The Weekly News Update is a weekly roundup of business news from around the Asia-Pacific region, covering Fusion Consulting's core industry practices: chemicals, consumer & retail, financial services, industrial & logistics, information & communication technology, life science and media & leisure. If you have colleagues or friends who may be interested in subscribing, please forward this email to them and copy knowledge@fusionc.com.      Webinar: Results of the 2008 Global Market Intelligence Survey, 7-May        Space is limited. Reserve your Webinar seat now at: https://www1.gotomeeting.com/register/555029805. The Global MI Survey 2008 uncovers ways in which Market Intelligence has been put into use in organizations, and the gains that have been witnessed for the invested resources. After the webinar, the Global MI Survey 2008 can be downloaded for free at www.globalintelligence.com. Title: Results Release of the Global Market Intelligence Survey 2008 Date: Wednesday, May 7, 2008 Time: 9:30 AM - 10:30 AM EST (21:30 - 22:30 Singpaore/Hong Kong)  2008 Asia-Pacific pay-TV operators survey, 4th edition   Find out what the major cable, satellite and IPTV platforms in Asia and Australia  think about all the major pay-TV channels, their programming plans and their  hopes and fears for the future of the industry. This survey questioned  programming managers at major carriers in 16 countries across the region,  focusing on the largest players in each country and covering one third of the 120  million regional subscriber base. In cooperation with ContentAsia.  Request more information. In the news this week l 25-Apr-08 Asia wealth management growth to stay robust

Despite recent market volatility, Asia's wealth management growth is not expected to moderate over the next two years according to the survey of wealth managers. South-east Asia, in particular, is expected to see wealth management revenue growth of over 15% in the next two years. China was named as the market with the highest revenue growth potential by 80% of the 91 respondents from 57 wealth management organisations across Asia, excluding Japan. South-east Asia came in second, 'reflecting the growing significance of Singapore as a global wealth management centre'. Showing confidence in Asia's potential, UBS wealth management has recently set up two branches in Taiwan aiming to provide services to the nation's growing number of high-income individuals and to capitalise on the growth in the region. GDP rose 5.7% last year and exports contributed 65% to the economy, which bolster the company's belief that the nation presents an important market for the wealth management business. About 60% of the wealth managers expected annual revenue growth of over 15% from India, Hong Kong and Taiwan.

Chemical China - Chemical fiber industry to grow at slower pace in 2008 Source: Asia Pulse, 14 April 2008 The output of China's chemical fiber industry will grow 13% to 27 million tons in 2008, due to the slow global economic growth, the rising international oil price and China's enhancing macroeconomic control. According to the Council of China Chemical Fibers Association (CCFA), the industry's economic benefit will hit RMB13-15 billion (US$2.1 billion) in the year, with year-on-year growth equaling with 2007 or dropping slightly. China's chemical fiber industry has a tight relation with global economy, which, the UN predicts, will see its growth fall to 3.4% in 2008. As major markets of China's chemical fiber export, the United States, Japan and EU will have their economic growth lower than a year-ago. Therefore, China's chemical fiber export and market demand will be affected. India - Vibrant days await state's paint industry Source: Daily News & Analysis, 17 April 2008 Bright days are predicted for the state's Rs10 billion (US$250 million) paint industry, which is expected to grow at the rate of 16% to 18% for the next ten years. This leap will push the industry's revenue fourfold, which will then stand at Rs40 billion (US$1 billion). The boost for the industry is expected to be a gift from the booming real estate sector, which has already registered a fast growth track. Therefore, paint units in the state are getting their balance sheets ready to fill in with vibrant hues for the next decade. Product-wise, paints can be divided into two categories - decorative and industrial paints. While the former caters to the housing sector, the automotive segment is a major consumer of the latter. Industrial paint segment accounts for 30% of the paint market, while the decorative paint segment accounts for 70% of paints sold within the country. China - China dye industry tops the world Source: NewsTrak Daily, 18 April 2008 China has become the largest dye manufacturing, exporting and consuming country in the world. In 2007, China dye and organic dye production increased 8.1% over the last corresponding period to 953,200 tonnes in total. China dye exported volume soared 10.1% on year to 351,400 tonnes in total. The 8th China International Dye Industry, Pigments and Textile Chemicals Exhibition held in Shanghai from April 15 to 17 witnessed this growth. This time, the exhibition has an exhibiting area of 20,000 square meters. Approximately 400 local and foreign well-known companies from 14 countries and regions were there to learn the latest development in the industry. View an example of our experience in this industry.

