Business

AMMAN — Jordan's oil bill went down by 12.4 per cent in the first 10 months of 2024, compared with the same period in 2023, the Department of Statistics (DoS) said on Tuesday.

According to the DoS's monthly report on the Kingdom's foreign trade, cited by the Jordan News Agency, Petra, the value of the oil bill in the January-October period of 2024 decreased by JD318 million to JD2.249 billion, compared with JD2.567 billion in the corresponding period of 2023.

Mineral fuels and other mineral oils topped the list of Jordan’s oil imports in the first 10 months of 2024 at JD696 million, followed by crude oil at JD680 million.

The Kingdom's imports of gasoline amounted to JD416 million, followed by diesel at JD414 million, lubricants at JD33 million, and kerosene at JD10 million, according to DoS figures.

• During each Cabinet session, economic decisions of 'deep impact' were made

• Government seeks 'complementary relationship' with private sector

• Economic Modernisation Vision the roadmap for economic reform, growth

• 'Quantitative easing' policy adopted to stimulate public sector

AMMAN — Placing the Economic Modernisation Vision (EMV) at the heart of its policies, while acting as an "economic development government," Minister of State for Economic Affairs Muhannad Shehadeh said the Cabinet of Prime Minister Jafar Hassan has shifted the trend from "we will do" to "we already did." 

During a recent meeting with journalists, Shehadeh said, "In every single session held over the nearly past 100 days, the Cabinet has made at least three decisions all with deep positive impact on the national economy."

"All the decisions made and those to be made are value-added and shall have immediate impact on stimulating growth and improving Jordanians' living conditions," Shehadeh, who heads the government's economic team, said.  

The minister explained that the government's strategy is primarily centered around "solving the national economy through achieving sustainable growth and not through addressing phenomena."

He explained that the EMV, the roadmap for growth, is not based on spending but on empowering and stimulating productive sectors, enabling national industries and implementing mega projects.

He said that the goal is not only empowering but building a complementary relationship with the private sector. "A strong economic government working with a strong private sector."

He explained that the EMV is based on "eight economic drivers, 360 priorities and 37 sectors" with the general objectives of achieving sustainable economic growth and improving Jordanians' living conditions."

In line with this endeavour, he explained that the government has taken a total of 41 economic decisions, including extending exceptions to national industries and other key sectors.  

With Jordanians' spending and consumption decreasing by around 40 per cent due to consecutive increases to interest rates, the minister explained that the government has adopted a "quantitative easing policy ", aiming first at alleviating Jordanians' economic burdens and increasing revenues. 

He explained that there were unsettled customs cases since 1969 at a value of JD300 that many of them have been settled after a Cabinet decision taken in this regard.

On October 21, the Ministry of Finance said that the Cabinet had approved a decision to exempt individuals involved in customs-related cases filed or discovered before December 31, 2019, from up to 90 per cent of the fines imposed on them.

This decision provides a 90 per cent exemption on customs and tax fines, confiscation fees, and administrative costs, in accordance with the Customs Law and the Law on Collection of Public Funds. 

"In less than a week after the endorsement of the fine exemption decision, customs cases valuing over JD70 million have been settled," he said. 

Referring to similar Cabinet decision, under which vehicles with expired licensing for over a year have been exempted from fines, the minister said over the past 15 days 72,000 out of the 555,000 unlicensed cars have been licensed.

The Cabinet in a session on November 19 decided to exempt vehicles with expired licensing for over a year from fines, provided that owners pay fees by December 31.

At the time, the government said that the  the decision aims to alleviate financial burdens on vehicle owners and facilitate the registration and licensing process for vehicles that have gone years without licensing renewal.

"This policy aims at stimulating the public sector through exemptions." 

Shehadeh said that the government has sought to incorporate the private sector and civil society organisations into its economic plans and the national endeavour to stimulate the economy and upgrade the living conditions of Jordanian. "There is now a full package and the three parties working collaboratively towards achieving this."

AMMAN — Minister of Investment Mothanna Gharaibeh, said on Monday that the total investments benefiting from the Investment Law between 2020 and the first half of 2024 have amounted to approximately JD4 billion.

Gharaibeh added that the number of investment projects benefiting from the law during the same period reached around 1,988 projects, distributed across sectors: 1,235 in industry, 411 in IT, 153 in tourism, 63 in hospitals and medical centers, 56 in agriculture, 34 in services, 16 in creative production, 10 in trade, 7 in transportation, and 3 in scientific research.

Gharaibeh's remarks came during the Lower House's oversight session in response to a question submitted by MP Ahmad Hmeisat on the public debt, investment volume, and the economic modernisation plan

The minister emphasised that the government had implemented economic reforms aligned with global economic growth requirements, which improved the investment climate, attracted foreign direct investments, and empowered existing projects to expand.

