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Twitter appoints Mitchell Kreuch as new Managing Director of Southeast Asia to continue accelerating the region’s growth

SINGAPORE – Media OutReach – 13 January 2022 – People across Southeast Asia come to Twitter to launch and connect through real-time conversations. From conversations around historical and cultural moments, current events, local entertainment, self-care, or finance and technology; Twitter is about what’s happening in Southeast Asia. Twitter is committed to Southeast Asia as the region is a key growth marketplace for Twitter.

Mitchell Kreuch, Managing Director of Southeast Asia, Twitter

 

Today, Twitter announces that Mitchell Kreuch has been appointed as Twitter’s new Managing Director of Southeast Asia. Reporting to Yu Sasamoto, Twitter’s Vice President of Asia Pacific, Mitchell will be responsible for continuing and accelerating Twitter’s revenue growth in Southeast Asia. Prior to this role, he has led Twitter’s Agency Development in Asia Pacific for the past two years and has been a key part of its successful agency-approach across the region.

 

Commenting on this appointment; Yu Sasamoto, Vice President of Asia Pacific, Twitter said, “We are excited to have Mitchell lead our revenue growth and continue accelerating our revenue growth across the Southeast Asia region. With Mitchell’s extensive experience in sales, media, and marketing over the past three decades, I’m confident that he will be a strong leader for our Southeast Asia sales team, strengthen our client and partner relationships across this region, and increase our commitment to Southeast Asia as a high-growth region for Twitter.

 

Mitchell Kreuch, Managing Director of Southeast Asia, Twitter added, “Continuous growth in Southeast Asia is a top priority. Having led Agency Development in the APAC region for the past two years, I am very excited to expand the role to lead the revenue growth team in the Southeast Asia region. Through Yu’s leadership and collaboration with our amazing team across the region, I look forward to unlocking more opportunities and continuing to showcase Twitter’s values to help brands stay connected with our audiences in the region.”

 

Embeddable Link: https://twitter.com/yusasamoto/status/1481445921728524288

 

Prior to joining Twitter in 2017, Mitchell spent almost three decades in the sales, marketing, and media industries across the US and in Asia Pacific. He has worked for global brands such as The Walt Disney Company, Yahoo!, and the New York Times. He holds a BA from Denison University. Mitchell can be found at @mkreuch on Twitter.

 

Embeddable Link: https://twitter.com/mkreuch/status/1481449649256878081

About Twitter, Inc.

Twitter (NYSE: TWTR) is what’s happening and what people are talking about right now. To learn more, visit about.twitter.com and follow @Twitter. Let’s talk.

#Twitter

The issuer is solely responsible for the content of this announcement.

Banyan Tree Group Unveils New HOMM Brand with First Location in Phuket, Thailand

New Concept Provides Travelers with a Sense of Home Through Reliable Services, Signature Facilities and Well-Designed Rooms at Affordable Prices

SINGAPORE – Media OutReach – 13 January 2022 – Banyan Tree Group, one of the world’s leading independent hospitality groups, debuts HOMM as the newest concept within the Group’s global multi-brand ecosystem. HOMM Bliss Southbeach Patong, a 71-room contemporary beachfront property in Phuket, Thailand offering stylish and wallet-friendly accommodations, will serve as the brand’s first-ever location.  




HOMM is one of five new brands within Banyan Tree Group’s growing ecosystem of concepts that provides a sensible lifestyle and globally diverse experiences, while embodying the feeling of home. Ideal for families, couples and business executives alike, guests will find ease in reliable services, signature facilities, communal dining options and well-designed, price-friendly accommodations elevated by the Group’s purpose-led, sustainable tourism standards. Destination-specific, immersive travel experiences and locations in key second-tier cities give travelers opportunities to engage in local culture.


“With the introduction of our HOMM brand, we strive to provide guests with true “sense of home” comforts that act as a base camp for new experiences and adventures, while simultaneously supporting the local community. HOMM Bliss Southbeach Patong’s close proximity to Phuket’s culturally rich attractions and coastal region provides global travelers with the ability to fully engage with locals and foster sustainability and stewardship practices through Banyan Tree Group’s world-renowned ‘Stay for Good’ program, a blueprint for future HOMM locations to come,” said Chatchaya Jearranai (May), Hotel Manager of HOMM Bliss Southbeach Patong.  


