The Belt & Road (B&R) Initiative, a development strategy proposed by Chinese President Xi Jinping that focuses on connectivity and cooperation – with an investment of many billions in railway lines, pipelines, and ports, could provide a boost for international trade – and also for insurance. However, the opportunities that the B&R initiative brings also result in some risks and challenges. B&R will pass through diverse countries spanning Africa, Asia, and Europe, exposing participating companies to political, credit, and security risks. Numerous countries receiving Chinese financing already bear elevated debt levels and B&R will weaken their sovereign credit position further. The Fitch ratings agency warns that the creditworthiness of many countries along the B&R are rated as extremely low. This significantly raises the risks for Chinese banks that are financing parts of the project. Moreover, China’s growing regional influence will elevate geopolitical

Despite being 80 percent more likely to be targeted by hackers than the rest of the world, cyber risk mitigation efforts in the Asia-Pacific region are generally weak.  This can be seen in the low levels of awareness and insufficient cybersecurity investments.  It is also reflected in the lower than necessary cyber insurance adoption rates in Asia. In this paper we begin by realigning the common misconceptions businesses have regarding cyber risk insurance. Then, we recommend a three-pronged approach, which details an action plan to demonstrate to organizations key considerations in moving towards a greater focus on cyber resilience: Effective endpoint security management. First putting in place best practices in cyber-defense, including effective endpoint security and IT infrastructure. As the first line of defense, it is important to continuously upgrade to smarter endpoint security. This can be achieved via threat intelligence to scale up the capabilities of

Cybercrime is becoming a greater risk in doing businesses in Asia-Pacific (APAC) as compared to the West. Rapidly growing connectivity and the accelerating pace of digital transformation expose the APAC region, and make it particularly vulnerable to cyber exploitation. Evidently, according to the 2017 edition of the Global Risks Report, cyber concern around the likelihood and impact of technological threats has sharpened among business executives in APAC, and cyberattacks are ranked among the top 5 risks of doing business in the region. To complicate matters further, the lack of transparency in the region renders weak cyber regulations and enforcements by authorities, as well as low cyber awareness and security investments among corporations. Historically, data breach notification laws have been lacking across the region, bringing forth one key insight – governments and policy-makers have yet to recognize the importance of transparency in the battle against cyberattacks. Moreov

Global Risks Report Highlights Geopolitical and Technological Risks Today’s business leaders face new threats but can find new opportunities in a changing global risk landscape. The just-released 12th edition of the Global Risks Report, prepared by the World Economic Forum with the support of Marsh & McLennan Companies and others, points to the need for businesses to understand and plan for an array of risks that are emerging in a context of rising geopolitical tensions, deepening societal polarization, and rapid technological change. The report also explores interconnections among risks. Social instability was at the center of the risk web: Social and Political Challenges Across the globe, people are sending a clear message to political leaders: They feel let down and they want change. Voters in advanced economies have rejected the political establishment and the status quo — most notably in the UK Brexit vote and the US presidential election. Anti-establishment se

The challenge of building a safe and efficient high-speed rail route involves looking beyond just the new high-speed section, say rail specialists Edwin Marks and Mat Brough. As the new generation of high-speed rail starts to be designed and built, some routes will be run solely on dedicated high-speed rail track, but others will use a combination of high-speed and existing main line. For high-speed train drivers the transition from high-speed to main line can be an exaggerated version of what car drivers experience when they come off the motorway onto a winding country road. These transitions are among the key considerations where safety requires special attention. Towards a safer high-speed rail The first step towards a safer new railway is quantifying the change in velocity between high-speed rail and conventional main line to understand the need to focus on the transitions. As an example, Britain’s new HS2 trains will travel on dedicated track at speeds of up to 400k

A holistic and integrated approach to urban development and growth is pointing the way to the future for cities in the Middle East writes IQ reporter Hilary Hastings. Iconic buildings and mega developments have long been a feature of sky-lines and development in many Middle Eastern cities; their silhouettes instantly recognizable and standing as powerful symbols of success. However, with growing populations and fluctuating oil prices there is a changing emphasis in the approach to urban development which is less about landmarks and more about the future and long-term sustainability. “In many cities we are seeing a shift from the construction of one-off buildings and developments to a more holistic and strategic view of urban development and attracting investment,” says Dr. Erin Brady, AECOM’s Principal of Design, Planning and Economics, Middle East, based in Abu Dhabi. “Cities compete for trade, tourism and investment and the changing oil market has strengthened

By Mohamed Salama, Country Head of Global Banking, UAE, Standard Chartered   SUMMARY The UAE features prominently as a key component of China’s trade strategy in the AME region, as 60% of China-UAE trade is re-exported to Africa or Europe, thus supporting the Belt & Road Initiative’s mandate. Please click HERE to read more.

SUMMARY There are at least 65 countries involved in the Belt and Road Initiative, but which of them stand to benefit the most, and where has the money gone so far?   Please click HERE to read more.

By Kelvin Lau, Senior Economist, Greater China, Standard Chartered   SUMMARY Launched just five years ago, the Belt and Road Initiative has come a long way in a short time. While the rising risk of prolonged US-China trade dispute looks set to reshape the global trade and investment landscape, we believe that it could fuel B&R’s growth and make it even more important for the long-term development of China and its partner countries.   Please click HERE to read more.

By Philip Panaino, Regional Head, Transaction Banking, Africa & Middle East, Standard Chartered SUMMARY With the Belt and Road initiative fostering financial cooperation and trade in Africa, it makes economic sense for countries along the modern “Silk Road” to use the Chinese currency. The deepening trade relationship between China and Africa clearly points to a long-term story in which the RMB will play a more strategic role in facilitating cross-border trade. Please click HERE to read more.

