SBC: October 2012

Oct 31, 2012

China - China's yuan ends at new record high

SHANGHAI - China's currency ended at a record high against the US dollar for the second straight day Wednesday, in what analysts said could be a response to US criticism over claims the yuan is vastly undervalued.

The yuan has strengthened around two per cent against the greenback since the end of July, ahead of US presidential elections and amid growing confidence in the Chinese economy, which has shown signs of bottoming out.

The yuan - which trades in a tightly-controlled band - ended at 6.2372 to the dollar on Wednesday, marking the strongest finish since 1994, when the country launched its modern foreign exchange market.

It closed at 6.2405 yuan (S$1.22) to US$1.0 on Tuesday.

Analysts say China may be allowing the yuan to appreciate to defuse criticism that the unit is grossly undervalued, ahead of the US elections on November 6 and an upcoming US government report on exchange rates.

"We suspect this is in large part an attempt to neutralise the currency issue ahead of the elections," Capital Economics said in a research note on Tuesday.

"If we're right, this burst of renminbi (yuan) strength won't last."

China's exchange rate has been a long-running source of friction with the United States and presidential hopeful Mitt Romney recently vowed to brand the country a currency manipulator.

The US Treasury Department issues a semi-annual report on exchange rate policies that addresses China, among other countries, which is expected to be released some time after the G-20 meeting in November.

Investment bank UBS also said the yuan's appreciation would slow but predicted more volatility, adding that it would stay in a range of 6.2 to 6.4 over the next 12 months.

"Given the weak export growth, we believe the government has no appetite to let the (Chinese yuan) appreciate steadily and consistently," it said in a research report this week.

A stronger currency makes China's exports, the mainstay of its economic growth, more expensive.

AFP

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Vietnam - Vietnam’s once richest man longs for good old days

The return of businessman-cum-National Assembly deputy Dang Thanh Tam has heated up the ongoing NA meeting, as Tam was very open in answering questions from the press gave during a break of the plenary session of the conference on the socioeconomic situation.

"If I had not stepped into the financial sector, I would not have to suffer like this. I want to go back to the good old days because at that time I owed very little debt, so I did not have to worry about repayment,” Tam said.

“Sometimes when people are told to return to ordinary life, it is better than the life of luxury. All businesses are dreaming of those old days," he added.

Given the current situation, will there be any opportunities to expand production in 2013?

In deciding whether to expand or not, we should look into the State's plan. When the government projects 5-5.2 percent economic growth, I have to say that it’s good to scale down your production for your own sake, as expansion will be a death penalty.

With such an economic growth plan, businesses have to understand that 2013 will continue to be difficult, so they need to be aware of their own situation and find the best way to survive. Optimism is good, and we businesspeople need that, but we also have to be realistic, and you must plan ahead to fit in such a socioeconomic growth plan.

The final result of 2012 may leave everyone worried. I do not know what the end of 2013 will be like, but I’m sure that the 5.2 percent GDP growth plan is too low. I think that in 2013 it should be at least at 6 percent.

Everyone is afraid of bad debt, it’s true. But in my view, it should be classified into two categories: bad debt in securities- real estate, and bad debt in the manufacturing sector caused by rising unsold inventories.

Out of the approximately VND300 trillion ($14.4 billion) in bad debt, how many percentage points the two categories make up needs to be sorted out.

For the second category, I think it should not be necessarily considered as bad debt, as when the economy flourishes, the flow of goods will regain its speed, thus enabling the borrowers to repay the principal and interest.

Regarding the stock market, I think it faces a very long road to recovery.

Do you have plans for the future in the field of finance and banking?

I, like many other people, rushed to buy banking shares and shares of securities firms in the past. But those old days have passed, and very few people do so now.

In this case, I don’t want to tell people to stay away from the market, but I just want to draw a clear picture so that the people recognize the reality, and they will know where they should channel their money to.

As for our financial investment, no one wants to say that I failed, and I have to say that I’m absolutely not successful, and have suffered huge losses.

If I had not gotten involved in the financial sector, I would not have to suffer like this.

Luckily, the field of industrial infrastructure is still profitable and we can still collect factory rents regularly.

Financial investment brings me a profit of just a few percentage points per year, while loans cost tens of percent per year. We have to learn from such failures and bitter experiences.

