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26 DECEMBER 20 1 1 I SSUE 57
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THAILAND AND CAMBODIA TO WITHDRAW
TROOPS FROM AROUND DISPUTED TEMPLE
DEATH TOLL FROM TYPHOON
WASHI RISES ABOVE 1,000
Thai and Cambodian defence ministers have
reached an agreement to simultaneously
withdraw soldiers from the disputed land
around the temple of Preah Vihear in
accordance with an order issued by the
International Court of Justice (ICJ).
More than 1,010 are reported dead as flash
floods and mudslides washed away shanty
towns in Southern Philippines. President Aquino has declared a state of
emergency and established a task force to
determine the causes of disaster; a logging ban
has been potentially violated, contributing to soil
erosion in the worst hit areas
Evacuation centres are over packed and officials
are concerned with disease outbreaks
The Philippine Navy has shipped relief goods
and coffins to flood-stricken cities of Cagayan de
Oro and Iligan
The Tropical Rainfall Measuring Mission, a
joint US-Japanese scientific project, blames
deforestation and weak construction techniques
for the disaster that was exacerbated by a poor
weather warning system
Reuters, AFP, Washington Post (22 December 2011)
Thailand, Cambodia
Philippines
Though no fixed date for the actual
withdrawal was made, the two sides agreed
to establish a working group to determine the
fastest way to do so
The two sides will establish a “provisional
demilitarised zone” in the disputed areas
Indonesian observers will monitor the withdrawal
Thailand recognises Cambodian ownership
of the temple, a United Nations World
Heritage Site, but not the area around it
CNN (22 December 2011)
19 2312 12‘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.
03 THE PHILIPPINES TO REQUEST US
MILITARY ASSISTANCE IN SPRATLYS
Albert del Rosario (Foreign Secretary,
the Philippines) intends to meet with
Hillary Clinton (Secretary of State, US)
and Pentagon officials in early 2012 to
discuss additional military assistance
to the Philippines, following increased
Chinese naval presence in the South
China Sea. The Philippines intends to request for
two Hamilton class cutters and a fighter jet
Philippines, US, China
squadron to be deployed to the disputed
Spratly Islands
The Philippines submitted a proposal
to establish a Zone of Peace, Freedom,
Friendship and Cooperation to segregate
disputed and non-disputed parts of the
South China Sea at the ASEAN Regional
Forum but was rebutted by Cambodia
and Laos
The Business Mirror, Philippines (21 December 2011)
04
05
MYANMAR TYCOONS
EMBRACE CHANGE
VIETNAM TO
RESTRUCTURE
Tay Za and Zaw Zaw, two of Myanmar’s
richest individuals, are accepting
interview requests and defending
themselves against charges of
collaborating with the former military
regime in their undertakings; Myanmar’s
business elites are increasingly vocal
about supporting reforms. A few businesses leaders have established
links with opposition politicians and dissident
groups; Zaw Zaw attended a soccer match
with Aung San Suu Kyi in September
Most of the very rich in Myanmar are under
“Restructuring the Country’s Economy,”
a seminar held in Hanoi in December 2011
concluded with the resolution to restructure
Vietnam’s state-owned enterprises and
ensure high quality foreign investment
through focus on key principles. Vietnam intends to restructure its state-
owned enterprises in stages, starting in 2012,
focusing on key industries like power, traffic,
telecom, oil and gas, mineral extraction, fuel,
and construction
Restructuring will require a total capital of
VND55-65 trillion (US$2.64-3.12 billion) for
debt restructuring, labour arrangements, and
initial losses
Nguyen Mai (Chair, Vietnam Association
of Foreign Invested Enterprises) proposes
Vietnam’s new policy on attracting FDI to
focus on high quality projects, encompassing
elements of sustainability, technology
transfer, and human resource development
Vietnam hopes to have 1-2 state-run
enterprises operating across East Asia and
another 10-15 state-run enterprises leading
Vietnamese economic growth in 2014-2015
VietNam Net, Saigon Giai Phong (21 December 2011)
Myanmar
Vietnam
US and EU travel and economic sanctions
With the end of the military government,
entrepreneurs formerly favoured by the
regime are being passed over, giving
fresh opportunities for others to take over
lucrative contracts
Aung San Suu Kyi’s National League for
Democracy is in talks with businesspeople
to accelerate the pace of economic reforms
in the country
To boost links, Myanmar opened a new
international airport in the capital this week
Wall Street Journal, Forbes (21 December 2011)
STATE ENTERPRISES
AND FOCUS ON
INVESTMENT
QUALITY
19 2312 12‘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.
