The Knowledge to Decide

Prime Minister Narendra Modi recently moved ahead to demonetize high-value currencies in November 2016 in a calculated approach to eradicate black money from the country. INR500 and INR1,000 notes became invalid – these account for 86% of currency in circulation. Amidst the immediate effect on consumption, sectors incurring major setbacks include real estate, construction, jewelry, high-end retail, travel and tourism. However, the long-term economic benefits include higher tax revenues that will create a better business environment with higher transparency and minimized corruption. Banks will see large inflows. Inflation may trend lower leading to drop in interest rates. Are there unforeseen ramifications of demonetization in India? https://www.spireresearch.com/newsroom/spirethoughts/demonetization-in-india/

The construction material that could define the 21st century might just be wood. As part of the United Kingdom’s prestigious design festival at the Chelsea College of Art and Design, a construction made entirely of tulipwood is the most complex structure produced by cross-laminated timber (CLT). The installation known as ‘The Smile’, is a 34-meter-long, 3.5-meter-high tube which is rectangular with curves on both ends – similar to a Cheshire cat grin. Visitors can walk through the hollowed interior. This collaboration with the American Hardwood Export Council and Arup aims to highlight the potential of timber construction for architects and engineers. Furthermore, timber is a sustainable material that is less energy-intensive than concrete. Is timber construction the future of architecture? https://www.spireresearch.com/newsroom/spirethoughts/is-wood-stronger-than-concrete/

Japan has emerged as an attractive tourist destination. The weaker yen and hassle-free visa application from some countries continue to drive tourism. The country is even on track to surpass its record of 13.4 million tourist arrivals in 2014 this year. Japan aspires to attract 20 million visitors by 2020 as Tokyo plays Olympics host. The rising tourist influx has become a cause for concern due to a hotel crunch. Japan’s answer to this is the conversion of office buildings into hotels to save high construction costs. For instance, B-lot – a 28-year-old office building in Tokyo – has been converted to a hotel called First Cabin. Here a “business-class cabin” with a single bed costs about USD46. The idea is still in its infancy, but the potential lies in major cities where hotel demand is strong. This is evident, as the lowest-ranked business rooms in Tokyo have seen a rise of 11.7% in cost since 2014. Will conversion of offices into hotel rooms help achieve Japan’s 20

Spire Research and Consulting collaborated with the Indonesian Business Data Center (PDBI) to study the direct economic impact of Indonesia’s National Health Insurance (JKN) program in 2015. The study revealed that the much talked about JKN program would add up to IDR18.62 trillion (USD1.3 billion) to Indonesia’s economy. Jeffrey Bahar, Deputy Chief Executive Officer of Spire Research and Consulting group, was honoured to address a press conference on behalf of PDBI on 25 August  2015 in Central Jakarta. During the conference, he discussed the direct economic impact of the JKN program since its implementation in 2014. Bahar opined that the positive impact highlights the contribution from four related sectors namely human resources, construction of hospitals, health services and medicines. Interestingly, the study used data from various government institutions throughout 2014 which clearly demonstrated that the JKN program has raised demand for doctors and nurses by 50,000