We don’t own any stocks of Phuong Tay Bank, and we have divested nearly all our investments in the stocks of other banks to focus on our core business.

“A lot of people say we owe so much. But my total debt, including that of my sister at Tan Tao Group, is less than $500 million, while our total capital is worth over VND20 trillion ($960 million). The debt to equity ratio is less than one.”

“Regarding our business, particularly in the field of industrial infrastructure and foreign investment attraction, if we die, no one can live”

TUOI TRE

Vietnam - Travel firms face quiet inbound tourism season

VietNamNet Bridge – From September onwards to early next year is the high inbound tourism season in Vietnam. However, the number of foreign travelers to Vietnam so far this year remains modest, so October is nearly ending.

Travel firms have doubts about the feasibility of the plan to receive 6.5 million foreign travelers in 2012 set up earlier this year. In the first nine months of the year, only 4.8 million foreign travelers arrived in Vietnam.

General Director of the Cuu Long 5-star Hotel in HCM City Nguyen Anh Vu said on Thanh nien that the hotel room occupancy rate decreased by six percent in the first nine months of the year in comparison with the same period of the last year, from 78 percent to 72 percent.

“We have never seen such a sharp decrease, though we keep the hotel room rate unchanged,” Vu said.

He does not think that the situation would be improved towards the end of the year. Meanwhile, other hotel owners in the city fear that the downward trend would continue in the time to come.

Tao Van Nghe, General Director of Rex Hotel, who is also Chair of the HCM City Hotel Association, has also confirmed the decrease in the number of guests staying at the hotels in the city.

Travel firms have also complained about the sharp falls in the number of foreign tourists. Tran Van Long, Director of Du Lich Viet, has reported the 40 percent of the inbound tourists so far this year, while the orders from foreign partners for the year-end tours remain modest.

In order to stimulate the demand, Long said his travel firm has to launch the tours (all domestic, inbound and outbound) with the fees just equal to the cost prices.

According to Quan doi nhan dan newspaper, the growth number of foreign tourists to Vietnam has been on the decline. It has cited the Vietnam National Administration of Tourism’s (VNAT) report as saying that the number of foreign tourists had increased by the end of February, but the growth rate had decreased to 10.8 percent by the end of July and to 9.4 percent by August.

In September 2012 alone, Vietnam received 460,238 foreign tourists, a decrease of 13.7 percent from August.

Thanh nien has quoted a director of a big travel firm in HCM City as saying that the number of foreign tourists, who only book tours at Vietnamese travel firms after they arrive in Vietnam, has also decreased dramatically.

Especially, the number of members of tourism groups has also decreased. In the previous years, a group had 25 travelers on average, while there are 10-15 travelers now.

The executive has also revealed that the number of MICE (meeting, incentive, conference, exhibition) tourists has dropped by 40 percent.

The sharp fall in the number of inbound tourists has been explained by the serious economic crisis, which has forced people to cut down their spending on non-essential needs.

Travelers nowadays, when planning outbound tours, tend to head for nearby countries to save money. Meanwhile, Vietnam’s biggest markets are relatively far.

Also according to VNAT, six out of the 10 key markets of Vietnam have seen the numbers of travelers down. These include France (down by 50 percent), South Korea (22 percent), China (18 percent), the US (15 percent).

Nevertheless, while witnessing the number of foreign travelers to Vietnam decreasing sharply, Vietnam has seen the number of Russian travelers increasing rapidly.

Dan Viet newspaper has quoted its sources as saying that the sea city of Nha Trang in Khanh Hoa province alone has received 60,000 Russian tourists so far this year, while the figure may reach 100,000 by the end of the year.

Compiled by C. V

Vietnam - Additional authority for the President in the Constitution

VietNamNet Bridge – The President may request the Government to meet for discussing the issues relating to the duties of the President; appoint the Chief of General Staff and military leaders, Admirals.

According to the report of the Commission for draft amendments to the Constitution 1992, there are nine basic contents of modification, such as: further confirming and clarifying the position, role and responsibility of leadership of the Communist Party to the State and society; more profoundly showing the perspective on protection and respect of human rights; etc.

