Feb 25, 2013

ASEAN - Asean growth train picks up steam

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FULL SPEED AHEAD: KL, Singapore high-speed rail link is an example of a project that will bring Asean citizens closer

THE news that Malaysia and Singapore will embark on an ambitious project to build a high-speed rail link connecting Kuala Lumpur and Singapore in 90 minutes is a happy prospect for those of us who remain committed to Asean integration.

This comes at a time when inter-Asean and intra-Asean trade and investment are slowly but surely rising. Also, the communications infrastructure across the region -- in the form of road, sea and cheap airline travel services -- has brought millions of Southeast Asians closer, more than ever before.

Though the project will come into fruition only in several years, it is worth taking stock of what Asean has achieved and what it needs to bear in mind as it progresses.

For a start, with the growing ease of travel across countries, we have not only increased physical mobility but also increased upward social mobility. Services like the high-speed rail system between KL and Singapore will bring together professionals, technocrats and entrepreneurs more than ever, greatly contributing to the dynamism of both countries and expanding their critical mass and talent pools.
It will render geography increasingly redundant, to be replaced by temporal proximity instead as communities develop in tandem with each other.

It will also compel us to ask serious and deep questions about loyalties, identities, nationalities and nationalism at a time when globalisation is forcing us to rethink these categories, too.

Our children will grow up in an Asean region where the concept of home may be dispersed, diluted and fluid.

One hopes, they will garner the pluck to become truly global Asean citizens.

In a generation's time, we may well see the next generation of Malaysians being born and educated in Malaysia, but working and living in Singapore and other parts of Asean.

Asean may increasingly become the home of these globalised Malaysians, and I feel that that would be a brave new world that we should be anticipating from now.

However, there are two factors that may hinder this process and derail it from its appointed trajectory, if we are not careful:

For a start, it is crucial that in the process of developing this new communications infrastructure that connects and compacts Asean even more, all the partner-countries work and cooperate on an equal and mutually beneficial level.

While I for one welcome the high-speed rail link between Kuala Lumpur and Singapore, it is imperative that Malaysia gains as much from the deal as its partner will do.

Second, it is equally vital to remember that as we herald the coming of this great new age of social mobility, we do not forget that for millions of ordinary Southeast Asians, such opportunities may not avail themselves to them as much as they would like.
In this respect, I am referring to ordinary Malaysians who would also need to benefit from such projects, and for whom the benefits of such projects have to be made tangible and felt.

As Asean continues in its path towards integration -- the Asean Community is coming closer, by 2015 -- we should avoid the trap of creating two Asean that do not communicate with one another: a rich, upwardly mobile, savvy and connected Asean of professionals, entrepreneurs and technocrats; and a poor Asean made up of those who have been marginalised by capital-driven progress and development.

What Asean has to avoid at all costs is the prospect of creating a region where we have pockets of hyper-development and wealth, surrounded in a vast ocean of poor, illiterate, disenfranchised and immobile citizens.

For wealth and hyper-development never rests comfortably next to ignorance, poverty and helplessness, and the capitals of Southeast Asia should not end up like gated communities fearful of the restless countryside.

What needs to be avoided in the Asean region is the creation, by default, of scores of poor and unconnected people who feel that they have lost out in the globalisation race, for these will be the ones who will be most likely to support the sectarian campaigns of hyper-nationalists who insist instead on the closure of borders, the nationalisation of resources and who regard all foreign capital as predatory and dangerous.

Signs of such stirrings are found among the poorer sections of Indonesian society, and this is not surprising when we consider that 60 per cent of Indonesia's monetary wealth resides among the rich elite in Jakarta.

It is for these reasons that I am elated by the announcement of the new speed-rail between the two countries, but am also mindful of the need for all the governments of Asean to develop their societies together, and comprehensively. Should both objectives be met successfully, the future of an inter-connected Asean seems brighter than ever before, and crucially it will also mean that we, Asean citizens, would have overcome the colonial legacy of divide and rule that once tore our region apart and rendered us strangers to ourselves.

Farish A. Noor



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Philippines - Legal issues worry investors in PHL, rest of Asean

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AN unpredictable legal environment in Southeast Asia is the top concern of investors, according to an Economist Corporate Network survey, highlighting the challenge the region faces as it seeks to integrate by 2015 in an effort to boost growth and attract more investments.

