The Knowledge to Decide

Spire was honored to participate in the second webinar series organized by Global Supply Chain Council (GSCC) as a guest speaker. The webinar was held on 20 December, 2017 in Hong Kong. Jeffrey Bahar, Deputy Chief Executive Officer of the Spire Research and Consulting group shared his insights on cross-border e-commerce challenges and trends for payment and logistics transactions across Southeast Asia. In his presentation, Bahar shared his insights on potential of cross-border e-commerce transactions in South-East Asia, with a focus on challenges involving payment and logistics issues. Bahar mentioned that the e-commerce market represents potential for growth due to the rise in internet users across ASEAN-6 countries (Singapore, Malaysia, Indonesia, Vietnam, Thailand and the Philippines) as of 2016. Product purchases (in millions) were highest for Vietnam (33.26), the Philippines (30.34) and Indonesia (24.74) with clothing, accessories as well as footwear amongst the top 5 p

ASEAN’s gaming market is set for rapid growth. By 2017, there will be an estimated 80 million middle-income households, adding more consumers in the 20-50 years age bracket. This means gaming revenues will reach USD2.2 billion – double in value. What factors contribute to this emerging market? With improved broadband infrastructure and more disposable income, online as well as mobile gaming is increasingly accessible. By the end of 2016, there will be 230 million smartphones in Asia – which means more potential users. ASEAN governments have been quick to cash in. For instance, game developers in Indonesia receive subsidies to encourage market growth whereas the University of the Philippines actively promotes game development and design courses, hosts gaming events as well as offers scholarships to attract students. However, the gaming market in ASEAN is highly fragmented. Each ASEAN country has unique preferences and gaming behaviour. No one single publisher or format c

The establishment of ASEAN Economic Community (AEC) in 2015 was a major milestone in the region’s economic integration. With a GDP of USD2.6 trillion and 600 million people, the AEC is Asia’s third largest economy and the seventh largest in the world. What is the AEC score card thus far? Leon Perera, Chief Executive Officer of Spire Research and Consulting, shared his insights in China Daily – Asia Weekly. AEC’s Blueprint 2025 envisions in achieving a highly integrated and competitive regional economy with enhanced connectivity to improve market access for ASEAN companies to sell goods and services. However, the past year has seen missed opportunities to accelerate progress for cross-border investment between ASEAN countries, speeding up the harmonization progress of non-tariff barriers as well as integrating a competition policy across ASEAN. Nevertheless, the AEC is making some progress. In time, it is well-placed to improve market access and provide the ASEAN groupin

With ASEAN rail infrastructure expenditure projected at USD8 to10 trillion from 2010 to 2020, lack of funding could put the brakes on growth. Despite an ASEAN railway development policy – albeit a non-formal agreement – member states are under no obligation to comply and not all countries have financial capacity to pay. Is there an alternative for funding of stalled multi-billion projects? Leon Perera, Chief Executive Officer of Spire Research and Consulting, shared his insights in China Daily – Asia Weekly. Inadequate funding of rail projects at the regional level mean regional connectivity is yet to be established. Projects such as the construction of the planned high-speed Singapore to Kuala Lumpur rail line is yet to begin mainly due to negotiations on cost sharing. At the same time, China’s USD9.7 billion rail agreement with Thai Government (in December 2015) and an USD5.5 billion deal with Indonesian state-owned companies (in October 2015) are among many that have b

The ASEAN region will see double-digit growth for e-commerce. Indonesia has the highest retail sales in ASEAN at USD469 billion and is expected to see robust e-commerce growth. Jeffrey Bahar, Deputy Chief Executive Office of Spire Research and Consulting group, highlighted the growth potential and key opportunities present in this sector during his presentation at the third Annual South East Asia Retail Expansion Summit in October 2015. The number of online shoppers in Indonesia is set to reach 8.7 million in 2016. Indonesia boasts of being among the top six retail e-commerce markets with a total retail value at USD1.3 billion (in 2013). Bahar mentioned that 51% of Indonesian online shoppers fall in the 21-27 age category where free shipping, exclusive deals, product warranty and safe payment methods are strong motivators. Key growth categories are books (22%) and fashion products (20.5%). Nonetheless, challenges remain. Barriers that need to be addressed to promote Indon

