Aug 31, 2012

Vietnam - Students strive to make a living after lecture hours

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VietNamNet Bridge – A lot of students did not return to home village to enjoy the summer holiday. They stayed in big cities to work hard to earn money to continue nurturing the dream about university education.

The student who drags a wagon

Dang Dinh Doai, a student of the power and recycled energy faculty of the Hanoi Water Resource University, looks skinny and black, because he has to work and study hard from the morning till the midnight every day.

The boy did not return to the home village last summer, but stayed in Hanoi to earn money to prepare for the next academic year.

In Hanoi, Doai stayed in a tent together with the construction workers from Yen Bai, which was made by the timber blanks to help them hide from frost and wind. Doai’s team comprised of 10 members, who worked for a contractor who received the orders on repairing roads and sewers.

Of the 10 members, Doai was the most undersized, weighing 42 kilos only. Therefore, Doai was assigned the easier works than other members: he had to drag a wagon or carry plaster.

A working day began at 7 am. Sometimes Doai and his team had to carry the concrete slabs from the store yard to the construction site on Ton Duc Thang Street. In order to save costs, the slabs, weighing hundreds of kilos each, were carried on wagon.

The team of workers had to join forces to push the wagon to make it start moving. After that, they walked five kilometers in the sun to the construction site and sweated profusely.

Doai said that he only stayed in the home village in Thai Binh province for some days and then left for Hanoi. He feels sorry for the parents, who still have to work hard in the rice fields in the old age. Therefore, he vows to work to earn money himself to pay for the rent room and food.

Though having to work hard on the construction site, Doai felt lucky that he could work and earn money. Especially, Doai did not have to spend money on meals, because he could have meals with other members of the same team

“My parents still can give me one million dong a month to fund my study. However, I cannot stay idle. I have to work to earn money,” Doai said.

However, Doai admitted that it is really difficult to earn money. He was paid only 500,000 dong for the last 20 days of working. Meanwhile, the job was stable, depending on the orders the contractor can get, while Doai and his team members always had to change their accommodations.

The exile parent who earns money to keep son going to school

Over the last two years, since the day the son began going to university, when the crop finishes, Nguyen Thi Lam from Thanh Hoa province traveled hundreds of kilometers to Hanoi, where she lives in a small rent room and works hard every day to get money.

As a vendor, the 47 year old woman has to ride a bicycle along the streets in Hanoi, inviting people to buy groceries. Lam weighs 40 kilos only, but she always carries a bag of goods weighing up to 10-15 kilos, or 1/3 of her weight.

“I can save one million dong a month with the job, after I pay for room rent and food,” Lam said, adding that she has to pay 11,000 dong for every night in the room, while she has to leave early in the morning.

When asked about the son, Lam declined to reveal his name and the school he goes to, because Lam feared the boy would feel ashamed if his friends discover that Lam is just a vendor, who collects every dong from the hard job.

Compiled by Kim Chi


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Vietnam - Foreign institutions believe Vietnamese stocks cheap and attractive

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VietNamNet Bridge – The latest report by JPMorgan Chase showed the active outlook onto the Vietnam’s economy and stock market. Meanwhile, Bloomberg newswire believes that Vietnamese stocks have become cheap enough to buy in.

Dated August 24, “Vietnam Strategy Update,” the latest report by JPMorgan about the Vietnamese stock market highlighted the impacts of the arrest of Nguyen Duc Kien, former Deputy Chair of the Asia Commercial Bank, on the market, saying that the VN Index decrease, caused by the arrest, has made Vietnamese stocks become more attractive.

In general, the analysis team of JPMorgan Chase does not think these are the big worries. The low VN Index has created a more attractive starting point for the foreign investors to join the market, though the index has increased by 12 percent since the beginning of the year.

JPMorgan Chase has advised investors to buy the shares of the enterprises in the fields of consumer goods, pharmacy, infrastructure and some selected export companies. Meanwhile, investors have been advised to keep away from real estate and construction material companies’ shares.

The economic environment has been improved considerably. Especially, the inflation rate fell to 5.4 percent in July from the highest peak of 23 percent in August 2011. Vietnam witnessed the trade surplus of 100 million dollars in July instead of trade deficit. The total trade deficit of Vietnam in the first six months of the year was 58 million dollars, an encouraging result if noting that the figure was 5.8 billion dollars at the same period of the last year.

Also according to JPMorgan Chase, the inflation decreases would have two positive impacts on the national economy.

Firstly, this would lead to the monetary policies to be loosened, which would support the growth. Since the inflation rate decreases rapidly, the actual interests depositors can enjoy have been at the highest levels so far this year, despite the fact that the interest rate has decreased by 400-500 percentage points.

Secondly, the inflation decreases would help improve the macroeconomic environment and the payment balance. If the inflation rate is kept at low level, people would keep Vietnam dong.

