CARI Captures 139 (3 september 2013)
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Transcript of CARI Captures 139 (3 september 2013)
ASEANREGIONAL
CARI CAPTURES • ISSUE 139
CARICAPTURES
In collaboration with the ASEAN
Business Club, CIMB ASEAN
Research Inst i tute he ld i t s
inaugural Network ASEAN Forum
in Singapore to bring together
regional business leaders to
help shape ASEAN economic
integration.
The Network ASEAN Forum
provides a platform for thought
leaders and decision makers to
incubate change in an open
exchange of ideas in order to
bridge the gaps that hamper
free trade in the context of the
ASEAN Economic Community
01
Deputy Prime Minister and
Finance Minister of Singapore,
Tharman Shanmugaratnam
opened the event with a speech
expressing his optimistic outlook
for ASEAN, citing the importance
of cooperation between the
private sector and the ASEAN
governments
Key highlights of the forum
included the sector based “Lifting
the Barriers” roundtables which
saw delegates discussing issues
hindering freer trade around
six sectors namely Aviation,
Connectivity, Infrastructure,
Power and Uti l it ies, Capital
3 SEPTEMBER 2013
www.cariasean.org
THE INAUGURAL NETWORK ASEAN FORUM 2013
Markets, Financial Services and
Healthcare
Some of the takeaways from
the roundtables included the
need for ASEAN-wide regulation,
better cooperation between
key industry players as well as
abolition of protectionist policies
The outcome of the roundtables
wi l l be ref lected in pol icy
recommendation white papers
which will be presented at the
23rd ASEAN Summit in October
2013
The forum also entailed plenary
sessions whereby guest speakers
such as Zhang Lei of China’s
Hillhouse Capital Management,
Azman Mokhtar of Malaysia’s
Khazanah Nasional Bhd as well
as Singaporean High Commission
to Malaysia HE Ong Keng Yong
shared valuable insights and
experience to address issues
that may be of interest to policy
makers
Guests enjoyed a del icious
dinner at the end of the day at
the ASEAN Business Club’s 3rd
Annual Gala Dinner
ASEAN
CARI CAPTURES • ISSUE 139 3 SEPTEMBER 2013
DISCLAIMER: The news articles contained in this report are extracted and republished from various credible news sources. 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.
Channel NewsAsia (20 August 2013)Malaysia-Chronicle (23 August 2013)
US FIRMS OPTIMISTIC ABOUT REGION WHILE DOUBTFUL OF THE AEC 2015 VISION04
Despite a recent survey showing
that US f i rms are scept ical
that ASEAN will meet the 2015
dead l ine o f es tab l i sh ing a
single market, US firms claim
to be optimistic about business
prospects in the region.
A survey released on 20 August
by the American Chamber of
Commerce in Singapore and the
US Chamber of Commerce shows
that US firms operating in ASEAN
are sceptical that the region
T h a i l a n d i s c o n s i d e r i n g
establishing a sovereign wealth
fund to increase returns and
help improve the central bank’s
balance sheet, as the country
deals with capital outflows and
a recession.
Thailand’s economy officially fell
into a recession for the first time
since 2009, when the second
quarter of this year showed a
0.3% contraction following a 1.7%
contraction in the first quarter
The Thai baht has fallen to a
three-year low mainly due to
capital outflows
The Bank o f Tha i l and i s
considering to use its surplus
foreign reserves to establish a
sovereign wealth fund named
the New Opportunity Fund with
the purpose of generating more
long run investment returns with
manageable risk
The fund would be only one of
measures to improve the central
bank’s balance sheet which has
accumulated US$16.5 billion (531
billion baht) in debt mainly from
foreign exchange stabilisation
Meanwhile, in an attempt to
will succeed in establishing the
ASEAN Economic Community
(AEC) by 2015
About 52% of the 475 senior US
executives in the survey said
they do no not think the AEC‘s
goal will be realised by 2015,
and 60% of the doubters believe
ASEAN will not reach the goal
of the AEC until 2020 or later
Only 23% of the respondents said
they believe ASEAN will meet its
2015 goal
Despite the scepticism regarding
02 THAILAND CONSIDERS A SOVEREIGN WEALTH FUND AMIDST RECESSION AND POLITICAL REFORMS
03
Bangkok Post (28 August 2013)Bangkok Post (27 August 2013)Bangkok Post (25 August 2013)
the AEC, US companies claim
to be optimistic about overall
business prospects in ASEAN,
and 79% of those surveyed
said their trade and investment
levels in ASEAN has risen over
the past two years and 91% of
them expect that to increase
over the next five years
About 63% of respondents said
that ASEAN‘s proportion of their
companies‘ global revenues has
grown over the past two years
"Th i s su rvey shows tha t
US companies are thinking
regional ly , and as ASEAN
continues to integrate, US
c o m p a n i e s w i l l n e e d t o
increasingly focus on strategies
to realise ASEAN's potential," Ms
Tami Overby, the US Chamber of
Commerce's vice-president for
Asia said
reconcile Thailand’s struggles
in the pol i t ica l arena, the
government is hosting a political
reform forum, which is intended
for the country’s experts to help
the government find solutions to
Thailand’s political impasse
P r i m e M i n i s t e r Y i n g l u c k
Sh inawatra expressed her
sadness for the absence of the
opposit ion Democrat Party
and the yellow-shirt People's
Alliance for Democracy (PAD),
and welcomed them to join at a
later time
Former Prime Minister General
Chavalit Yongchaiyudh said
during the forum that the Thai
people should play a larger role
in the country’s political reform
process and the development of
democracy
EXPATS LIKE BRUNEI BEST
Foreign expats living in Brunei
gave the country a full 100%
satisfaction score, putting the
small oil-rich sultanate in first
place of ASEAN countries as an
expat favourite.
