28 C
Vientiane
Saturday, May 3, 2025
spot_img
Home Blog Page 2426

CrimsonLogic Signs Milestone MOU To Establish a Digital Trade Corridor To Promote Asia-Europe Trade Routes

MOU partners – KTZ Express and Digital Silk Way set to develop Kazakhstan as critical transit between the two continents

SINGAPORE / NUR-SULTAN, KAZAKHSTAN – Media OutReach – 30 November 2021 – CrimsonLogic, a leading global provider of Trade solutions, products and services headquartered in Singapore, has signed a Memorandum of Understanding (MOU) with KTZ Express (a subsidiary of Kazakhstan Rail Company and a national logistics operator) and local IT partner – Digital Silk Way to collaborate and establish a Digital Trade Corridor to promote trade for the region and beyond.

The proposed Digital Trade Corridor initiative will serve the Trans-Caspian International Transport Route, which starts from Southeast Asia and China, through Kazakhstan, the Caspian Sea, Azerbaijan, Georgia and beyond to Europe.  This initiative is closely aligned to Kazakhstan-2050 Strategy* to enhance economic pragmatism and support entrepreneurship.  With the increased trade flow between Asia and Europe, Kazakhstan is centrally positioned to serve as a logistic hub, especially for critical markets such as China. 

The core of this Corridor is an integrated solution consisting of CALISTA (a supply-chain orchestration platform by GeTS, a subsidiary of CrimsonLogic) and another solution with local partner Digital Silk Way.  This initiative will facilitate better B2B2G trade regulatory compliance and improves global trade connectivity digitally.  KTZ Express will be the flagship logistics operator for this integrated Digital Trade Corridor for Kazakhstan and Central Asia. 

 

Mr Saw Ken Wye, Chief Executive Officer of CrimsonLogic said: “In this new norm, the world is seeing increased pressure on the global supply-chain.  With this new Digital Trade Corridor, it will make it easier to facilitate trade via the Trans-Caspian International Transport Route, providing shippers and carriers more options, especially to land-locked countries.  As a long-term strategic tech player in Kazakhstan, CrimsonLogic is delighted to enter this MOU with like-minded partners such as KTZ Express and Digital Silk Way to help elevate the country’s status as a global logistic hub.”

 

Mr Nurlan Igenbayev, CEO of KTZ Express said: “Our cooperation will accelerate the transition to paperless technology for shippers and consignees to transport goods.  Most importantly, this will strengthen international cooperation, increases transit traffic through Kazakhstan, expands the market for transport services, as well as creating new logistics chains.”

Mr Doszhan Zhussupov, CEO of Digital Silk Way said: “We believed that increasing the effectiveness of the Trans-Caspian International Transport Route and transforming the related digital infrastructure will best serve Kazakhstan and stakeholders in the trade and logistic community in Asia and Europe.  We are taking on the challenge to transform existing processes to create a single platform that can provide seamless document flow digitally connecting China to Europe in the appropriate forms and languages.  The platform will be powered by our CrimsonLogic and GeTS partners, and with their extensive experience in trade facilitation and logistics, it will definitely transform the business environment in this region.”


*Source: Strategies and programs — Official website of the President of the Republic of Kazakhstan (akorda.kz)

About CrimsonLogic

CrimsonLogic is a partner to governments and businesses globally. For over 30 years, CrimsonLogic has partnered customers to innovate sustainable world-class solutions, products and services in Trade, Legal and Digital Government, enabling significant transformations that have positively impacted governments, businesses and communities.

#CrimsonLogic

Comba Continues to Drive Open RAN Transformation through O-RU Portfolio

Introduces TIP-compliant Tri-band Remote Radio Unit for Global Open RAN Market

HONG KONG SAR – Media OutReach – 30 November 2021 – Comba Telecom Systems Holdings Limited (“Comba Telecom” or “the Group”, SEHK stock code: 2342), a global leading wireless solutions provider, today announced that Comba Network Systems Company Limited (“Comba Network”), an indirect subsidiary of Comba Telecom, has introduced the new TIP-compliant Tri-band Remote Radio Unit (“RRU”) to help accelerate Open RAN transformation worldwide.