As ASEAN trade grows rapidly, so does its economic clout – the combined Gross Domestic Product (GDP) of the region is set to reach USD3 trillion by 2024, making it among the top ten economies in the world were it a single country. What key trends will emerge as ASEAN trade forges ahead? Leon Perera, Chief Executive Officer, of Spire Research and Consulting shared his insights in China Daily – Asia Weekly. The share of intra-ASEAN trade out of the region’s total trade has grown to over 27% in 2014 from 17% in 1990. The ASEAN region continues to be an export-oriented global manufacturing and services hub for thousands of multinationals. Economic growth has led to the rise of the upper and middle classes and an increase in the consumption of luxury goods. Perera noted that Southeast Asia still imports aircraft and industrial equipment from Europe and the U.S. Moreover, toys and consumer electronics continue to be heavily imported from China. So there is no question of ASEAN beco

With Automotive Aftermarket demand expected to soar at 13% from 2010 to 2018, how can industry players cash in on this market opportunity? Japnit Singh, Senior Director, Singapore and India of Spire Research and Consulting shared his insights in the Lube Report Asia magazine. Original Equipment Manufacturers (OEMs) in the automotive industry are operating in highly competitive markets. In most countries, they are fighting for market share via promotions and heavy price discounts. OEMs are always on the look-out for new income streams. It is in this context that industry players and manufacturers in Indonesia and Malaysia have been zeroing in on the lubricant oil market. Singh highlighted that post-sales services – inclusive of oil change and regular maintenance check – generate higher profit margins than vehicle sales. The current low oil prices have encouraged motorists to use their cars more often – raising demand for aftermarket services and parts, including lubricant oil.

ASEAN is now poised to be the hotspot for global automotive manufacturing. The increasing number of Original Equipment Manufacturers (OEMs) operating in ASEAN has played a pivotal role in driving demand in the automotive industry. Against that backdrop, the South East Asia Automotive Summit 2014 gathered key industry stakeholders, such as global car OEMs, government bodies, associations, as well as manufacturing solutions providers and consultants, to discuss the market outlook and potential business opportunities. Jeffrey Bahar, Deputy Chief Executive Officer of Spire Research and Consulting, was amongst the speakers at the 3rd Annual South-East Asia Automotive Summit held in Jakarta. In his presentation, Bahar emphasized the importance of implementing a localized market strategy to penetrate the market. He identified key internal and external factors that would influence automotive localization in the ASEAN region. He shared that there are abundant business opportunities i

The ASEAN Economic Community (AEC) aims to achieve regional economic integration by creating a single-market economy for freer movement of investments, skilled labor, capital as well as goods and services. Countries that possess qualified business resources are sure to benefit from this move. Is Indonesia prepared to provide a qualified workforce? Jeffrey Bahar, Deputy Chief Executive Officer of Spire Research and Consulting, shared his views on Indonesia’s Koran Sindo. Indonesia – being one of the largest economies in the world – is set to become a major player in the region. However, the nation must gear up to face the upcoming regional integration for not only commodities and services but also manpower. Bahar opined that although the Indonesian workforce – which totals 90 million people – is acknowledged in terms of knowledge and professionalism abroad – at home – they get only minimum wage. This is why Indonesians need to adopt a more professional outlook and learn from the

As the ASEAN region’s demand for coal surges, will the region be able to meet its future energy needs at a sustainable cost?  Leon Perera , Chief Executive Officer of Spire Research and Consulting, shared his thoughts on the outlook for energy demand in ASEAN for China Daily – Asia Weekly. ASEAN’s demand for coal is expected to triple to account for nearly 30 percent of global energy growth. Coal is a popular fuel source, thanks to its abundance and cost competitiveness. The share of coal in electricity generation is likely to spike from one-third of total output today to almost half in 2035. Perera opined that  energy growth  is a function of Gross Domestic Product (GDP) – which in this case will be driven by the expanding economies of Thailand and Indonesia, followed by the Philippines and Vietnam. All of these economies have substantial room for energy demand growth, due to their growing from a low GDP per capita base and with urbanization and industrialization still not h

In spite of the ubiquity of the internet, online degrees have yet to take off in ASEAN. Spire Research and Consulting surveyed 300 pre-tertiary students from Singapore, Malaysia and Indonesia, and found that most of them prefer local or residential overseas degree programs to online degree options. Spire shared why students are not open to online degrees in Marketing Magazine Indonesia. The Spire study revealed that students in Indonesia and Singapore did not show interest in pursuing an online degree, whereas only 1% of Malaysian students expressed interest. In other words, students considered classes conducted by faculty to be more effective than those conducted via a virtual classroom. Various factors cited for inclination towards attending offline classes include the prestige of old, off-line universities (58%), employability (47%), as well as opportunities to nurture relationships among fellow students (35%). It was also revealed that, when making choices about universit