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

A

A-

BB+

BBB

BB-

N/A

N/A

N/A

AAA

A-

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

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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