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.    China's water and wastewater treatment sector   Huge demand exists in China for clean water with ample opportunities for  investors, water companies or water technology suppliers in the municipal and  industrial water supply and wastewater treatment market. Market-oriented  regulatory changes have lowered pricing risk, and opened up the sector.    Find out what the needs, solutions and opportunities are. In the news this week l 29-Feb-08 India to exploit nutraceuticals

Global nutraceuticals market is valued at around US$120 billion in 2007, growing at 7% CAGR. The US has been the major market for nutraceuticals, but Asian countries such as China and India are expected to record exceptional gains due to rising economic prosperity. In India, the nutraceutical market is valued at US$471 million in 2007. Research and Markets expects the Indian market to grow at 20% CAGR to reach US$676 million in 2009. India is keen to expand its presence in western markets where demand for nutraceuticals has been growing due to changing lifestyles and ageing population. British Biologicals is in the process of acquiring a protein product firm in New Jersey to foray into the US market in 2008. Last year, Plethico Pharmaceuticals acquired US nutritional products company Natrol - making it one of the largest herbal and nutraceutical manufacturers in India.

Chemical China - Dow Chemical to set up joint venture with Shenhua source: SinoCast China Business Daily News, 25 February 2008 Dow Chemical's two-year feasibility study on a coal-to-chemicals project with Chinese coal major Shenhua Group Corporation will be concluded in the first quarter of 2009 and submitted to the National Development and Reform Commission. Dow is committed to invest US$5 billion in the coal-to-chemicals joint venture, in Shaanxi Province. The project will convert coal to methanol to produce ethylene and propylene.  Dow Chemical's China sales rose more than a fifth to US$3.3 billion in 2007. Most sectors which Dow serves, such as home appliances, personal care, construction and electronics, are forecast to rise an average 15% in 2008 in China. Singapore - Lanxess to build US$575 million chemical plant in Singapore Source: Bloomberg, 26 February 2008 German butyl rubber maker Lanxess plans to spend US$575 million building a plant in Singapore to meet rising demand for the material used in auto tires. Lanxess's expansion in Singapore underscores the expectation that the region will account for more than half of the world's butyl rubber demand by 2013. That growth will be led by India and China, the main destinations for the output from the Singapore plant. The plant is seen as a boost to the local chemicals cluster. The output from the chemicals cluster stands at S$82 billion (US$59 billion) now. The chemicals cluster has surpassed electronics as the largest contributor to Singapore's manufacturing output at close to 34%. Singapore - Asahi Kasei to produce synthetic rubber for tires  Source: Nikkei Report, 22 February 2008 Asahi Kasei Chemicals Corporation plans to set up a Y20 billion (US$187 million) synthetic rubber plant in Singapore as early as late 2010 to meet growing demand for tires in China and elsewhere. The firm's first synthetic rubber production outside Japan will focus on high-function products for use in energy-saving and other high-performance tires, and supply to major tire makers' factories in Asia, the United States and Europe. Asahi Kasei Chemicals' synthetic rubber business generates sales of roughly Y45 billion (US$420 million) a year. The high-function products specialist controls slightly more than 15% of the global market for special synthetic rubber for high-performance tires. View an example of our experience in this industry.

Consumer & retail India - Reliance eyes retail venture with M&S Source: The Economic Times, 25 February 2008 Reliance Retail is locked in discussions to float an equal joint venture with UK fashion retailer Marks & Spencer (M&S) for apparel, gourmet food and cafes. The deal, slated to be clinched in the next three weeks, would see the UK retailer bringing in new formats like food and cafes into India. Indian government allows foreign retail companies to invest up to 51% in Indian retail companies on the condition that they sell goods under a single brand. So, while Starbucks, Louis Vuitton and M&S are allowed to come in as they sell goods under a single brand globally, Carrefour and Wal-Mart are not allowed to sell to consumers directly as they sell thousands of brands. Singapore - Food exports to UAE up 67% in 2007 Source: Business Times Singapore, 25 February 2008 Singapore's food shipments to the United Arab Emirates (UAE) grew 67% to S$171 million (US$122 million) in 2007. International Enterprise Singapore revealed that bilateral food trade grew from S$111 million (US$79 million) in 2006 to S$180 million (US$128 million) in 2007, making UAE Singapore's largest food trading partner in the Middle East. Singapore has some 700 food manufacturers, with more than half catering to overseas markets. Total trade generated by the industry in 2007 was S$17.6 billion (US$13 billion), up more than 15% from the previous year. Two-fifths of exports went to key markets like Japan, Malaysia, China and Indonesia. Thailand - Air Products opens Asia Food Technology Center Source: RTT News, 26 February 2008 Air Products & Chemicals has opened of its Asia Food Technology Center at the Thailand Science Park in Bangkok. The Center has been set up to provide novel solutions and technical know-how to support the ever-increasing demands from the growing Asian food market. By strategically locating its Asia Food Technology Center in Thailand, one of the world's leading food processing markets, Air Products can now work even closer to its Asian customers, to drive forward new food processing innovations. Air Products is also able to leverage cutting-edge microbiological and food science research capabilities within the Thailand Science Park and nearby universities. View an example of our experience in this industry.