The foreign currency reserves have increased for the first time since 2008, while JPMorgan Chase believes the reserves would continue rising in the time to come.

The finance newswire Bloomberg on August 28 also published a special report, saying that the investment opportunities have been open in the Vietnamese stock market.

With the VN Index falling by 22 percent from the highest peak so far this year, Vietnam has fallen into the bear market situation, where the stocks have become cheaper than in other regional markets after the arrest of Kien, former Chair of ACB, and then the arrest of Ly Xuan Hai, former CEO of ACB.

The P/E index of the Vietnamese stock market is now 9.4, the lowest level since May 25 and 33 percent lower than the P/E of the 141 shares – the components for calculating MSCI South East Asia Index.

Moody’s Investors Service on August 24 lowered the credit rating given to ACB Bank to B2 from B1, while leaving open the possibility of further cutting the credit rating.

Fitch Ratings has also announced the possibility of lowering the credit rating of the same bank, if its liquidity and prestige stay weak for a long time.

Nevertheless, Marc Faber, Chair of Indochina Capital, an investment fund, who is also the publisher of Gloom, Boom & Doom Report, believes that the arrests bring long term investors the opportunities to buy Vietnamese stocks when the stocks are relatively cheap.

Compiled by Thu Uyen


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Vietnam - Social insurance conundrum

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Ensuring social insurance fund payment stability remains a pressing question.

The International Labour Organization (ILO) forecast Vietnam’s retirement pension fund would start incurring deficits from 2020 and be running out by 2029. These figures came on the back of ILO’s sweeping study about Vietnam’s retirement pension fund under proposal from Vietnamese government.

The study had pointed out a number of problems in Vietnam’s current social security system. Accordingly, only 20 per cent of the workforce contributes to the social insurance fund whereas the rate of contributors/recipients is falling dramatically.

This is shown from the fact that in 1996 there was one retirement pension recipient per 217 contributors to the fund, it slid to around 10 contributors per one recipient in 2011.

Meanwhile, the current average retirement age remains low (53.43 years generally for men and women), resulted in shorter time for payment against extended period of getting insurance benefits as the average life span of retirement pension recipients has extended to 73.

In addition, pension hikes have significantly driven up fund costs.
“After three six upward revisions from 2007 until present the pension hiked 134 per cent whereas social insurance fund rose an average less than 10 per cent per year,” said ILO Vietnam’s associate expert Carlos Galian.
Hence, the fund’s actual expenditure made up 94.65 per cent of total collected amount in 2011 against only 64.4 per cent in 2007.

To boost incomes sources, under current regulations the fund’s balance can be used to lend state commercial banks with usually low interest rates, to buy public bonds and government bonds. It could not be used for direct investment to ensure safety. This has resulted in low profit rates of 9-11 per cent only.

From that practice, Ministry of Finance’s Administrative Finance Department’s deputy head Do Thi Thuy Hang suggested to hike idle capital efficiency through combining short-term and long-term loan provision or reforming lending rate setting methods.
Hang proposed forming a specialised investment body to ensure the fund sustainable growth.

ILO’s Insurance and Finance Section expert Hiroshi Yamabana suggested gradually scaling up the retirement age.

Accordingly, ILO suggested increase retirement age for men to 61 and to women to 56 from 2016, one year more than current levels. Then every two years the retirement age for men and women will increase one more year until reaching 65 years.

However, this move alone is not enough, according to the ILO. Yamabana also suggested introducing regulations to restrict early retirements such as slashing 5-6 per cent retirement pension to each year of early retirement.

“As the Law on Social Insurance slated to be put on National Assembly agenda in later this year session and might be approved in early 2013, we expect a raft of measures to help balance fund collections and expenditure soon be in place,” said Yamabana.

VIR


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Vietnam - Vietnam lauds defence ties with Australia

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The close cooperation between Vietnamese and Australian defence ministries was highly valued, Prime Minister Nguyen Tan Dung said yesterday.

Dung made the comment when receiving Australian Defence Minister Stephen Smith in Hanoi.

He also expressed satisfaction over the outcomes of the talks between the two defence ministers which took place earlier in the day.

He said Smith's visit would contribute to promoting multifaceted cooperation between the two countries.

The Vietnam-Australia partnership was developing in politics, diplomacy, economics, military, education, science-technology and culture, Dung said.

Both sides had also co-ordinated and supported each other at international and regional forums.

Dung said he wanted both sides to continue their efforts to lift the two countries' cooperative ties to new heights for peace, stability, cooperation and development in the region.

He asked that the two sides work closely in organising activities to celebrate their diplomatic ties in 2013.

Regarding defence cooperation, Dung proposed both sides actively implement their agreements, particularly agreements reached by the two ministers during the visit.

Smith said his visit aimed to further enhance cooperation between the two countries and the two defence ministries.

Smith said the cooperation between the two ministries had been effective in various aspects, especially in peace keeping and training.

