cari captures issue 73 (23 april 2012)
DESCRIPTION
Captures is CARI’s weekly news monitoring report, each time presenting the top 10 stories affecting ASEANTRANSCRIPT
23 APR IL 20 12 I SSUE 73
CARICAPTURES
BETA
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Thailand, Asean, China
01Thai Prime Minister Yingluck
Shinawatra and Chinese Premier Wen
Jiabao signed bilateral agreements
deepening cooperation in finance,
agriculture, and transportation
during the prime minister’s first visit
to China. Thailand and China aim to increase mutual
investment by 15% and trade by 20% to
US$100 billion in the next five years
The two countries also agreed to increase
joint patrols in China, Laos, Myanmar and
Thailand along the Mekong River and work
Thailand and aSEan STrEngThEn
commErcial TiES wiTh china
together to maintain maritime security in
the South China Sea
China also pledged more support for
post-flood reconstruction and recovery in
Thailand
The 9th China-Asean Expo will take place
on September 2012 in Nanning and will fea-
ture exhibitions from Asean businesses
According to the China Council for the
Promotion of International Trade, Asean is
expected to become China’s largest trading
partner within three years
Bloomberg (19 April 2012)
china - asean Trade 2010
Asean, India
02
The India-ASEAN Free Trade
Agreement is at an impasse over
disagreement on the movement of
professionals and labour market
liberalisation. India wants easier visa rules for its
professionals in Asean and greater access
to sectors such as information technology,
healthcare, pharmaceuticals, banking &
financial services, tourism and legal services
The Philippines is averse to service sector
liberalisation as it depends on business
processing outsourcing and does not
welcome increased competition, while
Thailand and Malaysia are more receptive to
opening service markets
Following significant gains from its trade
agreement with Malaysia, India began
separate bilateral trade negotiations with
Indonesia and Thailand
The Business Standard (19 April 2012)
india-aSEan
TradE
agrEEmEnT STuck
ovEr SErvicES
Source: CEIC Database – International Monetary Fund
23 27 0404 ‘12 ‘12
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.
rice Exports - importsfor selected asean countries
Vietnam
Vietnam, Thailand, India
04
03
Attitudes towards the market
economy are changing in Vietnam
rythm. 69% of respondents to a survey
commissioned by the Vietnam Chamber
of Commerce and Industry and the World
Bank want Vietnam to operate with a
market economy
However, 68% of respondents thought
the state should intervene in the market to
Vietnam’s rice and pepper exports
are surging, surpassing India as the
world’s top pepper exporter. Vietnamese rice export is expected to
double in the second quarter of 2012 due
to demand from China and the potential
award of a 120,000-tonne contract from
the Philippines’ National Food Authority
Thai rice exports drop by 47% year-on-
year and are expected to remain weak
in the second quarter of 2012 as the
government price pegs remain effective
until June 2012
Vietnam exported 121,935 tonnes of
pepper in 2011, almost five times more than
second-placed India
Vietnam accounts for 60% of the world’s
pepper exports which earned it US$480.5
million last year
The Star, Malaysia, The Times of India
(19 April 2012)
moST viETnamESE
PrEFEr markET EconomY
viETnam’S ricE and PEPPEr
EXPorTS SurgE
stabilise the price of essential goods, such
as electricity, petroleum and land, while just
28% thought the market should determine
prices
Senior economist Pham Chi Lan attributed
the surprising finding to the dominance
of state-owned enterprises over essential
goods and services
The survey gathered opinions of 967
people from the public and private sectors
The Nation, Thailand (18 April 2012)
Source : World Databank
23 27 0404 ‘12 ‘12
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.
mYanmar
moniTor05Politics
National League for Democracy leader,
Aung San Suu Kyi, and elected members of
parliament did not attend the re-opening of
parliament. Party members refused to take
the oath of office which would have them
safeguard the pro-junta constitution
Sydney Morning Herald (24 April 2012)
Foreign Affairs
The European Union suspended economic
sanctions, with the exception of the arms
embargo, on Myanmar. An EU diplomat said
the decision to suspend rather than remove
restrictive measures was aimed at sending
“a signal that we are continuing to watch”.