Financial services China - Beijing, Taipei close to banking deal Source: China Economic Review, 22 February 2008 Banking regulators in Beijing and Taipei have agreed that Taiwan's Fubon Bank can take a 20% stake in Xiamen Commercial Bank. The investment would help remove one of the largest remaining barriers to cross-strait economic ties by allowing Taiwan banks to invest in mainland banks via their subsidiaries in Hong Kong. The Fubon deal could serve as a case study for future tie-ups between Taiwan and mainland banks. Taiwan and Beijing do not allow their banks to invest in each other. Up until now Taiwan banks have been able to get limited access to China via Hong Kong. Mega Financial, SinoPac Financial and many other financial companies have branches in Hong Kong. Singapore - Citibank launches centre for high net worth clients Source: Channel NewsAsia, 26 February 2008 Citibank is gunning for more high net worth clients with a new S$3.5 million (US$2.5 million) high-tech centre in Singapore. The centre will have private conference rooms, video conferencing facilities and a plush ambience akin to a five-star hotel catering to high net worth clients. This is the first such centre in Singapore, following successful launches in Hong Kong, Taipei and Seoul. Citibank believes such clients form a growing market, which will help it compete in the lucrative banking segment. Such individuals typically have more than S$1 million (US$0.7 million) in assets that can be invested. An estimated 38,000 people in Singapore are in this category. Singapore - Singapore positions itself as Islamic banking hub Source: Channel NewsAsia, 25 February 2008 Singapore is making yet another push for a piece of the US$500 billion global Islamic banking pie, with a 5% concessionary tax on Shariah-compliant products. Industry watchers said this would help to draw in key global players. However, there is competition from other countries which are seeking to build up their Islamic banking sector, with some countries even offering tax holidays for a substantial period of time. Industry experts said Singapore could further attract key global players with grants or subsidiaries to help product innovation for Shariah-compliant products. View an example of our experience in this industry.

Industrial & logistics China - China's marine shipping industry grows 21% in 2007 Source: Xinhua, 26 February 2008 China's marine shipping business continued to grow rapidly and notched up RMB341.4 billion (US$48 billion) in value added in 2007, recording a year-on-year rise of 21.1%. The number of coastal ports with handling capacity exceeding 100 million dead weight tonnage (DWT) each has totalled 14 in the country. The country ranked the first globally in terms of both freight and container handling volumes for the fifth straight year. In tandem with the fast growth in marine shipping business, China also saw expansion in the shipbuilding industry. The sector scored RMB44.8 billion (US$6.3 billion) value added in 2007, up 17.6% from 2006. India - Scania to go it alone as L&T backs out Source: Business Standard, 26 February 2008 Swedish truck and bus maker Scania has firmed up plans to manufacture trucks in India. This follows the decision of the company's current distribution partner, Larsen and Toubro (L&T), of not venturing into auto manufacturing. In 2006, the two firms signed an agreement to market Scania's tipper range. The multi-axle tipper segment in India is growing at a fast clip, considering the gamut of activities taking place in the infrastructure segment. According to Indian Earthmoving and Construction Industry Association, a staggering investment of US$320 billion is expected in the infrastructure sector in the next five years. A number of global commercial vehicle giants have made a beeline to establish presence in India to tap domestic as well as export markets. Japan - Japan's auto sales in Asia to top domestic market Source: Channel NewsAsia, 24 February 2008 Sales of Japanese cars in Asia are forecast to reach 5.5 million units in 2008, surpassing the domestic market for the first time. Combined domestic sales by eight Japanese automakers are expected to reach 4.94 million units in 2008. The home market appears likely to remain in a long slump due in part to the shrinking population, while the North American market, the backbone of Japanese auto sales, is losing steam amid growing signs of an economic downturn. Domestic automakers are increasingly relying on Asia for their growth amid dimming prospects for the Japanese and North American markets. View an example of our experience in this industry.

Information & communication technology   China - China close to unveiling plan to shake up telecoms Source: The Wall Street Journal Asia, 22 February 2008 China may unveil long-awaited plans for a restructuring of its massive telecommunications industry as early as March 2008. The plan is to China's six big state-run telecom operators into three, with the surviving entities allowed to offer a full-range of services instead of being divided among fixed-line, mobile and other offerings now. Such a move also could pave the way for the government to issue licenses for advanced, "third-generation" cellular services. According to the Ministry of Information Industry, the number of Chinese cellphone accounts jumped by 86 million to 547 million in 2007, while the number of fixed-line accounts shrank by 2.3 million to about 365 million. India - Wipro looks at acquisitions and alliances to expand in Japan Source: Reuters, 26 February 2008 India's software services exporter Wipro is exploring acquisitions and alliances to expand in Japan. Wipro rival Infosys Technologies recently established a strategic alliance with Japan's Nihon Unisys to develop and market new products - highlighting Indian software firms' growing desire to get into the Japanese market. Japan's software service industry is dominated by firms such as NTT Data and NEC, which have strong ties with banks, the postal system and manufacturers. Foreign firms have found it difficult to win major orders in the Japanese market. Japan - Sony forges flatscreen deal with Sharp Source: Japan Times, 27 February 2008 Japanese electronics companies Sony and Sharp have announced a business tie-up in liquid crystal display (LCD) panels for hot-selling flat televisions. Sharp will put an LCD factory that it is building in Sakai, western Japan, under the control of the joint venture, which will begin operating by March 2010, owned 66% by Sharp and 34% by Sony. Sony currently procures LCD panels from Samsung Electronics of Korea but needed to find an additional source of supply given the booming market for LCD televisions. By allying with Samsung and Sharp, Sony hopes to become the world's top producer of LCD TVs. View an example of our experience in this industry.

