cari captures 209 (17 february 2015)
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Captures is CARI’s weekly news monitoring report, each time presenting the top 10 stories affecting ASEANTRANSCRIPT
CARICAPTURES ASEAN
REGIONAL
CARI CAPTURES • ISSUE 209
Year on year growth increased by almost 19% in local Filipino
vehicle assemblers in January 2015, as supported by positive
performance in both the commercial vehicle (CV) and passenger
car (PC) segments.
Stellar performance within the car production industry can largely
be attributed to three main factors which have grown disposable
income in consumers; increased economic performance as a result
from recovery efforts, a growing business process outsourcing
industry, and falling global oil prices
01
17 FEBRUARY 2015
New Straits Times (5 February 2015)
VEhIClE PRodUCTIon SAlES SEE BUmP
According to the Chamber of Automotive Manufacturers of
the Philippines Inc. (CAMPI), its combined sales with the Truck
Manufacturers Association Inc. (TMA) reached 18,662 units in
January, the highest sales performance ever achieved in said month
Revenue streams generated largely benefitted foreign firms such
as Toyota, which captured 46.7% of sales, whilst Mitsubishi Motors
received 17.4% of sales, and Isuzu and Honda Cars respectively
earning 6.6% and 6.1% of market revenue
PHILIPPINES
International Labour Organization
ASEAN Automotive Federation - Vehicle Sales
2013 2014
Sale
s o
f M
oto
r V
eh
icle
s
Brunei
1,400,000
1,200,000
1,000,000
800,000
600,000
200,000
0Indonesia Malaysia Philippines Singapore Thailand Vietnam
CARI CAPTURES • ISSUE 209 17 FEBRUARY 2015
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.
The loan will be used to fund an Improving Competitiveness Programme
aimed at increasing Vietnam’s economic presence on the global
stage; an additional US$4.2 million was also granted by the AdB to
support public infrastructure initiatives.
The programme will undertake reforms in six policy areas using various
means, these areas include the financial sector, fiscal policy, public
sector administration and accountability, state enterprise management,
public investment management, and business environment
The loan comes shortly after the ADB granted a US$165 million loan
in January 2015 aimed at the building of new schools as well as
infrastructural undertakings in rural areas; said loan has aided in the
building of 660 classrooms, 350 boarding facilities, and 250 houses
for teachers
The additional $4.2 million loan was allocated towards supporting the
effectiveness and sustainability of another ADB-financed project, the Hanoi
Metro Line 3, by improving access to stations and enhancing connectivity
between the line and other modes of public and private transport
laos is facing increasing pressure to delay construction of a 260
megawatt dam on the lower mekong River because of concerns
about its environmental and social impacts. A gathering last week in
laos highlights the continuing controversy surrounding the project.
The member states of the Friends of the Lower Mekong came together
with the countries of the region last week for the first time since
the group was created in 2009, marking a new step in diplomatic
pressures on the Laos government to delay or halt construction of
the Don Sahong Dam
The planned $600-million project in the Siphandone (Khone Falls)
area of southern Laos is less than two kilometers from the Cambodian
border. It would create valuable electricity to fuel growth in the region,
The Foreign ministry has been called on to advance its diplomatic
role in promoting Islam as a tolerant religion amid growing global
concern over the Islamic State (IS) organisation, which has sparked
hate crimes against muslims. lawmakers slammed the ministry as
"too low key" in promoting moderate Islam, the common principle
in the country with largest muslim population in the world.
In a hearing with lawmakers from House of Representatives Commission
I overseeing defence, foreign affairs and informatics, Foreign Minister
Retno LP Marsudi announced a plan to improve the country's active
role in the region as well as internationally as part of the focus of
Indonesia's foreign relations in the future
02
04
03
AdB GRAnTS VIETnAm US$230 mIllIon PolICY loAn
lAoS FACES PRESSURE To STAll dECISIon on lowERmEkonG RIVER dAm
IndonESIA URGES RI To PIonEER modERATE ISlAm
Philippine Star (4 February 2015) Philippine Star (4 February 2015)
Asia News One (13 February 2015)
THAILAND
INDONESIA
ASEAN
LAOS
Voice of America (9 February 2015)
but environmentalists and neighboring countries worry it could
damage an ecological system crucial for feeding millions of people
in Southeast Asia
The dam would be the second proposed for the Lower Mekong after
the $3.8 billion Xayaburi Dam in northern Laos, itself a focus of public
debate and controversy over its potential impact on the environment
The Laos Government agreed to a six month period of regional
consultations on the Don Sahong Dam. But these concluded in late
January and Lao officials have indicated they are preparing to start
construction soon, despite concerns from groups who say the dam
should be studied further
In terms of combating terrorism, the ministry's director for information
and public diplomacy, Esti Andayani, told Commission I that the
ministry had arranged interfaith dialogue programs to introduce
tolerance among ASEAN youth
A similar event involving young people from ASEAN and Europe was
also initiated to further introduce the peaceful values Islam, added Esti.
