Asia Business Weekly: Power Plays

Good morning! Welcome to this week's roundup of Asian business and innovation news. From Thailand's bold moves to attract foreign investment to significant shifts in tech leadership, we're covering the developments shaping Asia's economic landscape. But first, have a look at the expects to regain its seasonal snow cap next week, ending the longest snowless period recorded in 130 years, think about it.

MARKETS
YTD Update*

BUSINESS
What’s baking

🏗️ Thailand Introduces 99-Year Land Lease Proposal

Thailand has proposed extending land lease terms to 99 years for foreign investors. Deputy Prime Minister and Finance Minister Prit Chuthavari announced this initiative during the CEO Econmas Awards 2024, marking a significant shift in foreign investment policy.

This policy change could substantially boost Thailand's appeal to foreign investors, enabling longer-term planning and investment in real estate and infrastructure.

✈️ Thailand Allocates $2.86 Billion for Airport Expansion

Thailand plans to invest 97 billion baht to double passenger capacity across six airports by 2032, preparing for anticipated tourism growth.

This expansion will strengthen Thailand's position as a major Southeast Asian travel hub, potentially boosting tourism and related industries.

🏦 Singapore Banks Expected to Report Strong Q3 Earnings

Analysts anticipate robust performance from Singapore's banks' wealth management segment in Q3. DBS Bank may consider increasing dividends, signaling confidence in its capital position.

Strong earnings could enhance investor confidence in Singapore's banking sector and create favorable market conditions.

🚗 BYD Reports 24% Revenue Growth, Surpassing Tesla

BYD's revenue reached 201.1 billion yuan in Q3, marking a 24% increase year-over-year and exceeding Tesla's revenue for the first time. Their diversified portfolio, particularly hybrid vehicles, shows resilience amid declining EV demand.

This growth strengthens BYD's market position and could intensify competition in the global EV sector.

🏆 Nvidia Claims World's Most Valuable Company Crown

Nvidia has overtaken Apple as the world's most valuable company, reaching a market value of $3.53 trillion. The AI chip giant's stock has surged nearly 190% this year, driven by the AI boom and recent positive signals from OpenAI's $6.6 billion funding round.

This milestone reflects the shifting tech landscape from consumer devices to AI infrastructure. While Nvidia projects 82% revenue growth, Apple faces challenges with iPhone sales, particularly in China. The semiconductor leader's dominance in AI computing continues to attract investors, though questions remain about the sustainability of this growth.

💱 Malaysian Ringgit Faces Significant Monthly Decline

The Malaysian ringgit has depreciated over 6% against the US dollar in October, marking its largest monthly drop since August 2015.

This decline may increase inflationary pressures and impact import costs, affecting business operations and investment decisions.

🔧 Samsung Faces US$122 Billion Market Value Loss

Samsung Electronics has lost US$122 billion in market value, primarily due to semiconductor division challenges, leading to an unusual investor apology.

This decline may prompt strategic reassessment and impact long-term growth prospects in the semiconductor sector.

📈 SGX Introduces Hong Kong SDRs

Singapore Exchange launches Hong Kong depository receipts for major companies including Alibaba, Tencent, BYD, HSBC, and Bank of China.

This initiative enhances portfolio diversification options and could boost SGX's position as an Asian investment hub.

💰 UK High-Net-Worth Individuals Eye Singapore

Wealthy UK residents are considering relocation to Singapore amid potential tax changes under a new Labour government.

This trend could boost Singapore's economy, particularly in real estate and luxury sectors.

📊 Nearly 60% of Singapore's Industries See Growth

Close to 60% of Singapore's industries recorded "above average" growth in Q3 2024, though 2025 prospects remain uncertain. US-China trade tensions have benefited ASEAN countries.

This growth demonstrates Singapore's economic resilience despite global challenges.

🏘️ Penang Property Appreciation Surges

Penang's property values, especially bungalows, increased 16% from 2019 to 2023, driven by industrial development and tourism.

