Alinova Holding S.A.

Energy resources

Kazakhstan has an impressive amount of natural resources available, considering its population of 18 million. This republic of Central Asia is twelfth in the world for oil reserves and fourteenth for natural gas deposits. Furthermore, it is the first country in the region for coal mines and the second for production of this resource after Russia. Fossil fuels derive 87% of its energy output, with only 12% produced by hydroelectric plants and 1% by solar energy.

Finally, Kazakhstan is the largest uranium exporter in the world - given that it strikes with the absence of nuclear power plants on Kazakh territory, as the country manages to satisfy its energy need with only fossil fuels.

Despite the huge resources available, achieving energy self-sufficiency was not immediate. With the collapse of the Soviet Union in 1991 and the consequent independence, energy production suffered a sharp drop, while the disorderly and aggressive privatization of the sector caused a further delay. Only at the beginning of 2000 did robust economic growth begin, which also benefited energy production. In 2003, Kazakhstan became a direct exporter of gas and, starting from 2013, also of energy.

Oil, gas and uranium

Kazakhstan's main product, as well as its primary source of revenue, is oil, which accounts for approximately 53% of the country's exports. According to the Ministry of Oil and Gas, Kazakh crude oil reserves amount to 35 billion barrels. These fields are mainly concentrated in three oil fields in the north-western part of the country: Kashagan (in the Caspian Sea), Tengiz and Karachaganak. The Nur-Sultan government expects to increase production in these areas by 25% by 2025, bringing the national total to 2.15 million barrels per day - compared to about 1.8 million today.

Equally large are the reserves of natural gas, which match those of Canada and Kuwait. Taking into account the new deposits discovered in the Caspian Sea, the Ministry of Oil and Gas has estimated that the supplements of this resource can reach 3.8 trillion cubic meters in total. Given the abundant oil fields available, gas extraction has always played a secondary role in the country's economic development projects. However, since 2012, extraction activities have increased, reaching 19 billion cubic meters within the same year. A growing trend to date, with gas production in 2018 reaching 23 billion cubic meters. On the other hand, exports of this resource reach 8 billion cubic meters.

As for uranium, Kazakhstani reserves make up 12% of the world total, with 21,700 tons extracted in 2018. The country became the first producer in the world in 2009, making up 28% of global extraction. Continuing the growth of the sector in the following years, it reached 39% of the global total in the two-year period 2015-2016. This resource is exported from Nur-Sultan to a large number of countries, including China, Russia, Japan, Canada and India.

The export dilemma

Although its huge energy resources give hope for an economically rosy future for this republic of Central Asia, the regional reality in which the country is located presents several constraints and obstacles. Except for the Caspian Sea to the west, Kazakhstan has no direct access to the sea, making Russia an almost mandatory transit area for the transportation of oil and gas to Western Europe.

In this sense, the main artery used by Nur-Sultan to export its crude is the oil pipeline that connects the former socialist republic to the Russian port of Novorossiysk, on the Black Sea. However, in the past, Moscow has already proven to be an untrustworthy ally, able to regulate Kazakhstan's access to western markets at will. In May of this year, for example, the Russian Federation decided to temporarily suspend the rail transit of Kazakh freight trains loaded with coal and oil to Ukraine, thus slowing down Nur-Sultan's export capacity. In fact, Moscow benefits from regulating the price of gas and oil (resources also produced by Russia), as well as having a strategic interest in controlling fuel supplies in countries such as Ukraine, which the Kremlin considers part of its sphere. of influence.

This situation has led Nur-Sultan to turn its gaze to the East. China's thirst for energy represents a great opportunity for Kazakhstan to diversify its trading partners. Indeed, the constant economic growth of Beijing and its ambitions for world power have forced the Asian giant to guarantee a constant flow of energy resources to the country.

