Economic deterioration of emerging markets is causing alarm among Korean enterprises. With the financial markets in emerging economies in chaos, there is growing concern for those companies that have already made investments or have been exporting to those markets, since they can be hit by rapid decrease in local spending. Domestic exporters have invested heavily in the region in an attempt to lower their dependency on the US and Chinese markets. Their direct investment in India, Indonesia and Brazil for eight and half years from 2005 to June 2013 amounts to 12.8 trillion won.
In particular, the Hyundai Motor Company is in trouble since India and Brazil are two major markets in the volatile region. It has a plant in India with 600,000 units of annual production capacity, which makes it the second largest among overseas manufacturing bases. Last year, it completed a factory in Brazil that can produce 150,000 units a year in order to enter the South American market.
In India, Hyundai Motors sold 220,000 units in January-July 2013, 5 percent yearon-year drop. That is still an increase in sales, given that the country’s total auto sales in the same period fell 10% to 1,450,000 units compared with last year. But there is possibility of production cuts in the event that demand is further easing.
This year, the company has seen an increase in sales: Russia with a year-on-year increase of 2.1%, Brazil with 128.3%, and China with 30.4%. And yet, Hyundai is nervous about whether an economic crisis will be expanded to other emerging markets.
Hyundai Motors is less worried about its plant in Brazil, but feeling a sense of crisis. Hyundai’s model named HB20, which is specifically designed for the Brazilian market and introduced at the end of 2012 after opening a new plant in the country, has been so popular that more than 70,000 units were sold until June2013. Nevertheless, the company is still concerned that its auto sales might lose momentum.
Meanwhile, it is difficult for domestic steel makers to export their products to faraway countries, such as Brazil and India. Therefore, steel exporters are experiencing poor sales performance in those nations. The industry is keeping a close watch on the situation in emerging economies because economic slowdown can affect their plan to build production facilities in Brazil and India.
Since 2005, POSCO, the world’s fifthbiggest steelmaker, has been proceeding with a steel mill project in Odisha, India with US$12 billion in investments. But the company has yet to set the start date of the offshore merchant account. In addition, the Korean steelmaker announced in July that it decided to pull out of its second steel mill development in Karnataka. Even though local residents’ opposition was the main reason behind POSCO’s decision, the choice can be interpreted in a way that faltering economy in India is a hindrance to its steel mill project. In other words, the company isin disadvantageous situation because a strong dollar will lead to the increase in raw material prices in the event of a financial crisis in emerging markets. Recently, the company’s direct investments in foreign markets jumped 40%.
The domestic electronics industry also began to keep a close eye on the situation. Samsung Electronics is running seven factories that manufacture TVs, mobile phones and home appliances in Brazil, Mexico, Egypt, and India although the company is exporting massive volumes of its products to those countries. A spokesperson for Samsung Electronics said, “We think that fluctuations in currency can have a negative effect on our export performance. So, we are closely monitoring the situation,” adding, “We anticipate that the rise in raw material prices will eventually happen.”
LG Electronics is in trouble as well. Since 2009, the company has concentrated on the expansion of its brand shops in rapidly growing and volatile economies of some Asian and Latin American countries. LG has been heavily involved in those markets due to the financial crisis in the US and the EU.
For mobile phone makers, the smartphones market in India, one of the world’s major markets together with China and the US, is of concern. According to the latest research from Strategy Analytics (SA), Samsung’s market share in India was 42%, ranking top in the first quarter of this year. Until last year, its annual growth rate for the Indian mobile phone market was 163%, surpassing that of markets in China (86%), Japan (24%), and the US (19%). But the market research firm says that in case of contraction in local demand, it is difficult to expect rapid growth.
Construction companies, chemical suppliers, and shipping companies in Korea, for which emerging markets are of little importance, are also keeping a close watch over the situation while anxious about the global economic contraction arising from those countries’ currency crisis.
However, the construction sector does not think that they are highly vulnerable to exchange rate fluctuations since they are mostly paid in dollars. An industry source remarked, “We are not heavily affected by exchange rate volatility in that we mostly purchase materials in neighboring countries in dollar. But we think that shrinking economy may cause a slight decrease in demand.”The chemical industry is not feeling the economic pain, either. Exports to certain Asian and Latin American countries are miniscule amounts. Besides, locally made products are consumed by local people.
The shipping sector, like the chemical industry, is not directly hit by economic woes of rapidly growing and volatile economies. Nonetheless, shipping companies consider the possibility of some reduction in commercial traffic caused by economic slowdown. An official in Hyundai Merchant Marine (HMM) pointed out, “The emerging markets account for merely 10% of the total markets. But there is possibility of reduced commercial traffic and a decrease in ocean freight rates. So, we will wait and see what happens next, and prepare for measures if necessary.”
