This article is written by Priya Kini, head of Global Banking at HSBC Singapore.

With two-thirds of the world’s middle class expected to live in Asia by 2030, and life expectancy increasing, the healthcare sector was, even pre-pandemic, set to see unprecedented demand. Yet the burden on Southeast Asia is arguably the heaviest to shift. 

Covid-19 is a trigger for players across the entire value chain to take a collective step in creating a more affordable and future-proofed sector for its patients. And treasurers lie at the centre of supporting that change. 

The burden on Southeast Asia 

A report by Solidiance revealed that in nearly all Asean nations the growth of cost in healthcare per capita has been outpacing the growth in GDP per capita. That means that the cost of healthcare is growing at a pace that it unsustainable. Southeast Asia’s challenge is compounded by the region’s unique urban-rural divide and fragmented geographies, encompassing over 25,000 islands.

Looking ahead, it is clear that the sector needs to urgently address the issues of affordability and access, and it needs to attract more public and private investment to do that.

Healthcare players can leverage the current digital impetus induced by the pandemic to streamline internal processes and, in doing so, reduce costs for themselves and for consumers. Treasury functions play a crucial role in driving and enabling such reforms, often pulling on immediate and long term levers to do so.

As incomes rise and populations age, we will see increased demand on healthcare providers not only in urban areas but also across smaller centres. To address this, the sector will have to establish a more inclusive, patient-centric system which ensures better interactions including via digital channels while maintaining the quality of treatment outcomes and data security protection, all of this at a lower cost and with added immediacy. 

Healthcare companies in Asia were already investing in digital, patient-centric capabilities prior to the pandemic, and unsurprisingly, that trend has accelerated. A recent survey revealed that 74% of healthcare companies have sped up their digital transformation and it is estimated that investments in digital healthcare are expected to grow to US$22.5 billion by 2025. 

Solutions created for the pandemic need to be used to harness this patient-centricity for the long term. 

For instance, in maintaining social distancing, omni-channel sales have proved to be successful in treating patients remotely via tele-medicine and enabling order placements by pharmacies and clinics though platform based omni-channel sales. On the other hand, the rise of real-time payments and e-wallets in Asia has enabled a greater outreach and a shift towards direct-to-market business models for healthcare companies. Treasury functions at healthcare companies have rapidly adapted to these payment models. 

The rollout of international vaccine programmes could also be used to overcome weaknesses in supply chain resilience. Vaccine passports – if used – are a route to developing greater patient touchpoints and payment routes where governments, pharmaceuticals and immigration authorities are testing the vaccine, supply chain and inoculation authenticity. The technology and processes used for these could have many more applications in the sector.

Digitising without, and within  

With increased pressure from patients and governments to improve the healthcare experience, healthcare companies also need to look internally to improve efficiency and lower cost of delivery of their services to help make healthcare more affordable to a larger population. 

The Asean nations employ on average 18 per cent of their public healthcare personnel in non-patient facing functions. Automating back-office processes will release overheads and enable healthcare providers to reallocate resources. 

Whether digitising a single function like collections or the entire treasury operation, organisations can redirect resources once dedicated to manual tasks as well as speed the supply chain and reduce sales outstanding. 

The use of Distributed Ledger Technologies (DLT) is taking shape across many sectors and has potential to pay a significant role in the healthcare sector, for instance in in areas such as authorised sharing of medical records between doctors or other healthcare service providers in the chain.  DLT can not only provide better access to and management of data, but will speed up the processes of sharing, avoid duplication and help save costs. Similarly, in the pharmaceuticals sector, blockchain can track medication throughout the supply chain, verifying that hospitals and patients receive the correct drugs. 

Corporate Treasurers are already beginning to drive a lot of this change – whether through streamlining their processes, digitising patient and vendor payments or introducing new technologies in their own functions.

Banks also have a key role in supporting this change; whether through addressing financing needs, driving collaboration between partners or introducing new technologies to treasury functions. 

Conclusion 

With vaccine rollouts increasing, healthcare players must not lose sight of the reform that was already required pre-Pandemic. Covid-19 must be the catalyst for change, and cannot be an excuse to make short term fixes. 

Treasurers have the opportunity to create sustainable, long term solutions within their businesses that will streamline functions, support long-term technologies and enable fast and effective cash management decision-making. Ultimately by doing so, healthcare players can move towards their end goal of a truly holistic and patient-centric business model. 

Source: The Business Times (Singapore)

Date: 6 October 2021

Reference: https://www.businesstimes.com.sg/asean-business/driving-affordable-healthcare-reform-in-south-east-asia

E-commerce and the ongoing digital transformation have been boosting the productivity and competitiveness of small and micro-, small- and medium-sized enterprises (MSME) in Cambodia, Minister of Commerce Pan Sorasak said last week.