The Australian Defence Ministry would closely work with the Vietnamese Defence Ministry to implement their cooperation agreements, Smith said.

Earlier yesterday, during talks between Vietnamese minister Phung Quang Thanh and Smith, they reviewed recent cooperation and discussed measures to further cement ties by working towards the implementation of their 2010 memorandum of understanding on defence cooperation.

They also exchanged views on international and regional issues, indicating that the two nations would work together to promote peace, friendship and cooperation.

They agreed to continue consulting each other in multilateral forums and to promote bilateral dialogue at various levels.

The two ministries agreed to continue to expand the English training programme for Vietnamese military staff and discuss issues relating to security in the Asia Pacific region on the basis of mutual respect and mutual benefit.

Smith added that his ministry would assist Vietnam in the clearance of wartime bombs and land mines.

News Desk
Viet Nam News


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Singapore - Singapore uses scorecard to size up needs of poor

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A new assessment tool is now available to welfare agencies to help them evaluate the needs of low-income families in Singapore.

If adopted across the board, the tool will allow the agencies to be on the same page when they make their assessments. Currently, welfare agencies use a variety of measures to assess the people they try to help, including interviews and checklists.

The tool is designed in the form of an Internet-based "scorecard" that captures information from a customised questionnaire of between 50 and 80 questions.

The scorecard identifies areas in which each family needs help - such as marital problems and career progression. To chart their progress, a 12-month action plan is included as part of the tool.

A pilot initiative to use this new tool with 20 low-income families is now under way at the PPIS Family Service Centre (East) on Chai Chee Street.

It was developed by international advisory firm Vector Scorecard, and the Singapore Muslim Women's Association, also known as PPIS.

Vector Scorecard's chief executive M. Nazri said the firm is in discussions with various community development councils and voluntary welfare organisations to adopt the tool. The scorecard was developed as part of the PPIS's Family Economic Sustainability Programme launched by Deputy Prime Minister Tharman Shanmugaratnam in June this year.

Under the programme, PPIS case workers will develop strategies over five years to ensure that lower-income families make progress in attaining their economic aspirations.

Social workers say that if a standardised tool is used, they will be better able to advise their clients on how to improve their financial lives.

Said PPIS centre manager Amran Jamil: "With the scorecard and action plan, the clients need not repeat the background of their cases again when they are referred elsewhere, and the progress of the cases can be better tracked."

Mr Amran is one of eight social workers who underwent a training session on using the assessment tool earlier this month.

In Parliament earlier this year, Minister of State for Community Development, Youth and Sports Halimah Yacob highlighted the need for a more holistic approach when help is rendered to the same client by multiple agencies.

"Those who need help should not have to repeat the same stories to different agencies, nor fill up the same information in different forms. We need to synchronise and aim towards a no-wrong-door policy," she said in March.

Rachel Lee, assistant director of the Fei Yue Family Service Centres, said a uniform tool will help as the problems those families face are often multi-faceted and social workers may overlook certain areas in the interviews they conduct.

One of the trainers, Wayne Abdullah, 37, said: "We need to explore the deep-seated factors that prevent the poor from moving up; the plan shows them the steps they have to take."

Mrs Poh Siew Leng, 46, a part-time administrator who receives a S$200 (US$159) monthly stipend, said such a tool would help improve the prospects of her two school-going children.

"I worry for my children, whether they will be able to live a better life than what I can provide for them," she said. "Purely working hard may not help as there are other factors like the lack of family support that may hold them back, so hopefully this tool will help us address the longer-term issues."

Janice Tai
The Straits Times


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Philippines - US remains firm in commitment to defence treaty, re-pivot to Asia

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United States Ambassador to the Philippines Harry Thomas Jr. on Wednesday said that amid countries’ territorial disputes over areas in the West Philippine Sea (South China Sea), the US would remain firm to its commitment under its Mutual Defence Treaty (MDT) ties with the Philippines, and its plan to reposition its military forces in the Asia Pacific region.

“Rising tensions is in no one’s interest but, as Secretary Hillary Clinton has stated, we are a Pacific nation, the United States, we stand by our Mutual Defence Treaty,” Thomas said.

Speaking at the at a Makati Business Club’s (MBC) general membership meeting on the topic The Significance of the Philippines – United States Alliance in a Volatile Pacific Region, Thomas said: “We have made a re-balance or re-pivot to Asia on all sides and that will continue.”

Thomas, in his speech and in interviews with reporters at the sidelines of the meet, reiterated the United States’ position of having peaceful resolutions to the disputes in accordance with international law.

He added that the West Philippine Sea issue was something that the US worked out on a daily business with concerned Philippine government officials, but that they called on all nation states to “sit and decide on things at the negotiating table.”

“We don’t want to further escalate tensions; we want peaceful resolution of tensions but we want all countries to live up to their agreements and that is why we support the Code of Conduct between China and Asean (Association of Southeast Asian Nations). We think this is a better way to resolve this,” Thomas said.

