured that Asian’s will travel, if not internationally at least regionally.

Additionally, budget hotels and airlines, such as Tiger Airways, AirAsia Bhd. and Jetstar buoyed by value for money offers are expecting to see increased profits during he holiday season. Top Asian tourist destinations affected by unrest India and Thailand, both have announced lowered air fares and room rates to lure more tourists during this peak season.

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Asian governments have used every trick in the book to push consumers to buy more goods, to keep the economy healthy and kicking. With the industry faltering and exports slowing to seven year lows, all Asian governments have taken some precautionary measures - reduced interest rates and pumped money into the economy. Nonetheless, many have gone a step further in promoting consumer spending. Recession hit Japan is distributing cash payments to households, China is giving tax breaks on purchases of cellphones and washing machines and India which has already reduced fuel prices is handing out raises to four million public servants.

However, these governments have failed to overlook a problem culturally intrinsic to Asia. Asians are the world’s most-dedicated savers. Known to diligently pay back credit card debt at the end of every month, and only recently wager on large loans, Asian’s are savers. Their thriftiness having being reinforced by the Asian financial crisis, its getting increasingly difficult for governments to persuade consumers to loosen their purse strings when times are weary. As a result, Asian governments are themselves spending more to rejuvenate industry and jump start the economy.

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