The Foreign Ministry's plans also include a biennial international
conference engaging Muslim scholars to discuss studies centering
on the religion
Total ADB Financing Towards ASEAN Countries in 2014($ Million)
Ordinary CapitalResources
Cambodia
Indonesia
Laos
Malaysia
Myanmar
Philippines
Thailand
Vietnam
554
144
190
975
53
739
230
4
79
84
414
82
1202
517
42
632
32
1207
Special Funds Co-financing
ADB ASEAN Initiatives in 2015
Tourism Infrastructure
InfrastructureImprovement
InfrastructureImprovement
PolicyReform
US$40 millionto Laos
US$80 millionto Myanmar
US$165 millionto Vietnam
US$230 millionto Vietnam
CARI CAPTURES • ISSUE 209 17 FEBRUARY 2015
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.
INDONESIA
ASEAN
MALAYSIA
JAPAN
JAPAN
Straits Times (4 February 2014) Fitch Ratings, company report
EconomyWatch (3 February 2015)
Jakarta Post (13 February 2015)
mAlAYSIA STEmS RInGGIT oUTFlowS
Pm FloATS Poll TRUCE AGREEmEnT
JAPAnESE FIRmS To SPEnd $1.32B In IndonESIA
06
07
05
As a rebound in oil prices has served to ease concerns over the
impact of lowered oil prices, malaysia’s drain on foreign currency
reserves have likewise slowed in its decline; whilst malaysia’s
foreign reserves fell by US$5.4 billion in January 2015, the figure
was substantially smaller than the US$9.7 billion in december 2014.
On balance, analysts at RHB research predict the Ringgit to remain at
around RM3.55-3.65 per USD in the short term, with the chance that
the currency could depreciate further depending on the direction of
crude oil prices; it is currently unknown if Bank Negara will step in to
prevent further falls in its currency
Currently, Bank Negara’s total international reserves stand at
US$110.6 billion, with US$101.4 billion in foreign currency reserves,
US$900million with the IMF, special drawing rights of US$1.9 billion,
gold reserves of US$1.4 billion, and other foreign assets at US$5
billion; the central bank stated that the reserves would be able to
finance 7.9 months of imports and 1.1 times the short term external
debt
As a net oil exporter, Malaysia was hard hit by the 50% fall in
oil prices over the past 6 months, which cast a negative light on
revenue projections for revenue from oil exports; meanwhile, S&P
has maintained its long term and short term ratings of Malaysia’s
credit, affirming the country’s solid fundamentals despite international
fluctuations of crude oil prices
Concerned that political warfare could break out again after the
election, Prime minister Prayut Chan-o-cha on Thursday proposed a
radical measure to prevent a return to conflict. The prime minister
suggested all political parties contesting the next poll sit down
together before the election to sign a pact to accept the election
results.
The agreement will bind them to the outcome of the poll, the prime
minister said, adding that he or the National Council for Peace and
Four Japanese firms will pour US$1.32 billion into Indonesia over
the next few years in various sectors, from automotive to cattle
breeding, the Investment Coordinating Board (BkPm) says. The
biggest portion of $600 million and will come from a Japanese
automotive firm seeking to build a manufacturing facility in Bekasi,
west Java, according to BkPm data. Another firm will spend $260
million to build a surfactant factory in dumai and Riau in Riau
province and Cilegon in Banten province.
The two other firms will develop a theme park in Greater Jakarta and a
cattle breeding facility in West Java with investments of $430 million
and $25.8 million, respectively
Order will not be behind the move to translate the idea into action.
A new election can come late this year or early 2016 depending on
how long it takes to write organic laws after a new constitution is
finished. Gen Prayut made it clear that his job will end after a new
constitution is finished
Gen Prayut made it clear that his job will end after a new elected
government is formed, regardless of what happens after the poll.
He said he hoped all parties have learned a lesson from what has
happened in the past.
A committed investment can take several years to realize. After
securing principal business permits, investors must secure permanent
business licenses to begin their projects
In the past five years, total Japanese investment approved by the
board amounted to $23.7 billion. However, only $12.1 billion out of the
figure has been realized, hampered by various obstacles, which the
BKPM is now trying to address through its “de-bottlenecking program”.