Tensions in the West Philippine Sea, internationally known as South China Sea, have been rising in the recent months, with countries’ contesting their claims over the area, and China deploying its ships around the Scarbourough Shoal.

Apart from China, the Philippines, Brunei Malaysia and Vietnam, and Taiwan claim parts of the sea.

Manila has been pushing for diplomatic, legal and political solution to the dispute, which began when maritime authorities caught Chinese fishermen reportedly poaching in the disputed waters.

China claims sovereignty over nearly all of the West Philippine Sea, which is believed to sit atop vast amounts of oil and gas, is one of the region’s most important fishing grounds, and is home to shipping lanes that are vital to global trade.

Asked about the specifics of the US plan to rebuild its forces in Asia in relation to assistance to the Philippines, Thomas said that they were looking for a “balance” in the relationship, not only focusing on military plans but also beefing up efforts for humanitarian assistance, disaster mitigation efforts and economic investment.

He, however, said that in terms of equipment, they we’re bringing the second cutter, the Dallas, to the Philippines, in about six to eight months. He said that Filipino sailors were already training on manning the ship.

Thomas also said that he would be heading to Puerto Princesa, Palawan Thursday to donate the last of the six ships the US had been providing to the Philippine National Police (PNP) to help the agency capture smugglers.

He said that the White House would also be sending a team to the country next week to meet Filipino officials and engage sectors in efforts to combat human trafficking.

He said he was also pleased that members of other Asean were also stepping up to assist the Philippines militarily across a broad range especially in disaster and humanitarian assistance.

“We have poured last year US$4 million to help cities train to prevent and mitigate flood. We’ll put more money in next year for disaster relief because clearly climate change has already been the ring of fire. We have US AID and the defence department working on Philippine organisations on recommendations on these assistance,” he said.

He also noted how the US had more peace corps volunteers in the Philippines than any country in the world, and that there were over 200 peace corps volunteers in the country.

Thomas stressed how the Philippines should particularly work on its economic investments and initiatives and step up to not lag behind other Asean nations, saying that of the $150 billion investment in Asean, $100 billion was in Singapore.

“How do you attract that $100 billion that Singapore has to the Philippines that is not up to us, that is up to you to design,” Thomas said.

He noted how the Philippines ranked eighth or ninth economically among Asean countries but that he believed that the Philippines could be number one.

Thomas said that they were working on getting American businessmen to look favourably on Southeast Asian nations, but that Southeast Asian nations-based business should open up and be more transparent economic societies.

Thomas said that with his experience in the Philippines, he believed that the country needed to work on transparency in court system and bureaucracy, speed of decision making, and predictability.



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Philippines - US helps Philippines fortify defence in West Sea

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Pursuing its pivot to Asia strategy, the United States yesterday handed over to the Philippines new equipment to improve surveillance and law enforcement operations in the West Philippine Sea (South China Sea) as President Benigno Aquino prepared to meet China’s leader for talks that may include territorial disputes in those waters.

US Ambassador to the Philippines Harry Thomas turned over to police and local government officials in Palawan province two new patrol boats and two boat-towing pick-ups to support the Philippine National Police Special Boat Unit (SBU) in the island province.

The United States is also helping the Philippines build a new SBU outstation on Balabac Island, off Palawan’s southernmost tip close to Sabah in Borneo.

Police and local officials in Palawan said the new equipment would not be used for border patrols in disputed parts of the West Philippine Sea but for surveillance against transnational crimes.

Containing China

But US help to China’s rivals for territory in the West Philippine Sea is seen in Beijing as an attempt to contain China’s growing influence in the Asia-Pacific region, drawing hawkish comments from Chinese military leaders increasingly suspicious about Washington’s renewed focus on Asia.

The United States has said it has national interest in the maintenance of stability and freedom of navigation in the West Philippine Sea, parts of which US allies the Philippines, Vietnam and Taiwan claim but all of which China insists is part of its territory.

In April, China’s insistence of sovereignty over the entire sea met resistance from the Philippines, which stood its ground at Panatag Shoal (Scarbourough Shoal), a reef within Philippine territory where Chinese fishermen had been caught poaching sharks and harvesting rare clams and corals. For two months, two Philippine vessels faced off with Chinese ships that sought to prevent the arrest of the fishermen until stormy weather drove the Filipinos to shelter in mid-June.

The standoff has soured relations between the two countries, but Beijing’s proffer of a bilateral meeting between President Aquino and Chinese President Hu Jintao on the sidelines of the 20th Asia-Pacific Economic Cooperation (Apec) leaders’ summit in Russia next week was seen as a sign that China is cooperating with the Philippines in finding a peaceful solution to the dispute.

Apec summit

The Apec leaders’ summit will be held on Russky Island, in the Pacific Ocean off the port city of Vladivostok, on September 8 and 9.