The draft amended Constitution has 11 chapters and 126 articles, a reduction of one chapter and 21 articles compared to the Constitution1992. Of which, 18 articles are remained, 95 articles are amended and 13 articles are new.

The amended articles have contents related to the President. Accordingly, the President is the commander of the people’s armed forces and serves as the Chair of the National Defense and Security Council; has the right to brevet Generals, Admirals, Vice Admirals, Rear Admirals; appoint the Chief of General Staff and the Chair of the General Political Department of the Vietnam People's Army.

Pursuant to the resolutions of the National Assembly or the National Assembly Standing Committee, the President announces the decision to declare a state of war; based on the resolutions of the NA Standing Committee, releases general mobilization order or local mobilization order, declares a state of emergency…

The President has the right to attend meetings of the NA Standing Committee and the Government. When it is necessary, the President requests the Government to discuss the issues relating to the tasks and powers of the President.

In the draft revised Constitution, the Prime Minister has the duties and powers as follows: proposing the National Assembly to approve the appointment and dismissal of deputy prime ministers, ministers, cabinet members; appoints and dismisses deputy ministers and equivalent positions in the central state administration; ratifies the election, dismissal, transfer, demotion of Chairs and Vice Chairs of People's Committee of centrally governed provinces and cities.

The Prime Minister shall make reports to the people through the mass media about the important issues that the government must address.

The draft also said the Communist Party of Vietnam is the vanguard of the working class, at the same time as the vanguard of the working people and of the people of Vietnam, the faithful representative of the interests of the working class, working people and the whole nation, according to the Marxism-Leninism and Ho Chi Minh Thought; is the force leading the State and society.

The amended Constitution also clarifies the nature and pattern of economic management role of the State in the socialist-oriented market economy, the ownership and business freedom, property of the people’s ownership, land use and management.

At this session, the National Assembly will consider and discuss for the first time the draft amendment of the 1992 Constitution and pass a resolution on collecting the people's opinion on this draft.

Then, the Committee for draft amendments to the Constitution will gather, synthesize and revise the draft to submit to the National Assembly for consideration at the fifth session in May 2013); then continue to complete the draft to submit to the National Assembly for approval at the sixth session in October 2013.

Linh Thu

Indonesia - Indonesians concerned about work-life balance – Survey

A recent survey reports that Indonesians are concerned about the fact that they spend too much time in their workplaces and have less time for friends and family.

Nielsen Indonesia released its third quarter consumer survey on Wednesday, saying that a happy balance between work and home was the biggest concern of Indonesians after financial stability.

“What is interesting is that the work-life balance is the second concern for Indonesians, whereas in Asia Pacific countries it only ranks fourth,” Nielsen Indonesia managing director Catherine Eddy told reporters during the press briefing in Jakarta.

The Nielsen survey, which involved 500 respondents through online interviews, showed that 24 percent of them perceived that balancing work and their personal social life was their main concern. The survey reported that 31 percent of the respondents said that their economic situation was their most important concern.

Eddy said that the high degree of concern for the work-life balance among Indonesians was attributed to the culture of the country, whose people value highly the moments they spend with their family, relatives and friends.

Based on the interviews, there was also a tendency among the respondents to believe that their jobs were often more stressful. “Employers [in Indonesia] have to respond [to the survey] by providing more flexible working hours for their employees,” she suggested.

Despite the concerns, Indonesia retains its position as the most confident country in the world among 58 countries surveyed by Nielsen, thanks to its economic resilience stemming from its robust domestic consumption.

Indonesia’s consumer index was measured at 119 in the third quarter, according to Nielsen. Consumers are considered optimistic if the index is above 100 and pessimistic if it is below 100.

http://www.thejakartapost.com/

Indonesia - Diversify or Shut Down, Jakarta Tells Retail Franchisors

Major retail brands such as Alfamart will be forced to diversify the holding of franchises under a new regulation the government claims will support small- and medium business-owners.

Under the ruling, issued on Monday in Jakarta and taking effect immediately, privately owned companies are only allowed to establish a maximum of 150 franchise outlets, giving them little choice but to issue franchises to other entrepreneurs if they wish to grow beyond the threshold.

The regulation, however, provides several exceptions. “Companies that have yet to generate any profit after opening up 150 outlets ... are allowed to open more branches,” one provision said.

