分类： business

A catastrophic fire at Hazrat Shahjalal International Airport in Bangladesh has left the nation’s business community reeling, with potential losses estimated at over $1bn (£750m). The blaze, which erupted in the airport’s logistics section on Saturday, destroyed vast quantities of clothing, raw materials, and other essential goods, putting numerous businesses at risk. The fire, which took 27 hours to extinguish, forced the temporary suspension of flights and airport operations. Bangladesh, the world’s second-largest apparel exporter after China, relies heavily on its garment sector, which generates approximately $40bn annually and contributes over 10% to the country’s GDP. Local media reported that around 35 people were injured while battling the flames. The damaged cargo village, a critical logistics hub, stored fabrics, pharmaceuticals, chemicals, and other goods, including samples crucial for securing new buyers. Inamul Haq Khan, senior vice-president of the Bangladesh Garment Manufacturers and Exporters Association, highlighted that the destruction of these samples could jeopardize future business opportunities. The International Air Express Association of Bangladesh also confirmed the $1bn damage estimate in an email to the BBC. This incident marks Bangladesh’s third major fire within a week, following a deadly warehouse fire that claimed 16 lives and a factory blaze in Chittagong. Online conspiracy theories have linked these incidents, alleging they were pre-planned. Historically, such tragedies have been politicized, with parties accusing each other of exploiting disasters for political gain. The interim government has vowed to take immediate action if evidence of sabotage or arson is found. Frequent fires in Bangladesh are often attributed to poor infrastructure and lax safety enforcement, with hundreds of lives lost in recent years.

China’s economic expansion decelerated to 4.8% in the third quarter of 2024, marking its slowest pace in a year, as trade tensions with the United States intensified. This figure, released by China’s National Bureau of Statistics on Monday, represents a decline from the 5.2% growth recorded in the previous quarter. The slowdown coincides with Beijing’s imposition of stringent controls on rare earth exports, critical minerals for global electronics production, which has further strained its fragile trade truce with Washington. The third-quarter GDP data will influence discussions among China’s top leaders this week as they deliberate on the nation’s economic strategy for 2026–2030. Despite the challenges, Chinese officials highlighted the economy’s ‘strong resilience and vitality,’ attributing growth momentum to the technology sector and business services. Beijing remains committed to its annual growth target of ‘around 5%,’ supported by government measures to avert a sharp downturn. In response to China’s export controls, US President Donald Trump threatened to impose an additional 100% tariffs on Chinese imports. Meanwhile, US Treasury Secretary Scott Bessent plans to meet Chinese officials in Malaysia to ease tensions and facilitate a potential meeting between Trump and Chinese President Xi Jinping. Prior to the recent escalation, Chinese businesses capitalized on the trade truce, boosting exports to the US by 8.4% in September. China’s industrial output also rose by 6.5% year-on-year, driven by strong performances in 3D printing, robotics, and electric vehicle manufacturing. The service sector, encompassing IT support, consultancies, and logistics, also expanded.

Asian markets experienced a significant surge on Monday, buoyed by a strong performance on Wall Street and easing concerns over bank lending and the U.S.-China trade war. Japan’s Nikkei 225 soared 2.9% to a record high of 48,970.40, following the Liberal Democratic Party’s formation of a new coalition, paving the way for Sanae Takaichi to potentially become Japan’s first female prime minister. Takaichi is anticipated to advocate for market-friendly policies, including low interest rates and increased government spending. Meanwhile, China reported a 4.8% annual economic growth rate for the last quarter, driven by robust exports to non-U.S. markets. However, this marks the slowest growth pace in a year, as the nation grapples with a prolonged property market slump and sluggish consumer and business spending. The Chinese Communist Party’s leadership convened in Beijing to outline policy goals for the next five years and address personnel changes, with outcomes expected to be formalized in March. Hong Kong’s Hang Seng rose 2.5%, while South Korea’s Kospi hit a record high, fueled by optimism over a potential trade deal with the U.S. and strong semiconductor demand. U.S. futures edged higher, and oil prices declined slightly. Bank stocks stabilized after several institutions reported stronger-than-expected quarterly profits, though concerns linger over loan quality following recent bankruptcies. JPMorgan CEO Jamie Dimon warned of potential risks in the lending sector, emphasizing the need for caution. In currency markets, the U.S. dollar strengthened against the Japanese yen, while the euro also gained ground.

