Message from Secretary General_August 2020
Posted on 04 September 2020
Resurgence of COVID 19
Countries such as Australia, Vietnam, New Zealand, are battling a resurgence of COVID 19, as they attempt to re-start their economies. What about ASEAN? Read on …
Q2 2020 Macroeconomic Announcements
Over the last month, the major ASEAN economies have announced their Q2 2020 macroeconomics results. As expected, Q2 GDP figures are down for all countries (Table 1) as compared to Q1 2020 (Table 2). However, there are a few interesting areas to note.
First, Vietnam is the only country in ASEAN-6 that registered positive economic growth in Q2 2020. Vietnam’s COVID19 cases were well contained at a very early stages, allowing an expansion in economy. Similarly, both the Construction and Manufacturing sectors have also expanded during this period, although slower than during Q1 2020 (Table 2). However, the recent outbreak in the DaNang area has put the country in high alert and may affect its economic performance in Q3.
Second, Thailand is the next country that has managed the COVID19 situation very well. Thailand’s GDP contracted 12.2% in Q2 2020, due to its reliance on the exports and tourism. However, the Construction Sector has expanded 7.4%, given the accelerated investments in public construction projects (infrastructure and agricultural).
Third, ASEAN’s largest economy, Indonesia is going through a slight contraction in Q2 2020 GDP. Construction growth has slowed
down due to the need to channel funds towards combating the COVID19 outbreak. Similarly, the Manufacturing sector is also experiencing a contraction.
The other ASEAN-6 countries are seeing double digit contraction in Q2 GDP. The Construction Sectors in Malaysia, Philippines and Singapore all contracted by more than 30%, with Singapore seeing close to a 60% contraction in Construction activities. Manufacturing activities also contracted by double digit percentage, with the exception of Singapore.
Table 1: GDP, Sector Growth Q2 2020
Table 2: GDP, Sector Growth Q1 2020
For more detail information on the economic performance by ASEAN-6 country, turn to the 2nd last article – Special Feature: Latest Asean-6 Q2 2020 Macroeconomics Results Amid COVID 19 Pandemic (with Infographics).
Also take a look at the looking overcapacity issue in the Headline news of this newsletter.
2020 SEAISI e-Events
- 2020 e-Seminar on Strengthening Transformation on Digitalization through Reliability and Productivity Improvement
- The online event will be held from 2 – 6 pm Kuala Lumpur (“KL”) time on 15 September 2020. Registration is open and interested parties can register at our website.
- 2020 SEAISI e-Conference (Part II): Technology & Operations Development
- Together with Part I, held in June 2020, this Part II online event is also a much sought-after event that focuses on Technology and Operations. The online event will be held from 3 – 6 pm KL time, every day over 4 days on 22-23 & 29-30 September 2020. Registration will open soon. So, stay tuned for registration details via email circulars.
- 2020 e-Training on Enhancing Equipment Maintenance and Operation System
- The online event will be held on 15 Oct 2020. More details will be coming up soon.
- 2020 e-Talk
- This is a newly created event that aims to examine the markets using the SEAISI Heatmaps. Delegates who attended the 2020 SEAISI e-Conference Part I, would have seen a heatmap on ASEAN-6 global steel exports.
- Targeted at Export Managers, Traders, Marketing Managers as well as C-Suite Level executives, such heatmaps will allow delegates to understand where are the markets for certain steel products, in particular ASEAN-6 and China markets. The China market is particularly important because it is on track to become the first market that recovers from COVID19.
- This online event will be held on at 2-4 pm on 6 October 2020.
Keep Your Distance. Stay Healthy. Stay Safe.
YEOH WEE JINSource : SEAISI