The EU had earlier lifted the travel ban on
87 senior government officials including the
president
BusinessWeek (24 April 2012)
International Monetary Fund (IMF) chief
Christine Lagarde praised Myanmar’s
monetary reforms, indicating the IMF had
been working discretely with the country’s
central bank on currency reform
The Straits Times (23 April 2012)
Following President Thein Sien’s visit to
Tokyo, Japan announced it would forgive
Myanmar’s US$3.7 billion worth of debt
and recommence financial assistance in
infrastructure. Japan is Asean’s largest
creditor. During his visit, Thein Sein toured
two thermal power plants in Kanagawa
Prefecture to see how Japan was tackling
energy problems following last year’s
earthquake and tsunami which hit the
Fukushima Daiichi nuclear power station
Bloomberg (22 April 2012)
Aung San Suu Kyi will make her visit
to Britain and Norway as part of her
first trip outside Myanmar in 24 years,
demonstrating confidence in her country’s
reforms. She has not left the country since
1988 fearing the junta would put her in exile
The Financial Times (18 April 2012)
Indian Prime Minister Manmohan Singh
will visit Myanmar next month. It will be the
first time an Indian premier visits Myanmar
in 25 years. India is also competing with
China to host Aung San Suu Kyi
The Times of India (18 April 2012)
New Zealand, Asean, Indonesia, Singapore
06New Zealand Prime Minister John
Key travelled with a business
delegation to Singapore and
Indonesia during his Asia trip with
the objective of expanding trade
with Asean. Mr Key and Indonesia President Susilo
Bambang Yudhoyono signed four
memoranda of understanding for greater
cooperation on agriculture, geothermal
energy, environmental and labour issues
Garuda announced it would resume
direct flights to New Zealand soon to
nEw ZEaland PrimE miniSTEr
John kEY viSiTS aSEan counTriES
boost tourism links, while dairy collective,
Fonterra, planned to build new processing
plants in Indonesia
In Singapore, Mr Key met Singapore
Prime Minister Lee Hsien Loong and urged
for more Singapore investments in New
Zealand and emphasised the quality of
tertiary education in New Zealand
Meanwhile, Vietnam Deputy Prime
Minister Nguyen Xuan Phuc visited New
Zealand last week and discussed trade and
education
Business Scoop (18 April 2012)
new Zealand’s Top 5 Trading Partners in asean
Thailand
07Managing directors from leading
Thai companies; PTT, Siam Cement
Group, Sabina, Green Spot, and other
firms gathered at a seminar to share
their experience in preparing for the
ASEAN Economic Community (AEC). Participants at the seminar organised
by the Thailand Management Association
discussed the challenges and opportunities
further regional integration would offer
their industries
Beverage-maker Green Spot emphasised
gaining first-hand knowledge of markets in
Thai FirmS mEET To
diScuSS aEc
the region and adapting products to local
taste
Sabina, a garment producer, recognised
emerging opportunities in Myanmar and
Vietnam to expand sales
Siam Cement Group (SCG) noted that
human resource is a key success factor for
companies expanding in Asean
There would be more opportunities in
ASEAN +3 and +6 partnerships, comprising
China, Japan, South Korea, Australia, New
Zealand and India, said Chaovalit Ekabut,
SCG Chief Financial Officer
The Nation (19 April 2012)
23 27 0404 ‘12 ‘12
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.
Editorial Team: Angela Goh, Manissa van Geyzel, Han Fang Rong, Chayut Setboonsarng, Lore Kin Nyung, Ahmad Syahid
Consultant Editor: Tunku ‘Abidin Muhriz Designer: Iqbal Hakim
Laos
Singapore, China
09
08
Thai construction company CH
Karnchang signed a US$1.7 billion
contract to construct the Xayaburi
dam on the Mekong River in
Laos despite concerns among
governments in the region. The contract signed with Xayaburi Power,
a Lao-Thai joint venture, said construction
would begin on 15 March 2012 and would
be completed in eight years
The hydropower dam, slated to provide
95% of its electricity to Thailand, will be the
first on the lower Mekong river
Despite expansion in electronic
products, Singapore’s overall exports
were dragged down by declining
demand from China for non-
electronic products. Singapore’s electronic shipments
increased by 2.8% year-on-year in March
Overall non-electronic shipments fell by
XaYaBuri dam
Building PacT SignEd
SingaPorE EXPorTS Fall aS dEmand
From china dEcrEaSES
7.8% due to higher pharmaceuticals exports
being offset by a drop in petrochemical
exports
Singapore’s non-oil exports fell 4.3% year-
on-year in March, after a 30.4% increase in
February
The Monetary Authority of Singapore
said it would allow faster appreciation of
its currency, which may make exports less
competitive after a growth rebound last
quarter
Exports are expected to rise again in the
second half of the year as this slump is
viewed as a consolidation of overall growth
rather than a slowdown
Bloomberg (17 April 2012)
Environmental groups said the project
could threaten regional food security and
affect future decisions on 11 other dams
planned on the same river
In December, Laos shelved plans for
the dam pending further environmental
assessments, following concerns expressed
by Laos, Cambodia, Thailand, and Vietnam
at a meeting by the Mekong River
Commission
Laos has plans for 70 hydropower
projects on its rivers and hopes to become
“the battery of Asia”
Radio Free Asia (17 April 2012)
Asean, Cambodia
10
The Cambodian Stock Exchange
began trading on 18 April 2012 with
its sole listing, Phnom Penh Water
Supply Authority, closing at US$2.33,
a 48% increase from its IPO value of
US$1.57. Phnom Penh Water Supply Authority
listed 15% of its shares on the exchange,
while Telecom Cambodia and Sihanoukville
Autonomous Port are preparing to list their
shares
Indonesia’s JCX Composite Index and the
Philippines’ PSE Composite Index increased
by 19% and 11% year-on-year respectively
due to new investors brought in by Indone-
sia’s sovereign ratings upgrade in January
2012 and the Philippines’ expected upgrade
in 2013
Underscoring the popularity of some of
the region’s bourses there has been a flurry
of deal-making, including a US$7.3 billion
planned offer by Singapore’s DBS Group to
buy Indonesia’s Bank Danamon, the Philip-
pines’ San Miguel Corp’s US$500 million
for a 49% stake in Philippine Airlines, and a
US$1 billion rights issue by the Philippines’
BDO Unibank
The Wall Street Journal (18 April 2012)
camBodia
JoinS
STockS ParTY