It is no coincidence that Kazakhstan is one of the main recipients of Chinese structural investments in the context of the Belt and Road Initiative (BRI). The most striking example, in this sense, is the construction of the 2,300 km oil pipeline that goes from the Caspian Sea to the Chinese region of Xinjiang. In addition, the Chinese national oil extraction company, China National Petroleum Corporation, has various rights for the extraction of crude oil in Kazakhstan

The huge oil and gas resources available to Kazakhstan give hope for broad economic development prospects. However, the fact that these resources represent the backbone of the entire economy of the country makes Nur-Sultan very vulnerable to trends in the world energy market.

Thanks to its function as a gateway to western markets, Russia has the ability to control Kazakhstan's crude and gas exports to the west, proving to be a rather capricious partner. On the other hand, although it currently constitutes a solid market for Kazakh exports, China may also not give guarantees for the future. Beijing is investing several billion in renewable energy in order to reduce its dependence on the import of gas and oil: this transition would inevitably translate into a reduction in Kazakh exports to China.

To remedy this situation, Kazakhstan should try to diversify its commercial outlets and try to expand its possibilities of access to western markets. In this sense, a fundamental role is played by the Baku-Tbilisi-Ceyhan oil pipeline, which - starting from Azerbaijan on the western coast of the Caspian Sea - allows the Kazakh oil to reach the Turkish coasts on the Mediterranean, in Ceyhan.

Benefits of Setting Up of a Holding Company in Singapore

The purpose of setting up a holding company is not to produce goods or services but to hold shares in other companies (subsidiaries) which may be operating in many industries in different countries – this allows the holding company to control its subsidiaries and to reduce risks for the owners against subsidiary’s losses. The holding company is itself setup as a limited liability company and is operating ideally in a jurisdiction with strong legal, commercial and banking systems.

There are several considerations when setting a Holding Company to invest in Emerging Markets such as Myanmar, Cambodia, Laos, & Vietnam – all of which are members of ASEAN.

Below are just some of the reasons why you should consider Singapore:

Double Taxation Agreement

You can minimize your tax legally by making use of the tax treaty signed between Singapore and all the ASEAN countries. Singapore has one of the best tax treaties with Myanmar.

No Tax on Foreign-Sourced Income

Foreign-sourced income is exempted from tax in Singapore if it meets certain conditions.

No Capital Gain Tax

When you dispose your share in the Singapore holding company there is no capital gain tax. It makes merger and acquisition easier.

Fund Raising

It is easy to raise capital in Singapore for start-ups and entrepreneurs as there is an established network of angel investors, venture capitalists and a strong capital market:

Myanmar’s Nexlabs raised six-digit funding led
Strong Reputation as a Financial Centre & Commercial Hub

Singapore’s reputation as stable and well-run country with strong rule of law is something that adds a shine to any company that is identified as a Singapore company when doing business internationally. It is easy to win trust and business with a Singapore branding.

Wealth Management Expertise

Singapore is the premier wealth management center in Asia. It is prized for its stability, strong rule of law, excellent tax law, strong anti-money laundering regulation and ease of doing business.

Top Talent Hub in Asia

Singapore is ranked by IMD World Talent Ranking as the top talent hub in Asia. It has an incredible pool of talents and professionals such as lawyers, financial consultants, insurers, auditors, engineers, doctors, architects, etc that you can tap on.

Excellent Education Environment

For international companies that that setup holding company in Singapore and need to relocate the families of senior management to Singapore – one of the big draw is the excellent education system in Singapore . Singapore has consistently been ranked among the top 3 countries in the world on the OECD’s PISA Test (Programme for International Student Assessment).

Extensive Free Trade Agreements (FTAs) with major economies

Most important FTAs that Singapore has is with US, China, Japan, S Korea, Australia & ASEAN. This allows qualified products to enter tariff free into the contracting countries. Singapore is one of the few countries that has FTA with both Taiwan and China separately – which diplomatically is a very difficult feat.