The Korean securities industry also believes that the impact of speculation about emerging economies on the shipping industry is minimal owing to increasing freight rates, as well as expectations that the condition in the shipbuilding industry will improve thanks to economic recovery of the Euro zone. Analyst Lee Kang-rok from Kyobo Securities said, “We are temporarily witnessing the stock price adjustment process for the shipping industry caused by rumors about economic crisis in volatile markets in Southeast Asia. But Korean companies are expected to win more contracts in September when the vacation for European ship-owners is over.”
The situation in some Asian and Latin American countries is affecting our exports at the moment. According to Korea’s export performance from January to July 2013 by the Ministry of Trade, Industry and Energy (MOTIE), the growth of Korean exports to India fell 7.1%from a year ago. Korea also saw a year-on-year decrease of 15.7% and 15.1%in exports to Indonesia and Brazil respectively. Given that Korean exports grew 0.5%so far this year, exporters find themselves floundering in those markets for seven months.
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2013年9月2日星期一
Somalia nationals jailed for firing
Three Somalia nationals were sentenced to 10 years' jail each, while four others to eight years imprisonment by the High Court here today after they pleaded guilty to firing at Malaysian soldiers in the Gulf of Aden two years ago.Judge Datuk Mohd Azman Husin handed down the 10 year-jail on Ahmed Othman Jamal, 30, Abdil Eid Hasan, 22, and Abdi Hakim Mohd Abdi, 22.
The four Somalis who were sentenced to eight years' jail were underage individuals. He ordered all of them to serve the jail sentence from the date of their arrest on Jan 20, 2011. The charge against them was read in English and translated into Somali.
When handing down the decision, Mohd Azman said the court took into account their guilty plea, background, threat to the world community and other factors, and found the jail sentence meted on all the accused, including the juveniles, was apt.
All the accused were seen smiling after Mohd Azman handed down the sentence.The Somalis were initially charged under Section 3 of the Firearms (Increased Penalties) Act 1971 with discharging firearms with intent to cause death or hurt on the Malaysian soldiers during a robbery onboard Bunga Laurel vessel.
The charge provides for the death sentence upon conviction. However, the charge was amended today and all of them, including a few others who are still at large, were charged with discharging firearms at the Malaysian soldiers to avoid them from being lawfully arrested by the Malaysian Armed Forces (ATM).
The offence was committed on board the Bunga Laurel vessel at 250 nautical miles of Oman between 8.10 and 10pm on Jan 20, 2011. The charge, under Section of the Arms Act 1960, read together with Section 34 of the third party merchant account, which carries a life imprisonment or for a term not exceeding 14 years.
Today, the case was fixed for hearing, but the prosecution, headed by Deputy Public Prosecutor Mohamad Abazafree Mohd Abbas amended the charge against all the accused after discussing the matter with the defence counsel.Meanwhile, in mitigation, lawyer Imran Hadzalie Abdul Hamid, representing Ahmed Othman, Abdi Hakim and an underage accused, said his clients had extended their full cooperation during investigation of the case.
Lawyer Edmund Bon, representing another of the underage individual, said the court should consider the accused guilty plea and that none of the Malaysian soldiers were injured. However, Mohamad Abazafree asked for a heavy sentence as the offence was a serious one.
"Based on the facts of the case, all the accused were arrested while attempting to rob the Bunga Laurel vessel in the Gulf of Aden. They were not normal robbers, but a group of pirates who was in the gulf, an area known for pirate attacks on merchant vessels.
"They also used firearms to attack ATM and attempted to capture the crew on board," he added.Citing the 'Reports on Acts of Piracy and Armed Robbery against Ships -Annual Report 2011', Mohamad Abazafree said there were 286 incidents reported.He said Malaysia was not the only country to detain and brought back the pirates to be tried as the Somali pirates had been prosecuted in several other countries, including South Korea, Holland, United States of America and Kenya.
According to the facts of the case, all the accused were in a small boat, which then approached Bunga Laurel with an intention to rob the vessel, but their action was discovered by an officer-in-charge who saw, through a binoculars, one of the pirates getting into the vessel.
The assault on the pirates was carried out from the Royal Malaysian Navy (RMN) Bunga Mas 5 vessel and the team won over possession of Bunga Laurel, within two hours after it was hijacked by the Somali pirates.Following a search, the RMN found several firearms, including two AK47 rifles, a pistol, more than 150 rounds of ammunition, hammer and a ladder used to climb into Bunga Laurel.
The prosecution team also comprised deputy public prosecutors Yusaini Amer Abdul Karim and Lailawati Ali, while other lawyers representing the accused were Lee Teong Hui, Saha Devan A.Arunasalam and Ameenudin Ibrahim.