Blending the essence of Phuket’s tropical beach with Banyan Tree Group’s signature service standards, HOMM Bliss Southbeach Patong sits on  Patong Bay’s southern end, with unrivaled views of the Andaman Sea along 1.5 miles of white sand beaches. The newly refurbished guestrooms boast contemporary beach-inspired accommodations, with 39 rooms featuring sea-facing private balconies and terraces or ground-floor plunge pools. Indulgent bath amenities encourage relaxing mornings, while the property’s two outdoor pools, beachfront access and proximity to top tourist attractions provide for exciting afternoons. Culinary offerings include quick bites, like HOMM’s signature breakfast buns from Seagulls on Southbeach, or all-day dining at Rice Bowl, best known for authentic Thai cuisine.  


As part of the Group’s Stay For Good program inspiring purposeful stewardship among guests and local communities, each HOMM property will advocate for a unique endangered species, centrally displayed in the lobby areas via origami art. For example, at HOMM Bliss Southbeach Patong, an origami creation of the Black Billed Gull can be found upon entering the lobby to raise awareness of the native bird. Waste-reduction initiatives and educational programs for locals will also be implemented, ensuring the holistic wellbeing of each HOMM community. 


For a limited time only, travelers staying a minimum of three nights can enjoy HOMM Bliss Southbeach Patong’s opening offer with a starting rate of THB 1,500 and a one-time dinner credit of THB 500. For more information, please visit https://www.hommhotels.com/hotels/homm-bliss-southbeach-patong.   

 

High-resolution images are available here.

ABOUT HOMM

Where home is a feeling, HOMM hotels provide a sense of comfort and familiarity through reliable services, standardized signature facilities and stylish, price-friendly accommodations. A new brand born out of Banyan Tree Group’s expanding ecosystem, HOMM locations offer distinctive style reminiscent of their destination while maintaining a ‘sense of home’ standard of soothing comfort. Guests will enjoy sensible essentials, convenient check-in available through online pre-registration, and dine-in or grab & go food and beverage options. Unique to each HOMM location are delectable Breakfast Buns, made with locally sourced ingredients, and an origami brand identifier that educates guests about a regionally endangered species. Every HOMM hotel provides original experiences through design and local activities, while ensuring the consistent quality found at each location worldwide. For more information, please visit www.hommhotels.com. 

ABOUT BANYAN TREE GROUP

Banyan Tree Group (“Banyan Tree Holdings Limited” or the “Group”) is one of the world’s leading independent, multi-brand hospitality groups centred on stewardship and wellbeing while offering exceptional, design-led experiences for the global travellers of today and tomorrow. The Group’s diversified portfolio of hotels, resorts, spas, galleries, golf and residences is centred around an ecosystem of 10 global brands, including the award-winning Banyan Tree, Angsana, Cassia, Dhawa and Laguna, as well as the highly anticipated new brands of Homm, Garrya, Folio and two new Banyan Tree brand extensions, Banyan Tree Escape and Banyan Tree Veya.

Founded in 1994 on the core concept of sustainability, Banyan Tree Group seeks to create long-term value for all stakeholders and destinations across its network of properties, products and brands, through a purpose-driven mission. With 8,000 associates across 23 countries, Banyan Tree Management Academy was established in 2008 to support the Group’s goals through advancing people development, management excellence, and learning with integrity and meaning.

Banyan Tree Group has received 2,850 industry awards and accolades since inception over 25 years ago. It has also received recognition for its commitment to environmental protection and community development through its Banyan Tree Global Foundation, which aligns the Group’s efforts to the United Nations Sustainable Development Goals. Executing on its regionalised growth strategy, the Group’s global footprint continues to grow with 45 new hotels and resorts under design and construction in the pipeline, in addition to 54 operating hotels in 15 countries as of December 2021. As a global industry hospitality leader, Banyan Tree Group firmly embeds its mission to be a business that benefits all stakeholders, for the greater good.