 

Engineered with Multi-TRX and Multi-RAT radio technology, the high-power tri-band RRU supports MIMO and multi-generation cellular technology, including legacy 2G/3G/4G and future upgrades to 5G radio access network systems. With the compact design and high-power efficiency feature, the multi-band RRU enables true interoperability and requires less equipment, installation time, power consumption, and space for network upgrades and enhancements. It also facilitates mobile service providers to deploy an Open RAN system with optimized Total Cost of Ownership, shortened time to market, simplified future network upgrades, and guaranteed high service quality.

 

As an active participant in the Telecom Infra Project’s (TIP) Open RAN Project Group, Comba Network is devoted to TIP’s O-RU initiatives and offers a range of TIP-compliant and all-G supported open radio units for the global development and deployment of Open RAN solutions. The newly introduced tri-band RRU was recently awarded the TIP Requirements Compliant Ribbon and is listed on TIP Exchange along with the complete RRU series of Comba Network.

 

Ms. Marie Ma, General Manager of Comba Telecom Network Systems Limited, said, “Over the past few years, Comba Network has developed a remarkable Open RAN footprint in global markets with leading service providers and ecosystem partners. Comba Network is committed to R&D innovation, providing global customers with a full range of radio products in line with the RAN modernization requirements and open fronthaul interoperability transformation. We believe that the extension of the Open RAN RRU product line will optimize the deployment process for operators and create immense business value. We will continue our efforts to introduce more open radio products to expand product diversity in the marketplace further and boost our competitiveness.”

 

Mr. David Hutton, Chief Engineer of TIP, said, “TIP works with Open RAN stakeholders to test and validate open network products and solutions to reduce time to market and simplify procurement. The TIP Requirements Compliant Ribbons awarded to Comba Network demonstrate their product maturity. We are excited to see an expansion in TIP-compliant hardware product line, and hope that more products and solutions with open interfaces emerge to enrich the ecosystem.”

 

For more information about Comba’s Open RAN Solution, please visit https://www.comba-telecom.com/en/openran-solutions.

 

About Comba Telecom Systems Holdings Limited

Comba Telecom is a global leading wireless solutions provider with its own R&D facilities, manufacturing base and sales and service teams. The Company offers a comprehensive suite of products and services including antennas and base station subsystems, network systems, services, and wireless transmission to its global customers. Headquartered in Hong Kong, with manufacturing bases and R&D centers in China, Comba Telecom provides wireless communication solutions and information application services to customers in more than 100 countries and regions around the world. Comba Telecom was included in the MSCI Hong Kong Small Cap Index in November 2019. Furthermore, the Company was included as a constituent stock of Hang Seng Composite SmallCap Index, Hang Seng Internet & Information Technology Index and other Hang Seng Family of Indexes, and the China-Hong Kong Stock Connect under the Shenzhen-Hong Kong Stock Connect in September 2020. For further information, please visit: www.comba-telecom.com

About Comba Network Systems Company Limited

Comba Network is principally engaged in manufacture and sale of wireless telecommunications network system equipment and provision of related comprehensive solutions. It currently focuses on research and development, manufacture and sale of network system products, including macro cells, small cells, related extended & in-depth coverage solutions and Open RAN products as well as providing network solutions for 5G vertical industry. The Group currently holds 79.37% of the equity interest in Comba Network.

#Comba

HOPE TeleCare Myanmar and JV Partner DOC2US Bring Home HealthTech Recognitions at the ASOCIO 2021 Awards

YANGON, MYANMAR – Media OutReach – 30 November 2021 – HOPE TeleCare, Myanmar’s all-in-one digital healthcare platform and JV Partner, DOC2US bagged the Asian-Oceanian Computing Industry Organisation (ASOCIO) 2021 award in the HealthTech segment, recognising HOPE TeleCare’s goal of helping individuals get accessible, affordable, and equitable healthcare services in urban and rural areas.

 

The Asian-Oceanian Computing Industry Organisation (ASOCIO) is an ICT federation organised by ICT associations representing 24 economies throughout Asia Pacific, to promote, encourage, and foster relationships and develop the computing industry in the region.