Brunei scored a fu l l 100%
satisfaction marks in a survey The Malay Mail (20 August 2013)
done by the the American
Malaysian Chamber of Commerce
( A M C H A M ) , f o l l o w e d b y
Malaysia, Singapore and Laos
tied in second place with a score
of 94%
The survey covered 475 senior
executives working for US
companies operating in Brunei,
Malaysia, Singapore, Laos and
Indonesia
The sample size of respondents
living in Brunei was quite small,
possibly influencing the outcome
of the survey
Corruption and an unattractive
tax s t rucut re cou ld have
in f luenced Ma lays ia ‘ s and
Indonesia‘s popularity among
foreign expats, as AMCHAM‘s
2013/2014 ASEAN Business
Outlook Survey reported that
53% of respondents were
concerned at the level of
corruption in Malaysia and 80%
in Indonesia
SINGAPORE LAOSBRUNEI INDONESIAMALAYSIA
THAILAND
ASEAN
THE SOVEREIGN WEALTH FUNDS OF 5 ASEAN NATIONS
COUNTRY NAME INCEPTION ORIGIN SIZE (US$ BILLION)
Singapore
Singapore
Brunei
Malaysia
Vietnam
Indonesia
Government of Singapore Investment Corporation
Temasek Holdings
Brunei Investment Agency
Khazanah Nasional
State Capital Investment Corporation
Government Investment Unit
1981
1974
1983
1993
2006
2006
Non-Commodity
Non-Commodity
Oil
Non-Commodity
Non-Commodity
Non-Commodity
285
173.3
40
39.1
0.5
0.3
Source: Sovereign Wealth Fund Institute
CARI CAPTURES • ISSUE 139 3 SEPTEMBER 2013
DISCLAIMER: The news articles contained in this report are extracted and republished from various credible news sources. 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.
SINGAPOREANS WANT BETTER QUALITY OF LIFE05
SINGAPORE
ASEAN CURRENCIES AT WEAKEST LEVEL IN YEARS
Bloomberg (30 August 2013)Phil Star Business (29 August 2013)
The Star (22 August 2013)
A series of events has led to
many of the ASEAN currencies
reaching their lowest level in
years but international debt
watcher Standard & Poor’s (S&P)
says that a financial crisis in the
region is unlikely.
The possible US-led military
action in Syria is the latest in a
series of events that has caused
a slump in stocks and weakening
currencies in several Asian and
ASEAN countries
and have a surplus of foreign
exchange income would not be
affected
S&P however said that smaller,
more open and more trade-
dependent economies in Asia
such as Singapore have higher
risks to growth due to their
openness
Indonesia is one of the worst hit
by outflows as investors flee the
emerging market. The Indonesian
rupiah had its weakest month in
five years causing Bank Indonesia
to raise its benchmark interest
rate on 29 August to a four year
high of 7%
Other ASEAN currencies have
a lso been weakening; the
Philippine peso has reached a
two-year low, and Malaysian
ringgit and Thai baht have both
reached their lowest rate in three
years
Malaysia’s central bank brushed
of f concerns of an As ian
contagion risk, saying it has
the capacity to manage its
currency volatility as it did in
the 2008/2009 global financial
crisis
Standard & Poor’s released a
statement saying that a repeat
of the 1997 financial crisis in
unl ikely and that emerging
countries which rely on domestic
demand for economic growth
WATCHFUL EYES ON FREE CHAT APPS07
In this age and t ime where
smartphones have enabled us
to access information anytime
anywhere , surve i l lance and
content management gets quite
tricky for governments wishing
to monitor communication.
