HIGHLIGHTS HIGHLIGHTS

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1 DECEMBER 2013 IN THIS ISSUE In the news Major economic indicators Daily exchange rates Fung Business Intelligence Centre 10/F LiFung Tower, 888 Cheung Sha Wan Road Kowloon, Hong Kong T: (852) F: (852) E: HIGHLIGHTS HIGHLIGHTS CAMBODIA» P.2 CAMBODIA» P.2 CAMBODIA» P.2 Approved Actions taken investment to enforce triples official in 1H13 import duties in the Customs ILOBetter Department Approved Factories investment Cambodia triples in returns 1H13 to public disclosure of assessment Monthly ILOBetter minimum Factories findings wage Cambodia for garment returns workers to public will disclosure increase from of Wage US$80 assessment hikes to US$95 expected findingsin 2014 Retailers Wage hikes moving expected towards in 2014 a living wage INDONESIA» P.3 INDONESIA» P.3 INDONESIA» P.3 Agreement Exports ofsigned apparel with and EU footwear to certify continued legality of to timbers register growth US$28 amid Agreement decline billion signed in in deals total with exports signed EU to with in certify JanuaryOctober Chinese legality companies of timbers Trade Minimum US$28 balance billion wages improves in deals will increase signed August with by an as Chinese average imports companies of capital 19% in goods 2014 slowed Infrastructure Trade balance projects improves announced in August to as boost imports competitiveness of capital goods slowed PHILIPPINES THE PHILIPPINES» P.4» P.5 PHILIPPINES Super typhoon» P.4 Haiyan crippled the economy in 4Q13 Manufacturing Exports grew output by 14.0% grows yoy by in 18.3% October yoy in August Daily Four Manufacturing minimum manufacturing wage output in sectors grows Metro prioritized by Manila 18.3% increases for yoy job August creation to 466 pesos Philippines Daily minimum set to wage apply in for Metro the EU Manila GSP+ increases schemeto 466 pesos THAILAND Philippines set» P.6 to apply for the EU GSP+ scheme THAILAND Garment» P.6 exports fell by 3.7% yoy in JanuaryOctober THAILAND Political tension» P.6 jeopardizes economic outlook Growth forecast trimmed due to sluggish demand Mega infrastructure projects likely to face delays Exports Growth contract forecast in trimmed September due to sluggish demand Special Exports Economic contract in Zones September along border under consideration VIETNAM» P.7 Special Economic Zones along border under consideration Exports of apparel and textiles grew by 18.2% yoy in January VIETNAM November» P.7 VIETNAM CPI rose» 6.65% P.7 yoy in JanuaryNovember National Wage Council proposes minimum wage hike of 15 Realized FDI rose 5.5% yoy in JanuaryNovember 17% National Wage Council proposes minimum wage hike of 15 Exports 17% grow by 17.5% yoy in JanuarySeptember Five Exports airports grow to by half 17.5% fees to yoy attract in JanuarySeptember carriers Five airports to half fees to attract carriers SOUTHEAST ASIAA DECEMBER

2 ACTIONS TAKEN TO ENFORCEE OFFICIAL IMPORT DUTIES IN THE CUSTOMS DEPARTMENT In a meeting held in late October, Cambodian government officials urged reforms in the General Department of Customs and Excise to ensure greater transparency of customs enforcement. More importantly, a 60day deadlinee was set for the department to stamp out corruption. Previously, customs officers in the country often undercut the legal tax rates of imported goods and pocketed a portion for themselves. Some importers paid only 3050% of the official duties. After the meeting, customs inspection has been strengthened to enforce the official duty rates. Since the Customs Department tightened the inspection procedures, goods have been seen congested at the border checkpoints, and the implementation of the official tax rates has caused an increase in retail prices of imported goods. Despite these unpleasant effects in the short term, the consistent enforcement of the official import duties is expected to create a level playing field for all importers. CAMBODIA. MONTHLY MINIMUM WAGE FOR GARMENT WORKERS WILL INCREASE FROM US$80 TO US$95 On 24 December, the Labor Advisory Council (LAC) announced its decision to raise the monthly minimum wage for workers in the garment and footwear sector to US$95, up from the current level of US$80. The new minimum wage will come into effect in April As the LAC s decision was announced, the Ministry of Labor also outlined a plan for an annual rise in the minimum wage in the next five years. According to the plan, the monthly minimum wage will reach US$160 by The wage increase was much lower than that expected by trade unions, which demanded an immediate hike to about US$160. After the LAC s announcement, tens of thousands of workers went on strike, prompting the Garment Manufacturers Association in Cambodia (GMAC) to advise its members on 26 December to close their factories for several days. Minimum wage for workers in Cambodia s garment and footwear sector was last adjusted in March 2013 from US$61 per month to US$80 per month. However, the living wage for a person in Cambodia is US$150 per month, according to a study released in September by the UKbased NGO Labour Behind the Label and the local rights group Equitable Cambodia. CAMBODIA. RETAILERS MOVING TOW ARDS A LIVING WAGE Swedish retailer Hennes & Mauritz (H&M) unveiled a plan in November to ensure that the wages for workers making its clothing cover the costs of living. H&M will begin assessing in 2014 the gap between the wages and the costs of living in one factory in Cambodia and two factories in Bangladesh. Based on the results, the company will determine how much wages are needed to be adjusted. According to H&M, 70 of H&M s biggest suppliers, which produce 60% of its merchandise, should be paying living wages within five years. A living wage is a wage that enables a worker to meet the basic needs of his or her family. Basic needs include food, housing, clothing and other expenses, such as education and health care. Even though legal minimumm wages exist in many developing countries, they often are not enough to cover these very basic needs. In some countries, SOUTHEAST ASIAA DECEMBER