 

“We are thrilled to receive this award alongside our partner DOC2US, knowing that we have used digitalisation to make healthcare available to individuals from all walks of life through our platforms. At HOPE TeleCare, we firmly believe that everyone should have the right to basic healthcare. This award not only recognises our efforts with patients across the country, but also motivates us to continue working towards an improved healthcare ecosystem for the people of Myanmar,” said U Htun Htun Naing, Chairman of HOPE TeleCare Myanmar,left in photo posing with the awards and Operation Manager Dr May Zon Soe, Head of Business Development Kaung Htet.

In addition to the awards received at the ASOCIO 2021, HOPE Telecare was also celebrated at the World Information Technology and Services Alliance (WITSA) 2021 Global ICT Excellence Awards under the Innovative eHealth Solutions for Private Sector/NGO.

 

As HOPE’s technical partner, DOC2US provides the robust backend system that runs and supports the digital healthcare platform.

 

“We would like to thank PIKOM for this nomination. We are truly honoured to receive this award as it is a true reflection of our commitment to encouraging digitalisation in healthcare and a recognition of our work in advancing the digital healthcare space locally and beyond. We are committed to continuing to provide a more accessible and connected healthcare platform to all Malaysians as well as work together with our partners in the region move forward in this digital era”, said Dr Raymond Choy, Chief Executive Officer of DOC2US.

 

The first telemedicine provider that issues digitally signed e-prescriptions in Malaysia, DOC2US has helped alleviate the struggles of Malaysians by providing access to healthcare professionals through its platform. During the height of the COVID-19 pandemic and during movement restrictions, DOC2US has helped over half a million Malaysians connect with doctors and healthcare professionals any time, anywhere.

#HOPETeleCare

Carousell Recommerce Index finds Taiwan is second in region for sustainability and secondhand purchases

86% of Taiwanese users have made secondhand purchases before, and the biggest motivating factor is environmental reasons

TAIPEI, TAIWAN – Media OutReach – 30 November 2021 – According to the first Carousell Recommerce Index, led by Carousell Group, the leading classifieds group in Greater Southeast Asia, 86% of Taiwanese users have bought secondhand items before. This is higher than the Carousell Group’s average of 72%, and the second highest market after the Philippines (92%).

 

Recommerce refers to the selling and buying of previously-owned products, including both new and used in condition. The Carousell Recommerce Index 2021 Report is a Carousell Green initiative to highlight the importance of sustainability and recommerce in the Greater Southeast Asia region. The report covers findings from four Carousell Group brands—Carousell, Cho Tot, Mudah and OneKyat—across eight markets—Hong Kong, Indonesia, Malaysia, Myanmar, the Philippines, Singapore, Taiwan and Vietnam.

 

Taiwan ranks highly across various areas when it comes to sustainability and making secondhand the first choice. 30% of respondents, who have bought secondhand items before, say they choose to buy secondhand for environmental reasons. This is higher than the regional average of 21%, tying Taiwan and Singapore for second place. 11% of Taiwanese respondents also say they only buy secondhand where possible.

 

Hidden preloved earning potential of NT$20,000 and above

Regionally, respondents had an estimated 102,556 unwanted items, or an average of 35 items per user, at home that could be sold. Taiwan ranks second with an average of 52 estimated unwanted items that could be sold per user, very close to first place Indonesia that had an estimate of 57. Taiwan is also one of the markets with many users forecasting up to 100 unwanted items that could be sold. Of these unwanted items at home, 13% of Taiwanese respondents estimate they could earn above NT$20,000 if they sold all the items.

 

Fashion is the top choice for secondhand

Apparel is the top category that Taiwanese users feel most comfortable to buy (52%) and sell (62%) secondhand. This is no surprise since it has led demand and supply for the past three years, from 2018 to 2020. Tops are most popular for both Women’s and Men’s Fashion, followed by women’s bottoms and dresses. A growing category for secondhand is Luxury which grew to rank third in terms of demand in 2020, and saw listing views increase by 14%.

 

This trend continues in 2021 where we have observed rapid growth, especially in the Women’s Fashion category. Comparing from mid-May, when Covid cases started to increase, to mid-August 2021, there was a 99% increase in browses for Women’s Fashion, and a 41% increase in listings created.

