Dear Valued Customers,
Welcome to Our September Newsletter
Welcome to the September edition of the 3E Accounting newsletter. In this edition, we are going to look at what has been happening across Singapore, Malaysia, Hong Kong, and Indonesia.
Singapore Avoids Technical Recession with Sufficient Economic Growth
Singapore’s economy grew slightly in the second quarter of this year, but that was enough for it to avoid a technical recession by a narrow margin. A weakened global demand from China was mainly responsible for the slowdown in the second quarter.
Southeast Asia’s economy grew by 0.3% seasonally (quarter-on-quarter). This was then followed by a 0.4% contraction within the first three months of the year. No change to the monetary policy is expected from the central bank until October. Although Singapore did avoid a technical recession this time, the second quarter’s final GDP figures could still be revised.
Malaysia and Hong Kong Come Together to Develop an Economic Hub Near Singapore Border
Hong Kong and Malaysia have collaborated to create an economic hub near Singapore’s border. The hub is near the south of Johor because Malaysia is looking to expand the development potential of the land to an upcoming cross-border rail link.
The Malaysian Mass Rapid Transit (MRT) and Hong Kong’s Mass Transit Railway (MTR) signed a Memorandum of Understanding to develop 2.4 hectares of mixed-use land. The land is located in Bukit Chagar, Singapore. The estimated value of the land is RM3 billion (SGD 878 million), located less than 1km from the Malaysia-Singapore border.
Retail Sales in Hong Kong are On the Rise, Up 19.6% in June
The Census & Statistics Department revealed that total retail sales value in Hong Kong rose by 19.6% ($33.1 billion) in June compared to the previous year. Online sales accounted for 6.7% of the total retail sales value. Jewellery, watches, clocks, and valuable gifts recorded an impressive 64.3%.
Hong Kong’s steady retail sales growth was thanks largely to the recovery in inbound tourism and positive consumption sentiment. Expectations of a continued rise in visitors to Hong Kong in the coming months leaves a promising outlook for retail sales.
Indonesia’s Economy Is Growing Faster Than Expected
While most nations are trying to recover from the stresses caused by the pandemic, Indonesia is enjoying a favourable economy. Indonesia’s growing economy shows how proper management and governance can help a country prosper even during turbulent times.
The continued growth in Indonesia was driven by domestic investment, household spending, and an increase in government spending. Positive progress in the second quarter of this year was also because Indonesians were spending and consuming more, especially during religious holidays.
Thank you for being part of the 3E Accounting community and we look forward to updating you with more positive news in the next newsletter as we get ready to wrap up the year.
Abigail Yu
Director, 3E Accounting Group
Read More in our E-Newsletter September 2023.