3 minimum wages are high enough in theory, but they are not applied or enforced in practice. H&M s initiative shows that big retailers are increasingly a step ahead of the governments in garment producing countries in efforts to improve working conditions. In 2012, UK retailer Marks & Spencer (M&S) also took a leadership role in the issue of living wage by making a commitment to deliver living wages to workers on a large scale in Bangladesh, India and Sri Lanka by Both H&M and M&S aim to achieve their goal of a living wage by ensuring that the prices they pay for suppliers are adequate to pay living wages. Both companies expect improvements in productivity and less supply disruptions as a result of better wages. EXPORTS OF APPAREL AND FOOTW EAR CONTINUED TO REGISTER GROWTH AMID DECLINE IN TOTAL EXPORTS IN JANUARY OCTOBER In JanuaryOctober, Indonesia s total exports registered a negative growth of 5.5% yoy in US dollar terms, with value of nonoil and gas exports falling 3.0% yoy. Amid the decline in total exports, however, the exports of nonknitted apparel and knitted apparel recorded growth of 4.7% yoy and 1.6% yoy respectively over the period. Together, the two categories accounted for 5.1% of all non see oil and gas exports. (For more information, Exhibit 1.) As the Indonesian rupiah has depreciated drastically since the beginning of the year, the free on board (FOB) export values recorded in US dollars cannot reflect the real changes in the country s export volume. According to Statistics Indonesia, the country s official institution responsible for collecting statistics, export volume rose 18.8% yoy to billion kg in January September (see Exhibit 2). This indicates that Indonesia s exports became more competitive in the period as the rupiah depreciated against the US dollar. INDONESIA. MINIMUM W AGES WILLL INCREASE BY AN AVERAGE OF 19% IN 2014 Minimum wages in Indonesia are set to rise by an average of 19% in 2014, which is much less than the 50% increase sought by labour unions. 24 Indonesian provinces have confirmed their new provincial minimum wages for the year 2014 as of 14 November 2013, and the other 10 provinces are expected to announce their new minimum wages soon. The levels of wage increasee vary across regions, with an 11% increase proposed in Jakarta, the capital, and hikes of between 30% and 40% planned in some other areas. Minimum wage in Jakarta will rise to 2.44 million rupiah (US$212.3) a month with effect from 1 January 2014, up from the current level of 2.2 million rupiah (US$191.5) a month. The 11% increase is smaller than the 44% hike in minimum wage in Jakarta and its surrounding region introduced in January The provincial minimum wages only apply to unmarried employees who have been working for less than one year. For those that are married and have been working longer than one year, salaries should be raised based on agreements between employees and employers. Based on the Procedures of Minimum Wage Suspension (No.KEP231/MEN/2003) released by the Ministry of Transmigration and Manpower, employers who would like to be waived from paying the minimum wages in accordance with the 2014 standards should apply for approval before 21 December According to the Procedures, employers should hold a meeting with the workers before submitting the application to provincial governors. SOUTHEAST ASIAA DECEMBER