Furthermore, private companies can also open more than 150 outlets should the franchise holders try but fail to find local partners, the regulation said.

The regulation also states that locally-made products should account for at least 80 percent of types and volumes of goods being sold at franchise outlets.

Companies will be given five years to comply with the new regulation, with companies that fail to comply facing the potential loss of their business license.

The new regulation is likely to hurt many retailers. One possible loser is Sumber Alfaria Trijaya, which operates thousands of Alfamart minimarket outlets. Of 6,000 Alfamart outlets across the country, only 2,000 are owned by non-affiliated investors under a franchise agreement.

Hendrik Adrianto, head of external communications at Carrefour Indonesia, said the supermarket chain expects to have little trouble complying with the local production regulation. “Locally-made products already account for 90 percent of our inventories,” Hendrik said.

He said there are only 84 Carrefour outlets across the country, meaning the new regulation left it room to grow.

According to the Indonesian Franchise Association, there are at least 80,000 franchise outlets, including restaurants and retailers, across Indonesia.

Last month, the Indonesia Franchising and Licensing Society (WALI) warned of the dangers of the mooted regulation. Amir Karamoy, chairman of the group’s advisory board, said potential franchisors had become more cautious about setting up operations in Indonesia due to the policy.

The local product requirement comes just two weeks after President Susilo Bambang Yudhoyono told a conference in Jakarta: “If we want to achieve robust global trade ... we must tackle [non-tariff trade barriers].”

Tito Summa Siahaan

http://www.thejakartaglobe.com/

Brunei - Lee emphasises monetary, fiscal issues

SINGAPOREAN Prime Minister Lee Hsien Loong yesterday spoke of several bilateral projects that were on course to be implemented as a result of his three-day visit to Brunei.

Speaking to the media, the Singaporean premier said one of the projects to be established was a regular dialogue mechanism between the Monetary Authority of Singapore (MAS) and the Autoriti Monetari Brunei Darussalam (AMBD) to discuss monetary and financial issues and other areas of mutual interest.

Lee also said there would be further education co-operation, as well as exchanges between the youth of both countries. These were areas of collaboration that will benefit both sides, he said.

The prime minister also said his visit had underscored the need to bolster ties between Singapore and Brunei, which were formally established by His Majesty's late father and Lee Kuan Yew, Singapore's first prime minister.

In particular, it is important to nurture the good ties enjoyed by both sides' younger leaders, Lee said, adding that His Majesty had agreed to his proposal for Singapore DPM and Minister of Home Affairs Teo Chee Hean to lead a delegation of younger Singaporean ministers visiting Brunei next year so that they could interact with younger Bruneian leaders.

This would help build friendship between leaders on both sides, he said.

On economic links between Singapore and Brunei, the premier said the Currency Interchangeability Agreement (CIA) remained important and that the new dialogue between MAS and AMBD would help bring the CIA forward. Prime Minister Lee said Singapore was happy to welcome more tourists from Brunei and also encouraged Singaporeans to enjoy the Sultanate's natural beauty and peaceful environment.

AMIR NOOR

The Brunei Times

Brunei - HM, PM Lee go for a walk

HIS Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam and Singapore Prime Minister His Excellency Lee Hsien Loong took an invigorating morning walk around the Tasek Lama Recreational Park yesterday.

The Singapore Premier, who is on a three-day visit of the country, was also greeted by His Royal Highness Prince Haji Al-Muhtadee Billah, the Crown Prince and Senior Minister at the Prime Minister's Office and His Royal Highness Prince Mohamed Bolkiah, Minister of Foreign Affairs and Trade.

His Majesty and Premier Lee had a warm up session to limber up before their 30-minute walk.

Cordial conversation between His Majesty and the Prime Minister continued throughout their walk which took them right across the recreational park.

Going around the playground and exercise facilities, they trekked up a hill towards the Tasek Reservoir.

Once on the summit, His Majesty and Prime Minister Lee visited the observation tower that overlooks Bandar Seri Begawan.

They also visited the Tasek Reservoir, which was constructed in 1964 to supply water to the Brunei-Muara area.

Early morning walkers had a pleasant surprise when they saw His Majesty and the Prime Minister, making their way down smiling and waving at them.

