- The total number of coronavirus infections is approaching 800,000, according to John Hopkins University.
- As of 09:30 SGT on Tuesday, March 31, 2020 (01:30 GMT / 21:30 ET Tuesday), 857,957 cases have been confirmed globally, with 42,139 deaths. The US now accounts for 20% of all cases, with 188,547 people infected. With 4,076 deaths, US has surpassed China's death toll and is only second to Italy worldwide in terms of virus fatalities.
Global developments
- Stock markets suffer worst quarter since 1987: Stock markets around the world suffered historic losses in the first three months of the year amid a massive sell-off tied to the coronavirus. The Dow Jones Industrial Average and London's FTSE 100 saw their biggest quarterly drops since 1987, plunging 23% and 25% respectively. The S&P 500 lost 20% during the quarter, its worst since 2008. The falls come as authorities order a halt to most activity in an effort to slow the spread of the virus.
- White House predicts 100,000 to 240,000 will die in the US: President Donald Trump prepared Americans for a coming surge in coronavirus cases, calling COVID-19 a plague and saying the US is facing a “very, very painful two weeks.” White House officials are projecting between 100,000 and 240,000 deaths in the U.S. with coronavirus fatalities peaking over the next two weeks.
- Coronavirus the worst global crisis since WWII, says UN chief: United Nations Secretary-General Antonio Guterres said on Tuesday (March 31) that the scale of the crisis was due to "a disease that represents a threat to everybody in the world and... an economic impact that will bring a recession that probably has no parallel in the recent past".
- Loss of taste, smell key symptoms, according to new British study: Losing your sense of smell and taste may be the best way to tell if you have COVID-19, according to a survey of data collected via a symptom tracker app developed by British scientists to help monitor the pandemic caused by the new coronavirus. Almost 60 per cent of patients who were subsequently confirmed as positive for COVID-19 had reported losing their sense of smell and taste, the data analysed by the researchers showed.
- Singapore firms that do not allow telecommuting may be issued stop-work order, says government minister: In a press conference held by the multi-ministry task force tackling the COVID-19 outbreak, Manpower Minister Josephine Teo said the ministry is looking at levelling fines and other penalties on such companies who do not arrange for flexible work arrangements that might help to stop the spread of the coronavirus.
- New research suggests China lockdown may have prevented 700,000 coronavirus cases: Drastic Chinese control measures in the first 50 days of the epidemic bought other cities across the country valuable time to prepare and install their own restrictions, according to the paper by researchers in China, the United States and Britain, published in the journal Science.
Regional developments
- Thailand: Only 41% of the 21.7 million people who registered for the Thai government's 5,000-baht financial aid will be eligible for relief, says government spokeswoman Narumon Pinyosinwat. (Bangkok Post)
- Myanmar: Myanmar has barred all international commercial passenger flights from landing from March 31 until April 13 to contain the spread of Covid-19. (The Straits Times)
- Australia: Australia is headed toward its first recession in 29 years as aggressive measures against the new coronavirus deal a heavy blow to economic activity and employment. (Nikkei Asian Review) Simultaneously, Australian scientists are currently using the largest particle accelerator in the southern hemisphere to help fast-track the hunt for a vaccine against COVID-19. (CNA)
- China: China will further support its small and medium-sized enterprises (SMEs) to mitigate the impact of the COVID-19 epidemic and increase local government bond issuance to shore up effective investment, according to a State Council executive meeting Tuesday. (Xinhua)
- India: India is likely to start manufacturing new serological diagnostic testing kits within the next two months; many advances have been made since research agencies isolated the virus. (The Times of India) Young engineers in the western Indian city of Pune are also racing against time to develop a low-cost ventilator that could save thousands of lives if the coronavirus pandemic overwhelms the country's hospitals. (BBC)
- Malaysia: Malaysia's government will launch a new Economic Stimulus Package on April 1 to ease the economic burden of people adversely affected by the Covid-19 pandemic. (The Star MY)
- Indonesia: Indonesian President Joko Widodo has signed the regulations needed for cities and provinces to enforce what the government described as “large-scale social restrictions” amid the COVID-19 pandemic. (CNA) Indonesia will temporarily ban all visits and transits by foreign nationals to the country to curb the further spread of the coronavirus. (CNA)
- Hong Kong: Hong Kong may shorten stays at quarantine centres to free up rooms as health care systems come under strain. (South China Morning Post) Sales in Hong Kong plummeted a record 44% in February, official year-on-year figures revealed on Tuesday, as coronavirus-stricken retailers warned even the strongest faced collapse without more government support. (South China Morning Post)
- Korea: Korea has decided to postpone a major international summit on climate change to next year, due to the coronavirus pandemic. (Korea JoongAng Daily)
- Japan: Business sentiment among large Japanese manufacturers fell into the negative in March for the first time in seven years, weighed down by fears about the global economic fallout from the coronavirus crisis, the Bank of Japan's tankan survey showed Wednesday. (Japan Times)
Business & economic developments
- Coronavirus shock is pushing global growth toward zero, S&P says: “We have marked down global growth to just 0.4% this year, with a rebound to 4.9% in 2021,” S&P’s global chief economist Paul Gruenwald wrote in a research note published Tuesday. The dire 0.4% forecast would be a level the world hasn’t seen since the economic crash of 1982.