Consumer & retail China - Skin care market to grow at 12.5% Source: M2 Presswire, 18 April 2008 The skin care market is the major segment in the cosmetics and toiletries industry of China. According to a market research report "Cosmetics and Toiletries Market in China" by the market research firm RNCOS, China's skin care market is expected to grow at a CAGR of 12.5% from 2008 to 2012. China has large populace in the age group of 15 to 59 years, which is considered more fashion-conscious. Apart from domestic players, the growing skin care sector of China is also attracting many foreign players. Many international brands like Olay, L'Oreal and Aupres have successfully established themselves in skin care products market of China. For instance, in 2006, among the top ten skin care brands in China, eight were foreign. India - M&S sees India market hotter than China Source: Reuters, 21 April 2008 British retailer Marks and Spencer (M&S) aims to step up the pace in India with its new joint venture with Reliance Retail and says it expects the fast-growing market to be more significant than China. The company will open at least 50 new stores in India over five years to sell apparel and homeware, with an initial investment of up to GBP29 million (US$57.4 million). M&S's increased presence comes at a time of heightened interest in India's fragmented retail industry, which is forecast to nearly double in size by 2015 from about US$350 billion. Foreign multiple-brand retailers are only permitted wholesale and franchise operations in India, where the expansion of modern retail has sparked political concerns and protests from small traders over potential job losses. Korea - Luxury brands enjoy rising sales in 2007 Source: Korea herald, 22 April 2008 Foreign luxury brands enjoyed a surge in profits in 2007 thanks to Korean consumers' affinity for big-name fashion brands, and supported by rising per capita income. Luxury brands like Louis Vuitton, Gucci, Rolex, Zegna and Fendi have all seen sales revenues increase last year. Luxury brands in Korea have been typically cushioned from economic slowdowns, making the market attractive to many international companies for testing new products and capitalizing on consumers' purchasing power. Per capita income also passed US$20,000 recently and is steadily increasing, while economic development and further market liberalization have expanded the appetite for global brands. View an example of our experience in this industry.

Financial services India - Bankers bullish on India growth story Source: Financial Express, 18 April 2008 The country's leading bankers are optimistic that India's growth story would remain high despite tight monetary policies by the Reserve Bank of India (RBI) to curb inflation. "We have not witnessed a substantial industrial or an investment slow-down in the country as-on-date. I foresee India to grow at 8% at the moment and before 2012, the country would bounce back to 10% economic growth," said KV Kamath, managing director and CEO, ICICI Bank. Even though there being a slowdown on credit growth in the banking sector for the year gone by as a whole, the public sector banks like Punjab National Bank (PNB) and Indian Bank also claim to have registered a good growth on these counts. While the PNB expects a credit growth for the year 2007-08 to be at 23-24%, Indian Bank is likely to be clock 20% growth on same front. On the deposit growth, both the banks are likely to witness the mark ranging between 17-18% for the last fiscal. Korea - KTF, Shinhan to launch mobile credit payment service Source: Korea Herald, 22 April 2008 KTF and Shinhan Card have agreed to set up a joint venture to promote a mobile phone-based credit card payment service and other wireless financial services. The two companies will equally invest W1 billion in the company, tentatively named "Mobile Credit," which will be established in May and begin services in August. They expect the new service to attract some 3 million to 5 million subscribers within the next five years. This is the first time a joint company has been formed between a telecom company and a financial firm for credit services. The pair will tap into the growing mobile convergence market to generate new revenue sources. Taiwan - UBS Adds Two Wealth Management Centers In Taiwan Source: Dow Jones International News, 14 April 2008 UBS AG (UBS) opened two additional wealth management centers in Taiwan, and will consider expanding branches on the island to better serve its wealthy clients. Taiwan's high net worth individuals account for about 7% of the region's (total) wealth pool, and this continues to grow at a rate of about 5% per year. The country also ranks as Asia's third-largest wealth-management market for banks behind Japan and China. UBS estimates that the amount of investable liquid assets of affluent households in Asia will grow by about 9.7% in the next few years, faster than the global rate of about 6%. Separately, DBS said around 90% of the high net worth individuals in Taiwan are entrepreneurs - higher than the Asia Pacific average of about 70%. View an example of our experience in this industry.