4 Exhibit 1 Indonesia s top 10 nonoil and gas exports by 2digit HS code in JanuaryOctober Commodity groups (HS code) FOB value (US$ million) Yoy JanOct 2012 JanOct 2013 growth (%) Percentage of all nonoil and gas exports in Jan Oct 2013 (%) 1. Mineral fuels (27) 21,897 20, Animal or vegetable fats and oils (15) 17,566 15, Electrical machinery and equipment (85) 9,157 8, Rubber and articles thereof (40) 8,978 7, Nuclear reactors and parts thereof (84) 5,235 4, Ores, slag and ash (26) 4,017 4, Vehicles other than railway or tramway rollingstock (87) 4,010 3, Apparel and clothing accessories, not knitted (62) 3,135 3, Miscellaneous chemical products (38) 3,208 3, Apparel and clothing accessories, knitted (61) 2,872 2, Total of the top 10 commodity groups 80,074 75, Others 46,942 47, Total of all nonoil and gas exports 127, , Source: Statistics Indonesia Exhibit 2 Indonesia s total exports by value (in US$) and by weight in JanuarySeptember Month FOB value (US$ million) Weight (Kg) yoy growth (%) yoy growth (%) January 15,570 15, ,111 55, February 15,695 15, ,809 53, March 17,252 15, ,651 59, April 16,173 14, ,985 58, May 16,830 16, ,037 61, June 15,441 14, ,563 54, July 16,091 15, ,090 56, August 14,047 13, ,876 53, September 15,898 14, ,281 55, January September Source: Statistics Indonesia 142, , , , Exhibit minimum wages of key sourcing provinces Province Monthly minimum wage after adjustment (Indonesia rupiah) yoy growth (%) Banten 1,325, DKI Jakarta 2,441, Source: Investor Daily SOUTHEAST ASIA DECEMBER

5 In 2013, as many as 949 companies in East Java, Central Java, Jakarta, Yogyakarta, Banten, West Java and West Papua applied for an exemption from the minimum wage hike. Among them, 489 companies obtained permission. The exemptions last for six, eight or twelve months. INDONESIA. INFRASTRUCTURE PROJECTS ANNOUNCED TO BOOST COMPETITIVENESS One of the major problems preventing Indonesia s economy from reaching its potential is the country s poor transport infrastructure, which increases logistics costs and thus weakens the country s competitiveness. According to a report titled State of Logistics in Indonesia 2013 published by the World Bank and other organizations, logistics costs in Indonesia in 2011 accounted for 24.6% of the country s GDP, which was significantly higher than its neighboring countries, including Thailand and Malaysia. In response to the country s need for infrastructure upgrades, the Indonesian government announced on 13 November its plans for 56 new projects that are crucial to sustain the country s longterm growth. The new projects, which willl begin between 2014 and 2017, include several highways, two airports, eight railways and five power plants. Most of the projects will be located on the islands of Java, Sumatra, Sulawesi and Kalimantan. As the Indonesian government does not have enough financial resources to fund all the projects, 32 out of the 56 projects are designed to be carried out by partnerships between the private and the public sectors. However, in the past private investors were not enthusiastic about partnerships with the Indonesian government because of problems with land acquisition, red tape, and a weak regulatory environment. SUPER TYPHOON HAIYAN CRIPPLED THE ECONOMY IN 4Q13 Haiyan, the deadliest typhoon in the Philippines on record, swept through the central part of the country in early November, causing a death toll of over 6,000 and affecting around 9.5 million people. The typhoon missed the country s major commercial and industrial centers, but caused the most damage in Eastern Visayas, where rice and sugar are produced. The total economic impact of Haiyan on the country is estimated to reach US$14 billion. The country s GDP expanded by 7.0% yoy in 3Q13, slower than the revised growth of 7.6% yoy in 2Q13. Economic growth will decelerate further in 4Q13, as Haiyan caused devastation on agricultural production and disruption to business and supply chains. That being said, with the reconstruction efforts ramping up, economic activities in the country are expected to revive gradually in PHILIPPINES. EXPORTS GREW BY 14.0% YOY IN OCTOBER The country s exports grew by 14.0% yoy to reach US$5.03 billion in October. The strong export growth was contributed mainly by the growth of electronics exports (+13.4% yoy), which accounted for 42.9% of total exports. Apart from electronics, major export categories that registered doubledigit growth in October included woodcrafts and furniture (+26.5% yoy), machinery and transport equipment (+89.9% yoy), other mineral products (+89.1% yoy), chemicals (+96.4% yoy), ignition wiring set and other wiring sets used in vehicles, aircrafts and ships (+41.2% SOUTHEAST ASIAA DECEMBER