Year-old saplings were planted near the waterfall by His Majesty and the Prime Minster to commemorate their visit to the park.

His Majesty and Prime Minister Lee, accompanied by the Crown Prince and His Royal Highness Prince Mohamed, concluded the morning walk with refreshments, just across the waterfall.

The saplings were chosen keeping in view their environmental requirements, said a representative from the forestry department.

The saplings, locally known as Selensur, grow close to water sources and require plenty of sunshine. The Selensur trees have been growing healthy in Tasek Lama as they find the environment conducive, she said.

The Selensur trees found in Borneo, mostly along riverbeds, were nursed at the Sungai Liang forestry reserve for a year. When the trees mature, they give off a red glow as their bark keep falling. This earns them the nickname, "forever young", she added.

In the same area, there are other plants that have been planted to commemorate visits of heads of state in 2009 like the 'lipstick palms' that were planted in honour of Malaysian Prime Minister Dato Seri Mohd Najib Tun Razak.

The Singapore Prime Minister arrived in the country on October 29 and leaves today.

FAIQ AIRUDIN

The Brunei Times

Malaysia - Chinese Investors Flocking to Malaysia

Exploring business opportunities in Southeast Asian country offers a route into more ASEAN markets, as Bao Chang reports in Malacca.

Across the blue Strait of Malacca, there will be a man-made island, that is poised to become a new travel hub of Malaysia, and is set to appear in 2020.

Northwest China's Gansu Chamber of Commerce, along with Malaysia's Mestika and IEPU, have invested 1.3 billion yuan ($206 million) to establish the island as a new landmark in Malacca that engages in the travel, entertainment, commerce, culture and resort businesses, most of which will involve Chinese investors.

"Walking through Malacca, the legendary ancient city, I feel little exotic atmosphere, because the major business street is full of shops and hotels with a glittering array of Chinese billboards," said Song Liuming, a Chinese tourist.

Linking the Pacific and Indian oceans and located at the crossroads of Asia and Oceania, the Strait of Malacca has been a trading passage since the days of Zheng He, China's most famous navigator, who visited it five times during the Ming Dynasty (1368-1644).

Today, Chinese people are enthusiastic about investing this ancient city, which has many historical connections to China.

According to the market researcher MYC MM2H SDN BHD, most of the investment in the 607-hectare island is from Chinese investors.

In this traditional economic hub of Malaysia, the most active businessmen are undoubtedly Chinese. Chinese companies are also the country's biggest trading partner.

Song, an entrepreneur from Jiangsu province, said that he saw business opportunities in the travel industry and was sure it would be very profitable to invest and set up a tourist agency in the country.

"There are a lot of beautiful resorts in Malaysia that are attracting more and more Chinese tourists. But the travel service is still not as developed as that in the Chinese market," Song said.

China has become Malaysia's third-largest source of tourists, following Indonesia and Singapore. In the first half of the year, 758,300 Chinese tourists visited Malaysia, up 34 percent year-on-year, according to the Malaysia Tourism Bureau

Li Liping, general manager of Zhejiang Tonghui Investment Company, said he plans to invest in Malaysia's catering industry.

"Our company has set up a comprehensive network in China's catering industry and our next plan is to go abroad," said Li.

Li revealed that Malaysia will be the company's first overseas investment destination, where it will open a Chinese restaurant, to take advantage of the two countries' linguistic and cultural similarities.

Active investors

Ong Chong Yi, minister counselor for economic affairs at the Malaysian embassy in China, told China Daily that over the past three years, Chinese investors have been active in the construction sector in Malaysia but have less presence in the service sector.

The liberalization of the country's service sector gives Chinese companies opportunities to explore new areas of business, Ong said.

"We concentrate on attracting high technology, knowledge and capital-intensive investment tailored to economic growth and development," he said.

While private companies are trying to grasp investment opportunities in Malaysia, China's State-owned enterprises have tapped into the market, which is China's largest trading partner among members of the Association of Southeast Asian Nations, or ASEAN.

In a move to gain a greater market presence in Southeast Asia's steel industry, China's State-owned steelmaker Shougang Group launched a project in December 2011 to build a 1.8 billion yuan ($288.3 million) integrated steel plant in Malaysia through a joint venture with the local steelmaker Hiap Teck Venture Berhad.