MP Dima Tahboub commended the government for its steps to reorganise the public sector and asked about the amendments to the Civil Service and the Human Resources bylaws and their economic impact.

Minister of State for Public Sector Development Kheirallah Abu Seileek explained that the amendments stipulate an increase to unpaid leave to five years, in addition to revising regulations concerning work outside official hours.

Abu Seileek announced that the new amendments would be issued in the first half of January 2025.

He said that the changes aim to keep pace with administrative developments, balance employee interests with public sector needs, and improve performance efficiency while preserving employees' acquired rights.

He emphasised that the amendments would protect the rights of employees appointed before July 1, 2024, including salaries, bonuses, annual increments, and mandatory promotions.

Tahboub said that 15,000 new families were added to those benefiting from the National Aid Fund, adding that

the financial assistance provided to poor families is "insufficient" to meet their needs and called for collaboration between the Ministry of Social Development and Ministry of Awqaf and Islamic Affairs to utilise unused endowments to support the fund, as well as between the Ministries of Labour and Investment to adopt productive family projects.

In response to that, Minister of Social Development Wafa Bani Mustafa said, "We are proud of those covered by the National Aid Fund, based on a formula incorporating 57 poverty indicators and field visits to ensure continued protection and social assistance."

She explained that the number of families benefiting from the fund increased by 15,000, with the cash assistance program reaching JD265 million. 

While acknowledging that work remains the best form of social protection, she noted the challenges some families face.

AMMAN — Mobile phone companies have confirmed that the issue of adjusting the prices of telecom services has been discussed with all relevant official bodies.

Based on these discussions, the companies said they have decided that a further review of service prices will take place at a later date after further study. 

Unnamed authorized sources have been quoted in a statement ran by the Jordan News Agency, Petra, as saying that each company will evaluate potential adjustments based on its business model and operating costs, while the price changes implemented on 17 December 2024 were currently under review.

The sources reaffirmed the commitment of the telecommunications companies operating in the Kingdom to contribute to the national economy by investing in infrastructure and keeping pace with technological advances. 

The companies emphasised their continued coordination with the government, represented by the Telecommunications Regulatory Commission (TRC), towards investing in cutting-edge communications technologies and business solutions, including the expansion of the 5G network to ensure ubiquitous coverage across the Kingdom, supporting national development and enabling businesses, institutions and individuals to harness the vast potential of 5G technology.

 The companies also highlighted the positive impact this will have on the implementation of the economic modernisation vision and the improvement of the investment climate in the Kingdom, meeting the needs of various business sectors.

In addition, the telecommunications companies underlined the importance of supporting the local community through corporate social responsibility initiatives that cover key sectors such as health, education, environment, sports and youth, as well as community solidarity efforts and support for women and people with disabilities. 

The companies will continue to build on their achievements in this area by expanding their programmes and initiatives to reach an even wider audience, according to Petra. 

The companies also recognised the importance of Jordan's entrepreneurial sector in driving economic growth and creating employment opportunities, and pledged to continue supporting emerging Jordanian start-ups, young innovators and entrepreneurial ideas through a variety of programmes launched throughout the year. 

HO CHI MINH CITY — Thousands of selfie-taking Ho Chi Minh City residents crammed into train carriages Sunday as the traffic-clogged business hub celebrated the opening of its first-ever metro line after years of delays.

Huge queues spilled out of every station along the $1.7 billion line that runs almost 20 kilometres (12 miles) from the city centre — with women in traditional "ao dai" dress, soldiers in uniform and couples clutching young children waiting excitedly to board.

"I know it (the project) is late, but I still feel so very honoured and proud to be among the first on this metro," said office worker Nguyen Nhu Huyen after snatching a selfie in her jam-packed train car.

"Our city is now on par with the other big cities of the world," she said.

It took 17 years for Vietnam's commercial capital to reach this point. The project, funded largely by Japanese government loans, was first approved in 2007 and slated to cost just $668 million.

When construction began in 2012, authorities promised the line would be up and running in just five years.

But as delays mounted, cars and motorbikes multiplied in the city of nine million people, making the metropolis hugely congested, increasingly polluted and time-consuming to navigate.

The metro "meets the growing travel needs of residents and contributes to reducing traffic congestion and environmental pollution", the city's deputy mayor Bui Xuan Cuong said.

Cuong admitted authorities had to overcome "countless hurdles" to get the project over the line.

'Frustrating' delays

According to state media reports, the metro was late because of "slow capital disbursement, unexpected technical problems, personnel difficulties and the COVID-19 pandemic".

"The delays and cost overruns have been frustrating," said professor Vu Minh Hoang at Fulbright University Vietnam, who warned that with just 14 station stops, the line's "impact in alleviating traffic will be limited in the short run".

However, it is still a "historic achievement for the city's urban development", he added.

