Financial Inclusion, P2P Lending, and MSMEs

In Indonesia after the Asian financial crisis of 1997–1998, wide reforms were carried out, and “inclusive” economic development were adopted. One component of inclusive economic development is “financial inclusion.” This implies an absence of barriers that might deter micro, small, and medium enterprises (MSMEs) from obtaining financial services. However, the portion of bank credit received by MSMEs is still small. Therefore, financial technology (FinTech) is welcome as an alternative source of funding for MSMEs. This chapter discusses three related issues, namely financial inclusion, MSMEs, and P2P lending. It concludes that Indonesia still has a long way to go to achieve full financial inclusion. This chapter suggests that with the presence of P2P lending, the number of MSMEs, especially MSEs, in Indonesia that have access to formal financing will increase. Even though aggregate data are not available, the interviews with a small number of owners of MSEs who received P2P loans suggest that the presence of P2P lending companies give some benefits for MSEs.

An Overview on COVID-19 and its Impact on Migration in Malaysia

The COVID-19 pandemic has affected countries all over the world. Many countries have imposed restrictive measures, such as lockdowns, shelter-in-place, and stay-at-home orders, as an attempt to control the pandemic at a local level. However, these measures also hit the economy hard. This paper predicts the impact of COVID-19 on migration in Malaysia based on the experience during the Asian Financial Crisis. Migrant workers contribute a large portion of the labour market in Malaysia. Thousands of migrant workers are affected due to the COVID-19 pandemic. Besides, the implementation and re-imposition of multiple phases of Movement Control Order (MCO) which worsened the economy. Therefore, there is a need to review the possible effect of COVID-19 on migration as it would greatly affect the labour market and the economy as a whole.

Speech Delivered for the Acceptance of an Honorary Ph.D. Degree in Economics at National Tsing Hua University

This is a speech that Dr. Fai-nan Perng delivered for the acceptance of an honorary Ph.D. degree in economics at National Tsing Hua University, Taiwan. Dr. Fai-nan Perng was appointed as the Governor of the Central Bank of the R.O.C. (Taiwan) by President Teng-hui Lee in February 1998. He served in this position for 20 years. During this 20-year period, he faced the 1998 Asian financial crisis, terrorist attack on the World Trade Center on September 11, 2001, and the 2008 U.S. financial crisis. He handled monetary policy smoothly and led the economic growth in Taiwan very well. Overall, he is one of the longest-serving and most well-known governors in the world. He represented Taiwan in the 2000 APEC Economic Leaders’ Meeting, was The Banker Magazine’s 2009 Central Banker of the Year, Asia, and received Central Banking Publications’ Lifetime Achievement Award in 2018. He also served as the associate editor for the Review of Pacific Basin Financial Markets and Policies (RPBFMP) from 2005 to 2018.

Privatisation of Toll Roads to Promote Malay Entry into Business in Malaysia: A Critical Review of Distribution Stance, Returns, Risk and Governance

The focus of the paper is on toll road privatisation. An overview of the choice of privatisation and the form it took, in promoting the entry of Malays into business, is followed by a review of other studies on privatisation in Malaysia. Given the highly confidential nature of the privatised concessions, data on ownership and likely terms have been gleaned from rating of the bonds issued, as the bond market has been the key source of infrastructure financing. From such data, the dominance of the Malay managerial class over its business class is readily evident, especially after the Asian financial crisis (AFC). The likely impact of toll road privatisation on the stance of distribution is also examined. As concessions are still awarded on a negotiated basis, the issue of rent-seeking is also explored. Uncertainty and variability in the financial performance of the concessionaires can be seen from the spread and deterioration in credit of the issuers, attesting to the greenfield nature of the projects undertaken or due to differences in gearing or in the support and subsidy enjoyed from the government. The separation in ownership and control, either due to continued ownership by state-owned enterprises (SOEs) or widely held public listed companies (PLCs), has increased the risk of expropriation by those who exercise management control.

Part IV Market Institutions And International Capital Markets, 13 Conclusion

This concluding chapter discusses how capital markets are changing, dramatically so. The massive innovation in investment products over the last 30 years is giving way to shifting trading patterns, changing investor profiles, and new forms of capitalism and finance. The dynamics of international markets have changed, even since the Asian financial crisis, when ‘contagion’ entered the financial lexicon. Now, information, investments, and capital can be transmitted instantaneously; so can risk. Indeed, the new markets defy the old rules. Technology pervades everything, giving rise to a new catchphrase, ‘fintech’. As financial markets have become inexorably interconnected, at the same time they appear increasingly disconnected from the real world, the real economy. The chapter then looks at the topography of the new regulatory landscape. The big economies, and their regulatory approaches, will continue to impact strongly international markets. But there are more and more big economies with resurgent capital markets, so the international dynamics will change.

English fever and coffee: Transient cosmopolitanism and the rising cost of distinction

This article examines the intersection of English and coffee in Seoul, South Korea, in order to document how distinction (ala Bourdieu, 1984/2008) functions under the prevailing conditions of neoliberalism. A mere two decades after Starbucks first opened in Korea, high-end specialty coffee shops proliferate. Drawing on photographs of the exteriors, interiors, and menus from 89 coffee shops in the trendy Seongsu-dong neighborhood in Seoul, we examine how coffee shops deploy English (in addition to or instead of Korean) in their signage, and how this deployment differs by type of coffee shop. We argue that English and coffee interact in a complex process of dual distinction. The coffee shops brand themselves as cosmopolitan and simultaneously offer the customers the distinction of demonstrating themselves knowledgeable about/proficient in both coffee and English. We explain this dual distinction in terms of the extreme competitiveness occasioned by neoliberalism in the aftermath of the 1997 Asian Financial Crisis. We conclude by suggesting the notion of “transient cosmopolitanism” as a way to understand specialty coffee shops, which we argue are crucial sites for understanding the contemporary subjectivities occasioned by the dominance of neoliberalism.