23 APR IL 20 12 I SSUE 73

CARICAPTURES

BETA

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Thailand, Asean, China

01Thai Prime Minister Yingluck

Shinawatra and Chinese Premier Wen

Jiabao signed bilateral agreements

deepening cooperation in finance,

agriculture, and transportation

during the prime minister’s first visit

to China. Thailand and China aim to increase mutual

investment by 15% and trade by 20% to

US$100 billion in the next five years

The two countries also agreed to increase

joint patrols in China, Laos, Myanmar and

Thailand along the Mekong River and work

Thailand and aSEan STrEngThEn

commErcial TiES wiTh china

together to maintain maritime security in

the South China Sea

China also pledged more support for

post-flood reconstruction and recovery in

Thailand

The 9th China-Asean Expo will take place

on September 2012 in Nanning and will fea-

ture exhibitions from Asean businesses

According to the China Council for the

Promotion of International Trade, Asean is

expected to become China’s largest trading

partner within three years

Bloomberg (19 April 2012)

china - asean Trade 2010

Asean, India

02

The India-ASEAN Free Trade

Agreement is at an impasse over

disagreement on the movement of

professionals and labour market

liberalisation. India wants easier visa rules for its

professionals in Asean and greater access

to sectors such as information technology,

healthcare, pharmaceuticals, banking &

financial services, tourism and legal services

The Philippines is averse to service sector

liberalisation as it depends on business

processing outsourcing and does not

welcome increased competition, while

Thailand and Malaysia are more receptive to

opening service markets

Following significant gains from its trade

agreement with Malaysia, India began

separate bilateral trade negotiations with

Indonesia and Thailand

The Business Standard (19 April 2012)

india-aSEan

TradE

agrEEmEnT STuck

ovEr SErvicES

Source: CEIC Database – International Monetary Fund

23 27 0404 ‘12 ‘12

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.

rice Exports - importsfor selected asean countries

Vietnam

Vietnam, Thailand, India

04

03

Attitudes towards the market

economy are changing in Vietnam

rythm. 69% of respondents to a survey

commissioned by the Vietnam Chamber

of Commerce and Industry and the World

Bank want Vietnam to operate with a

market economy

However, 68% of respondents thought

the state should intervene in the market to

Vietnam’s rice and pepper exports

are surging, surpassing India as the

world’s top pepper exporter. Vietnamese rice export is expected to

double in the second quarter of 2012 due

to demand from China and the potential

award of a 120,000-tonne contract from

the Philippines’ National Food Authority

Thai rice exports drop by 47% year-on-

year and are expected to remain weak

in the second quarter of 2012 as the

government price pegs remain effective

until June 2012

Vietnam exported 121,935 tonnes of

pepper in 2011, almost five times more than

second-placed India

Vietnam accounts for 60% of the world’s

pepper exports which earned it US$480.5

million last year

The Star, Malaysia, The Times of India

(19 April 2012)

moST viETnamESE

PrEFEr markET EconomY

viETnam’S ricE and PEPPEr

EXPorTS SurgE

stabilise the price of essential goods, such

as electricity, petroleum and land, while just

28% thought the market should determine

prices

Senior economist Pham Chi Lan attributed

the surprising finding to the dominance

of state-owned enterprises over essential

goods and services

The survey gathered opinions of 967

people from the public and private sectors

The Nation, Thailand (18 April 2012)

Source : World Databank

23 27 0404 ‘12 ‘12

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.

mYanmar

moniTor05Politics

National League for Democracy leader,

Aung San Suu Kyi, and elected members of

parliament did not attend the re-opening of

parliament. Party members refused to take

the oath of office which would have them

safeguard the pro-junta constitution

Sydney Morning Herald (24 April 2012)

Foreign Affairs

The European Union suspended economic

sanctions, with the exception of the arms

embargo, on Myanmar. An EU diplomat said

the decision to suspend rather than remove

restrictive measures was aimed at sending

“a signal that we are continuing to watch”.

The EU had earlier lifted the travel ban on

87 senior government officials including the

president

BusinessWeek (24 April 2012)

International Monetary Fund (IMF) chief

Christine Lagarde praised Myanmar’s

monetary reforms, indicating the IMF had

been working discretely with the country’s

central bank on currency reform

The Straits Times (23 April 2012)

Following President Thein Sien’s visit to

Tokyo, Japan announced it would forgive

Myanmar’s US$3.7 billion worth of debt

and recommence financial assistance in

infrastructure. Japan is Asean’s largest

creditor. During his visit, Thein Sein toured

two thermal power plants in Kanagawa

Prefecture to see how Japan was tackling

energy problems following last year’s

earthquake and tsunami which hit the

Fukushima Daiichi nuclear power station

Bloomberg (22 April 2012)

Aung San Suu Kyi will make her visit

to Britain and Norway as part of her

first trip outside Myanmar in 24 years,

demonstrating confidence in her country’s

reforms. She has not left the country since

1988 fearing the junta would put her in exile

The Financial Times (18 April 2012)

Indian Prime Minister Manmohan Singh

will visit Myanmar next month. It will be the

first time an Indian premier visits Myanmar

in 25 years. India is also competing with

China to host Aung San Suu Kyi

The Times of India (18 April 2012)