In a strategic move mirroring U.S. trade practices, China has expanded its export control regulations, requiring foreign companies to seek Chinese government approval for exporting products containing even minimal amounts of China-originated rare earth materials or those produced using Chinese technology. This policy, announced this month, marks a significant escalation in the ongoing trade tensions between the world’s two largest economies. According to U.S. Trade Representative Jamieson Greer, this rule effectively grants China substantial control over the global technology supply chain, as even a South Korean smartphone manufacturer must now obtain Beijing’s permission to sell devices containing Chinese rare earth materials to markets like Australia. This development underscores China’s adoption of the U.S. foreign direct product rule, a decades-old policy that extends U.S. jurisdiction to foreign-made products, particularly those involving American technology. Neil Thomas, a fellow at the Asia Society Policy Institute’s Center for China Analysis, noted that Beijing is leveraging Washington’s playbook, having witnessed the effectiveness of U.S. export controls in constraining China’s economic and political options. The roots of this strategy trace back to 2018, when former U.S. President Donald Trump initiated a trade war with China, prompting Beijing to develop a robust toolkit of laws and policies to counter foreign sanctions and interventions. Measures such as China’s Unreliable Entity List and the anti-foreign sanction law, both modeled after U.S. practices, have been deployed to retaliate against U.S. trade actions. However, experts like Jeremy Daum of Yale Law School caution that such reciprocal measures risk escalating tensions and creating a race to the bottom, where neither side emerges victorious.

When Prabowo Subianto campaigned for Indonesia’s presidency, he promised transformative economic growth and significant social reforms. However, his first year in office has been marked by unmet expectations and growing public discontent. Despite steady annual growth of around 5%, Indonesia faces mounting pressures from slowing global demand, rising living costs, and regional competition from countries like Vietnam and Malaysia. These challenges have been exacerbated by widespread protests against corruption, inequality, and budget cuts in healthcare and education. Prabowo’s flagship free school meals program, aimed at addressing child malnutrition and improving education, has come under scrutiny following reports of mass food poisoning affecting over 9,000 children. Critics argue that the program, which costs $28 billion annually, is straining public resources and failing to deliver its intended benefits. Analysts warn that these issues highlight broader problems in public spending and oversight, pointing to deeper strains in Indonesia’s $1.4 trillion economy. Prabowo’s ambitious growth target of 8% by 2029 is seen as increasingly unrealistic, with economists citing falling car sales, shrinking foreign investment, and layoffs as signs of economic weakening. The abrupt dismissal of respected former finance minister Sri Mulyani Indrawati has further rattled investors, raising concerns about the government’s ability to manage public finances effectively. Despite these challenges, Indonesia continues to seek new trade partnerships, recently signing a long-negotiated deal with the European Union. However, the country’s ability to attract foreign investment and create jobs remains a critical issue, particularly in industries like manufacturing that have driven growth in neighboring countries. As Prabowo’s administration grapples with these economic hurdles, the future of Indonesia’s economy hangs in the balance.

In a landmark move to strengthen economic ties between the United Arab Emirates (UAE) and Pakistan, Abu Dhabi-based International Holding Company (IHC) has acquired a majority stake in Pakistan’s state-owned First Women Bank Limited (FWBL). The transaction, conducted under Pakistan’s Inter-Governmental Commercial Transactions Act of 2022, marks the first privatization of a bank in Pakistan under a government-to-government (G2G) framework. The announcement was made in the presence of Sheikh Zayed bin Hamdan bin Zayed Al Nahyan, Chairman of 2PointZero, and Pakistan’s Prime Minister Muhammad Shehbaz Sharif. Established in 1989, FWBL operates 42 branches nationwide, offering retail, SME, and corporate banking services. IHC’s investment aims to modernize the bank by integrating advanced technologies such as artificial intelligence (AI) and automation, enhancing its operational efficiency and expanding its footprint across Pakistan. The transformation strategy includes rebranding the bank to reflect its broader mandate of serving all societal segments and accelerating financial inclusion. Syed Basar Shueb, CEO of IHC, emphasized the company’s confidence in Pakistan’s financial potential and its commitment to fostering long-term economic growth. This acquisition follows IHC’s subsidiary, International Resources Holding (IRH), signing a joint venture with the Government of Balochistan in February 2025, further deepening UAE-Pakistan economic cooperation. Together, these initiatives underscore IHC’s vision of driving sustainable growth, technological transformation, and global economic connectivity.