Built in Terengganu State in northern Malaysia, the project results from the largest Chinese foreign direct investment in Malaysia so far.

Once the plant is fully operational, it will have an annual production capacity of 3.5 million metric tons of steel slabs. The first stage of the project will be finished by the middle of 2013, when its annual production capacity will reach 1.5 million tons.

"China's steel industry is suffering from overcapacity and that is why we are venturing abroad," said Hu Bin, president of Shougang Group, one of China's largest State-run steel companies.

"ASEAN is a huge and developing market. I think the bloc has great potential and we are tapping into it via Malaysia," Xinhua News Agency quoted Hu as saying.

"We decided to invest in Malaysia because we find it economically stable," he added, pointing out that the plant is strategically located next to a deepsea port for exports.

Around 40 percent of the products from the new plant are expected to be shipped to neighboring ASEAN countries, especially Indonesia and Thailand, which consume more than 4 million tons of steel slabs annually.

Since 2009, Malaysia has been China's largest trading partner among ASEAN members, and China has surpassed Singapore to become Malaysia's largest export market.

"Due to its advantageous geographical position and stable political and economic conditions, the Malaysian market is a gateway for Chinese investors to enter other ASEAN markets," said Ong from the Malaysian embassy.

YBhg Tan Sri Datuk Mustafa Mansur, chairman of the Federation of Malaysian Manufacturers, said that Chinese investors could seek investment opportunities in eight industries in Malaysia, including oil and gas, sustainable energy, water, hydroelectric power and food processing.

New targets

Tan Sri Dato' Haji Muhyiddin, deputy prime minister of Malaysia, has vowed to provide Chinese investors with a profitable investment conditions.

Muhyiddin said that apart from the traditional fields, infrastructure including real estate has become Chinese investors' new target in Malaysia.

The Construction Industry Development Board of Malaysia has also called on Chinese companies to increase their investment in the industry.

The Malaysian government has budgeted a total of 230 billion ringgit ($75 billion) for its investment plan. And 60 percent of this government development expenditure is allocated for physical infrastructure development, while the rest will be spent on non-physical infrastructure development.

According to the board, domestic market participation by foreign contractors in Malaysia accounted for 16 percent of the total project value in 2011, compared to 10 percent in 2010.

The number of projects awarded decreased by 22 percent but the monetary value increased by 34 percent. This indicates that foreign contractors are securing fewer but higher value projects.

Foreign contractors undertake projects that require specialized expertise or those financed by foreign investors, the report said.

According to the Ministry of Commerce, Chinese contractors completed contracted construction valued at $21.5 billion in ASEAN markets.

China Harbour Engineering Co Ltd is building a 22.5-km bridge connecting Penang to peninsular Malaysia. Construction of the bridge began in 2008, and 90 percent of the project has been completed so far.

The Export-Import Bank of China has so far offered loans totaling $286 million to the project.

Many Chinese construction contractors have already started to invest in projects in the country.

"As the biggest market among ASEAN countries, we will seek business opportunities there to deepen our presence in emerging markets," said Zha Changmiao, a spokesman for China Communication Construction Co Ltd, the parent company of China Harbour Engineering Co Ltd.

China and Malaysia have boosted their investment ties in recent years. In 2010, China's investment in Malaysia reached $65.97 million, up 22.7 percent year-on-year.

Ong said that Malaysia is taking measures to boost Chinese investment in Malaysia, as it's still in its infancy, compared to Malaysian investment in China.

By the end of 2011, Malaysia had invested nearly $6 billion in China, while China's investment in Malaysia stood at just $800 million, according to the Malaysian embassy in China.

"The establishment of two economic cooperation zones will further boost bilateral investment and trade between the two countries," Muhyiddin said.

The China-Malaysia Qinzhou Industrial Park in the Guangxi Zhuang autonomous region is the third industrial park created through a partnership between China and a foreign government. The park serves as the latest symbol of the friendship between the two nations and a platform for cooperation.

A second industrial park between China and Malaysia will be opened at the end of the year in Kuantan in the Malaysian state of Pahang.

"There is no doubt that the Qinzhou and Kuantan industrial parks will create many trade and investment opportunities for both countries," Ong said.