Banyan Tree Group entered a strategic long-term partnership with Accor in 2016 to develop and manage Banyan Tree branded hotels around the world along with access to Accor’s global reservations and sales network, as well as the loyalty programme ALL – Accor Live Limitless. It also formed a joint venture with China Vanke Co. Ltd. in 2017 – focusing on active ageing and wellness hospitality projects. 

 

www.banyantree.com    www.angsana.com    www.cassia.com    www.dhawa.com    www.lagunaphuket.com

www.escape.banyantree.com    www.veya.banyantree.com    www.garrya.com    www.hommhotels.com     

 

#BanyanTreeGroup

HOMEVEST lists on 1Exchange, Singapore’s First Regulated Private Securities Exchange

KUALA LUMPUR, MALAYSIA – Media OutReach – 13 January 2022 – Homevest Sdn Bhd (“HOMEVEST”) has successfully listed on the 1Exchange (“1X”) platform, Singapore’s first private securities exchange regulated by the Monetary Authority of Singapore (MAS), in a listing process today.  


 

From Left: HOMEVEST Corporate Lawyer, Lew Choon Meng; HOMEVEST Corporate Advisor, Datuk Wira Haji Muhammad Faizal Zainol; HOMEVEST, Dato’ KY Lim, Group Managing Director; Dato’ Marcus Low, Executive Director & CEO; Puar Chin Jong, Independent Non-Executive Director; Hong Boon Toh, Independent Non-Executive Director; Victor Chia, CEO of 1Exchange, Johnson Chen, CEO of CapBridge & Founder of CapBridge Financial Group and Mohamed Nasser, Senior Vice President and Global Head Equity Capital Markets at SGX.

 

HOMEVEST consists of 3 divisions including HOMEVEST Capital, HOMEVEST Living and HOMEVEST Development. HOMEVEST is in the business of property investment, management, acquisition and development. Formerly known as KYY Empire and founded in 2016, the company has made a significant impact on the Malaysian property market with out-of-the-box property solutions. Within 5 years period, HOMEVEST’s has won numerous recognitions and awards throughout the region.

 

HOMEVEST is currently managing a wide range of properties portfolio of RM328 million covering Klang Valley and Johor Bahru. HOMEVEST had also obtained its ISO status being a certified company holding the ISO9001 Quality Management System and ISO14001 Environment Management System certifications.

 

This newly obtained status for HOMEVEST on 1Exchange will further strengthen HOMEVEST’s positioning in property development and project acquisition. Based in the global financial hub of Singapore, 1X is the first regulated private securities exchange with a Recognised Market Operator licence granted by the Monetary Authority of Singapore. 1X is part of CapBridge Financial, backed by Singapore Exchange (“SGX”), SGInnovate, Hong Kong Cyberport and South Korea-based Hanwha Investment, among other strategic/institutional shareholders. It allows HOMEVEST to diversify its investor base by expanding to a broader community globally and digitally. 

 

Moving forward, HOMEVEST aims to develop sustainable Smart City ecosystems with its preferred technology partner, Huawei Malaysia to implement and inaugurate edge cutting innovative technologies solutions in the smart city development.

 

Dato’ KY Lim, Group Managing Director of HOMEVEST, said, “Today’s event marks a historical milestone for HOMEVEST. It brings us one step closer to achieving our vision of creating a world shaped by sustainable and smart-living communities with close-knit relationships. Over the years, HOMEVEST has seen rapid growth in its properties portfolio, investors and client base. We are looking forward to unlock more value for our shareholders, partners and homeowners.”

 

Lim further added, “It is our privilege for HOMEVEST to be listed in 1Exchange, the first MAS-regulated private securities exchange in Singapore and a member of leading integrated private market ecosystem, CapBridge Financial. We decided to be listed in Singapore because it is one of the world’s top financial hubs and is an attractive market due to its competitiveness and reputation in the business environment, human capital, infrastructure and financial sector.”

 

Lim continued, “In 2020, the Covid-19 pandemic disrupted almost everything globally. We took this time to redefine our brand and realign our priority to focus on Environmental, Social and Governance (ESG) goals for the post-pandemic world. We believe in the importance of sustainable practices and we are committed to address sustainability in our business.”

