India: The Indian Machine Tool Manufacturers’ Association’s (IMTMA) president P Ramadas said that the country’s machine tool industry is expected to grow around 20 per cent in 2017-18, and the metal forming industry is expected to grow at a compound annual growth rate of around 15 per cent in the next three years.
Washington, US: New-commercial airplane deliveries by all aircraft manufacturers is forecast to total US$139 billion in 2018, a rise of US$17 billion from 2017, and expected to grow to US$189 billion by 2022, according to the annual Current Aircraft Finance Market Outlook report by aircraft manufacturer Boeing.
Worldwide: Demand for electric vehicles (EV) is expected to displace two million barrels of oil daily by 2025, and as much as 10 million barrels daily by 2035, according to a report jointly issued by financial think tank Carbon Tracker and the Grantham Institute, which focusses on climate change and environment issues, both based in London, the UK.
China: Carmaker Ford Motor has announced its commitment to launch more than 50 vehicle models in China over the next eight years, including 15 powered by electricity. The statement comes as the company restructures its business and responds to a government push for cleaner air by making all new vehicles electric.
Asia Pacific: International law firm CMS released a report which found that Australia, Singapore and China are driving momentum and interest for infrastructure investment in the Asia-Pacific region.
The report ranked 40 jurisdictions in order of infrastructure investment attractiveness according to six key criteria, including economic status, sustainability and innovation, as well as ease of doing business.
Four of the top 20 spots for investment attractiveness were secured by Asia-Pacific countries in the report, with robust economic growth across the region, ambitious renewables plans, and the world’s largest infrastructure project—China’s Belt And Road—set to reshape the continent’s landscape over the next decade.
The Netherlands claimed top spot overall, despite a prolonged period with no government at all, after seeing the highest GDP growth since 2007, around 3.3 percent in 2017. The country’s success was in part down to its transparent and efficient procurement process, and its healthy multi-billion euro pipeline in road and water public-private-partnerships. Other countries in the top five included Canada, Germany, the UK and Australia.
Co-head of infrastructure and project finance in the UK and CMS partner, Kristy Duane, commented, “From China’s Belt and Road to the UK’s Brexit bump in the road, politics and policy remain central to shaping infrastructure investment flows globally.”
China’s Belt And Road initiative continues to deliver on the promised infrastructure boom in Asia. Given the longevity of this project, changes in the balance of infrastructure investment in the region are likely to be profound. Though ranked at 20th position in the Index, China is primed to become a global engine of investment, with close to a trillion dollars expected to flow through the initiative by its completion, whilst highly ranked countries such as Australia and Singapore continue to benefit from stable and prosperous economies.
Australia’s federal target of 33,000 GWh generated from renewable sources by 2020 has led to increased investment in solar and wind projects, and Singapore’s multi-billion-dollar development of Changi Airport’s Terminal 5 and the Tuas shipping megaport will solidify its position as a premier transport and trade hub globally. Further afield, opportunities in the likes of Malaysia and India are plenty— with renewable energy set to play a central role in future projects.
Adrian Wong, Partner at CMS Singapore said, “The Asia-Pacific region is home to some of the world’s fastest growing economies and most ambitious infrastructure projects, and the spread of four countries within the Index top 20 reflects an ever developing opportunity for investment. While key success factors like government stability and political certainty cannot be ignored, the potential impact of the Belt And Road Initiative alone promises to stimulate economic growth through the continent and far beyond.”
Indonesia: Car sales target of 1.1 million have been revised to 1.06 million, according to the Association of Indonesian Automotive Industries (Gaikindo).
According to the figures released by Gaikindo, for January to October 2017, a total of 898,218 cars were sold in Indonesia, the largest car market in Southeast Asia. This was a 2.5 percent year-on-year increase from the nation’s car sales figure in the same period in 2016. Association chairman Jongkie Sugiarto said the Indonesian economy has not shown significant acceleration in 2017 and therefore consumers’ purchasing power has not improved markedly.
Of note was that sales growth of more expensive car models was higher than sales growth of those vehicles that are more affordable. Fransiscus Soerjopranoto, executive general manager at Toyota Astra Motor, added that tighter policies surrounding car credit may have been a reason for the mild sales growth this year.
Due to rising non-performing loan ratios at financial institutions, they have become more cautious when disbursing credit to consumers, especially for cars that are priced below IDR 200 million (US$15,000). Mr Soerjopranoto added that the majority of car sales in Indonesia involve deals that are priced below IDR 200 million, which include the popular low cost green car models.