Growing recommerce in the region

“While recommerce is already gaining traction in Europe and the United States, it is still in its infancy in the Greater Southeast Asian region, especially Taiwan. Carousell Group created the report to better understand the market and sentiments towards secondhand. It is inspiring to see Taiwan leading the sustainability charge among our markets, and the huge potential for everyday Taiwanese users to not only benefit from recommerce, but to also make changes to save the planet. It is an affirmation of us increasing our recommerce efforts for Taiwan, and we will continue to work to increase the trust and convenience in buying and selling secondhand,” said Penny Cox, Head of Recommerce, Carousell.

 

Carousell Taiwan has been partnering with 7-Eleven Shipping since 2017 to enable users to transact smoothly, safely and reduce their carbon footprint. Users also have the option to donate their e-invoices to a list of charities, most of which are environmental-related.

This year, Carousell launched the Free Items category in Taiwan to help users to list and browse items to give away more quickly. Free Items category listings can move four times faster than the other General Classifieds categories. In another one of our initiatives for Earth Day, our online charity flea market, where we donated NT$10 to the Leopard Cat Association of Taiwan for every participating listing sold, garnered over 12,000 listings.

 

Lucas Ngoo, Co-founder, Carousell Group said, “As a pioneer for mobile classifieds in the region, Carousell Group has been constantly working to remove friction and enable secure, seamless transactions. With the use of AI and data, we have been focused on accelerating our recommerce leadership in the region to make buying secondhand trusted and convenient. This, in turn, will help to solve the meaningful problem of overconsumption with recommerce and thus make secondhand the first choice for consumers.”

 

The Carousell Recommerce Index (2021 Report) is available for download here.

About Carousell Group

Carousell Group is the leading classifieds group in Greater Southeast Asia on a mission to inspire the world to start selling, and to make secondhand the first choice. Founded in August 2012 in Singapore, the Group has a leading presence in eight markets under the brands Carousell, Mudah.my, Cho Tot, OneKyat and Ox Street, serving tens of millions of monthly active users. Carousell is backed by leading investors including Telenor Group, Rakuten Ventures, Naver, STIC Investments and Sequoia Capital India. Visit here for more information.

#CarosellGroup

DOC2US & JV company, HOPE TeleCare Myanmar Bring Home HealthTech Recognitions at ASOCIO 2021 Awards

KUALA LUMPUR, MALAYSIA – Media OutReach – 30 November 2021 – DOC2US, Malaysia’s first telemedicine provider that issues digitally signed e-prescriptions in compliance with the Ministry of Health, bagged the Asian-Oceanian Computing Industry Organisation (ASOCIO) 2021 award in the HealthTech segment, alongside its joint venture company, HOPE TeleCare Myanmar.

 

ASOCIO is an ICT federation organised by ICT associations representing 24 economies and almost 10,000 companies throughout Asia Pacific, to promote, encourage, and foster relationships and develop the computing industry in the region.

 

“We would like to thank The National Tech Association of Malaysia (PIKOM) for this nomination. This award is a true reflection of our commitment to encouraging digitalisation in healthcare and a recognition of our work in advancing the digital healthcare space locally and beyond. We are committed to continue providing a more accessible and connected healthcare platform to all Malaysians as well as work together with our partners in the region to move forward in this digital era”, said Dr Raymond Choy, Chief Executive Officer of DOC2US, receiving the ASOCIO Awards via livestreaming in Bangladesh.

 

DOC2US has helped alleviate the struggles of Malaysians by providing access to healthcare professionals through its platform. During the height of the COVID-19 pandemic and the movement restrictions, DOC2US has supported over half a million Malaysians to connect with doctors and healthcare professionals at any time and from anywhere.

 

HOPE TeleCare, the JV company of DOC2US in Myanmar, had also received recognition under the HealthTech Segment at the ASOCIO 2021 awards. HOPE Telecare, Myanmar’s latest all-in-one digital healthcare platform, received the recognition as it brings its goal of helping individuals get accessible, affordable, and equitable healthcare services in urban and rural areas.

 

“We are thrilled to receive this award alongside our partner DOC2US, knowing that we have used digitalisation as a means to make healthcare available to individuals from all walks of life through our platforms. At HOPE Telecare, we believe that everyone must have the right to basic healthcare. This award not only recognises our efforts with patients across the country, but also motivates us to continue working towards an improved quality of life for the people of Myanmar,” said U Htun Htun Naing, Chairman of HOPE Myanmar.