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Sulaiman al Harthy, group general manager - Islamic banking, said, “Meethaq is proud to launch the first Sharia based credit card in Oman as part of its focus to take the lead in offering a suite of banking products which combine traditional values with modernity and ensure the choice of staying true to one’s values. Meethaq has adopted the best practices in Islamic banking and finance worldwide to combine a robust model which protects customers and complements the Islamic banking industry. The Meethaq strategy is to attract customers through innovative Sharia based products and services.”
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The four Somalis who were sentenced to eight years' jail were underage individuals. He ordered all of them to serve the jail sentence from the date of their arrest on Jan 20, 2011. The charge against them was read in English and translated into Somali.
When handing down the decision, Mohd Azman said the court took into account their guilty plea, background, threat to the world community and other factors, and found the jail sentence meted on all the accused, including the juveniles, was apt.
All the accused were seen smiling after Mohd Azman handed down the sentence.The Somalis were initially charged under Section 3 of the Firearms (Increased Penalties) Act 1971 with discharging firearms with intent to cause death or hurt on the Malaysian soldiers during a robbery onboard Bunga Laurel vessel.
The charge provides for the death sentence upon conviction. However, the charge was amended today and all of them, including a few others who are still at large, were charged with discharging firearms at the Malaysian soldiers to avoid them from being lawfully arrested by the Malaysian Armed Forces (ATM).
The offence was committed on board the Bunga Laurel vessel at 250 nautical miles of Oman between 8.10 and 10pm on Jan 20, 2011. The charge, under Section of the Arms Act 1960, read together with Section 34 of the third party merchant account, which carries a life imprisonment or for a term not exceeding 14 years.
Today, the case was fixed for hearing, but the prosecution, headed by Deputy Public Prosecutor Mohamad Abazafree Mohd Abbas amended the charge against all the accused after discussing the matter with the defence counsel.Meanwhile, in mitigation, lawyer Imran Hadzalie Abdul Hamid, representing Ahmed Othman, Abdi Hakim and an underage accused, said his clients had extended their full cooperation during investigation of the case.
Lawyer Edmund Bon, representing another of the underage individual, said the court should consider the accused guilty plea and that none of the Malaysian soldiers were injured. However, Mohamad Abazafree asked for a heavy sentence as the offence was a serious one.
"Based on the facts of the case, all the accused were arrested while attempting to rob the Bunga Laurel vessel in the Gulf of Aden. They were not normal robbers, but a group of pirates who was in the gulf, an area known for pirate attacks on merchant vessels.
"They also used firearms to attack ATM and attempted to capture the crew on board," he added.Citing the 'Reports on Acts of Piracy and Armed Robbery against Ships -Annual Report 2011', Mohamad Abazafree said there were 286 incidents reported.He said Malaysia was not the only country to detain and brought back the pirates to be tried as the Somali pirates had been prosecuted in several other countries, including South Korea, Holland, United States of America and Kenya.
According to the facts of the case, all the accused were in a small boat, which then approached Bunga Laurel with an intention to rob the vessel, but their action was discovered by an officer-in-charge who saw, through a binoculars, one of the pirates getting into the vessel.
The assault on the pirates was carried out from the Royal Malaysian Navy (RMN) Bunga Mas 5 vessel and the team won over possession of Bunga Laurel, within two hours after it was hijacked by the Somali pirates.Following a search, the RMN found several firearms, including two AK47 rifles, a pistol, more than 150 rounds of ammunition, hammer and a ladder used to climb into Bunga Laurel.
The prosecution team also comprised deputy public prosecutors Yusaini Amer Abdul Karim and Lailawati Ali, while other lawyers representing the accused were Lee Teong Hui, Saha Devan A.Arunasalam and Ameenudin Ibrahim.
A fixed Ujrah fee is levied by the bank in exchange of the services, features, benefits and privileges enjoyed by cardholders. The credit limit granted to the cardholder is based on Qardh al Hasan. The Meethaq MasterCard credit card allows access to almost anything – shopping, travel and bill payments without the need for cash or cheques.
The card is accepted globally at over 32 million merchant establishments and ATMs. Customers receive SMS alerts for every card usage and cash withdrawal regardless of any transaction amount. The chip and PIN card ensures secure transactions, especially online transactions. MasterCard Secure code allows cardholders to use a personal password/secure code which provides added security for online transactions.
Sulaiman al Harthy, group general manager - Islamic banking, said, “Meethaq is proud to launch the first Sharia based credit card in Oman as part of its focus to take the lead in offering a suite of banking products which combine traditional values with modernity and ensure the choice of staying true to one’s values. Meethaq has adopted the best practices in Islamic banking and finance worldwide to combine a robust model which protects customers and complements the Islamic banking industry. The Meethaq strategy is to attract customers through innovative Sharia based products and services.”
Read the full products at http://austpay.com/!
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