Foreign Undersecretary Laura del Rosario told a press briefing in Malacañang on Wednesday that China had proposed a one-on-one meeting between President Aquino and Hu and that Aquino would accept.

Aquino leaves for Vladivostok on September 7 to join other regional and world leaders in the summit on Russky.

He will join exchanges on trade and liberalisation, regional economic integration, strengthening food security, establishing reliable supply chains and cooperation to foster innovative growth. Officials said the Philippines would present its position on each of these issues.

The President will address the Apec Business Advisory Council (Abac) Dialogue with Leaders, after which he will meet with Hu and the leaders of Japan, Singapore and Chile.

Del Rosario said Aquino would not raise the West Philippine Sea dispute in his meeting with Hu, but Hu was expected to bring it up.

In that case, Del Rosario said Aquino would explain to the Chinese side what the Philippines was doing to “deescalate” tensions and maintain economic relations.

Focus on partnerships

Del Rosario said the meeting had not yet been confirmed, as the Philippine and Chinese delegations were still preparing their schedules.

But she said the Chinese side had proposed the meeting, and Aquino would accept.

She said the Philippines wanted to focus on boosting economic partnerships with China during the meeting, not the West Philippine Sea dispute.

Aimed at fighting transnational crime, Thursday’s US activity in Palawan should not derail the Russky meeting.

Joint naval patrols

The US Embassy in Manila said the donation was part of continuing US$9-million (380-million peso) US support to the SBU programme, which was established in 2010 through a partnership between the PNP and the US Department of Justice’s International Criminal Investigative Training Assistance Programme.

“This partnership has greatly increased the capabilities of the Philippine authorities to confront long-standing transnational organised criminal activity,” Thomas said in a statement.

The new equipment will also be useful should the Philippines, Malaysia and Indonesia approve joint patrols of their sea borders to combat piracy, smuggling and the movement of al-Qaeda-linked terrorists.

Defence Secretary Voltaire Gazmin yesterday said that the proposal was discussed during his meeting earlier this week with his Malaysian and Indonesian counterparts, who travelled to the Philippines to visit their troops involved in efforts to strengthen a ceasefire between the Philippine military and the Moro Islamic Liberation Front.

Gazmin said the three countries would study the proposed joint naval patrols, along with real-time information exchanges and rapid-response arrangements to deal with emergencies at sea and cross-border crimes.

First proposed in 2006 as a “modern police unit fully capable of enforcing maritime law,” the PNP SBU in Palawan has seized contraband worth $1.1 million, or nearly 50 million pesos, made 200 arrests at sea and accosted 17 vessels.

The arrests were related to cigarette and fuel smuggling, illegal drugs and weapons, illegal fishing and poaching of protected marine resources.

Illegal fishing and poaching are problems involving Chinese fishermen, but if the talks between Aquino and Hu are successful, Manila can expect an easing of these causes of friction with Beijing.

With reports from TJ Burgonio, AP and AFP

Tarra Quismundo
Philippine Daily Inquirer


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Malaysia - M'sia PM asks people not to risk peace, and touts reforms

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Malaysia's Prime Minister Najib Tun Razak yesterday said that unity in diversity remains the pillar of Malaysia's strength, and reminded the people never to jeopardise the harmony that the nation has long enjoyed.

The premier said the country had exceeded the expectations of many in building on the success of the founding fathers and was “proof and a manifestation of promises and hopes fulfilled”.

To appreciate this truth, he said, Malaysians had to look at how the country became independent 55 years ago “amid armed rebellion by the Communist Party of Malaya in an environment where the world doubted our ability to survive as a multiracial, multi-religious and multilingual nation”.

In his National Day message over  state-owned public broadcaster Radio Televisyen Malaysia (RTM) last night, Najib also spoke of the transformation from an agricultural country to a nation with a diversified economy.

News agency Bernama quoted the prime minister as saying that Phase Two of the Government Transformation Programme had the potential of boosting the prosperity of the nation and bringing about wider involvement of society and more meaningful participation of non-governmental organisations and the corporate sector.

Najib stressed the importance of all segments of society embracing GTP initiatives for them to succeed.

He also said the Political Transformation Programme which struck a balance between individual freedom and national security had made democracy in Malaysia healthier and rooted as a culture that became the core of national stability.

Najib said Malaysia had grown into a moderately high-income nation and was “being steered fast towards realising its aspiration of becoming a developed and high-income nation by 2020”.

“The success achieved is no cause for us to rest on our laurels,” he said.

“On the contrary, it should spur us to strive for a much brighter tomorrow.”

Meanwhile, Deputy Prime Minister Muhyiddin Yassin said that Malaysians regardless of race, religion or age must appreciate the true meaning of Merdeka to move the country forward.

“With the commitment of every citizen to embrace the true meaning of Merdeka, we will achieve greater progress and the dream of making Malaysia a developed nation by the year 2020,” he said in his National Day message.