"We are expecting to attract 7 billion yuan in investments and create 5,500 jobs upon its full completion by 2020."

Datuk Seri Liow Tiong Lai, vice-president of Malaysian Chinese Association, said the 607-hectare park was expected to boost economic growth and generate downstream activities for the local business community.

Liow said the project would not have materialized without the full support and commitment of the state government led by Mentri Besar Datuk Seri Adnan Yaakob.

"The federal and Pahang governments share a close working relationship and mission to bring about economic prosperity and lift up the well-being of the people," Liow said.

After the completion of Kuantan Industrial Park, Malaysia's iron ore could be exported from Kuantan port to Qinzhou port to support the development of the shipping and automobile industries in the China-Malaysia Qinzhou Industrial Park, according to Ong.

Meanwhile, Kuantan port will become a container terminal hub in Southeast Asia, establishing smooth interaction with the Qinzhou tax-free port.

http://english.cri.cn/

Myanmar - Myanmar declined talks offer on violence – ASEAN

KUALA LUMPUR: Myanmar has rejected an offer by the Association of Southeast Asian Nations (ASEAN) to open talks aimed at quelling deadly communal violence there, the regional bloc's chief said on Tuesday.

ASEAN Secretary-General Surin Pitsuwan said he proposed setting up tripartite talks between the association, the United Nations, and Myanmar's reformist government to prevent the violence having a broader regional impact.

But he said Myanmar turned down the offer to discuss the bloodshed in Rakhine state that has seen around 180 people killed since June in the restive west of the country.

"Myanmar believes it is their internal matter, but your internal matter could be ours the next day if you are not careful," he told reporters after delivering a speech at a forum in the Malaysian capital Kuala Lumpur.

Fresh fighting in Rakhine state this month saw another 88 killed and added to the thousands of homes torched, with tens of thousands of minority Rohingya now living in overcrowded camps. Rights groups fear the actual number killed could be much higher.

Myanmar's quasi-civilian government, which has been lauded by Western nations for a series of democratic reforms after decades of outright military rule, has imposed emergency rule in the face of continued tension in the region.

Myanmar's 800,000-strong Rohingya community are viewed as illegal immigrants from neighbouring Bangladesh by the government and many Burmese.

The Rohingya have long been considered by the United Nations as one of the most persecuted minorities on the planet.

- AFP/xq

Cambodia - Upcoming 21st ASEAN Summit to boost bloc's integration process, central role – PM

PHNOM PENH (Xinhua) - The forthcoming 21st ASEAN Summit will promote the ASEAN integration process and strengthen the bloc's central role in the region's evolving regional economic and social architecture, Cambodian Prime Minister Hun Sen said Tuesday.

Speaking at the opening of an ASEAN Symposium, the premier said that ASEAN has made remarkable achievements since its establishment in 1967. "ASEAN is now known not only as a region of peace, stability and high growth, but a closely-integrated political and economic entity, an influential player in Asia and in indispensable strategic partner of major countries and organizations in the world," he said.

ASEAN has worked hard on implementing the action plans identified in the three pillars of ASEAN Community, namely, political-security community, economic community, and socio- cultural community.

The successful building of ASEAN economic community by 2015 will transform ASEAN into a global market with resilient production base, free flow of goods, services, investment and skilled labor and investment capital, he said. "In the capacity of ASEAN chair, Cambodia would like to encourage members and development partners to continue close cooperation in accelerating the process towards the establishment of ASEAN economic community by 2015, and continuing to make plans for priorities beyond 2015,"Hun Sen said.

In the upcoming 21st ASEAN Summit in Phnom Penh, for the ASEAN economic community, the ASEAN leaders will discuss important issues such as small and medium sized enterprise development, energy security, environment, trade, investment, infrastructure connectivity and sustainable development, he added.

Cambodia will host the 21st ASEAN Summit and related Summits from Nov. 15 to 20, according to the Ministry of Foreign Affairs.

All heads of states and governments of the member states of ASEAN, U.S. President Barack Obama, South Korean President Lee Myung-bak, Chinese Premier Wen Jiabao and Japanese Prime Minister Yoshihiko Noda had already confirmed their participation in the forthcoming summit and related meetings, Deputy Prime Minister and Foreign Minister Hor Namhong told reporters early last week.

