Download - CARI Captures Issue 43 (22 Aug 2011)
NEWS MONITORING 22 AUGUST 2011 ISSUE
23/05/1127/05/11CARI
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BETA
JOINT MEDIA STATEMENT OF THE
43RD ASEAN ECONOMIC MINISTERS
MEETING
ASEAN
The 43rd ASEAN Economic Ministers
Meeting from 10 to 11 August in
Manado emphasised trade in goods
and services as priority areas in
achieving the ASEAN Economic
Community in 2015. The tariff reduction schedules from the
ASEAN Trade in Goods Agreement are now
complete and a memorandum of understanding
between Brunei, Malaysia and Singapore
for the implementation of a Regional Self-
Certification System has been signed
Brunei, Indonesia, Malaysia, the Philippines,
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Singapore, Thailand and
Vietnam will participate
in the ASEAN Single
Window pilot project in
Q3 of 2011
ASEAN ministers plan
to engage the private
sector in the automotive,
electronics and textile
industries to identify non-
tariff measures impacting
ASEAN trade
The 5th Package
on financial services
under the ASEAN
Framework Agreement
on Services (AFAS) has
been concluded and is
to be followed by the
8th Package of AFAS
Commitments before the
end of 2011
Practical outcomes of the ASEAN
Agreement on Movement of Natural Persons
is expected by the end of 2011
Negotiations on the Trade in Services and
Investment Chapters under the ASEAN-Japan
Comprehensive Partnership Agreement and
ASEAN-India Free Trade Agreement are ongoing
Ministers are exploring framework arrangements
on trade, investment and economic cooperation
with the Gulf Cooperation Council
ASEAN Secretariat (11 August 2011)
CHINA-ASEAN
EDUCATION
COLLABORATION
ON FAST TRACK
China, ASEAN
Chicanas cooperation in education,
through mutual academic recognition,
exchange programmes and scholarships,
has led to knowledge and cultural
exchanges between students from
both regions. The number of ASEAN students studying
in China increased from 34,000 to 49,000
from 2008 to 2010, while the number of
China’s students studying in ASEAN increased
from 68,000 to 82,000 for the same period
(Source: China’s Ministry of Education)
The Chinese government promised to provide
10,000 scholarships to ASEAN students by
2010 and has signed cooperative education
agreements with Malaysia, Vietnam, Brunei,
Myanmar, Laos, Cambodia and the Philippines
China also signed mutual diploma recognition
contracts with Malaysia and Thailand and
will continue to explore similar programs
with other ASEAN countries
135 cooperation agreements have been
signed between 31 ASEAN universities and
47 Chinese universities
China has trained nearly 5,000 Mandarin
Chinese lecturers and volunteers to provide
students with language instruction
Liu Baoli, Deputy Director of Chinese Ministry
of Education says more youngsters from
China and the ASEAN are learning about
each other’s language, culture and history
Xinhua (18 August 2011)
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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.
MARKET RATE
US$331
US$502
THAI GOVERNM
ENT
UNMILLED RICE(1 TONNE )
EXPORT PRICE
AU GUST 2011US$567 DE CEM BER 201 1
(expected)US$700
PRICY RICE
CAMBODIA INAUGURATES PART
OF ASEAN HIGHWAY
Japan, Cambodia
03Cambodia inaugurated a 9km section
of the national road No. 1 on August 16,
the main road in the ASEAN highway
scheme, connecting Bangkok, Phnom
Penh, and Ho Chi Minh City. Construction of the 9km section started in
December 2009, funded by a Japanese grant-
in-aid of US$25 million
At the ceremony, Cambodian Prime Minister Hun
Sen said the road is an international artery in
Cambodia, and is an important part of the Southern
Economic Corridor and the ASEAN highway Once
the construction of the Japan-funded Neak
Loeung Bridge is complete in 2015, the ASEAN
highway from Cambodia will be fully operational
According to the premier, Japan has provided
grant-in-aid of US$2 billion to Cambodia
The ambassador of Japan to Cambodia,
Masafumi Kuroki said Japan hopes the
assistance will strengthen the friendship
between Japan and Cambodia and that
the road will boost Cambodia’s economic
development and alleviate poverty
Xin Hua (16 August 2011)
FREE TRADE
AGREEMENT
CONSOLIDATION
PROPOSED
China, Japan, South Korea, India,
Australia, New Zealand, ASEAN
Japan has proposed the consolidation
of free trade agreements between
ASEAN and dialogue partners -
China, Japan, South Korea, India,
Australia, and New Zealand- into a
single multilateral agreement from
the current bilateral arrangements. The 17th consultation between ASEAN
Economic Ministers and the Ministry for
Economy Trade and Industry of Japan
was held on August 13 in Manado
China and Japan would like to have
negotiations announced by the next ASEAN
Summit in Phnom Penh in November 2012
China would prefer to exclude India,
Australia and New Zealand from the
ensuing multilateral FTA
Srirat Rastapana (Director General,
Department of Trade Negotiations, Ministry
of Commerce, Thailand) said about 90% of
products traded between ASEAN and China
have no tariff and both sides are in the process
of cutting tariffs to below 20% of products
on the sensitive list by January 2012
Bangkok Post (16 August 2011)
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THAI RICE POLICY MAY
RIPPLE ACROSS ASIA
Thailand
The Thai Government’s promise to raise
rural incomes through higher rice prices will
cause inflation and complicate monetary
policy making throughout Asia, a region that
consumes 87% of the world’s rice. Rice prices increased by 55% in the past year
according to futures traded on the Chicago Board
of Trade
The acceleration of policies to boost consumption
in Thailand risks complicating monetary policy
across Asia, as soaring food costs add pressure for
higher interest rates while the region braces for a
growth slowdown
Food makes up an average of 30% of inflation
indexes in Asia
The weighting of rice in consumer-price indexes
varies from 9.4% in the Philippines, 4.7% in Indonesia
and 2.9% in Thailand (Source: Bank of America)
Interest rates in South Korea, Malaysia, and the
Philippines remain unchanged while rates in China,
India and Thailand were raised rates to tame inflation
Gulf News (18 August 2011)
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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.