News Desk
The Star


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China - China vows to defend islands

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China and its armed forces have the "confidence, capability" and unwavering determination to defend the Diaoyu Islands, the defence ministry said yesterday.

A think-tank member visiting Beijing also warned that the frequent defence collaboration of the US-Japan alliance has strained the atmosphere of the Asia-Pacific region, and the weakened strategic mutual trust of the US-Japan-China trilateral ties is in "desperate need" of crisis management.

Defence Ministry spokesman Geng Yansheng said at a monthly news conference that the Chinese military is closely watching Japan's moves. "We are against any words or deeds that would escalate or complicate the situation," he said.

While commenting on a recent US-Japan joint island drill in the western Pacific Ocean that reportedly "targets China", Geng said Beijing firmly opposes any deeds that may increase tension in the region.

Safeguarding the security, peace, and prosperity in the region is in everyone's interests, Geng said.

Cai Yingting, deputy chief of the General Staff of the Chinese People's Liberation Army, also reiterated China's stance over the Diaoyu Islands during his recent visit to the US.

During a Wednesday news briefing, US State Department spokeswoman Victoria Nuland was asked whether the US supports Japan's rival territorial claim over the Diaoyu Islands, which belong to China.

Nuland said that the US does not have a position on the sovereignty of the islands, yet she reiterated that the US see the islands "falling under the scope" of Article 5 of the 1960 US-Japan Treaty of Mutual Cooperation and Security, a defence pact that promises Washington's needed support to help Japan protect its "territory".

Geng also confirmed that US Defence Secretary Leon Panetta will visit China in mid-September, but did not provide the exact date.

Observers stressed the possible influence of Panetta's visit to the tensed situation in the East China Sea.

Stephanie Kleine-Ahlbrandt, a researcher and the North East Asia project director of the think tank International Crisis Group, showed concern over the vulnerability of Sino-US strategic mutual trust in addition to the mistrust between China and Japan.

"As its relationship with China entered an uncertain period, Japan sought to strengthen ties with the United States, feuelling anxiety in Beijing that the US-Japan alliance could be an effort to contain China's growing power," she said in a seminar co-hosted by the Chinese Academy of Social Sciences and the Tokyo Foundation.

She also warned the increasingly dangerous role of nationalist moods in shaping foreign policies of both China and Japan in recent incidents concerning the Diaoyu Islands.

Akio Takahara, a professor of contemporary Chinese politics at the University of Tokyo, warned that the nationalist mood "has gathered momentum" in all three countries.

"Reining in the irrational mood is a major common task for the three countries," Takahara said.

Also at the news conference, Geng refuted the accusation of an article published by The Washington Post on August 26, which said China's surging exports of cheap assault rifles and ammunition to sub-Saharan Africa over the past decade fuelled regional military conflicts there.

Geng said China's arms export volume is "very limited compared with US", and China strictly follows relevant UN treaties and established a comprehensive legal and management system for arms exports.

Qin Zhongwei and Zhang Yunbi 
China Daily


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North Korea - UN nuclear watchdog has 'serious concern' over North Korea

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VIENNA: North Korea's nuclear programme is a matter of "serious concern," the UN atomic agency IAEA said in a report released on Thursday, referring in particular to two sites Pyongyang has stopped it from visiting.

"The nuclear programme of (North Korea) is a matter of serious concern," said the report from the International Atomic Energy Agency.

North Korea's statements about uranium enrichment activities and the construction of a light-water reactor "continue to be deeply troubling", the report added.

The country had in recent months made significant progress in building this reactor, the report said.

In late February, the United States announced it had agreed a moratorium with North Korea on nuclear activities and ballistic missile tests, in exchange for a resumption of food aid to the hermetic Stalinist state.

In March, North Korea invited the IAEA to send inspectors to help implement the deal - a significant rapprochement given it expelled agency inspectors in 2009 and has since refused to cooperate with the agency.

But after a much-vaunted missile launch by Pyongyang on April 13, Washington suspended the deal, even though the launch failed.

Talks between the IAEA and North Korea have thus remained on hold.

Nevertheless, Thursday's report from the agency called on North Korea to renew its cooperation with them.

"The Agency will continue to maintain its readiness to play an essential role in verifying (North Korea's) nuclear programme," it added.

The North has staged two nuclear tests, in 2006 and 2009. In November 2010, it unveiled its uranium enrichment factor. Until now, it has used plutonium in its nuclear devices.

- AFP/de


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APAC - Clinton heads to Pacific islands to renew US interest

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WASHINGTON: Secretary of State Hillary Clinton on Thursday headed to the remote Cook Islands on a rare trip to show renewed US interest in the South Pacific, where China has demonstrated its growing clout.

Clinton was to devote three days to the islands - whose population of 11,000 is about the same size as the US Foreign Service - as she becomes the first top US diplomat to take part in an annual Pacific island summit.