- Japan carmakers brace for sales shock as coronavirus hits consumers: Reflecting weaker US demand, a major financial firm slashed its combined operating profit estimate for seven Japanese automakers by 22% in a note to clients last week. The biggest drop-off is predicted to come from North America.
- Coronavirus turns Japan business mood negative for first time in seven years: Japanese manufacturers have turned pessimistic for the first time in seven years, the central bank’s “tankan” survey showed, as the coronavirus pandemic pushed the economy closer to recession.
- Amazon and Microsoft end first quarter higher as most of market declines: Shares of Microsoft and Amazon closed the year’s first quarter in the black, while its tech peers followed the broader market sell-off due to impacts from COVID-19. Microsoft stock closed up by a razor-thin .00006% in the past three months, while Amazon rose 5.43% during the market’s worst first quarter ever, according to FactSet. Multiple other major tech brands, by contrast, saw declines exceeding 10%.
DAILY FOCUS: Manufacturing & supply chains
As part of our daily monitoring of the latest developments and impact on businesses, each day we will take a deeper dive into one sector. Today, we look at manufacturing and supply chains throughout Asia Pacific.
Key findings
- COVID-19 has caused a significant disruption to manufacturing and supply chains in the region.
- A South Korea electronics brand, responsible for 80% of the world's OLED smartphone displays, has put its manufacturing facility in India on hold until April 14.
- Electronic component factories in the Philippines, Malaysia, Thailand, Vietnam and India are all experiencing stoppages. This will upset the rhythm of global electronics supply chain, according to one industry report. Singapore also saw a fall of 1.1% in factory output for electronics in February.
- Global smartphone production is expected to fall 30% due to COVID-19, according to one estimate.
- The fall in clothing demand and stoppage of textile factories is hitting workers in Cambodia; potentially affecting 34,000 people. Myanmar is similarly affected, with at least 10,000 unemployed in the garment industry.
- Car and machine manufacturers in Japan are expected to suffer a 5.3% and 7.5 fall in output, during March and April respectively, as these industries are impacted by component shortage from China. A major car manufacturer is suspending production in Vietnam.
- Malaysia has reported its palm oil and rubber industries are not affected by the country's Movement Control Order.
- Disruption to manufacturing and supply chain across APAC has impacted the shipping industry with a potentially prolonged slump in dry bulk shipping and blank (empty) sailings. Conversely, due to airlines cutting flight schedules, air freight cost has soared: cargo rates from Hong Kong to North America have surged to their highest levels in 16 months.
- These disruptions have also created an opportunity for companies to re-assess their supply chain practices, such as just-in-time and on-demand manufacturing processes, with the potential of increasing stock of components and spreading their supply chain network across a wider variety of locations.
Methodology
Media analysis of stories covering the following countries: Australia, New Zealand, Cambodia, Hong Kong, Japan, Malaysia, South Korea, Philippines, Singapore, Taiwan, Thailand, Vietnam
Period covered: 18 – 31 March 2020.
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