The minister was speaking via video link at the 15th session of the UN Conference on Trade and Development (UNCTAD) Ministerial Roundtable IV on “Harnessing frontier technologies for shared prosperity”, co-organised by the Barbadian government and the UN trade body.

The quadrennial conference is attended by 195 UNCTAD member countries, as well as international organisations and other partners, to discuss and find solutions to challenges and complexities associated with trade and development.

Sorasak said the Cambodian government is actively engaged in formulating and strengthening policies, laws, other legal instruments, and related measures to spur development of the digital sector in a successful, sustainable and inclusive manner.

“The digital transformation and e-commerce are major components in boosting the productivity and competitiveness of MSMEs, the backbone of Cambodia’s economy,” he said.

He added, however, that the rapid growth recorded by trade and the digital economy has also widened the digital gap between developed and developing countries, especially the least developed ones.

For the full article, please read here

Author: Hin Pisei

Source: The Phnom Penh Post

Publication date: 10 October 2021  

The Indonesian Government is seeking to impose a carbon tax of Rp30 per kilogram of carbon dioxide equivalent (C02e) on emissions surpassing a designated cap from April 1, 2022, the Finance Minister has said.

“The carbon tax begin to take effect on April 1, 2022, but still it (the government) follows the carbon roadmap related to climate change,” Sri Mulyani Indrawati said at a press conference in Jakarta on Thursday.

The Law on Harmonizing Tax Regulation (UU HPP) deals with the imposition of carbon tax aimed at restoring the environment.

The carbon tax is part of Indonesia’s commitment to lower carbon emissions by 29 percent on its own and 41 percent through international support by 2030 in accordance with the target of Nationally Determined Contributions (NDC), the minister noted.

The tax will be imposed in stages and adjusted to carbon trading as part of the green economy roadmap to minimize the impact on businesses while lowering carbon emissions, she said.

“The basic notion is our acknowledgement that carbon has economic value so we will impose carbon tax through cap and tax trade mechanism,” Vice Finance Minister Suahasil Nazara said.

In the first stage in 2021, the government will develop a carbon trade mechanism and from 2022 to 2024, it will apply the tax to coal-fueled power plants (PLTU), based on the cap and tax mechanism, he informed.

From 2025 and beyond, carbon trade will be done fully and the carbon tax sector will be expanded in stages, in keeping with the sector’s preparedness, he added.

Source: Antara News

Reporter: Astrid Faidlatul H, Suharto

Editor: Rahmad Nasution

Original published date: 08 October, 2021

Read full article here.

“Collective efforts by multiple sectors of our society is required to ensure public health safety in the face of emerging pandemics and emergencies. Key solutions to help the region move ahead have been identified, through the Special Ministerial Conference for ASEAN Digital Public Health.”

Minister at the Prime Minister’s Office and Minister of Finance and Economy II Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah said this at the two-day conference, themed ‘Collaborate for a Happier and Healthier World Post Pandemic,’ which concluded yesterday.

“This includes discussing the importance of impactful financing in driving research and development, as well as building a digital infrastructure that can help to strengthen the efficiency of healthcare systems. These conversations are crucial to have if we want to work together for the long-term,” he said.

The second day of the event focussed on mapping out solutions and the next steps to encourage intra-regional collaboration.

The first panel discussion on Investing and Financing in Public Health saw the participation of ministers and key stakeholders, including Dato Seri Setia Dr Awang Haji Mohd Amin Liew; Minister for Finance Singapore Lawrence Wong; Advisor to the Ministry of Public Health in Thailand Dr Phusit Prakongsai; Vice-President, Operations 2 in Asian Development Bank Ahmed M Saeed; Director General, Social Infrastructure Department in Asian Infrastructure Investment Bank Hun Kim; and Board Director of HilleVax Inc Susan Silberman.

During the discussion, moderated by Head of Philanthropy Advocates of Temasek Foundation Jennifer Lewis, participants explored ways in which public health investments should be prioritised and evaluated for efficiency and effectiveness, and be financed.

Date of Release: 8 October 2021

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Digital transformation has been at the forefront of the agenda even before the COVID-19 pandemic. The pandemic has sped up the adoption of digital technology and many of these changes could be here for a long haul. This was stated by ASEAN Business Advisory Council (ASEAN BAC) Chair and Legislative Council (LegCo) member Yang Berhormat Siti Rozaimeriyanty binti Dato Seri Laila Jasa Haji Abdul Rahman during the launch of Brunei’s legacy project ‘Harnessing Impact with Resilient Employability Digitally’ (HIRED) at the ASEAN Business and Investment Roundtables: Skills for a Digital Age held virtually yesterday.

The roundtables were part of a series of events under the ASEAN Business and Investment Summit 2021.