 

Dato’ Marcus Low, Executive Director & CEO of HOMEVEST, added, “There is still a huge potential in the Malaysian property market, with our average house prices on of the lowest when compared to houses in China, Australia, Singapore and other Southeast Asia countries. While we continue to offer home affordability solutions to our customers, we are committed to reinvest our profits for sustainable growth and to generate returns for our shareholders.”

 

The direct listing on 1Exchange was marked by a virtual gong-striking ceremony on 12 January, attended by representatives from HOMEVEST, Dato’ KY Lim, Group Managing Director; Dato’ Marcus Low, Executive Director & CEO; Corporate Advisor, Datuk Wira Haji Muhammad Faizal Zainol; Puar Chin Jong, Independent Non-Executive Director; Hong Boon Toh, Independent Non-Executive Director; Victor Chia, CEO of 1Exchange, Johnson Chen, CEO of CapBridge & Founder of CapBridge Financial Group and Mohamed Nasser, Senior Vice President and Global Head Equity Capital Markets at SGX.

 

We are delighted that HOMEVEST has selected 1exchange as their listing venue. As Malaysia’s business in property investment, management and development, HOMEVEST unlocks value for their partners to make home ownership more affordable and accessible. 1Exchange is proud to be a partner to HOMEVEST and we look forward to its continued growth. Said 1Exchange Chief Executive Offer, Victor Chia.

About HOMEVEST

One of HOMEVEST signature programmes is the Home Ownership Programme for Employees (H.O.P.E.) which is aimed at enabling corporations and small and medium enterprises (SMEs) to empower their employees to own a home. This programme is officially supported by the Ministry of Housing and Local Government (Kementerian Perumahan dan Kerajaan Tempatan) and endorsed by the Malaysia Book of Records as the “First Property Company to Provide Homeownership Programme for Employees in Malaysia.”

The innovative programme focus on assists employees to achieve their dream of owning a house with value-added benefits for employers to retain their top-performing employees. In addition, this programme is aligned with the United Nations Sustainable Development Goal (SDG) no. 8, which is to promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

HOMEVEST Living has proven its clout as an innovative property solutions provider by continuously developing original and unprecedented solutions for property management. Its 3 in 1 Deal consists of Zero Deposit, Free Mover Service, Free Utilities. Flexi-Rent2own Programme provides hassle-free solutions for its customers. With this deal, HOMEVEST Living was able to rapidly attract new customers and achieve 95% occupancy rate in 2021.

Backed by its strong and experienced management team, experienced board of directors, and with the support of its trusted board of advisors and customers, HOMEVEST has won many accolades over the years and has earned an excellent reputation for its high standards in entrepreneurship, innovation and social responsibility and HOMEVEST seek to achieve its vision of creating a world shaped by sustainable and smart-living communities with close-knit relationships.

For latest news and information about HOMEVEST, please visit HOMEVEST’S website: www.homevestglobal.com and social media:    https://www.facebook.com/HomevestGlobal

 

#HOMEVEST

The issuer is solely responsible for the content of this announcement.

Laos Confirms 805 New Cases of Covid-19, Seven Deaths

Covid-19 Update for Laos
Covid-19 Update for Laos

Laos has recorded 805 cases of Covid-19 across the country today, with seven new deaths.

Laos to Increase Production of its Molacovir Covid Pill

Laos to increase production of molacovir.
Laos to increase production of Molacovir.

Laos is to increase production of its Molacovir medication used to treat Covid-19 in order to meet rising demand.

Vientiane Police Arrest Drug Trafficker After Two-Year Investigation

Vientiane Police Arrest Major Drug Trafficker
Major drug trafficker, Mr. Souban, arrested by police in Xaythany District.

A major drug trafficker operating in Vientiane Capital has been arrested after a two-year investigation by Xaythany District police.

NetApp Achieved Double-Digit YoY Growth Again in APAC’s All-Flash Array and Open Networked Market Segments in Q3 2021, Says Leading Analyst Firm

In Taiwan, NetApp ranked first in the All-Flash Array (AFA) and Open Networked market segments by vendor revenue; in Hong Kong, NetApp ranked first in the All-Flash Array segment by vendor revenue

SINGAPORE – Media OutReach – 13 January 2022 – Global cloud-led, data-centric software company NetApp (NASDAQ: NTAP) today announced that it has achieved double-digit percentage growth, year-on-year, in the All-Flash Array (AFA)[1] and Open Networked[2] segments for the Asia-Pacific[3] (APAC) region, according to the IDC Worldwide Quarterly Enterprise Storage Systems Tracker, Q3 2021 (December 2021 release).