With lessons learnt, "the construction of future lines will be increasingly easier, faster, and more cost-efficient", Hoang told AFP.

Back on the train, 84-year-old war veteran Vu Thanh told AFP he was happy to experience below ground in a more positive way after spending three years fighting American troops in the city's famous Cu Chi tunnels, an enormous underground network.

"It feels so different from the underground experience I had years ago during the war. It's so bright and nice here," he said.

Reflecting on the delays, he added: "We built the tunnels to hide from our enemies in the past, so building a tunnel for a train should not be that hard," he added.

"Finally, we made it!"

BERN, Switzerland — European Commission president Ursula von der Leyen visited the Swiss capital recently to seal a new set of agreements aimed at stabilising the country's ties with the bloc after disagreements over freedom of movement across Switzerland's borders.

Switzerland was set to announce it has concluded the package deal with the European Union which would recalibrate relations with the surrounding bloc.

However, the government's green light, after years of sometimes hostile negotiations, is just the first step on the road to refreshing relations between the wealthy Alpine nation and its biggest trading partner.

The Swiss parliament will also have its say — with the hard-right Swiss People's Party (SVP), the country's biggest party, fiercely opposed to any rapprochement with the EU — and the public will likely have the final word in a referendum.

A sticking point in the talks — which has now reportedly been resolved — had been Switzerland's stubborn efforts to secure an exemption to the EU's cherished free movement of people between countries.

On Friday, SVP lawmakers stood outside the parliament in Bern holding up candles in what they called a vigil "for our independence and democracy", in opposition to the "package of lies" in the "EU submission treaty".

It said Switzerland would be forced to pay hundreds of millions of francs to the "crisis-ridden EU", saying the government's "logic is simply perverse: it is handing us Swiss over to the EU — and we are supposed to pay for it!"

SVP president Marcel Dettling said they were "fighting for the self-determination of the Swiss people".

'Delicate balance'

"President Von der Leyen is meeting with the president of Switzerland, Viola Amherd, in Bern," a European Commission spokesperson said Friday, adding that they would host a joint press conference at 1315 GMT.

Bern and Brussels are seeking to simplify and harmonise their ties, which are currently governed by a tangle of more than 120 separate agreements.

Relations plunged when Switzerland, suddenly and without warning, slammed the door on the negotiations in 2021.

The talks tentatively resumed in March, with the goal of concluding a deal by the end of the year.

Unlike previous attempts to seal an overarching framework agreement, the current negotiations have sought to update the existing agreements and conclude new ones on issues like electricity, health and food safety.

In recent days, Swiss media cited diplomatic sources saying that all the issues had been agreed, with the exception of how much Switzerland should pay into the EU's Cohesion Fund, which is aimed at reducing economic and social disparities in the bloc.

A fresh round of discussions on Tuesday "took place in a very positive atmosphere", a European diplomatic source said.

"We believe we have reached what is a very delicate balance, and should be appreciated as such by all parties."

The road to this point has been long: around 200 negotiation meetings have taken place.

Separate slices

Fearing it could be tough to win over voters, Bern last week reportedly changed its strategy, and cut the package of agreements into four separate "slices", according to Swiss public broadcaster SRF.

Each slice could then be put to a referendum separately, reportedly in the hope that it would be easier to win support on each narrow set of issues than on a broad package.

The Swiss Trade Union Federation has already called for further negotiations, warning that the agreement as it currently stands risks hitting Swiss wages.

Unions have also voiced concern at the potential impacts on Switzerland's rail and electricity sectors.

The Swiss business federation Economiesuisse supports an agreement.

It said a deal would "enable Switzerland to maintain the current conditions, allowing its economy to access the European market, and to develop them in important areas".

LONDON — The Bank of England (BoE) on Thursday kept its key interest rate at 4.75 per cent, deciding against a cut in line with the US Federal Reserve (Fed), as UK inflation rises again. 

"We've held interest rates today following the two cuts since the summer," BoE Governor Andrew Bailey said in a statement. 

"We need to make sure we meet the 2 per cent inflation target on a sustained basis," he added following a regular policy meeting and after official data this week showed UK annual inflation rising to 2.6 per cent. 

The expected rate decision came a day after the Fed cut US borrowing costs by a quarter-point but signalled fewer reductions for next year. 

The European Central Bank cut eurozone rates last week while the Bank of Japan made no change in a decision announced Thursday. 

Britain's finance minister Rachel Reeves said she supported the latest BoE call despite the pressure that it puts on Britons. 

Had the BoE cut its rate, retail banks would likely have followed suit by reducing borrowing costs on mortgages. 

"I know families are still struggling with high costs," Reeves said Thursday. 

"We want to put more money in the pockets of working people, but that is only possible if inflation is stable and I fully back the Bank of England to achieve that." 