Repackaging your company’s identity to minimize friction

With the uncertain global trading environment and the deteriorating relationship between the US and China. It might be desirable for American or Chinese companies to repackage themselves as a Singapore company to invest in manufacturing in emerging markets and to export the manufactured products to China and the US without the fear of facing unnecessary tariff or non-tariff barriers. Singapore has excellent relationship with the US, China, Taiwan and even North Korea!

Service producers have represented around 84% of active businesses in recent years (52% operate in the commerce sector, 12% in the transport and telecommunications sector and 17% perform other types of services).

Producers of goods represent 16% of active businesses (the industry sector absorbs 62%, construction 27%, while agriculture and fishing 11%). The industry is active in the food, textile, clothing, footwear sector, in the woodworking sector, in the production of detergents, in the ceramic sector and in the production of profiles and semi-finished products for the building and mechanical sector. from assembly.

Albania not only offers many investment opportunities (low labor costs and low prices for properties) but also a potential market for European countries.

It should be emphasized that Albania has joined the free trade agreements with the Balkan countries, increasing trade opportunities with the Region.

Albania, which is a NATO member country, is currently being evaluated for the acquisition of the status of candidate country for entry into the European Union.

Local law does not provide for any distinctive limitation between foreign and national investors both as regards the activities and legal structures, and for the application of the tax system.

Economic relations between Italy and Albania

Italy has traditionally been Albania's first commercial partner (37% of Albania's commercial exchange with foreign countries in 2012, for a value of over 1.5 billion Euros).

The demand for made in Italy products is huge and is characterized by a constant tendency of the Albanian consumer to turn his attention to the Italian food and technological product, often purchased in the context of business conducted in collaboration with Italian companies.

Italy is also the main recipient country of Albanian exports, with a 51% share in 2011. Albanian sales to Italy concern in particular the following sectors: textiles and footwear (384 million Euros), minerals, fuel and energy (211 million euros), building materials and metals (73 million euros), food, drinks and to***co (32 million euros), machinery, equipment and spare parts (31 million euros), wood products and paper (22 million Euros), leather and leather goods (15 million Euros), chemical and plastic products (4 million Euros), other products (11 million Euros).

The geographical proximity between the two countries is one of the main reasons that make Italy the first investor in terms of the number of companies operating in Albania. The Italian presence in Albania has around 400 small and medium-sized enterprises, active in various sectors of the economy (energy, construction, infrastructure, textiles and footwear, agro-food). There is also the presence of two Italian banks: Intesa San Paolo and Veneto Banca.

A sector that has developed rapidly in recent years is also that of call centers, whose expansion is due in particular to the low cost of labor and the high diffusion of the Italian language.

In the eyes of Italian companies, neighboring Albania is perceived as the "Balkan Gate". Commercial pe*******on in neighboring countries where the Albanian language is widespread, especially in Kosovo and Macedonia, is easy for entrepreneurs operating in Albania.

Tax and customs

A profit tax (tatim fitimi) of 10% is applied to the company incorporated on the territory of the Republic of Albania.

If the company has accrued profits in the financial statements, if there are dividends for the shareholders, an additional 10% tax will be applied to the dividends as personal income tax.

The rate for the application of the value added tax (TVSH) is 20%.

Companies are distinguished according to their turnover in two categories:

companies that invoice less than 8 million Leke per year (about 57,200 Euros), which are called "business i vogel" (small business)

companies that invoice more than 8 million Leke per year (about 57,200 Euros), which are classified as "business i madh" (large company).

Excise duty in the Republic of Albania applies to the following products: coffee, fruit juice, water, non-alcoholic drinks, beer, wine, alcoholic and non-alcoholic drinks, to***co and to***co products, oil and derived products ;, cosmetics , perfumes and colognes.

Customs tariffs are applied on all goods specified in the nomenclature based on the harmonized system. The level of tariffs applied by Albanian Customs varies according to the goods: 0% - 2% - 5% - 6% - 8% - 10% - 15%.