The Vietnamese government
is looking into a policy that
could ban free internet-based
telecom tools like Viber, Line and
Whatsapp for the damage it has
Yahoo! Finance (21 August 2013)Yahoo! News (13 August 2013)
The Star (27 August 2013)
In Malaysia, content creators
and users are urged to observe
the Electronic Content Code as
self regulation has become an
important element in stemming
inappropriate content on the
web
06
the Housing Board had recently
lowered the l im i t to the
proportion of gross monthly
income that can be used for
repayment of HDB loans to
the current level of mortgage
servicing ratio for private loans
of 30%
D e s p i t e o p t i m i s t i c f u t u r e
outlooks for the economy, most
Singaporeans are willing to trade
off high economic growth for
better quality of life as they want
everyday to be as rewarding as
saving for the future.
A survey of 4,000 Singaporeans
has shown a growing desire
for the government to ease
Singapore’s pace of growth
and development in return for
a slower pace of life
Most of the respondents wanted
a less competitive education
system and fewer fore ign
workers in their country as they
yearn for more in life given that
stable infrastructure are already
in place
59% of the respondents chose
a comfortable pace of life over
career advancement, citing the
importance of work-life balance
Additionally, more than half
of the respondents opted for
preservation of green spaces
and her i tage spaces over
infrastructure development
While the country is achieving
s teady economic growth ,
the government had plans to
adjust housing, healthcare and
education policies to address
issues of rising living costs and
the widening gap between the
rich and the poor
To discourage overspending,
The Malaysian Insider (26 August 2013)The Wall Street Journal (19 August 2013)
Straits Times (27 August 2013)
ASEAN
THAILAND MALAYSIAVIETNAM
done to the revenue of network
providers.
On the hee ls of a h igh ly
controversial policy that would
prevent social media sharing
of news, many are questioning
Vietnam’s censorship laws, citing
the protectionist nature of this
policy
In Thailand, the police force has
attempted to gain access to the
records of online chats from
the operators of Line instant
messaging, citing the need to
monitor targeted individuals who
are suspected of committing
crimes such as insulting the
Thai monarch, arms trading,
prostitution and drug dealing
Saudi Arabia has banned Viber in
June 2013 as it was too difficult
for the state to monitor and it
was shaving the revenues of
licensed telecom companies.
Whatsapp also sits on their
watch list
A S E A N C U R R E N C Y D E V A L U A T I O N
Currency
Indonesian Rupiah
Thai Baht
Malaysian Ringgit
Philippine Peso
11,210
32.16
3.286
44.61
9,619 (24 Jan)
28.70 (23 April)
2.972 (10 May)
40.67 (10 March)
16.54%
12.06%
10.56%
9.68%
12,788.5 (1 Dec 2008)
36.16 (11 March 2009)
3.729 (8 March 2009)
50.25 (22 Nov 2008)
Value on 30 August 2013 (per 1 US$) Highest Value In 2013 (per 1 US$) Depreciation (%) Lowest Value, Past 5 Years (per 1 US$)
Source: www.xe.com
CARI CAPTURES • ISSUE 139 3 SEPTEMBER 2013
DISCLAIMER: The news articles contained in this report are extracted and republished from various credible news sources. 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.
MYANMARMONITOR08
While many are disgusted by the idea of eating bird spit, the bird’s
nest industry is growing in Asia for its perceived health benefits.
Once served only to emperors, the demand for bird’s nest has now
created a global market with annual revenue as high as US$5 billion
that caters to the growing number of wealthy consumers in Asia
In Vietnam, the bird’s nest industry is just taking off. It is estimated
to generate US$200 million in revenue per year and is growing at
approximately 25% annually
VinaCapital Group Ltd invested as much as US$7.5 million in 2011 in
a bird house located in central Vietnam that housed about 100,000
birds, one of the largest in the country
To catch up with the region’s top producers, Vietnamese officials
are also working on a plan to expand the bird’s nest industry in the
Phan Rang Tham province to 2.8 million birds by 2020
Indonesia produces about 70% of the world’s bird nest, followed by
Malaysia with 20%
Bird’s nest, made of congealed saliva of Asian swiftlets, is believed
to ward off diseases and have anti-aging properties
Editorial Team: Sóley Ómarsdóttir, Nicole Khoo Designer: Hizzad Dinno Consultant Editor: Tunku ‘Abidin Muhriz
Bloomberg (19 August 2013) International Business Times (20 August 2013)
POLITICS
Abillthatwouldallowfortheremovaloflawmakersfromparliamentiftheelectioncommissionreceivescomplaintsfrom1%oftheirconstituentsiscausingadivisionin parliament, highlighting the powerstruggle between President Thein SeinandLowerHouseSpeakerShweMann.ThebillwasproposedbytheUnionElectionCommission (UEC), is supported byThein Sein and the military members ofparliament.ShweMannandotherUSDPmembersopposethebill.Inaddition,theUECrecentlywarnedallpoliticalpartiesthattheCommissionwillde-registeranypartythatacceptsforeignassistance, incashorkind.
