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