HOPE TeleCare was also recently celebrated at the World Information Technology and Services Alliance (WITSA) 2021 Global ICT Excellence Awards under the Innovative eHealth Solutions for Private Sector/NGO.

 

#DOC2US

Over 25,000 Participants of Herbalife Nutrition Virtual Run 2021 Clock a Record-Breaking Distance of Close to 1.6 Million Kilometers, Equivalent to Running Around the World 40 Times

HONG KONG SAR – Media OutReach – 30 November 2021 – Premier global nutrition company, Herbalife Nutrition, has concluded the 2021 Virtual Run in Asia Pacific with record-breaking results. Held from October 1 to October 31, the Herbalife Nutrition Virtual Run 2021 saw over 25,000 participants from the public, overcoming their health inertia alongside Herbalife Nutrition members and employees to run a total distance of over 1.57 million kilometers.

 

Not only did the number of participants in the 2021 Virtual Run exceed the preceding year by almost 50%, the total distance collectively achieved by the participants is nearly three times last year’s distance – enough to circle the earth almost 40 times. The highest accumulated distances achieved during the challenge period are 1,728 kilometers by an individual, and 8,298 kilometers by a team.

 

“This year, we set bolder goals, to encourage participants to take bigger steps towards healthier and more active lifestyles, and we are thrilled to see that they have taken up the challenge and turned in spectacular results! This is a clear and encouraging indication of their desire to overcome poor health habits created by the current challenges,” said Stephen Conchie, Senior Vice President and Managing Director, Herbalife Nutrition Asia Pacific. “We hope that consumers in Asia Pacific will stick with regular physical exercise and positive nutritional habits, to keep their minds and bodies in the right shape for healthier lives.”

 

The Herbalife Nutrition Virtual Run 2021 is a highlight event of the Get Moving With Good Nutrition campaign, an annual initiative by Herbalife Nutrition to help Asia Pacific consumers break their bad health habits, adopt healthy active living habits, and foster communities that support their healthy living journeys.

 

The Herbalife Nutrition Virtual Run 2021 also raised more than USD103,000 to support the Herbalife Nutrition Foundation with providing good nutrition to needy children in Asia Pacific through its flagship Casa Herbalife Nutrition program.

 

About Herbalife Nutrition

Herbalife Nutrition is a global company that has been changing people’s lives with great nutrition products and a business opportunity for its independent members since 1980. The Company offers high-quality, science-backed products, sold in over 90 countries by entrepreneurial members who provide one-on-one coaching and a supportive community that inspires their customers to embrace a healthier, more active lifestyle. Through the Company’s global campaign to eradicate hunger, Herbalife Nutrition is also committed to bringing nutrition and education to communities around the world.

For more information, please visit IAmHerbalifeNutrition.com.

#HerbalifeNutrition

Singapore coliving start-up Casa Mia Coliving secures US$400,000 in pre-seed funding on the back of sustained growth; eyes regional expansion

SINGAPORE – Media OutReach – 30 November 2021 – Singapore-headquartered start-up Casa Mia Coliving has raised US$400,000 in pre-seed funding from angel investors in Singapore, the United Kingdom, Italy and Qatar. The funds will accelerate its room count in Singapore and its plans to launch a second city soon. The company is on track to embark on its seed funding round shortly.

 

The coliving sector has proved resilient even through the global coronavirus pandemic. As cities become denser and more expensive, coliving has become viable for professionals looking to tap employment and cultural opportunities in global cities like Singapore. Young professionals are also attracted to the strong community ethos that coliving offers and increasingly choose shared accommodation as a lifestyle preference.

 

Casa Mia Coliving achieved a 10% month-on-month growth and averaged a 91% occupancy rate for its various properties in Singapore throughout 2021. It plans to double its room count to 300 by early 2022, expanding its footprint in River Valley (where it now offers more locations than any other coliving place in Singapore) and adding more neighbourhoods across the island, including Jalan Besar.

 

Addressing the needs of a new generation of renters 

 

Casa Mia Coliving offers a full range of living solutions underpinned by a proprietary technology platform that responds dynamically to renter requirements in real-time. The company can match roommates, furnish apartments, manage shared spaces, and provide additional value-added services such as cleaning and community events.