The Irrawaddy (28 August 2013)
Mizzima (29 August 2013)
The Myanmar parliament is discussinga constitutional amendment that wouldprohibit all non-citizens from voting,running foroffice, and forming politicalparties. The amendment, proposed bya member of the Rakhine NationalitiesDevelopment Party (RNDP), wouldeffectivelyexcludeallRohingyaMuslimsfrompolitics,aswellasreturningpoliticaldissidents.
The Irrawaddy (27 August 2013)
HundredsofMuslimswerelefthomelessafter their houses had been burned tothegroundinafreshwaveofanti-MuslimviolenceincentralMyanmaron24August.ASEANlegislatorswarnedon29AugustthatcommunalviolenceinMyanmarcouldspinoutofcontroliftheauthoritiesdon’tacttostemtheriseofhatespeech.
The Nation (27 August 2013) The Irrawaddy (28 August 2013)
President Aquino was faced with his first ever major protest as people
rage over how the president turned a blind eye on themisappropriation
of the Priority Development Assistance Fund (colloquially known as
pork barrel) even with the discovery of misappropriation of funds
by politicians. The people are calling for transparency and better
accountability for the use of the pork barrel.
From the periodbetween2010 and 2012, a total of P500million
(US$11.2million)was channeled from theporkbarrel to fictitious
NGOsviaseveralstate-ownedcompanies
Theoutrage startedwhenbusinesswomanJanetLim-Napoleswas
identifiedasthemastermindbehindaP10billion(US$224.5million)
graftscandal.Shewasalsoaccusedofillegallydetainingherformer
assistantwhoblewthewhistleonher
PresidentAquino’s attempt toappease thepublicbackfiredwhen
hebluntedtheimplicationsofremovingtheporkbarrelandinstead
proposedaline-itembudgetingforprojectsinreplacementofalump-
sumdisbursement
Monetary rewardofP10million (US$225,000)wasofferedby the
presidentforinformationleadingtothearrestofNapoles
Napolessurrenderedtothepresident3daysaftertheprotestbegun,
fearingforherownsafetyasshehasreceiveddeaththreats.Napoles
iscurrentlybeingdetainedintheMakatiCityJail
BIRD SPITIS GOLD10
Inquirer News (26 August 2013)Inquirer News (26 August 2013)Inquirer News (28 August 2013)
PRESIDENT AQUINO’S PORK BARREL FIGHT09
ECONOMY
The global money transfer company;MoneyGramInternationalInc.hasexpandeditsmoneytransferservicetoMyanmarthroughan alliance with Asia Green DevelopmentBank, Myanmar Citizens Bank and TunFoundationBank,allowingitscustomerstoreceivepaymentsfromnearly80countries.
The Wall Street Journal (28 August 2013)
Apreliminaryagreementhasbeenreachedbetween Chin State government and Indiatoopen tax-freemarkets innineplacesontheborderarea,officialmediareportedon29 August. According to the Border TradeDepartment'sstatistics,MyanmarandIndiabordertradevolumescoresUS$1billionyearly.
Mizzima (29 August 2013)
Japanese-basedItochuCorporationwillbuildaYangon-ThilawabridgeaspartoftheJapan-backedThilawaSEZ,accordingtotheMinistryofConstruction.AJapanesedelegation,ledbyKojiUmemoto from ItochuCorporation,metwithMyanmarConstructionMinisterKyawLwinon15AugustinNaypyidawtodiscusstheproject.
Eleven Myanmar (22 August 2013)
FOREIGN AFFAIRS
MembersfromtheUSDefenceInstituteofInternational Legal Studies (DIILS) heldmeetingswiththeMyanmarmilitaryandtheMinistryofDefenceinNaypyidawon28-29August.TheDILLSvisittoMyanmarcoincided with a meeting between USDefence Secretary Chuck Hagel andMinister forDefenceLieutenantGeneralWaiLwin–thefirstbilateralmeetingUSandMyanmardefencechiefsinmorethan20years.
Myanmar Times (29 August 2013)
Myanmaron28AugustturnedfourbordercheckpointswithThailandintogatewaysfor international visitors, allowing anyforeignnationalholdingwithavalidentryvisatoenter.
Global Post (27 August 2013)
After months of uncertainty over itsreadiness,theOlympicCouncilofMalaysia(OCM)gaveMyanmarthegreenlightforhosting the SEA Games in December.Most of the venues are ready and thecouncildoesnotforeseeanymajorlogisticproblemsaswereinitiallyfeared.
The Star (26 August 2013)
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