New Zealand, Asean, Indonesia, Singapore

06New Zealand Prime Minister John

Key travelled with a business

delegation to Singapore and

Indonesia during his Asia trip with

the objective of expanding trade

with Asean. Mr Key and Indonesia President Susilo

Bambang Yudhoyono signed four

memoranda of understanding for greater

cooperation on agriculture, geothermal

energy, environmental and labour issues

Garuda announced it would resume

direct flights to New Zealand soon to

nEw ZEaland PrimE miniSTEr

John kEY viSiTS aSEan counTriES

boost tourism links, while dairy collective,

Fonterra, planned to build new processing

plants in Indonesia

In Singapore, Mr Key met Singapore

Prime Minister Lee Hsien Loong and urged

for more Singapore investments in New

Zealand and emphasised the quality of

tertiary education in New Zealand

Meanwhile, Vietnam Deputy Prime

Minister Nguyen Xuan Phuc visited New

Zealand last week and discussed trade and

education

Business Scoop (18 April 2012)

new Zealand’s Top 5 Trading Partners in asean

Thailand

07Managing directors from leading

Thai companies; PTT, Siam Cement

Group, Sabina, Green Spot, and other

firms gathered at a seminar to share

their experience in preparing for the

ASEAN Economic Community (AEC). Participants at the seminar organised

by the Thailand Management Association

discussed the challenges and opportunities

further regional integration would offer

their industries

Beverage-maker Green Spot emphasised

gaining first-hand knowledge of markets in

Thai FirmS mEET To

diScuSS aEc

the region and adapting products to local

taste

Sabina, a garment producer, recognised

emerging opportunities in Myanmar and

Vietnam to expand sales

Siam Cement Group (SCG) noted that

human resource is a key success factor for

companies expanding in Asean

There would be more opportunities in

ASEAN +3 and +6 partnerships, comprising

China, Japan, South Korea, Australia, New

Zealand and India, said Chaovalit Ekabut,

SCG Chief Financial Officer

The Nation (19 April 2012)

23 27 0404 ‘12 ‘12

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.

Editorial Team: Angela Goh, Manissa van Geyzel, Han Fang Rong, Chayut Setboonsarng, Lore Kin Nyung, Ahmad Syahid

Consultant Editor: Tunku ‘Abidin Muhriz Designer: Iqbal Hakim

Laos

Singapore, China

09

08

Thai construction company CH

Karnchang signed a US$1.7 billion

contract to construct the Xayaburi

dam on the Mekong River in

Laos despite concerns among

governments in the region. The contract signed with Xayaburi Power,

a Lao-Thai joint venture, said construction

would begin on 15 March 2012 and would

be completed in eight years

The hydropower dam, slated to provide

95% of its electricity to Thailand, will be the

first on the lower Mekong river

Despite expansion in electronic

products, Singapore’s overall exports

were dragged down by declining

demand from China for non-

electronic products. Singapore’s electronic shipments

increased by 2.8% year-on-year in March

Overall non-electronic shipments fell by

XaYaBuri dam

Building PacT SignEd

SingaPorE EXPorTS Fall aS dEmand

From china dEcrEaSES

7.8% due to higher pharmaceuticals exports

being offset by a drop in petrochemical

exports

Singapore’s non-oil exports fell 4.3% year-

on-year in March, after a 30.4% increase in

February

The Monetary Authority of Singapore

said it would allow faster appreciation of

its currency, which may make exports less

competitive after a growth rebound last

quarter

Exports are expected to rise again in the

second half of the year as this slump is

viewed as a consolidation of overall growth

rather than a slowdown

Bloomberg (17 April 2012)

Environmental groups said the project

could threaten regional food security and

affect future decisions on 11 other dams

planned on the same river

In December, Laos shelved plans for

the dam pending further environmental

assessments, following concerns expressed

by Laos, Cambodia, Thailand, and Vietnam

at a meeting by the Mekong River

Commission

Laos has plans for 70 hydropower

projects on its rivers and hopes to become

“the battery of Asia”

Radio Free Asia (17 April 2012)

Asean, Cambodia

10

The Cambodian Stock Exchange

began trading on 18 April 2012 with

its sole listing, Phnom Penh Water

Supply Authority, closing at US$2.33,

a 48% increase from its IPO value of

US$1.57. Phnom Penh Water Supply Authority

listed 15% of its shares on the exchange,

while Telecom Cambodia and Sihanoukville

Autonomous Port are preparing to list their

shares

Indonesia’s JCX Composite Index and the

Philippines’ PSE Composite Index increased

by 19% and 11% year-on-year respectively

due to new investors brought in by Indone-

sia’s sovereign ratings upgrade in January

2012 and the Philippines’ expected upgrade

in 2013

Underscoring the popularity of some of

the region’s bourses there has been a flurry

of deal-making, including a US$7.3 billion

planned offer by Singapore’s DBS Group to

buy Indonesia’s Bank Danamon, the Philip-

pines’ San Miguel Corp’s US$500 million

for a 49% stake in Philippine Airlines, and a

US$1 billion rights issue by the Philippines’

BDO Unibank

The Wall Street Journal (18 April 2012)

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