6 yoy), and articles of apparel and clothing accessories (+75.1% yoy). By destination, exports to Japan, the Philippines largest export market, surged by 51..6% yoy in October after falling by 23.3% yoy in September. Meanwhile, exports to ASEAN, the US and China also recorded doubledigit growth in October. PHILIPPINES. FOUR MANUFACTURING SECTORS PRIORITIZED FOR JOB CREATION The Philippine government has identified four manufacturing sectors electronics, garments, automotive parts and food manufacturing as priority sectors for government intervention programmes, according to the Department of Labor and Employment (DOLE). These four sectors are prioritized as they have great potential to generate job opportunities. Specific policies will be formulated after the four sectors have finalized their industry roadmaps. According to the Philippines Development Report released by the World Bank in late September, the country needs to create 14.6 million jobs in the next four years. The employment challenge comes mainly from decadelong policy distortions that have weighed down agriculture and manufacturing. GARMENT EXPORTS FELL BY 3.7% YOY IN JANUARYOCTOBER Thailand s garment exports grew by a marginal 0.1% yoy in October, bouncing back to the positive territory after a contraction of 2.8% yoy in September. In JanuaryOctober, exports of garments reached US$2,384.7 million, registering a decline of 3.7% over the same period last year, according to the Thai Garment Manufacturers Association (TGMA). In the first ten months of 2013, most categories of garments saw negative export growth, including cotton garments (8.8% yoy), manmade fibre garments (2.0% yoy) and garments made of other textile materials (1.3% yoy). Meanwhile, exports of baby garments increased by 13.5% yoy to reach US$160.3 million during the period. The US, the EU and Japan are the largest garment export markets for Thailand. During the January to the US and October period, garment exports Japan grew by 0.7% yoy and 5.4% yoy respectively, but those to the EU registered a decline of 13.2% yoy. THAILAND. POLITICAL TENSION JEOPARDIZES ECONOMIC OUTLOOK The antigovernment rallies in Thailand, which started in early November, have persisted into the second month. The rallies began in opposition to the controversial amnesty bill, which if passed would have allowed the deposed former Prime Minister Thaksin to return from exile, and escalated rapidly into antigovernment protests. As violent protestors began converging on the Government House in Bangkok, Prime Minister Yingluck dissolved the parliament and called for a general election in February Though tensions have eased temporarily, political uncertainties remain as the Democrat Party, the main opposition, has refused to confirm its participation in the election. We believe that the prolonged political unrest in Thailand could sap business sentiment and consumer confidence, and thus adversely affect private spending and tourism. Moreover, if a new government is not in place next year, infrastructure projects one of the key drivers of the country s economic growth will be delayed. Noteworthy is the fact that Thailand s real GDP growth moderated from 2.9% yoy in 2Q13 to 2.7% yoy in 3Q13, which was attributable to the continued slowdown in consumer spending, private investment and exports. Ongoing political turmoil SOUTHEAST ASIAA DECEMBER

7 could weigh further on Thailand s economic outlook. In midnovember, the Office of the National Economic and Social Development Board (NESDB) slashed its GDP growth projection for 2013 to 3% from the range of % made in August. THAILAND. MEGA INFRASTRUCTURE PROJECTS LIKELY TO FACE DELAYS The Thai government plans to kick off mega infrastructure projects worth two trillion baht (US$62.5 billion) next year. But the situation has blurred since the Democrat Party and some senators filed a petition to the Constitutional Court on 21 November, arguing that the projects borrowing bill violates the constitution. In addition, the dissolution of the parliament and the upcoming election whip up more uncertainties over the projects implementation. The prime objective of the infrastructure projects, which will be completed over the next seven years, is to restructure the country s highly road dependent transportation system by accelerating the expansion of railway networks. The projects include several highspeed rail lines that connect Bangkok to the north, the south, the northeast and the east of the country. Other projects include the expansion of the mass transit network in Bangkok and the construction of dualtrack rail lines and new roads to connect Thailand with the other five countries in the Greater Mekong Subregion. These mega infrastructure projects are considered the key stimulus to growth in the coming years. The government estimates that the twotrillionbaht investment will help reduce logisticss costs by 2% and increase GDP by 1% per annum, as well as create 500,000 jobs over the construction period. The modernization of the transportation system will enhance Thailand s competitivenesss and deepen connectivity in the region. EXPORTS OF APPAREL AND TEXTILES GREW BY 18.2% YOY IN JANUARY NOVEMBER According to the General Department of Customs, Vietnam s exports reached US$121 billion in the first eleven months of the year, a 15.7% rise over the same period last year. Over the period, exports of garments and textiles rose 18.2% yoy to US$16.2 billion. By destination, in JanuaryNovember, Vietnam s exports of garments and textiles to the US stood at US$7.78 billion, followed by Japan with US$2.18 billion, and South Korea with US$1.51 billion. Among the member countries of the EU, Germany, Spain, the United Kingdom and the Netherlands imported Vietnamese apparel and textiles worth US$572 million, US$478 million, US$430 million and US$227 million, respectively. Canada and China imported Vietnamesee apparel and textiles worth US$347 million and US$319 million, respectively. In 2012, Vietnam s apparel and textile exports stood at US$17.2 billion. Some analysts expect the number to reach US$19 billion in VIETNAM. CPI ROSE 6.65% YOY IN JANUARY NOVEMBER On a mom basis, growth of Vietnam s consumer price index (CPI) peaked at 1.06% in September, decelerated to 0.49% in October and moderated further to 0.34% in November. The General Statistics Office (GSO) attributed the ease of inflation to the bumper summer rice harvest in the country, excess industrial inventories, and effective central bank measures. In November, the price index of food and catering services the mostweighted component in the CPI basket rose 0.62% mom. Other commodity SOUTHEAST ASIAA DECEMBER