Japanese companies have always been among the top foreign spenders
in Southeast Asia’s largest economy. Nevertheless, investment tumbled
by nearly half to $2.7 billion last year from $4.7 billion in 2013 as
investors had exercised caution on account of the general election
and the political upheaval it could cause
AAA
N/A
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N/A
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AAA
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BBB+
BB+
BBB
BB-
AAA
A+
A
BBB-
BBB+
BB-
S&P Ratings for ASEAN Nations as of January 2015
Local CurrrencyRating
Foreign CurrencyRating
T&CAssesment
CARI CAPTURES • ISSUE 209 17 FEBRUARY 2015
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
PolITICS
The renewed hostilities between Myanmar troops and the Kokang armed rebel group have killed more than 130 people since 9 February. According to the government, the fatalities included 61 military and police officers, and around 72 rebels. Estimates of the number of civilians forced to flee Myanmar to neighbouring China due to the fighting vary from 30,000 to 100,000.
The Diplomat (23 February 2015)
The Myanmar police force has taken legal action against a month-long labour strike staged by workers from three foreign-invested garment factories in an industrial zone north of Yangon. Workers have blocked the entrance of the foreign-invested factories over the last three days, demanding more payment which meet ASEAN standard.
Global Post (21 February 2015)
EConomY
Businesses in Myanmar are facing long wait times and the possibility of foreign loans being rejected because the Central Bank is scrutinising each loan, paying close attention to the interest rate, currency and the legitimacy of the investment. The move to tighten oversight – which began about six months ago – is causing considerable difficulty for businesses operating in Myanmar.
Myanmar Times (22 February 2015)
Amid rights concerns linked to investment surge, too few companies publicly discuss their human rights policies and due diligence efforts, according to the finding of Business & Human Rights Resource Centre. After reaching out to over 100 companies, the centre said that only a handful of foreign companies investing in Myanmar were able to point to substantive actions on their human rights commitments in Myanmar.
The Nation (23 February 2015)
FoREIGn AFFAIRS
Malaysia and Myanmar have agreed that the Islamic State (IS) threat is real and IS may try to instil its ideology in hotspots in Asean. Both countries agreed that Asean member states should enhance cooperation to combat the threat, particularly under the Asean Defence Minister’s Meeting (ADMM) platform, said Malaysian Defence Minister Datuk Seri Hishammuddin Hussein, who is in Myanmar for his Asean tour as chair of ADMM.
The Malay Mail (20 February 2015)
Parliamentary Secretary for Transport Faishal Ibrahim was asked if the Transport ministry
could consider unlimited CoE renewals to help lower-income families better manage the cost
of owning motorbikes.
Allowing unlimited Certificate of Entitlement (COE) renewals of five years for motorcycle owners
may lead to fewer deregistrations, and therefore fewer COEs for bidding
Parliamentary Secretary for Transport Faishal Ibrahim gave this answer in Parliament when asked
if the Transport Ministry could consider the move to help lower-income families better manage
the cost of owning motorcycles
The average number of motorcycles registered per year in 2013 and 2014 was 9,898. A total of
6,426 or 65 per cent corresponded to a Class 2B riding licence, 1,342 or 14 per cent to a Class 2A
license, and 2,130 or 23 per cent to a Class 2 licence
The Paris-based advocacy group stated that Cambodia’s actual improvement in standings
from the 144th place in 2014 to the 139th place in its 2015 index of press freedom was due
to the worsening freedom of the press practices of other nations and not an improvement
on Cambodia’s part.
The index, which registers a higher score for less freedom observed in a country’s press,
increased Cambodia’s rating from 40.97 in 2014 to 40.99 in 2015 in a shocking move; reasons
cited for this include the attacks on journalists at Freedom Park by unruly guards, including
the beating of a Voice of Democracy radio journalist
Moeun Chhean Nariddh, director of the Cambodia Institute for Media Studies, said that he
agreed with the report’s findings, especially since several journalists were injured during the
government’s lethal suppression of violent garment worker protests in January 2014
Whilst two journalists were killed in 2014, Reporters without borders was not able to confirm
any connection between their work and deaths, thus excluding their mention from the report
UnlImITEd REnEwAl oF moToRCYClE CoES CoUld BE dISAdVAnTAGEoUS
REPoRTERS wIThoUT BoRdERS downGRAdES CAmBodIA
09
10
E d i t o r i a l T e a m : S ó l e y Ó m a r s d ó t t i r , C a h a y a A m a l i n a a n d Y e e K e n L i D e s i g n e r : A m i r a A m i n u d d i n C o n s u l t a n t E d i t o r : T u n k u ‘ A b i d i n M u h r i z You can subcribe our weekly captures at: http://www.cariasean.org/newsletter-signup/
SINGAPORE
CAMBODIA
Channel News Asia (12 February 2015)
Cambodia Daily (13 February 2015)
World Press Freedom Index 2014
Freedom of the Press for ASEAN in 2014
44.9
44.9
71.22
40.97
43.69
38.15
42.73
37.94
41.43
35.45
Indicators Scale:
30 - 50 : DIfficult Situation
50 onwards: Serious situation