Across the APAC region for Q3 2021, NetApp retains its position as the second largest vendor (tied) by vendor revenue, quarter-on-quarter, in both the Open Networked segment and the AFA segment. NetApp achieved 41.2 percent year-on-year growth for the AFA business segment, while achieving 15.1 percent in the Open Networked business segment, outpacing the overall market growth again, according to IDC. This achievement was driven by strong performances in the Greater China Area, specifically for Hong Kong and Taiwan.

  • In Taiwan, NetApp achieved 184.6 percent year-on-year growth for its AFA business in Q3 2021, outpacing the local market growth of 49.4 percent. This performance established NetApp as the local AFA segment leader for Q3 2021, with a market share of 52.2 percent by vendor revenue.
  • In the Open Networked segment, NetApp achieved 146.4 percent local year-on-year growth for Q3 2021, outpacing market growth of 49.1 percent. This performance established NetApp as the local Open Networked segment leader for Q3 2021, with a market share of 38.7 percent by vendor revenue.

  • In Hong Kong, NetApp achieved 209.9 percent year-on-year growth for its AFA business in Q3 2021, outpacing the local market growth of 3.9 percent. This performance allowed NetApp to retain its top position, quarter-on-quarter, in the local AFA segment in Q3 2021, with a market share of 20.2 percent by vendor revenue.

“The year-on-year growth shown in our Hong Kong and Taiwan markets is phenomenal, if we are to compare against the overall local market figures,” said Sanjay Rohatgi, Senior Vice President and General Manager, APAC, NetApp. “The overall results tell us that we have a great team who truly understand our customers’ needs, as they progress with their digital transformation. We hope to continue on our path of making the hybrid cloud more accessible to customers at less cost through our strategy of building strong hyperscaler partners and a strong product portfolio.”

 

Modern All-Flash Arrays by NetApp provide robust data services, integrated data protection, seamless scalability, and new levels of performance. These software features, along with deep cloud and application integration, enable the provisioning of storage within minutes. By easily connecting to more public clouds, customers can enjoy both the advanced services and cost savings that they are looking for.

 

NetApp has recently strengthened its product portfolio with the introduction of the new NetApp AFF A900, powered by NetApp ONTAP Enterprise Edition. It features leading capabilities that include the highest data storage performance, best-in-class data security with the new Anti-Ransomware Suite, and simplified, non-disruptive upgrades. In the past year, NetApp has also more than doubled its natively integrated public cloud presence to 27 stamps or zones across APAC, through its partnerships with the hyperscalers.



[1] The AFA segment refers to a network storage system that only supports all-flash media as persistent storage and is available under a unique stock keeping unit (SKU).

[2] The Open Networked segment refers to all enterprise storage systems that are not directly attached to a server and deployed in the open operating system environment (this excludes mainframe operating environments).

[3] APAC refers to Australia, Hong Kong, India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea, Taiwan, and Thailand, excludes Mainland China

About NetApp:

NetApp is a global cloud-led, data-centric software company that empowers organizations to lead with data in the age of accelerated digital transformation. The company provides systems, software and cloud services that enable them to run their applications optimally from data center to cloud, whether they are developing in the cloud, moving to the cloud, or creating their own cloudlike experiences on premises. With solutions that perform across diverse environments, NetApp helps organizations build their own data fabric and securely deliver the right data, services, and applications to the right people – anytime, anywhere. Learn more at www.netapp.com or follow us on Twitter, LinkedIn, Facebook, and Instagram.

NETAPP, the NETAPP logo, and the marks listed at www.netapp.com/TM are trademarks of NetApp, Inc.