 

By turning roommate living into a scalable product, the company can provide young expat professionals with affordable, safe, and flexible options in highly sought-after neighbourhoods.

 

“Our commitment to delivering an Easy Living experience means members can find value for money accommodations more quickly than via traditional processes. Renting their ideal home becomes seamless and easy, and our members can quickly immerse themselves into experiencing life in the cities of their choice,” said Casa Mia Coliving co-founder Eugenio Ferrante.

 

Casa Mia Coliving invested in developing a proprietary technology platform to automate all aspects of its business to drive business efficiencies and scale. Potential renters can access real-time information on available homes and take a virtual tour of the space. Property owners also receive detailed monthly statements with the performance and ongoing maintenance activities at their properties.

 

Creating enhanced value for property owners

 

Casa Mia Coliving will expand its footprint of managed properties with landlords, property developers and real estate experts in the first half of 2022.

 

Casa Mia Coliving will provide a one-stop service to manage the leasing process, housekeeping, and property maintenance as the managing agent. Where required, property owners can also elect to have Casa Mia Coliving manage any upgrading work – from advising on the style and type of renovation that would make the most impact, selecting the right vendors, and furnishing the space – to enhance the property value and attract the right lessons. They can also choose to improve their property yield via a range of variable revenue models.

 

“We’re looking at management agreements that offer stronger, more predictable revenue and have built a proven business model that can scale quickly in anticipation of continued growth in residential real estate,” said Casa Mia Coliving co-founder Ahmed Nizar. “People will always want homes that are affordable, conveniently located, and flexible, without the hassle of a lengthy contracting process, while property owners want to monetise their property quickly and efficiently. Coliving is that sweet spot that fulfils both requirements.”

 

About Casa Mia Coliving

Casa Mia Coliving is a sustainable, forward-looking coliving and property management company that offers affordable, modern, move-in ready accommodation. Bringing together insights into the sharing economy, technology and a robust tenant community, the company enables young professionals to enjoy easy living in sought-after urban locations, as well as hassle-free property management that delivers higher returns to landlords.

#CasaMiaColiving

Allianz: Construction companies to see robust growth and “new age” risks post-Covid

  • The Asia Pacific infrastructure market is expected to grow 7 – 8% a year over the next decade.
  • Current shortage of materials and skilled labor add to long-term challenges around new design, materials and building methods driven by sustainability and net zero strategies.
  • AGCS analysis of €11bn worth of construction and engineering claims over five years identifies top causes of loss by value: fire and explosion (26%), faulty design/poor workmanship (20%) and natural hazards (20%).
  • Construction companies need to improve cyber resilience and protect buildings sites against flash flooding and other extreme weather events driven by climate change. “Out of hours” water damage a major source of loss.


JOHANNESBURG/LONDON/MUNICH/NEW YORK/PARIS/SAO PAULO/SINGAPORE – Media OutReach – 30 November 2021 – The global construction market is set for a sustained period of strong growth post-Covid-19, driven by government spending on infrastructure and the transition to a net zero society. However, the switch to more sustainable buildings and infrastructure, the upscaling of clean energy facilities and the adoption of modern building methods will transform the risk landscape, with radical changes in design, materials and processes. These challenges add to currently-stressed supply chains, shortages in materials and labor and increased costs, which all come against the backdrop of years-long tight margins in the industry. A new report from Allianz Global Corporate & Specialty (AGCS), Construction risk after Covid, explores both acute and long-term risk trends for the construction sector.

 

“Covid-19 has brought about a new age for the construction industry,” says Yann Dreyer, Global Practice Group Leader for Construction in the global Energy & Construction team at AGCS. “While construction projects continued during the pandemic, and further growth is to come, the overall environment has changed fundamentally. The industry faces new challenges around supply chain volatility and spiking material costs, skilled workforce shortages and the heightened focus on sustainability. In addition, the accelerated deployment of cost-cutting strategies and implementation of new technologies and designs may well result in accelerated risks for construction companies and insurers alike. Continued risk monitoring and management controls will be key moving forward. Together with our clients, we will help manage these challenges as AGCS is committed to the construction industry as a key target sector for our growth initiatives.”