8 items that saw increasing prices included housing and construction materials (+0.41% mom) and garments, hats and footgear (+0.35% mom). In contrast, transport and postal and communicational services fell by 0.34% mom and 0.02% mom, respectively. Overall, in JanuaryNovember, the CPI rose 6.65% yoy, the lowest rate in five years, and is on track of meeting the government s fullyear target of 7%. VIETNAM. REALIZED FDI ROSE 5.5% YOY IN JANUARYNOVEMBER The government approved US$13.8 billion of new foreign projects in 2013 through 20 November, a 73% increase over the same period last year, according to the General Statistics Office. Licenses were granted to 1,175 new projects, 0.1% more than the number licensed in the same period last year. At the same time, US$7 billion of additional capital was injected into 446 ongoing projects. Together, newly registered capital from abroad reached US$20.8 billion, an increase of 54.2% yoy. Estimated realized foreign direct investment (FDI) in the period reached US$10.6 billion, an increase of 5.5% yoy. Noteworthy projects include Tinh Loi Garment and Pacific Crystal Textile at the Lai Vu Industrial Park in the Hai Duong province. Tinh Loi Garment has invested US$120 million in a factory with the capacity to produce 170 million pieces of garments a year. It plans to employ 5,000 workers in 2014, and to hire around 17,000 eventually. Pacific Crystal Textile s new plant will have the capacity to produce 360 million metres of cloth every year, which will significantly increase the output of locally produced textile. The garment industry in Vietnam used 6.8 billion metres of cloth in 2012, of which 88% was imported, according to the Viet Nam Textile and Apparel Association (VITAS). SOUTHEAST ASIA DECEMBER

9 Jun13 Jul13 Aug13 Sep13 Oct13 Nov13 Consumer price index (yoy growth %) Exports (yoy growth %) Exports (US$ mn) Of which: Clothing (US$ mn) Shoes (US$ mn) Imports (yoy growth %) Imports (Cambodian riels bn) Gasoline (riels/litre) Diesel (riels/litre) Source: Ministry of Economy and Finance, Cambodia , , , Jun13 Jul13 Aug13 Sep13 Oct13 Nov13 Quarterly GDP (real yoy growth %) 5.8 (2Q13) 5.6 (3Q13) Production index of large and medium manufacturing (yoy growth %) Manufacturing PMI (HSBC) Real retail sales index (yoy growth %) Consumer price index (yoy growth %) Exports (yoy growth %) Exports (FOB, US$ mn) Of which: Textile and textile products (US$ mn) Footwear (US$ mn) Furniture (US$ mn) Sports requisites (US$ mn) Imports (yoy growth %) Imports (US$ mn) , , , , , , , , , , , , , , Source: Statistics Indonesia, Bank Indonesia, HSBC PMI reports SOUTHEAST ASIA DECEMBER