Yang Berhormat Siti Rozaimeriyanty added, “Technology rapidly changes the landscape of work in the region, leaving us with no choice but to upskill and reskill to adapt and accommodate the changes in the industry skill requirements. This is what the ASEAN-backed legacy project is all about.”

HIRED serves to address unemployment issues and on how ASEAN lags behind in upskilling and reskilling. This is even more critical during the pandemic as we hope to achieve UNN sustainable development goals for quality education, decent work, and economic growth.

The event saw a panel discussion on ‘Future of Work’ – what does the future of work in Southeast Asia look like? How is innovation and business transformation changing how employees operate? What are some of the permanent changes in the workplace caused by COVID-19?

Date of Release: 30 September 2021

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With the spirit of togetherness, ASEAN continues to rise to challenges of achieving sustainability and resilience among the people while preparing the region for the future.

This supports the objectives behind Brunei Darussalam’s ASEAN Chairmanship, themed ‘We Care, We Prepare, We Prosper’, emphasising the region’s relevancy to its people where no one is left behind.

The importance of ASEAN’s solidarity in addressing the challenges brought by COVID-19 in the region was highlighted by Minister of Culture, Youth and Sports Major General (Rtd) Dato Paduka Seri Haji Aminuddin Ihsan bin Pehin Orang Kaya Saiful Mulok Dato Seri Paduka Haji Abidin in his opening remark as the Chair of ASEAN Socio-Cultural Community (ASCC) Council 2021 during the 26th ASCC Council Meeting held via video conference recently.

The minister shared the progress and efforts made by ASCC throughout the year.

He highlighted that the whole-of-ASEAN approach in realising regional commitment to strengthen coordinated responses can be seen through ASCC’s multi-dimensional approach in addressing gaps and challenges thus ensuring the well-being and livelihood of the people.

ASCC council ministers, ASEAN Secretary General Dato Paduka Lim Jock Hoi, delegations and representatives were also present at the meeting.

The minister and ASCC council ministers commended the holistic actions by the ASCC sectoral bodies to address the gaps and challenges affecting the region particularly in areas such as public health, social protection, fake news and misinformation, environmental degradation and the climate crisis.

The ministers stated that the recommendations in the Mid-Term Review of the ASCC Blueprint 2025 had helped advance ASEAN community building efforts through incorporating and aligning the blueprint’s implementation into the post-2020 ASCC Sectoral Work Plans and the ASEAN Comprehensive Recovery Framework and its Implementation Plan (ACRF).

Recognising the importance of preparing for the future, the meeting reaffirmed support and commitment on the elevation of the role of youth in realising sustainable development, ensuring that they are prepared and future-ready in responding to the complex global challenges, through initiatives such as the ASEAN Youth Academy Programme, ASEAN Youth on Climate Change and ASEAN Walk 2022.

Date of Release: 1 October 2021

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BANDAR SERI BEGAWAN – Brunei’s bilateral trade with China reached $2.5 billion (US$1.83 billion) between January and August of this year, a 43 percent increase year-on-year.

Speaking at a virtual reception to mark 30 years of diplomatic relations with Brunei, ambassador Yu Hong said the economic relationship between the two countries had grown significantly in recent years, with China becoming the largest source of foreign direct investment through the Hengyi petrochemical plant.

“Hengyi Industries has extended Brunei’s downstream oil and gas industrial chain and become a new engine boosting local employment and spurring economic growth,” she said.

Hengyi has exported US$4.08 billion worth of petrochemical products since its oil refinery started operations in November 2019.

Date of Release: 1 October 2021

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The ASEAN Socio-Cultural Community (ASCC) Pillar – through the Ministry of Culture, Youth and Sports (MCYS) as the National Secretariat and Chair of ASCC 2021, in collaboration with Brunei Youth Council and the ASEAN Secretariat – on Monday organised the inaugural Innovation Platform Dialogue via video conference, which forms one of Brunei Darussalam’s key deliverables, during its tenure as ASEAN Chair for 2021.

The dialogue was conceptualised to be an annual event, with the main intention being for the ASCC Pillar to deepen and strengthen its institutional engagements with partners and stakeholders on strategic issues of mutual attention.

This year, under Brunei Darussalam’s chairmanship with the theme ‘Youth Employment and Digitalisation in ASCC Perspectives’, corresponding to Brunei’s ASEAN 2021 theme, ‘We Care, We Prepare, We Prosper’, the dialogue took into account the impact the COVID-19 pandemic had on people’s livelihood, and the opportunities created in responding to technological advancements under the Fourth Industrial Revolution (IR 4.0).

Hajah Nor Ashikin cited findings from the International Labour Organization (ILO) indicating the pandemic has impacted youth employment more than adult employment. With the ASEAN region comprising a 40-per-cent youth population, broad policy support is needed to ensure ASEAN is able to meet the needs and aspirations of its young people, as they will define ASEAN’s common future.