The stop, at the start of a tour through Asia, has been full of logistical headaches as her staff struggled to rustle up enough cars and hotel rooms during one of the biggest events in the archipelago's history.

Clinton will be joined by Admiral Sam Locklear, head of US Pacific Command, and will announce a series of new aid initiatives focused on the environment and other areas, a senior US official said on condition of anonymity.

The burst of US attention comes as President Barack Obama's administration puts a focus on the Asia-Pacific, devoting US military and political capital to shaping the future of a region where China is rapidly rising.

While often overlooked strategically, the South Pacific is a gateway into the fast-growing region and the 16 nations in the Pacific Islands Forum offer an ample source of votes at the United Nations and other international fora.

The United States has deep ties with the region due to World War II and its territory of American Samoa but it only recently resumed assistance after shutting its main aid program in the South Pacific in 1994.

US partners Australia, Japan and New Zealand remain major donors to the South Pacific. But China has curried favor by imposing few conditions on its low-interest loans, which according to Australia's Lowy Institute have totalled more than $600 million in pledges since 2005.

Samoa's Prime Minister Tuilaepa Sa'ilele Malielegaoi earlier this year praised China as a better friend to the region and said that the United States had neglected the South Pacific because it does not have wars.

Ernie Bower, director of the Southeast Asia programme at the Centre for Strategic and International Studies, said Clinton's trip put teeth in the Obama administration's vowed "pivot" toward the Asia-Pacific region.

"You can't really be a Pacific power, you can't be 'pivoting' toward the Asia-Pacific, without showing up at these events," he said.

Bower said that US efforts in the South Pacific served as a "down payment" to Australia and New Zealand, which have historically taken leading roles in the islands and have assisted the United States in Afghanistan and elsewhere.

Clinton will meet Australian Prime Minister Julia Gillard and New Zealand Prime Minister John Key while in the Cook Islands, a US official said.

A Washington-based diplomat from the region said Clinton's visit was considered "very significant" in the South Pacific as a sign of renewed US engagement.

"The Americans are very well-liked in the region for legacy reasons from World War II onwards. If you look at voting records in the United Nations, this is one of the most pro-US regions in the world," the diplomat said.

"But I think there has been a growing sense in the past 20 years or so that the United States has been preoccupied with other parts of the world and a sense that the US commitment to the region may be waning," he said.

"One question that we always have is going to be whether there is some substance behind the rhetorical and ceremonial" aspects of the summit, he said on condition of anonymity.

One of the most pressing issues in the South Pacific is climate change, with some islands fearing for their very survival if water levels rise.

The Obama administration has launched aid projects to help the South Pacific adapt to climate change, but at UN-led talks island states have pushed the United States and other major emitters to do more to curb their own emissions.

After the Cook Islands, Clinton heads to Indonesia, China, Timor Leste, Brunei and then an Asia-Pacific summit in the Russian port of Vladivostok.

The State Department said Clinton would press for peaceful resolutions of a myriad disputes between China and its neighbours. China's state media has criticised Clinton's trip, accusing her of trying to contain the rising power.

- AFP/de


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Singapore - Tiny Singapore risks economic gloom without big baby boom

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History suggests Singapore will enjoy a welcome baby boom in this Year of the Dragon, the most auspicious for births in the Chinese zodiac.

But after 25 years of state-sponsored matchmaking and fertility-boosting campaigns, the government's attempts to arrest a sliding birth rate are falling flat, with potentially profound consequences for the wealthy Asian city-state.

The calls to conception are now urgent and constant to citizens whose fertility ranks last among 222 nations in the U.S. Central Intelligence Agency's World Factbook.

Faced with dismal statistics like that, the government has begun a review of population and immigration policy and says it plans new measures to encourage births by the time it publishes the results of its consultation early next year.

The message to have more babies is all the more pressing as resentment builds over an influx of foreigners who now make up more than a third of the population of 5.2 million, a factor that is eroding support for the long-ruling People's Action Party.

"We have a problem. The long-term trend is down but we cannot give up," Prime Minister Lee Hsien Loong said in a speech on Sunday about the nation's future. "We need to create the right environment, the right social environment, the right ethos so that Singaporeans want to settle down and have kids."

Social and economic engineering is nothing new in Singapore, where a firm government hand helped to steer a small island with no natural resources into one of the world's most affluent countries in a little over a generation.

But the relentless drop in the birth rate reveals the limits of that influence in what has been described as a "nanny state".

For a global trade and financial centre like Singapore, its extremely low fertility rate has implications for economic growth, tax revenues, healthcare costs and immigration policy as the number of elderly people looks set to triple by 2030.

There are now 6.3 Singaporeans of working age for every senior citizen. By 2030, the ratio will be closer to 2:1.

At current levels, the birth rate implies that the local population will fall by half within a generation, said Sanjeev Sanyal, a Singapore-based global strategist at Deutsche Bank.

"Even to attract a pipeline of good quality foreign talent, you need socio-political continuity and stability that can only be provided by a robust anchor population," he said.