10 Jun13 Jul13 Aug13 Sep13 Oct13 Nov13 Quarterly GDP (real yoy growth %) 7.6 (2Q13) 7.0 (3Q13) Value of production index, manufacturing (yoy growth %) Volume of production index, manufacturing (yoy growth %) Producer price index (yoy growth %) Consumer price index (yoy growth %) Exports (yoy growth %) Exports (FOB,US$ mn) Of which: Woodcrafts and furniture (US$ mn) Garments (US$ mn) Imports (yoy growth %) Imports (FOB, US$ mn) Balance of trade (US$ mn) , , , , , , , , , Source: National Statistics Office, National Statistical Coordination Board Jun13 Jul13 Aug13 Sep13 Oct13 Nov13 Quarterly GDP (real yoy growth %) Industrial production index (value added 2.9 (2Q13) 2.7 (3Q13) weight, not seasonally adjusted), yoy growth % Producer price index (yoy growth %) Consumer price index (yoy growth %) Exports (yoy growth %) Exports (US$ mn) Of which: Knitwear (US$ mn) Woven garments (US$ mn) Toys, games and sports requisites (US$ mn) Imports (yoy growth %) Imports (US$ mn) Trade balance (US$ mn) , , , , , , , , , , , , , , , Source: National Economic and Social Development Board, Office of Industrial Economics, Ministry of Commerce SOUTHEAST ASIA DECEMBER

11 Jun13 Jul13 Aug13 Sep13 Oct13 Nov13 Quarterly GDP (real yoy growth %) 5.0 (2Q13) 5.5 (3Q13) Industrial production index (yoy growth %) Manufacturing PMI (HSBC) Retail sales of consumer goods and services (yeartodate, yoy growth %) Price index of materials used for production (yoy growth %) Producer price index for industrial products (yoy growth %) (2Q13) 3.1 (3Q13) 4.8 (2Q13) 5.8 (3Q13) Consumer price index (yoy growth %) Exports (yeartodate, yoy growth %) Exports (US$ mn) Of which: Textiles & garments (US$ mn) Footwear (US$ mn) Wood & wooden products (US$ mn) Imports (yeartodate, yoy growth %) Imports (US$ mn) , , , , , , , , , , , , , , , , , ,988.0 Source: General Statistics Office of Vietnam, General Department of Vietnam Customs, HSBC PMI reports SOUTHEAST ASIA DECEMBER

12 JUNE NOVEMBER 2013 CAMBODIAN RIEL USD:KHR official exchange rate 4,080 4,060 4,040 4,020 4,000 3,980 3,960 INDONESIAN RUPIAH USD:IDR buy rate 12,500 12,000 11,500 11,000 10,500 10,000 9,500 Source: National Bank of Cambodia PHILIPPINE PESO USD:PHP BSP reference rate Source: Bank Indonesia THAI BAHT USD:THB midrate Source: Bangko Sentral ng Pilipinas (BSP) Source: Bank of Thailand VIETNAMESE DONG USD:VND buy rate of commercial banks 21,300 21,250 21,200 21,150 21,100 21,050 21,000 20,950 20,900 20,850 20,800 Source: State Bank of Vietnam SOUTHEAST ASIA DECEMBER

13 THE FUNG BUSINESS INTELLIGENCE CENTRE The Fung Group is a privately held multinational group of companies headquartered in Hong Kong whose core businesses are trading, logistics, distribution and retailing. The Fung Group employs over 43,000 people across 40 economies worldwide, generating total revenue of more than US$21.9 billion in Fung Holdings (1937) Limited, a privately held business entity headquartered in Hong Kong, is the major shareholder of the Fung group of companies The Fung Business Intelligence Centre, through its unique relationships, collects and analyses market data on China s economy, with special focus on sourcing, supply chains, distribution and retail. It also produces reports on sourcing and trading in other Asian countries. More than a knowledge bank for the Fung Group, the Centre also makes its market data and analysis available to businesses, scholars and governments around the world. It has become an impartial thought leader on issues shaping the future of manufacturing, distribution, logistics and retailing in China, and regularly provides advice and consultancy services to internal and external clients of the Fung Group. CONTACT Fung Business Intelligence Centre 10/F LiFung Tower, 888 Cheung Sha Wan Road Kowloon, Hong Kong T: (852) F: (852) E: lfdc@lf1937.com Copyright 2013 The Fung Business Intelligence Centre. All rights reserved. Though the Fung Business Intelligence Centre endeavours to ensure the information provided in this publication is accurate and updated, no legal liability can be attached as to the contents hereof. Reproduction or redistribution of this material without prior written consent of the Fung Business Intelligence Centre is prohibited. SOUTHEAST ASIA DECEMBER