Industrial & logistics China - Competition in car navigation industry becoming fiercer Source: Wireless News, 14 April 2008 With the number of cars in China exceeding 40 million units and the application prospect of car navigation products becoming clearer and broader, the competition in China car navigation industry becomes fiercer. GPS equipment manufacturers, navigation software and map manufacturers, navigation operators, and chip manufacturers both in China and foreign countries are vigorously developing their own technology advantages and integrating their upstream and downstream industry chain, so as to expand their market shares and seize market opportunities. During 2006-2007, GPS equipments and navigation system software & map manufacturers started a tide of merger, acquisition and integration. Several new trends are shown in the integration tide: 1) GPS solutions and wireless communication will further integrate, 2)Integrating the upstream and downstream industry chain is the development direction of navigation manufacturers and 3) The market share will be further expanded and the industrial concentration will be further enhanced through merger and acquisition. India - Auto industry set to slow down on high input cost Source: Business Standard, 17 April 2008 Weighed down by spiralling input costs, the automobile industry is staring at another slowdown this year also. The industry saw a 5% decline in its sales in 2007. Apart from prices of raw materials reaching an all-time high, there is a liquidity crunch in the automobile consumer market. Inflation has affected buying decisions. Finance companies are getting increasingly reluctant to grant loans. The automobile sector is also facing slower growth in the export market: A weakening US dollar has reduced margins. Manufacturers are left with no option but to pass on the price rise to customers. Almost all manufacturers and allied sectors, like auto-component makers, say the impact of inflation has become unbearable. India - Logistics industry expected to draw huge investments Source: Asia in Focus, 18 April 2008 India's logistics industry, a key driver of the country's economic growth, is expected to witness huge investments in the near future, with the trucking sector alone projected to rake in funds to the tune of Rs2000 billion (US$50.3 billion) in the next two years. According to a white paper by consulting firm ORKASH SERVICES, the logistics sector is at a potential inflection point in its growth and service maturity model, driven by an unprecedented economic boom and fast evolving market dynamics. The largest sector of the logistics industry is trucking, which holds great potential but it is very fragmented, unorganised and not well positioned to leverage the opportunities. View an example of our experience in this industry.

Information & communication technology   Singapore - New rules may transform telcos Source: Business Times Singapore, 18 April 2008 The Singapore government is proposing new rules to ensure a truly competitive landscape when its national broadband network gets off the ground - with potentially far-reaching implications. If passed, the new legislation might even lead to the transformation of SingTel from a telco into a services provider - where it uses the infrastructure without owning it, said one industry expert. SingTel is among 10 groups that have indicated interest in building the nation's ambitious S$1 billion (US$742 million) national broadband network. StarHub and MobileOne have teamed up with Hong Kong's City Telecom to pre-qualify to tender for the project which is slated to run nationwide by 2015 though some services can be ready from about 2010. Telcos are increasingly recognising that they do not need to build or own the infrastructure to deliver telecommunication services. Asia - Strong growth in PC market Source: Computerworld Singapore, 21 Apr 2008 The PC market in the Asia Pacific (excluding Japan) grew 19% year-on-year to 17 million units in the first quarter of 2008, according to IDC. Portable PCs were the main contributor, growing 54% year on year. Nearly every country posted double-digit growth. Lenovo remained the top PC vendor in the region despite the Lunar New Year slowdown. IDC believes that the Asia Pacific PC market is on track for 17% growth in 2008, especially if portable PCs continue their relentless push into the market. Taiwan - 3G subscriptions to reach 10 million in 2008 Source: BMI Industry Insights, 21 April 2008 The Taiwanese Institute for Information Industry (III) has indicated that it expects there to be more than 10 million 3G subscribers in the country by the end of 2008. This would represent a 45% increase in 3G subscriptions from the 6.9 million reported by the III for the end of 2007. Taiwan's mobile market is one of the most mature in the region, with a penetration rate of 106% at the end of 2007, and 3G subscriptions make up an ever larger proportion of the market. There were 24.4 million mobile subscribers in Taiwan at the end of 2007, with around 87% of the market owned by the three largest operators, Chunghwa Telecom, TWM and FarEasTone. Chunghwa also leads the 3G mobile market, with 2.3 million subscribers recorded at the end of 2007, making up 26.3% of the company's subscriber base. The operator has announced that it will spend US$4 billion over the next five-to-seven years on expanding its 3G services and network, including 56% of 2008's US$987 million budget on acquiring 3G handsets. View an example of our experience in this industry.