This trend could attract further investment while raising concerns about housing affordability.

🎯 Stock Exchange of Thailand Prioritizes Market Resilience

The new SET president emphasizes attracting listings in competitive sectors like healthcare and automotive supply chain amid political uncertainty.

This strategy aims to buffer against political turmoil and maintain market stability.

🎤 Goodwill Entertainment's Catalist IPO

The karaoke operator aims to raise S$6.5 million through its IPO, pricing shares at S$0.20 each for expansion in F&B and Malaysia.

Success could attract more investor interest in regional entertainment ventures.

POLITICS
A Quick Recap

🤝 Thailand Initiates OECD Accession Process

Thailand has officially begun its formal application to join the OECD, aiming to achieve high-income nation status by 2037. This move follows Thailand's recent participation in the BRICS summit.

The OECD membership could help Thailand implement sustainable growth practices and attract foreign investment, though meeting stringent standards may require substantial reforms.

⚔️ North Korea Deploys 8,000 Troops Near Ukraine

U.S. officials report approximately 8,000 North Korean troops have moved to Russia's Kursk region bordering Ukraine, potentially for combat operations.

This deployment could escalate regional tensions and alter conflict dynamics, particularly affecting NATO-Russia relations.

🔐 Japan and EU Establish Historic Security Partnership

Japan and the European Union have signed their first security and defense agreement focusing on the Indo-Pacific region, enhancing cooperation in cybersecurity and defense equipment procurement.

This partnership signals a strategic shift in Indo-Pacific relations and could reshape regional security frameworks.

TECH
Activity is there

⚡ TSMC to Receive Advanced Chipmaking Machines

TSMC is set to receive its first shipment of next-generation chipmaking equipment from Dutch supplier ASML by year-end, following closely behind Intel's similar order.

This development positions TSMC to enhance its production capabilities and maintain its competitive edge in the semiconductor market.

🛟 U.S.-China Tensions Extend to Drone Supply Chains

American startup Skydio reports disruptions in its Chinese battery supply chain due to Beijing's sanctions, affecting drone supplies to Taiwan and Ukraine.

This situation highlights growing tech sector isolation amid international tensions and Western restrictions.

📱 Indonesia Prohibits Google Pixel and iPhone 16 Sales

Indonesia has banned Google Pixel smartphone sales following iPhone 16 restrictions, continuing its regulation of smartphone imports based on local manufacturing standards.

This decision impacts market dynamics for smartphone manufacturers and raises questions about trade relationships.

🧠 Sakana AI Plans 2025 Launch

Tokyo-based Sakana AI, backed by Nvidia, prepares to launch its first commercial product by 2025, focusing on proprietary AI technologies.

The launch could reshape Asia's AI competitive landscape and attract increased investment in the Japanese tech sector.

💡 Singapore Allocates S$440 Million for Deep-Tech

The government's investment scheme aims to support deep-tech startups, with Deputy PM Heng Swee Keat emphasizing the need for a robust innovation ecosystem.

This initiative could cultivate growth in Singapore's deep-tech sector and attract international investors.

📈 Xora Innovation Focuses on Revenue Growth

Temasek-backed Xora Innovation prioritizes commercial success for its Singapore-based deep tech startup portfolio, emphasizing strong unit economics and expansion potential.

This strategy could enhance Singapore's deep tech ecosystem viability and attract additional investment.

💫 Vingroup Launches $150 Million Fund

Vietnamese conglomerate Vingroup establishes VinVentures, a $150 million fund for startups in Vietnam, Singapore, Indonesia, and the Philippines, focusing on AI, semiconductors, and cloud computing.

This initiative could strengthen Southeast Asia's startup ecosystem and influence regional business dynamics.

RECS
Bali Real Estate Investment Reflections

How to 9x your investment in Bali real estate? Veteran resident Omri Ben-Canaan shares three decades of insights on the island's property market, cultural evolution, and business landscape. Essential viewing for anyone interested in Bali's investment opportunities.