#NetApp

CUHK Business School Research Finds the Rise of Rail Along China’s Belt and Road Stimulates the Maritime Freight Market and Local Economies

HONG KONG SAR – Media OutReach – 13 January 2022 –  The Belt and Road Initiative, announced in 2013, represents China’s most ambitious effort yet to strengthen its physical connectivity to the world. As a programme of vast infrastructure building throughout the country’s neighbours, it comprises of two major components: A land trade route known as the Silk Road Economic Belt that links China to Europe via Central Asia and Russia as well as to other Asian countries, and a sea route known as the 21st Century Maritime Silk Road running from the East coast of China to Europe through the Indian and South Pacific Oceans.

(Source: iStock)

The Belt and Road Initiative, announced in 2013, represents China’s most ambitious effort yet to strengthen its physical connectivity to the world. As a programme of vast infrastructure building throughout the country’s neighbours, it comprises of two major components: A land trade route known as the Silk Road Economic Belt that links China to Europe via Central Asia and Russia as well as to other Asian countries, and a sea route known as the 21st Century Maritime Silk Road running from the East coast of China to Europe through the Indian and South Pacific Oceans.

While few would doubt its development is of immense value to China’s future economic wellbeing, studies and discussion on the topic has tended to presuppose that two components operate independently, when in reality the development of one component can drastically affect the other.

This is the premise of the study How “Belt” and “Road” are Related Economically: Modelling and Policy Implications, which sought to examine how the two modes of transport affected one another as well as how they benefited companies making use of it to transport goods to faraway markets.

The study was conducted by Andrew Yuen Chi-lok and Cheung Waiman, Senior Lecturer and Professor, respectively, at The Chinese University of Hong Kong (CUHK) Business School’s Department of Decision Sciences and Managerial Economics, in collaboration with Prof. Laingo Randrianarisoa at the Kedge Business School, Prof. Zhang Anming at the University of British Columbia and Prof. Yang Hangjun at the University of International Business and Economics.

“In the past, people have tended to think of the land and sea routes under Belt and Road as being separate and independent economically, whereas in realty they are pretty much anything but,” says Dr. Yuen, adding that, for example, improvements to the main rail line connecting China to a number of Eurasia countries, known as the New Eurasian Land Bridge, has hit the bottom lines of shipping companies such as China’s COSCO in recent years.

“As China continues the rapid development of its high-speed rail network, there’s every possibility that companies will increasingly look to moving their goods by land, rather than by air or across the seas,” he adds. In turn, this prompted the researchers to closely examine the short and medium-term impact of the development of rail links under Belt and Road on the maritime market.

Rail Subsidies

To do so, they developed an analytical model to capture how the two components of Belt and Road interacted with each other. They first turned their attention to the thorny issue of subsidies granted by the Chinese government to encourage the use of rail links.

Despite the rapid improvement in rail links brought about by infrastructure spending under Belt and Road, the sea remains the predominant way that Chinese companies transport their goods across countries within the initiative.

To stimulate demand, the Chinese government typically provides significant subsidies to encourage the use of rail links. Back in 2018, China’s Ministry of Finance subsidised as much as up to 50 percent of the cost of shipping rail freight between China and Europe, although this has gradually been cut back in recent years and is expected to be completely abolished in 2022.

Using the model they developed, the researchers demonstrated that the high level of subsidy that the Chinese government has been offering to rail operators in the early years of Belt and Road may at least be partially explained by the slump in the shipping sector (caused by successive global economic crises as well as structural overcapacity within the maritime industry) depressing freight rates, which amounted to just around US$3,000 per FEU (forty-foot equivalent unit, the size of a standard shipping container) in the pre-pandemic era, but has since risen dramatically as supply chains around the world restarted as COVID lockdowns eased.

Specifically, it found that subsidies paid by governments to stimulate rail usage often depends on demand for the transportation of goods in the shipping sector as well as the shipping freight rate. It also depends on the costs that the rail operator incurs as the volume of goods being transported rises, regional road tolls to and from the rail station, as well as the degree to which companies having their goods transported are sensitive to price and speed of delivery.

Fully Competitive Market

On the other hand, the researchers also looked at what would happen if rail subsidies were abolished altogether and the two modes of freight were to compete on an equal footing.

The study showed that firms which make use of the infrastructure links under Belt and Road are only likely to continue to favour transporting goods by sea (which is typically the cheaper option) if shipping prices at ports remain low. However, demand for rail (which is faster) will depend on the nature of goods that are to be transported, with companies favouring rail for high-value and time-sensitive products such as laptop computers, mobile phones, auto parts, household electronic appliances, and some perishable goods.