By Kelvin Lau, Becky Liu, Chidu Narayanan SUMMARY Things are looking up for Renminbi internationalisation in 2018. The CNY has been off to a strong start to 2018, and barring a full-fledged trade war, it is expected that the Chinese authorities will allow further CNY appreciation against a weak USD backdrop while keeping the CNY basket value steady. The Dim Sum bond market is expected to have a revival as gross issuance picked up evidently in January. Please click HERE to read more.

SUMMARY For international investors looking for the next big opportunity, China’s ‘new economy’ companies offer plenty. China’s Belt and Road (B&R) initiative – which involves large-scale infrastructure development along China’s centuries-old trade routes across Asia, Africa, the Middle East and Europe – is part of the solution to ensure Chinese companies continue growing. There is also opportunity for global investors. Please click here to read the full article. By Clive McDonnell

SUMMARY At a time when the US and other global economies appear to have turned their back on globalisation, China is pursuing an ambitious global agenda. And one initiative central to China’s plans is Belt and Road. Please click here to read the full article. By Shuang Ding

By Lan Shen SUMMARY China’s Belt and Road (B&R) initiative – the ambitious project to build infrastructure and expand trading relationships along a new Silk road – has made significant headway in the past four years, and is now well into the implementation stage. So far, 20 per cent of investment in B&R has been in power and 19 per cent in railways, followed by roads, pipelines and other transport. With China’s government prioritising B&R as a key initiative to help open up its economy, there are five trends that show B&R is taking off in a big way. Please click here to read the full article.

By Henrik Raber SUMMARY Asia’s bond markets in general have had a buyout year so far. Asia ex Japan (AEJ) issuance is up 61 per cent compared to this time last year. While markets in the West slowed during the summer, Asia’s markets continue to buzz. Project bonds are a significant opportunity in Asia, given the region’s massive infrastructure funding needs in the next decade, and with China’s Belt and Road initiative fuelling more opportunities. Please click here to read the full article.

By Mohamed Salama SUMMARY China’s global economic ambitions rest, at least in part, on the success of its Belt and Road (B&R) initiative, which aims to elevate the country’s role in global trade by, among other things, establishing new trade links and investing heavily in other countries’ infrastructure networks. Among those 60 nations, China needs partnerships with established financial, logistics and commerce-friendly hubs that can facilitate trade. Various metrics suggest the UAE could be become a major hub within the broader B&R and RMB framework. Please click here to read the full article.

By Donald Kanak, Chairman of Eastspring Investments The ten member-states of the Association of South-East Asian Nations (ASEAN) have enjoyed a remarkable decade of economic success. The region has doubled its gross domestic product (GDP) and raised its share of global merchandise exports by 50%. But, during the past few years, ASEAN’s share of global trade has levelled off, with total merchandise export value peaking in 2014 and the inflow of foreign direct investment peaking in 2013. To remain a growth powerhouse, ASEAN must continue to boost its competitiveness, particularly as China, India and other developing nations raise their games. ASEAN’s own research identifies infrastructure as key to raising competitiveness. Telecommunications, power, roads, rail and ports provide the backbone of modern competitive supply chains, and more efficient supply chains will increase ASEAN’s appeal to global manufacturers. ASEAN also needs to step up its

KEY TO GLOBAL GROWTH AND REDUCING LONG-TERM RISKS The Belt & Road Initiative, announced by President Xi Jinping in 2013, is a drive to build infrastructure connecting China and the other 64 Silk Road countries of ASEAN, South and Central Asia and the Middle East. The initiative is well recognised as a welcome stimulus to global growth, and helping countries face the challenges of poor physical and social infrastructure. What is less discussed but equally important is Belt and Road’s potential to address the massive and urgent need to create hundreds of millions of jobs across the region to absorb a dramatic surge in working population, especially the young adult population. Unaddressed, a growing jobs gap could lead to political fragility, the rise of new fanatical movements and new economic and conflict-driven refugee crises that would dwarf what the world, especially Europe, has faced recently. The low level of physical and social infrastructure in emerging economies is w

Thousands of years ago, the Silk Road carried goods and spices from trading cities in China and central Asia through to cities like Baghdad and Venice. It was one of the world’s earliest examples of transcontinental infrastructure. Right now the world’s infrastructure is getting ready for a 21st century upgrade. China’s “One Belt, One Road” policy initiative is looking to echo the past glories of the Silk Road, connecting Asia to Europe by land and sea. The project is piecemeal, and there’s little idea of its total cost, but some estimate it to be at least $1 trillion. Meanwhile, on the other side of the world, U.S. President Donald Trump has pledged his own $1 trillion infrastructure plan, designed to renovate the country’s crumbling infrastructure, stimulate the economy and grow jobs. It’s expected that, despite the current political climate, a proposed infrastructure bill could garner warm bipartisan support. That could be good news – any functioning econ

The Aon Risk Maps 2017 addresses Political Risk and Terrorism and Political Violence Risk in a combined launch. The Maps aim to highlight those risks facing our clients globally, helping them to manage these unique exposures. Key findings this year include: Uncertainty surrounding increasingly protectionist trade policies raises concerns over their potential impact on exports from Asia as well as intra-Asian trade in 2017 Singapore’s terrorism and political violence risk level has been raised from ‘negligible’ to 'low’ in light of recent arrests of purported extremists in the country, and the Indonesian authorities reported disruption of a terrorist plot to attack the island in 2016 The terrorism and political violence risk level is likely to remain ‘high’ in the Philippines during 2017, with the Islamic State promoting the country as a regional hub for militants not able to travel to Syria or Iraq. Malaysia’s overall score has been raised to ‘m