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10CARICAPTURES
BE
TA
NEWS MONITORING 18 JULY 2011 ISSUE
Japan, ASEAN
01 ASEAN MAY
LURE US$80
BILLION IN FDI
Key Message ASEAN Deputy
Secretary General Puspanathan
Sundram predicts FDI flow into ASEAN
will reach US$80 billion one year after
the ASEAN Economic Community takes
effect in 2015. Puspanathan said by facilitating trade,
connectivity, and transport, and focusing on
human resources, ASEAN would draw 3.4% of
current FDI in the world
The prediction was made at a press
conference in Kuala Lumpur immediately after
the ASEAN Trade Ministers’ Dialogue with
the Federation of Japanese Chambers of
Commerce and Industry in ASEAN (FJCCIA)
The Dialogue represented ASEAN’s effort
in engaging the private sectors - particularly
the Japanese business sector
The meeting endorsed the development of a
10-year strategic vision for ASEAN and Japan
FJCCIA Chief said Japan considered
ASEAN as
a strategic
market
and a large
production
centre
ASEAN
Economic
Ministers
agreed to
conduct a
Road Show
to Japan
in 2012 to create business and knowledge
exchanges between Japanese SMEs and
ASEAN
ASEAN Secretariat, Saigon Daily (July 11, 2011)
Key Message Indonesia will raise the
issue of instituting a joint ASEAN visa
system at the next ASEAN ministerial
meeting (AMM) in mid July 2011. “The joint visa system will resemble the
Schengen visa system adhered to by some
European countries” (Marty Natalegawa,
Foreign Minister of Indonesia)
The proposed system will enable visitors
from outside ASEAN to travel within
ASEAN’s ten countries with a single visa
Most ASEAN countries namely Indonesia,
Malaysia, Thailand, the Philippines, Brunei
Darussalam, Singapore, Vietnam issue free
visas to visitors within ASEAN
Laos, Myanmar and Cambodia have not
implemented the free-visa policy
ASEANTA (ASEAN Tourism Association) is
lobbying governments to adopt a single visa
valid for all ten countries, to turn ASEAN into
a single tourist destination
Elly Hutabarat, Vice President of ASEANTA
says the single ASEAN visa is supported by
governments but encounters implementation
problems due to varying policies within
ASEAN’s ten countries
MCOT (July 14, 2011)
ASEAN
02 INDONESIA
TO PROPOSE
JOINT ASEAN VISA
11 1507 07‘11 ‘11
DISCLAIMER: The news articles contained in this report are extracted and republished from various credible news sources. As such, CIMB ASEAN Research Institute (CARI) does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information and opinion contained in this report. Should any information be doubtful, readers are advised to make their own independent evaluation of such information.
Cambodia
03 STOCK
EXCHANGE
LAUNCHES
Key Message The Cambodian
Securities Exchange (CSX) launched
on 11 July 2011 but Cambodia has no
companies that are ready to go public. The lack of preparedness among local
businesses reflects a broader uncertainty
about the country’s capacity to adapt to the
challenges of operating financial markets
The CSX is a 55:45 joint venture between the
Cambodian government and the Korea Exchange
The exchange will help bring capital into
Cambodia’s economy
Telecom Cambodia, Phnom Penh Water
Supply Authority and Sihanoukville
Autonomous Port will be listing on the
exchange at the end of the year
The exchange will be instrumental in
widening the use of the Cambodian Riel,
weaning Cambodia from the US Dollar and
allowing monetary policy instruments to be used
Detractors expressed doubt that Cambodia–
long bottoming on the Corruptions Perceptions
Index – is capable of upholding effective
regulatory measures to safeguard investors
Cambodian businesses – usually family-run
– need to culturally adapt to the presence of
a capital market
Phnom Penh Post (July 11, 2011)
Key Message CIMB ASEAN Research
Institute (CARI) debuted its flagship
event, CARI Conversations in Jakarta
on July 14 2011. CARI Conversations is an intimate informal
dialogue between invited discussants and
participants focusing on the realisation of the
ASEAN Community by 2015
The featured discussants were
Pushpanathan Sundram, Deputy Secretary
General for ASEAN Economic Community,
ASEAN Secretariat; Iman Pambagyo, Director
of ASEAN Corporation, Minister of Trade
Indonesia; Dr. Reza Siregar, Director of the
South East Asian Central Banks Research
and Training Centre; and Meidyatama
CARI ON THE GO
Suryodiningrat, Editor in Chief of the
Jakarta Post; and Dr. Juwono Sudarsono,
Former Minister of Defence.