 

The strong growth outlook for the sector is based on a number of factors, such as rising populations in emerging markets and significant investment in alternative forms of energy such as wind, solar and hydrogen, as well as power storage and transmission systems. The shift to electric transport will require investment in new plants and battery manufacturing facilities and charging infrastructure. Buildings are not only expected to improve their carbon footprint, but will also require improved coastal and flood defences and sewage and drainage systems in many catastrophe-exposed regions in response to more frequent extreme weather events. At the same time, governments in many countries are planning major public investments in large infrastructure projects to both stimulate economic activity after the pandemic crisis and drive the low carbon transition. In the US, a $1 trillion+ infrastructure package touches everything from bridges and roads to the nation’s broadband, water and energy systems. At the same time it has announced plans to invest in a number of large infrastructure projects around the world in 2022 in response to China’s ambitious Belt And Road Initiative, which could stretch from East Asia to Europe. Four countries – China, India, US and Indonesia are expected to account for almost 60% of global growth in construction over the next decade.

The Asia Pacific infrastructure market is expected to grow 7 – 8% a year over the next decade, reaching US$5.36 trillion a year by 2025.


Downsides of the construction boom


The expected boom brings specific challenges in addition to benefits. In the medium term, sudden surges in demand could put supply chains under additional pressure and exacerbate existing shortages of materials and skilled labor, causing schedule and cost overruns. In addition, many in the industry may need to accelerate the implementation of efficiency and cost-control measures if profit margins have been impacted in the Covid-19 economy, which can often impair quality and maintenance levels and increase susceptibility to errors. Analysis by AGCS shows that design defects and poor workmanship are one of the leading causes of construction and engineering losses, accounting for around 20% of the value of almost 30,000 industry claims examined between 2016 and the end of 2020.

The enhanced sustainability and net zero focus will strongly influence the traditional risk landscape in the construction sector. According to the UN Environment Programme, buildings and the construction industry account for 38% of all energy-related carbon dioxide emissions. In order to cut carbon emissions, existing buildings will need to be refurbished and repurposed. Additionally, new materials and construction methods will need to be introduced across the market in relatively short periods of time. This will bring an increased risk of defects or may have unexpected safety, environmental or health consequences. For example, as a sustainable and cost-efficient material, the use of timber in construction has increased in recent years. However, this has implications for fire and water damage risks. AGCS claims analysis shows that fire and explosion incidents already account for more than a quarter (26%) of the value of construction and engineering claims over the past five years – the most expensive cause of loss.

Upscaling clean energy – renewable risks


Expanding clean energy brings new risks, too. Offshore wind projects are growing in size, moving further out to sea and into deeper waters, meaning the costs associated with any delays or repairs is increasing. Offshore wind farms, as well as onshore wind and solar projects, can also be exposed to serial losses. A design or manufacturing fault in a turbine, for example, can impact many projects. There have also been large claims from faulty foundations in solar parks and farms. Repairs to undersea cables, which weigh thousands of tons and require special ships to lay, can take more than a year. An offshore converter station alone can cost as much as $1.5bn, comparable to an oil rig. A fire or explosion involving a converter, as seen recently in China, can result in a total loss.

“Huge investments in green energy will mean larger values at risk, while the rapid adoption of prototype technology, buildings methods and materials will require close cooperation between underwriting, claims and risk engineering in-house, as well as between insurers and their clients,” says Olivier Daussin, Construction Underwriting Lead in AGCS’s global Energy & Construction team.

The two sides of modular construction


The size of the global modular construction market size is projected to grow from $82bn in 2020 to $109bn by 2025, at a combined annual growth rate (CAGR) of 5.75%. In terms of value and volume, permanent modular construction is estimated to dominate the market and steel is tipped to be the fastest-growing market segment. The healthcare industry is projected to be the fastest-growing end-use sector through to 2025, with the Asia-Pacific region set to grow at the highest CAGR of any region during this period, followed by Europe and North America.

Ultimately, modern building and production methods have the potential to radically transform construction, transferring more risk offsite and incorporating greater use of technology. Modular construction in particular provides many benefits such as controlled factory-based quality management, less construction waste, a construction timeline cut in half compared to traditional methods, and reduced disruption to the surrounding environment. However, it also raises risk concerns about repetitive loss scenarios. “There is an increased risk of serial losses with modular and prefabricated methods as the same part could be used across several projects before a fault is discovered,” Daussin explains.