Life science Singapore - Biosciences Becomes 'Key Pillar' Of Economy Source: BMI Industry Insights, 16 April 2008 Singapore has achieved its goal of making biomedical sciences a 'key pillar' of its economy. The sector now accounts for over one-tenth of manufacturing output, according to the country's Economic Development Board (EDB). Due to regional rivals eroding its traditional production industries - electronics, rubber and chemicals - the city-state is committed to increasing its involvement in the high-value biosciences. By 2000, the value of output of the biomedical sector had reached US$4.6 billion. Many multinational drugmakers established facilities in the city-state, including GlaxoSmithKline, Pfizer and Merck & Co. The EDB said that Singapore's biomedical sector employed more than 11,500 people in 2007, double the number in 2000. India - SIRO buys out German clinical R&D firm Source: Business Standard, 18 April 2008 SIRO Clinpharm (SIRO), one of India's leading clinical research organisations (CRO), has signed an agreement to acquire Germany-based Omega Mediation Group, a leading mid-sized European CRO, for an undisclosed amount in an all-cash deal. The acquisition will provide SIRO with operational capabilities in Germany, Greece, Estonia, the Baltic states and Israel, besides access to Omega's major European pharmaceutical and biotech clients. The global clinical trial industry is estimated at about US$15 billion and the domestic CRO industry is estimated to have a turnover of US$300-350 million with over 100 players. The CRO industry in India is projected to grow to US$2 billion by 2010. India - National Pharmaceutical Policy almost a reality Source: BMI Industry Insights, 18 April 2008 India's controversial National Pharmaceutical Policy (NPP) is nearing introduction, despite resistance from the drug industry. Under the plan, regulations will be toughened and more medicines will come under price control. As these changes will ultimately benefit patients most, BMI welcomes the new rules, but cautions lawmakers that NPPs can have both positive and negative outcomes, as seen in Sri Lanka and Chile, respectively. An assembly of legislators is scheduled to meet on April 30 to finalise its recommendations for a policy that attempts to balance the interests of consumers and of the pharmaceutical industry. The main thrust of the draft NPP is to increase the proportion of India's US$13.82 billion medicine market under price control from the current 20% to more than 35%. This would mean that an additional 354 drugs would be added to the list of price-controlled medicines. View an example of our experience in this industry.

Media & leisure Australia - Aussie web time passes TV time Sources: eMarketer, 21 April 2008 Nielsen Online's "2007 Australian Internet and Technology Report" claimed that for the first time, Australians were spending more time online than they were watching TV (an average of 13.7 hours per week compared with 13.3 hours of TV). Shortly thereafter, Roy Morgan Research said that Australian consumers ages 14 and older spent more than twice as much time watching TV as they did online. China - Chinese Film Authority vows to further commercialise Industry Source: Asia Pulse, 21 April 2008 China's film regulator is to continue the industry reform and allow greater commercialization, a senior official has told the ongoing 15th Beijing Student Film Festival. The film bureau of China's State Administration of Radio, Film and Television (SARFT), said the policy of commercialization would allow the promotion and sale of films as commodities on the market, the breaking up of film-making monopolies and overseas fund raising for film-making. The policy would lead to more market-oriented and commercial films in China's cinemas. In 2007, China produced 402 films with a box office of RMB3.3 billion (US$471.9 million), statistics from SARFT showed. India - Piracy cost Indian entertainment industry over US$4 billion Source:UNI (United News of India), 22 April 2008 The massive problems of piracy and counterfeiting have cost India's entertainment industries over US$4 billion annually. Congressional Intellectual Property Promotion and Piracy Prevention Caucus also called for efforts to combat piracy in the United States and abroad. The Indian film industry is the largest in the world with more than 1,000 films produced each year. These statistics was revealed in the World Intellectual Property Day which takes place in countries around the globe every year on April 26 and seek to increase public understanding intellectual property and how it shapes our world. This year's Capitol Hill event was organised in advance of the official date designated by the World Intellectual Property Organization. View an example of our experience in this industry.

Previous issues

Japan's M&A market starts to stir [18-Apr-08] Beverage firms in India focus on fruit drinks, target teens [10-apr-08] Banks target Asia's wealthy [4-Apr-08] Foreign investors unfazed by Vietnam's economic difficulties [24-Mar-08] India's chemical sector benefits from China's cut in export rebates [20-Mar-08] Foreign game makers accelerate Asian drive [14-Mar-08]    What you don't know can hurt you  Receive all the key news on your markets, industry and competitors each  week, with alerts for important breaking news, and avoid information  overload with human filtering. Find out more about our Market Monitoring   Service and web-based Intelligence Plaza system by emailing   marketing@fusionc.com.

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