KUCHING: Sarawak Housing and Tourism Minister Datuk Amar Abang Johari Tun Openg advises businesses to identify the trends and know-how of trading regionally, highlighting the increasing trade among regions.
After launching the 6th International Borneo Business Conference here yesterday, the minister said few economic blocs have emerged particularly Asean and the Brunei, Indonesia, Malaysia, the Philippines – East Asean Growth Area (BIMB-EAGA).
“Asean is going to be a very promising bloc and it will be a new way for businesses to interact. (Therefore), businesses have to know what is the trend and culture in each of the economic blocs and position businesses within a particular business bloc.
“As a result, businesses will need to know what is the emerging culture and the way the manage their businesses. In this respect, Asean is also moving forward to become a common market,” he said.
With the New Development Bank, referred to as the BRICS Bank made up of nations from Brazil, Russia, India, China and South Africa being created recently, there could be a possibility of the Chinese renminbi becoming another major currency in the future.
He said the renminbi could be a new major currency due to the strength of the Chinese economy which has gained footing overs the years to become the second largest economy in the world at present.
Besides that, Johari observed the Chinese government has invested a substantial sum of money in African and Latin American countries.
Thus, with more transaction and businesses to occur among those nations, he predicted that the scenario will lead to the renminbi being the currency for settlement of trade within BRICS nations.
Over the long term, he anticipated that the US dollar, which is the main currency for global trade currently could ‘face increasing pressure’ to maintain its position as the top trading currency in the future due to the modest economic growth in the US.