The shortage of skilled labor in the construction industry is likely to further the trend towards offsite manufacturing and automation. At the same time, digitalization of construction creates cyber exposures which engineering and building companies need to strengthen their defenses against. Today, the numerous parties involved on a construction site are interconnected through various shared IT platforms, which increases their vulnerability. Cyber risks can range from malicious attempts to gain access to sensitive data, to disruption of project site control and associated theft, to supply chain disruption, to potential corruption of project design data, resulting in delays and ultimately reputational risk for parties involved.

Better protection of building sites against natural hazards and water damage


The need to reduce greenhouse gas emissions will not only drive a more sustainable approach to residential and commercial buildings as well as infrastructure but may also hasten the trend as the industry looks to achieve efficiencies and minimize waste. Construction sites also need to give more consideration to mitigate the impact of climate-driven events, such as wildfires, flash flooding and landslides. AGCS claims analysis shows that natural hazards is already the second most expensive cause of construction losses, behind fire and explosion, accounting for 20% of the value of claims over the past five years.

Meanwhile, water damage continues to be a major source of loss during construction. AGCS has seen a number of surprisingly large losses from leaks from pressurized water or fire systems that go undetected or occur out of business hours, on weekends or during periods when site personnel are not present. Water leak detection and monitoring systems can help reduce the frequency and severity of water damage, mitigating expensive repairs and project delays.

About Allianz Global Corporate & Specialty

Allianz Global Corporate & Specialty (AGCS) is a leading global corporate insurance carrier and a key business unit of Allianz Group. We provide risk consultancy, Property-Casualty insurance solutions and alternative risk transfer for a wide spectrum of commercial, corporate and specialty risks across 10 dedicated lines of business.

Our customers are as diverse as business can be, ranging from Fortune Global 500 companies to small businesses, and private individuals. Among them are not only the world’s largest consumer brands, tech companies and the global aviation and shipping industry, but also wineries, satellite operators or Hollywood film productions. They all look to AGCS for smart answers to their largest and most complex risks in a dynamic, multinational business environment and trust us to deliver an outstanding claims experience.

Worldwide, AGCS operates with its own teams in 31 countries and through the Allianz Group network and partners in over 200 countries and territories, employing around 4,400 people. As one of the largest Property-Casualty units of Allianz Group, we are backed by strong and stable financial ratings. In 2020, AGCS generated a total of €9.3 billion gross premium globally.

For more information please visit http://www.agcs.allianz.com/ or follow us on Twitter @AGCS_Insurance and LinkedIn.

Cautionary Note Regarding Forward-Looking Statements

The statements contained herein may include statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. In addition to statements which are forward-looking by reason of context, the words “may”, “will”, “should”, “expects”, “plans”, “intends”, “anticipates”, “believes”, “estimates”, “predicts”, “potential”, or “continue” and similar expressions identify forward-looking statements.

Actual results, performance or events may differ materially from those in such statements due to, without limitation, (i) general economic conditions, including in particular economic conditions in the Allianz Group’s core business and core markets, (ii) performance of financial markets, including emerging markets, and including market volatility, liquidity and credit events, (iii) the frequency and severity of insured loss events, including from natural catastrophes and including the development of loss expenses, (iv) mortality and morbidity levels and trends, (v) persistency levels, (vi) the extent of credit defaults, (vii) interest rate levels, (viii) currency exchange rates including the Euro/U.S. Dollar exchange rate, (ix) changing levels of competition, (x) changes in laws and regulations, including monetary convergence and the European Monetary Union, (xi) changes in the policies of central banks and/or foreign governments, (xii) the impact of acquisitions, including related integration issues, (xiii) reorganization measures, and (xiv) general competitive factors, in each case on a local, regional, national and/or global basis. Many of these factors may be more likely to occur, or more pronounced, as a result of terrorist activities and their consequences.

The matters discussed herein may also be affected by risks and uncertainties described from time to time in Allianz SE’s filings with the U.S. Securities and Exchange Commission. The company assumes no obligation to update any forward-looking statement.

#Allianz