It should be noted that agreements are in force between Italy and Albania to avoid double taxation.

Sectoral opportunities for Italian companies

Power

Albania has significant hydroelectric potential, but only 35% have been used so far. The installed hydroelectric capacity is around 1,500 MW, while the total reserves are estimated around a potential of 3,000 MW, thus offering possibilities for the construction of further hydroelectric plants.

107 concessions have recently been issued for the construction of 310 hydroelectric power plants, of small and medium size, and tenders are planned for the construction and privatization of hydroelectric power plants.

Construction of the 400 KW Elbasan, Tirana and Podgorica energy line was completed. The Ministry of Economy (METE) is planning to build other interconnection lines that will allow Albania to connect with Kosovo, Macedonia and Italy.

Infrastructure and Construction

The national strategy for development and integration has the following objectives:

the creation of an integrated road infrastructure in the national, regional and pan-European plan

the improvement of the national road network

the modernization and integration of the railway infrastructure into the network

Balkan and European regions

improving the quality of services in seaports, with investments in the infrastructure field

the realization of the by-pass between Vlora and Fier, with a subsidized credit from the European Bank for Reconstruction and Development (EBRD), in the period 2013-2015.

In the field of residential construction, after a rapid proliferation of buildings in urban and suburban centers, a sales crisis has developed, particularly for buildings of mediocre quality and located in non-prestigious areas. It should be emphasized that the requests for sustainable development require the adoption, in the path towards EU standards, of environmental policies aimed at promoting environmentally friendly construction.

Environment

Albania has undertaken various initiatives with international partners aimed at developing and implementing models of integrated management of water resources and harmonization of Albanian legislation with European legislation.

The Ministry has signed agreements with donors for waste water treatment projects: water treatment plants are being built or planned in various cities in the country.

Mining

Albania has a wealth of mineral resources, among which there are chromium, iron, copper, coal, plaster, materials used for construction (aggregates, qualitative stones and materials for floors and walls).

There are companies, also with foreign participation, that have acquired concessions in Albania for the extraction of high quality stone, destined to be placed, after processing, on the international market as a prestigious product. Gypsum quarries produce high purity gypsum, which is exported to Europe.

Manufacturing

The low labor cost, combined with the low tax burden, the diffusion of the Italian language and efficient transport logistics, has facilitated the establishment in Albania of manufacturing companies in various fields: assembly mechanics, textiles, and in general all activities that base an important part of the investment on the element of manual labor.

The modest national competition in this sector may allow Italian companies access to this market not only in terms of productive investments but also in terms of the supply of machinery.

Agribusiness

Agriculture contributes about 17% to the formation of GDP. According to official sources of the Ministry of Agriculture, agricultural land represents 24% of the total area. It is 695.520 ha c / a of agricultural land, while the forest and destined for pasture or other amount to 2.179.280 ha c / a

An interesting phenomenon is the ever increasing diffusion of vine crops destined for the production of wine. Especially in the Kallmet region, production levels of indigenous grapes for the production of wine considered appreciable have been reached, with the presence of cellars built with the professional assistance very often of Italian designers and equipment from Italy.

Food, fishing, food processing and canning of the food product

In Albania there are companies that deal with the treatment of food and that express autochthonous products of the food industry (cured meats, "feta" type cheeses, now more and more widely provided with quality certification).

Meat consumption is very high in the internal market. The production of meat by the internal market does not cover the needs, generating the use of imports from abroad.

As for fishing and fish products, the market is thriving and covered by some Albanian chains that have established efficient organizations for the distribution of fish throughout the Albanian territory.

We note the presence in Albania of companies that treat and can fish (anchovies, shrimps etc.), as well as - recently - companies that also pack pre-cooked fish food. These products are also largely exported.

Tourism and marinas

Albania is a country that still has a largely uncontaminated nature and a tourist potential of undoubted naturalistic and historical / archaeological interest.