Bailey joined five other policymakers in voting for no change, while the remaining three called for a cut of 0.25 per centage points as they highlighted "sluggish demand and a weakening labour market". 

"The Bank of England is ringing in the same discordant notes of caution as the Federal Reserve," noted Susannah Streeter head of money and markets at Hargreaves Lansdown. 

"The Fed's guidance yesterday of just two further interest rate cuts next year sparked nervousness... and the Bank's decision has done little to provide much cheer." 

Global stock markets retreated following the Fed's update, while reaction to the BoE's action was muted. 

Britain's Consumer Prices Index reached 2.6 per cent in the 12 months to November, up from 2.3 per cent for October, data showed Wednesday. 

CPI had struck a three-year low of 1.7 per cent in September before higher energy bills pushed it back above the BoE's inflation target. 

November's additional inflation rise is a further blow to the Labour government, which has found efforts to grow the economy come unstuck since winning power in July. 

The BoE reduced its key interest rate in August for the first time since early 2020, from a 16-year high of 5.25 per cent as UK inflation returned to normal levels. 

It cut further last month, while analysts on Thursday forecast that the next reduction will occur in February. 

Major central banks started this year to cut interest rates that had been hiked in efforts to tame inflation. 

UK inflation had soared to above 11 per cent in October 2022, the highest level in more than four decades, as the Russia-Ukraine war cut energy and food supplies, sending prices soaring. 

Companies faced supply constraints also as they struggled to return to the pre-COVID rhythm of working. 

TOKYO — Japanese auto giants Honda and Nissan are in preliminary merger talks to help them compete against Tesla and Chinese electric vehicle makers, media reports said Wednesday.

Shares in Nissan soared as much as 24 per cent, while Honda dipped more three per cent. Mitsubishi Motors — of which Nissan is the top shareholder — gained almost 20 per cent.

Japan's number two and three automakers behind Toyota had already agreed in March to explore a strategic partnership on EVs.

"We are discussing possibilities for cooperation... in a wide range of fields and in various areas, and those possibilities include the latest reports, but there is nothing decided," a Honda spokesman told AFP on Wednesday.

Nissan said: "The content of the report is not something that has been announced by either company... If there are any updates, we will inform our stakeholders at the appropriate time."

Major automakers the world over have been reeling from tough competition in EVs, in particular from Chinese competitors such as BYD.

Volkswagen, for instance, is considering closing German factories for the first time in its history.

Last month, Nissan announced 9,000 job cuts, slashed its sales forecasts and said it would reduce global production capacity by 20 per cent.

Warning of a "severe situation", CEO Makoto Uchida said he would forfeit half his salary.

Nissan has seen a turbulent decade that included an attempted major alliance with France's Renault that saw its former boss Carlos Ghosn arrested in 2018.

In Paris, shares in Renault, which owns a significant stake in Nissan, soared more than six per cent on Wednesday.

Electric race 

Bloomberg reported that an approach by Taiwan's Foxconn — officially known as Hon Hai Precision Industry — to take a controlling stake in Nissan accelerated discussions with Honda.

Foxconn, the world's largest contract electronics manufacturer including for Apple, was not immediately available for comment.

Honda and Nissan are considering operating under a holding company and will soon sign a memorandum of understanding, the Nikkei reported.

Their respective stakes, as well as other details, will be decided later, and they also look to eventually bring Mitsubishi Motors under the holding company, the paper said.

The Financial Times reported that the exploratory talks about a merger were at an early stage.

There are, however, concerns about a possible political backlash since a merger could result in significant job cuts, the FT reported.

Japanese television channel TBS reported that the companies could make an announcement as early as Monday.

Honda is considering several options including a merger, capital tie-up or the establishment of a holding company, executive vice president Shinji Aoyama told Bloomberg.

Overtaken

China overtook Japan as the world's biggest vehicle exporter in 2023, helped by its dominance in EVs, a sector where Japanese firms have lost ground by focusing on hybrid vehicles.

Honda announced plans in May to double investment in electric vehicles to $65 billion by 2030, part of its ambitious target set three years ago of achieving 100 per cent EV sales by 2040.

Nissan has signalled similar ambitions.

It said in March that 16 of the 30 new models it plans to launch over the next three years would be "electrified".

The world's auto giants are increasingly prioritising electric and hybrid vehicles, with demand growing for less polluting models as concern about climate change grows.

At the same time, however, there has been a slowdown in the EV market on the back of consumer concern about high prices, reliability, range and a lack of charging points.

"From Nissan's perspective, the possible merger would provide short-term relief for Nissan, which is under significant financial pressure," Tatsuo Yoshida, Bloomberg Intelligence analyst, told AFP.

"From Honda's perspective, Honda is performing better financially, the benefits for Honda would be more long-term," Yoshida said, adding, however, that agreeing on a deal would be "very difficult".