Date of Release: 29 September 2021

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In light of the recent global crisis of the COVID-19 pandemic, the use of digital technologies has now shifted tremendously, and the demand for digital skills has surged, more so in some sectors.

This was said by Minister of Education Dato Seri Setia Awang Haji Hamzah bin Haji Sulaiman during his opening keynote address at the ASEAN Business and Investment Roundtables: Skills for a Digital Age hosted by the Brunei ASEAN Business Advisory Council (BAC) via online yesterday.

The minister said, “However, this dramatic increase in innovation and adoption of digital solutions should not take place at the expense of ethical considerations. With the ongoing moral and public debates evolving the use of digital technologies such as artificial intelligence (AI) and data analytics in our daily activities, matters such as liability, accountability, privacy, property and autonomy among which convey adverse insinuations, such as on automatic data collection, algorithms used for predicting and profiling as well as technologies used for surveillance, has become a major public concern.

“Therefore, a holistic approach should be taken to ensure the right ethical and moral principles are instilled in the students at all levels of education.

“In a time when we are less clear on specific skills tomorrow’s workers will require digital ethics, and values has become our guiding principle to develop and implement digital technologies in a responsible manner. In the context of the Sultanate, these values and principles are embedded in the Malay Islamic Monarchy (MIB) philosophy,” said Dato Seri Setia Awang Haji Hamzah.

Date of Release: 30 September 2021

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As the current Chair of ASEAN, Brunei Darussalam is able to handle such chairmanship, Minister of Foreign Affairs II Dato Seri Setia Awang Haji Erywan bin Pehin Datu Pekerma Jaya Haji Mohd Yusof said during an online press conference yesterday.

“What is good about ASEAN is that we are a family, we do things together, and we talk together whether it is with regards of one member state or the region. That is what ASEAN is about. It is the unique behaviour of ASEAN working by consensus. People say reaching consensus is difficult, but it depends on who you talk to,” he said.

“The uniqueness remains what it is today and will make it in the future. There will be always be issues in ASEAN, but it is the role of the ASEAN Chair to sail the ASEAN ship through turbulent waters.”

On confirmation of ASEAN leaders attendance for the ASEAN Summit and related meetings on October 26-28, Dato Seri Setia Awang Haji Erywan said, “We received verbal confirmation that they have no problems with the dates. We will prepare letters for replies.

“But with new development after the foreign ministers’ meeting that ended on October 4, ASEAN must sit together and discuss the best move forward,” he added.

On the term as the Special Envoy to Myanmar, Dato Seri Setia Awang Haji Erywan said it clearly states that as the Special Envoy of the ASEAN Chair and. will depend on who will chair ASEAN in any particular year. “On that basis, my term would end on December 31.”

Date of Release: 7 October 2021

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Governments need to step up investment in hydrogen production and storage chains to help cut net emissions to zero, the International Energy Agency (IEA) said on Monday.

States and private investors had so far only come up with about a quarter of the $1,200 billion needed by 2030 to develop and deploy hydrogen and make it part of global net zero strategies, the Paris-based organization said.

Efforts should be directed on getting hydrogen into more sectors and developing technologies to make it cheaper to produce with renewables, its report added.

Hydrogen is light, storable and energy-dense, and produces no direct emissions of pollutants or greenhouse gases when used as a fuel. But the cost of production, and worries over how it is produced, have been a barrier to expanded use. Hydrogen produced with renewable supplies can cost between two to seven times as much as producing it from natural gas without carbon capture, the report said. New technologies and economies of scale could help close the gap, it added.

"Almost all hydrogen produced today comes from fossil fuels without carbon capture, resulting in close to 900 million tons of CO2 emissions, equivalent to the combined CO2 emissions of the United Kingdom and Indonesia," the IEA said.

Global capacity of electrolyzers, which produce hydrogen from water using electricity, doubled over the past five years, and nearly 400 projects are under development or in early stages of development, the report said.

These projects should put hydrogen supply at 8 million tons per year by 2030, up from the less than 50,000 tons in 2021. But that was still a tenth of what was needed by 2030 to reach net zero emissions by 2050, they said.

Nearly all hydrogen consumption was in the refining and industrial sectors in 2020, the report said. But it could also play a major role in chemicals, steel, transport and aviation - all sectors where emission reduction is currently a challenge.

Government policies currently focus on production but need to incorporate consumption in new sectors to foster the construction of the necessary storage, transmission and charging facilities, the report said.

Currently 17 governments have hydrogen strategies, and more than 20 others have announced they are developing plans, up from three countries in 2019, the agency said.

Source: The Jakarta Post

Author: Forrest Crellin

Original published date: 04 October, 2021

Read full article here.