Life science India - Opto Circuits buys US firms for US$68 million Source: Business Standards, 26 February 2008 Bangalore-based healthcare equipment maker Opto Circuits India has signed a definitive agreement to acquire US-based Criticare Systems, a maker of medical equipments, for US$68 million. Criticare Systems is a provider of patient monitoring systems and non-invasive sensors. Post-merger, Criticare will become a wholly owned subsidiary of Opto Circuits. The latest buyout will be Opto Circuits' second in the United States after Pancho in 2002 and third overseas, as Eurocor GmbH of Germany, which designs and manufactures stents, was acquired in 2005 for EUR11 million (US$16.5 million). India - British Biologicals to export nutraceuticals to US, Russia Source: Indo-Asian News Service, 23 February 2008 Indian nutraceutical firm British Biologicals is set to enter American, Russian and European markets to export a range of dietary supplement nutraceuticals. With a growing presence in the domestic nutraceuticals' market, British Biologicals has been exporting products to 15 countries in Asia, Middle East and Africa. It claims to have 23% market share in India, with an annual growth rate of 35%. British Biologicals plans to also expand its presence in western markets where demand for nutraceuticals has been growing due to changing lifestyles and ageing population. It competes with Alembic, EID Parry, Lupin, Novortis and Pfizer, which manufacture and market a range of nutraceuticals. Singapore - Qiagen opens service centre Source: Business Times Singapore, 23 February 2008 Netherland-based life sciences firm Qiagen has opened a new Service Solutions Center in Singapore for the Asia-Pacific region. The facility completes the Company's global Service Solution Network by adding a center in the Asia-Pacific region to its existing centers in the United States, Europe and Japan. By 2008-end, Qiagen's global customer support network will provide solutions-oriented service to customers all round the world. The latest move takes Qiagen's investment in Singapore to date to US$20 million. The company provides diagnostic and instrumentation tools to governments, labs and pharmaceutical firms, which use them for detecting specific substances or for tests in research. View an example of our experience in this industry.

Media & leisure China - Online ads grew 75% in 2007 Source: ChinaWire, 25 February 2008 China's online advertising market grew 75% in 20007 to RMB10.6 billion (US$1.5 billion). iResearch attributed the surge in online advertising to a boom in search engine advertising, which expanded 108.6%. Search engine advertising now accounts for 27.3% of the market, and would reach 30% in 2008. The firm forecast that China's online advertising market would hit RMB17.2 billion (US$2.4 billion) in 2008 and RMB37 billion (US$5.2 billion) in 2011. China had 210 million Internet users at the end of 2007, the world's second largest online population and only five million fewer than the United States. However, the United States reported more than US$22.5 billion in online advertising in 2007, about 15 times that of China. India - India to raise investment limits in broadcast industry Source: TelecomAsia, 25 February 2008 The Telecom Regulatory Authority of India (TRAI) has recommended raising foreign investment limit in FM radio stations, allowing news broadcast and multiple channel ownership in same areas to the Ministry of Information and Broadcasting. The foreign holding, including institutional investment for FM radio, may rise to 26% for news broadcasting and 49% for non-news broadcasting. Foreign holding now stands at 20% for both. Broadcasters may also be permitted to broadcast news taking content from the government's radio service and television services, authorised television news channels and news agencies. Korea - Tourism deficit at record US$10 billion Source: Korea Herald, 27 February 2008 The tourism deficit hit a record high of US$10.1 billion in 2007, as spending by Koreans traveling overseas exceeded the expenditure of foreigners who visited the nation in 2007. According to the Korea Tourism Organisation, spending by Korean travelers overseas amounted to US$15.8 billion, whereas foreign visitors in Korea spent a total of US$5.7 billion. The surge in the tourism deficit was attributed to the growing trend among Koreans of spending holidays overseas. The number of incoming visitors to Korea grew by 4.8%, while the number of outgoing Korean tourists increased by 15.7%. A total of 13 million Koreans traveled to foreign countries in 2007. View an example of our experience in this industry.

Previous issues

India sets sight on becoming a global MRO hub [22-Feb-08] High stakes in Australian credit card game [15-Feb-08] Handset players struggle in China despite booming market [6-Feb-08] Malaysia losing out in the FDI race? [1-Feb-08] The push towards convergence gains momemtum in Korea [25-Jan-08] Japanese transport companies expand in China [18-Jan-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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