07 08THAI CENTRAL
BANK TO SIGN
MALAYSIAN BANKING SECTOR
BOOSTED BY NEW PLANS OF
The Bank of Thailand has signed a bilateral
currency swap agreement with the People’s
Bank of China, China’s central bank. The deal allows both central banks to
swap baht and renminbi without the need
to use the US dollar for intermediation
Prasarn Trairatvorakul (Governor, Bank
of Thailand) hopes the deal will facilitate
international trade between Thailand and
China, and promote the use of the renminbi
in Thailand
Asia One (18 December 2011)
New plans to develop Malaysia’s financial
sector were unveiled by Malaysian Prime
Minister Datuk Seri Najib Razak in the
announcement of Bank Negara Malaysia’s
Financial Sector Blueprint 2011 – 2020, in
an effort to transform Malaysia to a high
value-add, high economy status. The 10-year programme is expected to
expand the financial sector by 11% annually
and create another 56,000 jobs, with Islamic
finance expected to be the forefront of
Malaysia’s financial sector as it is expected
to account for 40% of total financing in 2020
from 29% in 2010
In order to bolster the financial sector,
Thailand, China
Malaysia
the central bank will continue to roll
out elements such as a conducive tax
environment, liberal foreign exchange
administration policies, and the issuance of
new Islamic banking and takaful licenses
to enable institutions to provide coverage
to serve higher value-added economic
activities
The central bank also recommended the
issuance of new licenses to foreign financial
institutions to develop the financial sector
into a more diversified and integrated
regional and international financial market
AFP, The Star Malaysia (21 December 2011)
CURRENCY SWAP
DEAL WITH CHINA
FINANCIAL SECTOR LIBERALISATION
06 INDONESIAN
SKIES SET TO
The thriving airline industry of
Indonesia will see two newcomers in
the full-service airline industry next
year and another airline upgrading
to the semi-full service class, as
announced by the Transportation
Ministry. The growing middle class of Indonesia
has boosted the local airline industry
and cheaper flying costs amidst stiff
competition among many airlines has
further increased air travel demand
The newcomers are Pacific Royale
Airways Indonesia and Lion Air’s Space
Jet while Sriwijaya Air will be upgraded
to semi-full service from a “medium
service airline” as fleets of aircrafts are
purchased and old aircrafts are replaced
in preparation for its operations in 2012
Jakarta Globe Article 1 and 2 (22 December 2011)
Indonesia
GET CROWDED
19 2312 12‘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.
09 10ADB OFFERS US$15M LOAN FOR
FINANCIAL SECTOR GROWTH SERIES OF
TRAIN BREAK-
A US$ 15 million loan agreement signed
between Cambodia and the Asian
Development Bank (ADB) in an effort
to develop Cambodia’s financial sector
marked the commencement of the third
Financial Sector Program coordinated
by ADB and Cambodia, as well as
the finalisation of Cambodia’s Sector
Development Strategy 2011 – 2020. A number of development programs
including the improvement of regulatory
regimes, creation of an inter-bank lending
market, and increased consumer access to
credit will be funded by the loan
The loan provided by ADB has a 24-year
term, including an eight-year grace period
with an interest rate of 1% and 1.5% for the
balance of the term
ADB also offered Cambodia US$1.1
Multiple malfunctions in efficient
Singapore’s train services left
commuters trapped underground for
hours; unprecedented public outrage
prompts the authorities to conduct
investigations. The three breakdowns during rush hour
over four days inconvenienced hundreds
of thousands of commuters
Train operator SMRT has been criticised
for its inability to handle the crisis;
there are calls for the company to be
nationalised and its chief executive fired
Singaporeans are increasingly
frustrated with high public transport
prices and overcrowded buses and
trains; the government is worried that
this will become a political issue
There will be an internal investigation
by SMRT into the problem- the board
has apologised to the public and holds
the CEO accountable; the government
will launch a separate inquiry
Reuters, Today Online (23 December 2011)
Cambodia
Singapore
million for technical assistance, with
US$300,000 to strengthen the capacity
of the National Bank of Cambodia, the
Ministry of Economy and Finance, the
Ministry of Commerce, and the Securities
and Exchange Commission of Cambodia
The first two phases of the FSP since
2001 saw ADB providing more than US$
75 million in assistance to Cambodia and
helped generate more than US$ 1.5billion in
new and increased loans; more than 12,000
jobs were created
Phnom Penh Post (21 December 2011)
DOWNS LEAVE
SINGAPOREANS
FUMING