Companies are also more likely to choose to use rail to transport these products because in China they are typically manufactured in inland cities like Chongqing and Chengdu. Not only is it cheaper for companies to set up shop in these regions, but by making use of comparatively faster rail transport links, companies can maintain a lower inventory. This allows them to offset the higher rail freight charges.

For the region hosting the Belt and Road infrastructure, the study found that when rail links are added or improved, they provide benefits by improving the quality of rail services, reduce the costs associated with delayed freight, and reduce the cost of ground transportation to and from factories as result of competition.

The extent of this benefit largely depends on the size of investment that has been made into improving rail or port links, as well as the relative proportion of freight users that ship time-sensitive goods, the study found.

“In the long term, we find that if the rail operator in a given region is able to compete with their maritime counterparts on a level playing field, this system would generate positive benefits for a given region where this infrastructure is set up,” says Prof. Cheung. “This is especially so for companies using these shipping services, since competition would lower the price of freight, and the introduction of new rail infrastructure also would help to lower ground transportation costs for companies situated close to the rail station.”

Facility Management

Lastly, the study looked at the effect of whether the rail and port facilities were managed by the same or separate entities. When the two types of facilities are managed separately, the study found that the facility fees charged tended to be lower because the rail and port authorities would behave as competitors, shifting the demand to faster rail services. On the other hand, when they are managed by the same entity, it would yield a greater benefit for companies shipping goods overall, provided that there is a sufficient proportion of them which produce time-sensitive goods.

The researchers say the findings hold deep implications for policymakers in managing subsidies and infrastructure financing. If external economic conditions are poor, the government should set rail subsidies at a minimum level until conditions in both the rail and maritime markets improve. Because a high level of subsidy is unsustainable over the long term, government should also stimulate competition between the terminal operators of the two modes of transport to generate a positive benefit from the Belt and Road Initiative.

Given that rail subsidies are linked to the external economic environment, the Central or local government may also look to improving the market conditions in other sectors of the economy to reduce rail companies’ dependence on financial aid. It is also important for policy makers to identify the share of freight users who are time or price sensitive and to plan accordingly when developing rail or port links to avoid overcapacity or excessive subsidies in one or the other form of freight.

Finally, because the joint management of rail and port facilities tend to yield higher benefits for freight users, the researchers recommend that local and central government authorities cooperate more closely to ensure that the two modes of transport operate in a way that is complementary to each other.

Reference:

Randrianarisoa, Laingo M., Zhang, Anming, Yang, Hangju, Yuen, Andrew Yuen and Cheung, Waiman, How ‘Belt’ and ‘Road’ are related economically: modelling and policy implications (July 21, 2020). https://doi.org/10.1080/03088839.2020.1791993

 

This article was first published in the China Business Knowledge (CBK) website by CUHK Business School: https://bit.ly/3356AQa

About CUHK Business School

CUHK Business School comprises two schools – Accountancy and Hotel and Tourism Management – and four departments – Decision Sciences and Managerial Economics, Finance, Management and Marketing. Established in Hong Kong in 1963, it is the first business school to offer BBA, MBA and Executive MBA programmes in the region. Today, CUHK Business School offers 9 undergraduate programmes and 18 graduate programmes including MBA, EMBA, Master, MSc, MPhil and Ph.D. The School currently has more than 4,500 undergraduate and postgraduate students from 20+ countries/regions.

In the Financial Times Executive MBA ranking 2021, CUHK EMBA is ranked 19th in the world. In FT‘s 2021 Global MBA Ranking, CUHK MBA is ranked 48th. CUHK Business School has the largest number of business alumni (40,000+) among universities/business schools in Hong Kong – many of whom are key business leaders.

More information is available at http://www.bschool.cuhk.edu.hk or by connecting with CUHK Business School on:

Facebook: www.facebook.com/cuhkbschool

Instagram: www.instagram.com/cuhkbusinessschool

LinkedIn: www.linkedin.com/school/cuhkbusinessschool

WeChat: CUHKBusinessSchool

 

#CUHKBusinessSchool

The issuer is solely responsible for the content of this announcement.