The coast lacks a coastal system of tourist docks (the only marina is located near Orikum - Vlora). The reason is to be found in the long-term permanence of a ban for Albanian nationals and legal entities to be owners of pleasure boats. Precisely on the basis of the recent changes that have occurred in the regulatory environment, there is a significant business opportunity in the segment for related operators, also because tourist ports have been included in the regulatory plans of the major coastal cities.

A fragmented and not yet organized tourist accommodation is generally widespread throughout the territory in advertising circuits that offer packages for massive tourism. The number of visitors of registered foreign citizenship is constantly increasing.

E-commerce strategies for the crisis

In the second Wired Trends, dedicated to energy, there was talk of sustainability and reduction of carbon dioxide emissions, for the future of our planet but also to improve the reputation of companies in the sector.

December 2, 2019 is the day of the opening of the 25th COP conference on climate in Madrid, where the main theme is policies to combat climate change and therefore energy is one of the topics at the center of the debate. December 2, 2019 is also the day of the second of the eight Trends 2020 events organized by Wired Italia together with Ipsos and dedicated to the trends and innovations that will characterize next year, with a focus in particular on the energy sector (among the next events : Telco, Security and Insurance).

According to data obtained from the Ipsos Global Trends previewed by the CEO Nicola Neri at the Milano Luiss Hub for makers and students, "among the main concerns that afflict people there are technological, health and safety issues, but in the first place there is is the climatic emergency. Understanding what creates anxiety is essential to be able to give appropriate answers, and it is significant that last Friday was not only Black Friday, but also the day of the global strike of the Fridays for future ".

A concern, that for the environment, which has already led to an increase in public awareness of sustainability issues. "Two out of three people are convinced that the risk of global warming can be fought with technology", explained Andrea Alemanno, Senior Client Officer of Ipsos, "and also in the strong trend towards the electric car the desire to have a minor emerges environmental impact". However, although there are great hopes and expectations for renewable energy, the data tells us that today their share is still less than 20%. "The energy sector has an image problem," added Alemanno, "because it is unable to make its effort towards sustainability evident. In practice, the energy sector is the one most exposed to the risk of reputational crises, in a world where bad public consideration precludes business opportunities ”

In terms of trust, the companies deemed most capable of positively influencing the quality of life are the technological ones, with some incursions by the food companies. Even the best among the companies in the energy sector, however, does not reach the average general value in terms of reputation and trust. "What determines a good reputation is having a vision, being reliable and focusing on ethics," explained Alemanno. "Energy companies are lacking above all in their ability to tell a vision of the world, and least of all they are leaders in this area".

So what is the strategy to improve your reputation? “First of all, you need to be solid, reliable, socially responsible and oriented towards environmental sustainability, but the real leap is the ability to talk about yourself with consistency and transparency. These are precisely the points on which it is worth investing for the future, those which are currently lacking in the energy sector ", concludes Alemanno," together with knowing how to guide change, having a clear and far-sighted vision and being courageous in investments " .

The goal of a correct energy policy should be to reduce carbon dioxide emissions without negatively impacting our quality of life. "Yet", noted Davide Tabarelli, president of Ne Nomisma Energia and the architect, "there is a growing distance between what is affirmed in the international summits and what actually happens in the world. Emissions continue to increase, and there are no prospects of a turnaround ”.

One of the possible keys to tackling the problem is the aforementioned use of the new solutions offered by technology and digital, without however thinking that there may be radical and sudden changes. "Energy and electrical systems are characterized by a strong complexity," added Tabarelli, "and although there are improvements with cogeneration and combined cycle systems, renewable sources require ad hoc solutions for their management, especially given the variability of solar, wind and meteorological conditions in general ". Among the future prospects, in addition to generating energy tout court, there is the idea of ​​managing the ignition of the refrigerators on the basis of the presence or absence of clouds, with a computerized system that requires a great capacity for data collection and analysis .