WORK/LIFE BALANCE

If there were any doubts about the government's blatant message, the mint maker Mentos put out an advertisement urging married Singaporeans to do their civic duty on the evening of the Aug. 9 National Day festivities.

"I'm talking about making a baby, baby," went the video's rapped lyrics, accompanied by hip-thrusting animated hearts. "It's National Night, let's make Singapore's birthrate spike."

Not long ago, Singapore had the opposite problem.

From the mid-1960s, with post-war baby boomers hitting child-bearing age, the fears were that a population surge would threaten the development of the newly independent nation.

With the slogan "Stop at two", the government penalised big families, legalised abortion and rewarded sterilisation. It was so effective that, by 1987, the policy was reversed and the slogan became "Have three or more if you can afford it".

Conspiring against more births are powerful contraceptives in the form of intense career pressure, long work hours, small apartments, waiting lists for nursery care and soaring prices.

"Work/life balance is what everybody's after," said Evonne, a marketing professional in her 30s, adding she and her husband plan to have one child. "If you don't want kids, no matter what the government throws at you, I don't think you really care."

The 2010 census showed Singaporeans are marrying later than a decade earlier. In the age group 30-34, a key time for career, 43 percent of men and 31 percent of women were not married.

For women in their 40s who were or had been married, those with only one child rose to 19 percent from 15 percent.

The issue is acute for the ethnic Chinese who make up 74 percent of Singapore's citizens and permanent residents, a majority that has ebbed from nearly 78 percent in 1990. Statistics show ethnic Chinese are having fewer babies than the Malay and Indian communities and are more likely to be single.

Officials have sought to balance the call for more children with a message that the country must remain open to immigration to provide the labour and expertise needed for future growth.

Not all are convinced, as many Internet posts show.

Gilbert Goh, who runs a support group, Transitioning, for the unemployed, decried "relentless messages sent out by the government to accept foreigners" because of the low birth rate.

"Besides seemingly solving the whole birth rate issue here for our government, foreigners also are brought in to solve a bigger issue for employers -- cheap hard-working labour," he wrote on his website.

Simmering anger over immigration is widely believed to have contributed to the People's Action Party's unexpected loss of seats in last year's parliamentary elections.

SINGAPORE "WILL FOLD UP"

Saying it recognises concerns about jobs, living standards and social cohesion, the government has put tighter controls on the number of foreigners it lets in, particularly lower-skilled and lower-wage workers.

In July, it put out a paper for public input on ways to encourage Singaporeans to marry and have families as part of its review of population and immigration policy.

The paper -- "Our Population Our Future" -- set out a troubling scenario for an ageing society if birth trends persist, including a less vibrant economy, an exodus of major companies and a shrinking number of workers and consumers.

To encourage parenthood, the government gives out baby bonuses of up to S$4,000 ($3,200) for each of the first two children, rising to S$6,000 for the third and fourth. It also matches deposits made into a Child Development Account.

The Social Development Network, part of a government agency, offers free romantic advice by its "Dr Love" and oversees the activities of private dating agencies.

To reverse the trend, Lee said on Sunday, changes in social and workplace attitudes are needed, along with more support for families with housing and affordable, accessible childcare.

If women were having at least two children, that would mean a rise in the population. But at a fertility rate of 0.78, according to the CIA, the number of Singaporeans is waning.

The government has different data showing women, on average, giving birth to 1.2 babies in a lifetime -- down from 1.87 in 1990 and 1.42 in 2001 and far below the replacement rate.

The city-state is not alone. Hong Kong, Taiwan and South Korea also have very low fertility rates and many of the same cost, space and career pressures.

Among Southeast Asian neighbours, Thailand's fertility rate of 1.66 is below replacement but the populations are growing in Indonesia (2.23), Malaysia (2.64) and the Philippines (3.15).

Lee Kuan Yew, the country's founding leader and father of the current prime minister, warned in August that Singapore "will fold up" unless it reverses the drop in the birth rate.

"Do we want to replace ourselves or do we want to shrink and get older and be replaced by migrants and work permit holders?" said Lee, who launched the "Stop at two" campaign in 1966.

Some hope for a zodiac-linked baby boom that is borne out by government figures. Births rose in previous Dragon years in 1976, 1988 and 2000, but those were only minor spikes in a steady decline in Singapore's fertility rate from 3.07 in 1970.

The government is promising new measures to encourage births and help families but unless career and cost pressures change dramatically, there may be little effect.

"Can Singaporeans be persuaded to have more children?" was the survey question during a recent television panel discussion on the birth rate. Channel News Asia's telephone poll may not have been completely scientific, but the answer was clear -- a resounding 74 percent of respondents said "no".

John O'Callaghan

Reuters


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YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programmes. Many thanks for visiting www.yourvietnamexpert.com and/or contacting us at contact@yourvietnamexpert.com