Invited participants included H.E.
Ambassador David Carden, US Ambassador
to ASEAN; Prof Fukunari Kimura, Chief
Economist for Research Institute for
ASEAN and East Asia; Weng Gen Hua,
First Secretary of Chinese Embassy; and
Anangga Roosdiono, Chairman of ASEAN
Business Advisory Council
The dialogue focused on the
implementation of the ASEAN Economic
Community, the preparedness of businesses
to join the community and shared values of
the community
THE CARI CONVERSATIONS
SERIES MAKES ITS DEBUT IN
JAKARTA
Indonesia
L-R: John Pang (CEO,
CARI), Pushpanathan
Sundram, Meidyatama
Suryodiningrat, Iman
Pambagyo, Dr. Reza
Siregar.
Malaysia
04 MALAYSIA
CRITICISED
BY ASEAN INTER-
GOVERNMENTAL
COMMISSION ON
HUMAN RIGHTS
Key Message Jakarta’s representative
to ASEAN’s human rights commission
called Malaysia’s response to Saturday’s
Bersih rally a violation of human
rights, despite the government’s
attempts to explain its actions. Rafendi Djamin (Indonesia’s representative
to the ASEAN Intergovernmental
Commission on Human Rights, AICHR) said
Putrajaya’s actions were a violation of human
rights principles
Malaysian police cordoned off central Kuala
Lumpur and used tear gas and water cannon
against thousands of people demanding
electoral reform
About 1,650 people were arrested at the
rally, but most were released shortly after
Amnesty International & the Human Rights
Watch (HRW) also denounced the arrests
Mark Toner (Spokesman, US Department
of State) said people should be allowed to
“freely express their democratic aspirations”
The Bersih 2.0 coalition organised the rally,
saying the electoral system is plagued with
fraud and demand longer campaign periods,
automatic voter registration and equality of
access to the mainstream media
Street protests are rare in Malaysia,
but foreign investors are worried that
anti-government sentiment could delay
economic reforms, seen as essential to draw
investment
The Jakarta Post (July 15, 2011)
11 1507 07‘11 ‘11
DISCLAIMER: The news articles contained in this report are extracted and republished from various credible news sources. As such, CIMB ASEAN Research Institute (CARI) does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information and opinion contained in this report. Should any information be doubtful, readers are advised to make their own independent evaluation of such information.
Vietnam
06 VIETNAM ECONOMIC ZONE DRAWS
US$12 BIL. INVESTMENT
Key Message An economic zone in
Vietnam has received nearly US$12
billion of investments from 103
businesses including foreigners since
its establishment in 2006.
The zone spreads nearly 23,000 hectares in
Ky Anh District
Several national projects at the zone
has been finished and put into operation,
including Vung Ang Petrol and Gas General
Store, the North Central Liquidized Gas
General Store, Vung Ang Port and several
factories producing forestry products for
export
Ho Anh Tuan (Chief Manager, Vung Ang
Economic Zone) said the Vung Ang deep
port can receive ships between five and 3.5
million tons
Projects pending investment permission
include an oil refinery worth US$12.47 billion
with expected output of 16 million tons a
year, a steel factory and the second phase of
the thermo power plant
Saigon Daily (July 11, 2011)
Vietnam, Thailand
08 OFFICIALS
WANT
MINIMUM WAGES
RAISED
Key Message Vietnamese officials
suggest raising the minimum wage
to give factory workers better living
conditions given rising inflation, but
businesses say they cannot afford it. 34 wildcat strikes took place this year as
workers complained about salaries unable to
meet basic needs
A government decision on May 1 raised the
minimum wage by 14% from VND730,000
(US$35) to VND830,000 (US$40) a month,
but this does not match recent price hikes
and inflation which are set to increase further
Nearly 260 foreign-invested businesses
at Hanoi’s IPs and EPZs pay workers the
minimum wage set by the government
The ministry’s latest proposal is to raise
wages between VND1.4 million (US$68) to
VND1.9 million (US$92) a month, depending
on the region
Ministry officials say the increase still falls
short of real needs
Pheu Thai’s proposed minimum wage
of THB300 causes companies to