The Association of Southeast Asian Nations (ASEAN) groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

http://www.philstar.com/

Singapore - Asean should begin talks on South China Sea dispute: Singapore

SINGAPORE, Oct 30 (Bernama) -- Singapore's Prime Minister Lee Hsien Loong hopes the process to resolve the South China Sea dispute can begin when Brunei assumes the Association of Southeast Asian Nations (Asean) chairmanship next year.

Local television Channel NewsAsia (CNA) reported that the conflicting territorial claims in the South China Sea were among issues Lee discussed with Sultan of Brunei Sultan Hassanal Bolkiah.

CNA quoted Lee as speaking to reporters Tuesday that the steps to find a solution are incremental but stressed that informal consultations between the parties concerned have to start.

"Asean has to take a position on the South China Sea because it happens in our doorstep and we have to have a forward-looking neutral view which is balanced, and encourages all the parties to come together and start working on the Code of Conduct, and I think Brunei is thinking along the lines too.

"They are focused on making outcomes during the year as Asean Chairman and less so on the form of the meetings and the events, which are part of the Asean process," he was quoted as saying by CNA.

The Ministry of Foreign Affairs said that Lee is on a three-day visit to Brunei starting Monday.

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Cambodia - Hun Sen: removes ASEAN trade barriers

Prime Minister Hun Sen has called for the removal of all tariff and non-tariff barriers when the ASEAN Economic Community (AEC) integrates in 2015, saying it is of central importance.

Speaking at the opening of an ASEAN symposium in Phnom Penh on Tuesday, the premier said integration of the rural economy into the ASEAN and global production networks and markets through better connectivity would promote equitable development in the region.

“Tariff and non-tariff barriers should be all removed for a deeper economic integration, and ASEAN can announce this decision when it declares the establishment of the AEC in 2015,” he said.

Hun Sen said ASEAN was now known not only as a region of peace, stability and high growth, but as a closely integrated political and economic entity, an influential player in Asia and in indispensable strategic partner of major countries and organisations in the world.

The premier also called for enhanced trade facilitation, further services liberalisation and a regional framework for liberalising and facilitating cross-border capital flows.

The connectivity and transport facilitation should be further enhanced for creating a single market and a resilient production base in ASEAN, he said.

Hun Sen also said the importance of small and medium-sized enterprises in expanding employment and entrepreneurial opportunities, and efficient transport logistics and distribution services, would be needed to underpin the competitiveness of manufacturing industries in the region.

He said a healthy SME sector was necessary for promoting equitable growth in the region while it progressed towards the establishment of the ASEAN Economic Community.

Hun Sen said the successful building of an ASEAN economic community by 2015 would transform the region into a global market with a resilient production base and a free flow of goods, services, investment, skilled labour and investment capital.

The premier also said Cambodia wanted to encourage ASEAN members and their development partners to continue their close co-operation in accelerating the process towards the establishment of AEC by 2015.

The two-day symposium was jointly organised by the Economic Research Institute for ASEAN and East Asia (ERIA), the Royal Government of Cambodia and Harvard University.

The symposium included panel discussions, from various officials from ministries and governmental agencies, diplomats and academics to discussions on issues towards “realising a more integrated, competititve, equitable and resilient ASEAN community.”

Jayant Menon, lead economist at the Asian Development Bank, focused on how to make ASEAN integration and growth inclusive.

According to Menon, Cambodia, Laos, Myanmar and Vietnam (CLMV) have enjoyed rapid growth, resulting in convergence and narrowing development gaps within ASEAN.

But at the same time, it had increased polarisation and affected inequality within the CLMV countries, Menon said yesterday.

“This is convergence across countries occurring at the expense of polarisation within countries,” he said.

Referring to data for Cambodia, Indonesia, Laos, Malaysia, the Philippines, Thailand and Vietnam, Menon said the income share held by the richest 20 per cent had become higher while the income share of the lowest 20 per cent in these countries had fallen.

To achieve convergence without polarisation required, for example, investment especially in education but also in health, according to Menon.

Vong Sokheng and Anne Renzenbrink

http://www.phnompenhpost.com/