HQTS Latest Supply Chain & Trade Updates Across Asia – Report #14

With a wide range of service locations across Asia, HQTS has collected important supply chain and trade-related information to help you fully understand the current situation affecting your business.

Read on for our latest updates from around the continent.

China

Mainland China is maintaining low numbers of coronavirus cases and Chinese officials are relaxing rules. Beijing has removed the requirement for people to wear masks outdoors and the city has returned back to normal after multiple lockdowns.

Bangladesh

Restriction policies on traveling, logistics and business operations:

The number of confirmed Covid-19 cases in Bangladesh continues to rise and the country is still struggling to contain the virus. However, the recovery rate is increasing across the country.

Financial and trading policies:

Bangladesh’s economy is showing early signs of recovery with GDP expected to grow at 6.8% in the fiscal year 2021 and it is expected to recover faster than many other countries.

India

Restriction policies on traveling, logistics and business operations:

India is currently on day 174 of lockdown and the number of cases is still rising each day. However, the country has consistently maintained a low and declining case fatality rate (1.64%).

Financial and trading policies:

Global ratings have estimated that India’s economy will shrink by 9% in the fiscal year ending in March 2021 as a 4% forecast In June has been heavily impacted by the Covid-19 pandemic.

Vietnam

Restriction policies on traveling, logistics and business operations:

Vietnam is now seeing an increasing amount of coronavirus infections, and more than half the total of confirmed cases have been linked to the latest outbreak from last month.

The success of Vietnam’s contact-tracing app has sparked concerns about the privacy of users. The app is designed to globally notify the public of any potential exposure.

Financial and trading policies:

The Vietnamese government is set to lower this year’s economic growth target to 2% to 2.5% after the COVID-19 pandemic led to a global slowdown. The new target comes as gross domestic product for the export-led Vietnamese economy grew by just 0.36% in the second quarter, down from 3.8% in the first quarter.

Malaysia

Restriction policies on traveling, logistics and business operations:

Malaysia is seeing a rise in cases again, after reporting another 182. It’s the sharpest spike in more than three months.

The country has closed its border with Thailand in an effort to control the spread, although transport and trade with the correct paperwork will be allowed to continue.

Financial and trading policies:

Malaysia’s largest bank lost 51.5% in profits in the second quarter, hurt by the pandemic and movement restrictions. Revenue fell 9.7% to 11.8bn ringgits, but banks are hopeful that the worst of the economic impact has passed.

The government is planning to implement various initiatives to improve people’s well-being, support businesses and revitalise the economy.

The Philippines

Restriction policies on traveling, logistics and business operations:

The Philippines has recorded a sudden surge in deaths caused by Covid-19 and number continues to rise. However, the government has decided to cut the social distancing minimum to 30cms on public transport, which experts are saying is dangerous and premature.

Financial and trading policies:

The new 30cm rule is a bid to help the economy, as it has contracted by 5.5% this year, the worst shrinkage in 35 years. The Philippine economy is forecast to contract by 7.3% in 2020, before growth of 6.5% in 2021.

The Asian Development Bank has so far provided the Philippines with around $2.3bn in loans and grants to help support the government’s urgent Covid-19 response including, social protection and livelihood support.

Singapore

Restriction policies on traveling, logistics and business operations:

Singapore began handing out pocket-sized coronavirus contact-tracing devices to residents this week, part of a planned nationwide rollout to help the city-state safely reopen its economy.

Restaurants and malls are busy again and pre-pandemic life is slowly returning for the public.

Financial and trading policies:

Singapore’s central bank has said the country’s economy could shrink by 6% in 2020 and employment has fallen by 103,500 in the second quarter of this year.

Economists are predicting the Singapore economy to contract by 6% this year, a slight downgrade from the earlier forecasted 5.8% decline.

Indonesia

Restriction policies on traveling, logistics and business operations:

Indonesia is still struggling to manage the pandemic and local authorities in Jakarta have announced a return to quarantine measures after the number of cases continued a two-month rise.

Schools have been closed since March and for another two weeks businesses, malls and places of worship can only operate at limited capacity. Dining inside restaurants and cafes is still not allowed.

Financial and trading policies:

The second lockdown is going to be very hard for economic activities as micro, small and medium businesses are still trying to recover after the first lockdown was eased. Jakarta’s economy contracted by 8.22% in the April-June period.

However, Indonesia’s digital economy potential is valued at $133bn and they must continue to encourage an industrial revolution.

Thailand

Restriction policies on traveling, logistics and business operations:

Thailand is still maintaining low numbers and last week the country tested nearly 600 people who were potentially exposed to its first domestic coronavirus case in more than three months. So far, no new infections have been found.

Financial and trading policies:

Thailand’s economy is set to shrink by 8% this year, compared to 6.5% in a previous assessment.

The Thai government is offering to pay some of people’s holidays as part of a bid to kick-start the country’s tourism industry and recover from the economic slump. In normal circumstances, 40 million tourists would’ve been expected this year.

Pakistan

Restriction policies on traveling, logistics, and business operations:

Pakistan is continuing to maintain low numbers of coronavirus cases and over 300,000 schools, colleges and universities across the country are due to open after six months of closures. All higher education institutions will reopen from this week and younger grades will go back at the end of the month. Each classroom has to have 20 students or less and masks are mandatory for all teachers and students.

Financial and trading policies

Pakistan’s economy is gaining momentum as Covid-19 cases continue to drop. Evidence of this can be seen from growing fuel sales and demand for home appliances to cars. Cement sales rose by 38%, fuel sales have risen to a record high as people are returning to work and manufacturing output has improved for a second consecutive month.

About HQTS

With over 25 years of experience in quality assurance, HQTS is ready to help your business build meaningful and robust supplier relationships across Asia. Our many service locations are prepared to be your one-stop-shop for your inspection needs, including factory audits, production monitoring, pre-shipment and sorting inspections, and everything in between. This will allow you to know exactly what’s happening on the ground and keep close tabs on your suppliers. Contact us today to find out how we can help you navigate current quality control challenges.



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