SBY SEEKS BIG GROWTH IN
INFRASTRUCTURE FOR 2012 BUDGET
Indonesia
In his annual speech assessing the state of the republic on Tuesday, President
Susilo Bambang Yudhoyono proposed an expansive budget for 2012 that
focuses on infrastructure spending and social programs, while making modest
cuts in some subsidies, as the country aims for faster economic growth.
Jakarta Globe (16 August 2011)
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INDONESIAN GOVERNMENT
ANNOUNCES TAX HOLIDAY FOR
HIGH-VALUE, INNOVATIVE INVESTORS
Indonesia
Indonesia’s Finance Minister Agus
Martowardojo said on August 15 that
Indonesia plans to grant tax holidays for
major investors in select sectors, in an
effort to boost foreign direct investment. Agus said the exemption would be granted
to companies investing at least IDR 1 trillion
(US$117 million) in sectors including base
metals, oil refining, petrochemicals, renewable
energy, machinery and telecoms equipment
“We have prepared the criteria for a tax
holiday and a regulation to that effect will be
issued later this month” (Agus Martowardojo)
The tax holiday will exempt investors
from paying taxes for between 5 and
10 years from the start of commercial
operations, although investors that have
operated for less than a year can also apply
Agus said the companies must have at least
IDR 1 trillion (US$117 million) in investment
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and be considered pioneers in their industries
Companies that already received a tax
allowance are not
eligible for the
exemption
Responding to the
announcement, the
Jakarta Composite
Index rose by 1.8%
and construction-
firms gained on
expectations
of a pick-up in
building projects
Jakarta Globe (16 August 2011)
MEASURES
WEIGHED
FOR AEC
Thailand
The Finance Ministry is considering tax
measures to improve the competitiveness
of Thai businesses to cope with increased
competition once the ASEAN Economic
Community (AEC) is formed in 2015,
says Satit Rungkasiri, director-general
of the Revenue Department. Mr. Satit says if Thailand is not ready to
handle the changes in the market, it will lose
opportunities in ASEAN
For the service industry, tax measures
will be used to attract foreign investments and
promote exports
One of Mr. Satit’s concerns is for the loss of
tax income from the changes brought by the
AEC which will allow business transactions to
take place more freely around the region
Mr. Satit is also concerned that Thai nationals
will struggle to compete for local jobs once a
free-flow of skilled labour takes effect
Bangkok Post (16 August 2011)
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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 TIGHTENS RULES
FOR HIRING FOREIGNERS
Singapore
6TH PAN-BEIBU
GULF ECONOMIC
COOPERATION
FORUM KICKS OFF
China, ASEAN
According to the new rule by Singapore’s
Ministry of Manpower, starting in
January 2012, foreigners must earn at
least SG$3,000 (US$2,471) a month to
qualify for an employment pass to work
in Singapore.
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09The economic corridor is a project between China’s Guangxi Zhuang
Autonomous Region & ASEAN involving transportation links through rail & roads,
as well as economic cooperation through cross-border industrial zones
The Forum on Pan Beibu Gulf Economic
Cooperation (PBGEC) represents China’s
newest initiative for sub regional
cooperation with ASEAN, the focus of which
is to create coastal industrial areas,
making the most of the strategic position
of Pan-Beibu Gulf as the largest sea
gateway which is closest to ASEAN. The forum took place on August 18-19 in
Nanning, China
On June 3, a panel of experts approved the
feasibility study on the cooperation
PBGEC emphasizes maritime-based cooperation
– improving ocean trade, port development,
and maritime-related private sector investment
The cooperation involves China and oceanic
countries of ASEAN - Vietnam, Malaysia,
Singapore, Indonesia, Brunei and Philippines
One of the PBGEC’s main projects is the
building of an economic corridor from
Nanning to Singapore
Transport facilities in the zone are currently
unable to support the expanding trade activity
and ASEAN was urged to improve transportation
networks which are vital to the ASEAN-China
cooperation and development
Jiang Yaoping, China’s Vice Minister of Commerce
said the ministry will jointly set up an exclusive
committee to boost the development of
infrastructure, ports, and logistics
Officials from China’s ministry of commerce
stressed the need for PBG countries to harmonise
custom procedures and eliminate trade barriers
to ensure the efficiency of transport networks
Ma Biao (Governor of the Guangxi Zhuang
Autonomous Region) also urged ASEAN to
expand industrial cooperation in technology and
energy in the Guangxi, which will enhance agri-
culture, manufacturing and other industries
Bernama (18 August 2011)
Singapore’s government tightened
its rules on August 16 following
complaints from residents who are
competing for jobs
Labour shortages mean Singapore
has to rely on immigrant workers for
many jobs, especially in hotels and
offshore marine industries
Foreigners who do not qualify can
continue to work in Singapore but
their employers will be subject to
various quotas and levies
The new rule is not applicable to
permanent residents
The tighter requirement for mid-level staff
has sparked complaints by employer groups
such as the Singapore International Chamber of
Commerce and Singapore Business Federation
Reuters (16 August 2011)
PRIORITY DEVELOPMENTS IN
THE NANNING - SINGAPORE
ECONOMIC CORRIDOR