"Even home automation, enabled by the arrival of 5g, can contribute to energy saving", concluded Tabarelli, "because the will of people is to participate and be active, therefore buy smart devices that consume even less than 30% -50% points precisely in this direction "

From the point of view of companies operating in the energy sector, the most relevant and worrying figure is the forecast to reach 57 billion tons of carbon dioxide emitted by 2050, in practice double what is expected to contain global warming by 2 ° C threshold. "Italy has no gas and oil, but has sun and wind: when we realized this strategic possibility we invested in renewables, even if as a country in the past we have not managed to create an integrated supply chain", admitted Giovanni Brianza , Executive vice president - Strategy, corporate development & innovation of Edison.

"Today, thanks to technological evolution, in the central and especially southern regions there are the conditions to start developing photovoltaic systems on the market, that is, economically sustainable without the need for incentives," he added. A crucial element not to be overlooked is that of the flexibility of the energy systems which, if in the fossil version it was guaranteed by natural gas, in a model based on renewables requires the development of special batteries.

"Producing batteries in Italy is not profitable, because both incentives and ad hoc regulations are lacking," says Brianza. "This is why strategic investments are needed, which have the aim of building a real supply chain and an industrial system", rather than wasting money in bailing out companies that are outdated by the times.

At the end of the day there was the talk by the architect and urban planner Stefano Boeri, focused on understanding how cities can transform themselves from the first causes and first victims of global warming into protagonists of the fight against climate change. "The challenge is to create a new alliance in which the forest and the city coexist," he said on stage. "Just because the tree is a fundamental element for our survival, we are launching a series of campaigns to try to ensure that cities become greener, such as the first forum on urban forestation in Mantua and the plan to plant 3 million trees in Milan in the next 10 years ".

The new paradigm for the city of the future is self-sufficiency, understood both in terms of energy and waste, water and food. "The biggest challenge", clarified Boeri, "is to build new cities in the so-called developing countries with autonomous and sustainable mobility, rethinking them from scratch and designing them already at the forefront. And among the essential characteristics are inclusiveness, the variety of landscapes and a very close relationship with nature ". But forestation should affect any urban center: trees absorb the fine dust generated by traffic, and also exploit groundwater by reducing thermal excursions, i.e. in fact they constitute geothermal systems that are also capable of saving energy for heating and cooling.

Economic boom in real estate sector

The rapid economic development that is affecting the entire territory of the Philippines could not leave real estate investors indifferent. Many of them, in fact, at least according to what emerged from a report recently published by the "Urban Land Institute", are showing a strong interest in high-end vases in the Philippines to make their throat, in particular, is the market that revolves around the capital Manila, which is fourth in the ranking of the cities preferred by those who have the opportunity to invest in new buildings to then profit from them.

The credit can be attributed to an extraordinary 360-degree development that is gradually changing the face of Manila: the economy finally turns the right way, to the point that several multinationals have chosen it as the headquarters of its headquarters. The fact that it is a demographically very young city and that governance policies are increasingly fair and transparent plays in favor of the expansion of the capital.

Right now, in short, the Philippines has a certain "charm" to which, obviously, real estate investors are failing, convinced that this choice can bring them good results. The demand, to date, is even higher than the offer: it follows, of course, that the costs of houses are gradually increasing, and not only in Manila, but in all the Philippines. The price of a high standing apartment in Makati with three bedrooms in a condominium, for instance, has increased by 12.92% compared to 2014 . The same goes for villas and independent houses, whose cost has risen instead of 6.92%.

The district of Bonifacio Global City is also booming, which is just 11 kilometers from the center of the capital: in this case, the increase is 12.4% for condominiums, 10.6% for independent residential properties. A data, the latter, which unequivocally attests to the fact that investors are not only interested in the traditional real estate market, but also in the luxury one, which in the Philippines is still a more "niche" sector, so to speak .