reconsider expanding their production
in Thailand and relocate to other
countries. A Japanese member of the Japanese
Chamber of Commerce in Bangkok said
Japanese companies operating in Thailand
are also concerned about Thailand’s labour
shortages and seek foreign workers
The Board of Investment reportedly told
foreign firms to cut their numbers of migrant
employees within six months
Munenori Yamada (Outgoing President,
Japan External Trade Organisation’s Bangkok
office) said relocations from Thailand to other
countries are likely for sectors where wage
levels are critical to operations
Foreign chambers told the Board of Trade
that its members are not comfortable with the
THB300 promise for workers and a minimum
salary of THB15,000 for university graduates
Thanh Nien News (July 8, 2011)
Thailand
07 BANK OF
THAILAND
PREPARES FOR
ASEAN INTEGRATION
Key Message The Bank of Thailand
is preparing for regional integration,
including the financial integration
framework under the ASEAN Economic
Community(AEC) in 2015. “Various committees are working toward
ASEAN’s financial integration by addressing
issues in financial service liberalisation, capital
account liberalisation and payment systems
integration” (Chim Tantiyaswasdikul, Asst. Governor,
Bank of Thailand’s IT Group)
One of the AEC financial policies is to promote
the use of local currencies for intra-regional trade
AEC will boost intra-ASEAN trade and drive up
transaction volumes, hence banks must grasp the
needs of customers and close service gaps
The Nation (July 11, 2011)
11 1507 07‘11 ‘11
DISCLAIMER: The news articles contained in this report are extracted and republished from various credible news sources. As such, CIMB ASEAN Research Institute (CARI) does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information and opinion contained in this report. Should any information be doubtful, readers are advised to make their own independent evaluation of such information.
Singapore
09 SINGAPORE’S
ECONOMY
SHRANK IN SECOND
QUARTER AS
MANUFACTURING
SLUMPED
Key Message Singapore’s economy
shrank for the first time in three
quarters as manufacturing slumped
adding to evidence the slowdowns
in Europe and the U.S. are curbing
growth in Asia. Europe’s debt crisis and rising U.S.
joblessness have threatened demand for
exports from Asia
Singapore remains vulnerable to
fluctuations in overseas demand for
manufactured goods, despite shifting to its
reliance towards services & tourism
The shift to lower value products in
pharmaceuticals played a major role in the
slowdown of manufacturing
Bloomberg (July 14, 2011)
ASEAN, GCC
10 GCC-ASEAN FREE TRADE
AGREEMENT DISCUSSED
Key Message Officials at GCC and
ASEAN stressed the importance of
enhancing co-operation and exploring
the possibility of a Free Trade
Agreement. The first meeting of the Joint Work Team for
Economic and Trade Cooperation between Gulf
Cooperation Council (GCC) and ASEAN took
place in Salalah on July 10
The meeting explored cooperation in trade
and investment and academic, student and
technical exchange at the government and
private level between the two groups
Abdulrahim Hasan Naqi (FGCCC Secretary-
General) signed a Memorandum of
Understanding (MoU), in addition to
organising a forum for the GCC and ASEAN
private sector in Muscat in February 2012
Talib bin Miran al Ra’eesi (Head of
Economic Affairs, Foreign Ministry) said a
free trade zone between these countries will
increase the volume of trade and aid direct
and indirect investment
A symposium on future economic
cooperation was agreed upon, to be held in
the joint ministerial meeting in Abu Dhabi in
October 2011
Observer, Times of Oman (July 13, 2011)
CHECKPOINT
QUICK FACTS ON GCC
The Gulf Cooperation Council is a trade bloc consisting
of six countries in the Persian Gulf; the United Arab
Emirates, Bahrain, Saudi Arabia, Oman, Qatar & Kuwait.
The bloc focuses on standardizing regulations,
fostering industrial progress, cooperating in scientific
research & encouraging private sector cooperation.
ASEAN-GCC relations include trade & investment,
economic development, & cultural cooperation through
joint meetings & working groups.
WHAT IS THE GULF
COOPERATION COUNCIL?