Governments change their minds about important legislation with little warning, according to a report based on a survey of 147 companies, including Unilever and General Electric Co., released on Friday. “Even when laws remain unchanged, court decisions and interpretations of the laws can be highly arbitrary,” the report said.

While China remains the manufacturing capital of the world, companies including Nissan Motor Co. and Google Inc. are expanding in Southeast Asia, lured by the prospect of a $2.2-trillion market. Nations including the Philippines are stepping up efforts to regain investor confidence after regulatory reversals and contract disputes in the past prompted Frankfurt, Germany-based Fraport AG to leave the country.

“The region’s diversity and uncertain legal environment remain major challenges for many multinationals,” said Clive Cook, a senior consultant at law firm Baker & McKenzie Llp. that commissioned the report. Companies are looking for legal advisers with expertise across different Association of Southeast Asian Nations (Asean) markets, he added in a statement.

Economic expansions in the Philippines, Indonesia, Thailand and Malaysia exceeded 6 percent last quarter, compared with 1.5 percent for South Korea and 3.4 percent for Taiwan. Foreign direct investments to the 10-member Asean rose to $116.54 billion in 2011, nearly equal to China’s $123.99 billion, according to the United Nations Conference on Trade and Development.

“Huge swathes of Asean’s population stand on the threshold of middle-class status,” the Economist Corporate Network said in its report, forecasting the number of households with an annual income of at least $5,000 to more than double to 85 million by 2017 from 40 million in 2010.

Unilever, the world’s third-largest consumer-goods maker by market value, is extremely bullish in the region, according to the report.

“The populations are young and growing,” Peter Ter Kulve, chief executive officer of Unilever in the Asean, said in the report. “Incomes are rising rapidly. The cities are doing very well, but the rural story is just as strong. Given increasing demand for food globally, agricultural wages on the plantations across the region are rising.”

Southeast Asian nations already enjoy a demographic dividend, with the Philippine labor force expanding by almost 18 million, or 31 percent, to 75 million by 2020 compared with 2010, Bank of America Merrill Lynch projected in April. Malaysia will grow by 19 percent, to 22 million. Indonesia will see a gain of more than 18 million, to 180 million.

Still, resistance by domestic companies to open up markets remains strong with Myanmar and Indonesia identified as the two most protected markets, according to the survey.

“Another issue that companies have to contend with is protectionism,” the report said. “Despite ongoing efforts at integration and opening up of Asean’s internal market, resistance remains strong from local players in many markets.”

Indonesia will limit restaurant franchise holders to 250 outlets, with some exceptions, to protect small- and medium-size businesses, Trade Minister Gita Wirjawan said last week.

The regulation affects companies such as PT Fastfood Indonesia, which operates more than 400 Yum! Brands Inc. KFC restaurants. Yum also owns the Pizza Hut dining chain. The rule applies to all food-mart franchisers and franchisees, including public companies, Wirjawan said.

Bloomberg News


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ASEAN - ASEAN Market Preview

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Singapore represents the best overall value in ASEAN this week.

Global markets will be closely watching the Fiscal Cliff issues in the USA and we will see a very choppy week with the downside risk far too great to be buying anything other than value stocks.

There is a correction coming without any doubt.

The outlook for Singapore’s economy is “cautiously positive”, the government said on Friday, reiterating its growth forecast of 1-3 percent for this year after fourth quarter and 2012 gross domestic product data came in slightly better than expected.

Singapore’s trade-dependent economy grew 1.3 percent in 2012, a touch above the advance estimate of 1.2 percent, the Ministry of Trade and Industry said in a statement. In 2011, the economy grew 5.2 percent.

“The global macroeconomic conditions have stabilized in recent months against the backdrop of improved financial market conditions. Nevertheless, global economic growth is likely to remain subdued,” the ministry said in a statement. “Against this macroeconomic backdrop, the outlook for the Singapore economy remains cautiously positive.”

Ow Foong Pheng, permanent secretary at the ministry, underscored that the outlook was based on no drastic deterioration in the global economy. “Our assessment for Singapore’s growth outlook in 2013 is based on modest fiscal cutbacks in the U.S. and no outright crisis in the eurozone,” he told a news conference.

USA

Talks on the U.S. budget crisis began again this week leading up to the March 1 deadline for the so-called sequestration when $85 billion in automatic federal spending cuts are scheduled to take effect.

“It’s at this point a political hot button in Washington but a very low level investor concern,” said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon. The fight pits President Barack Obama and fellow Democrats against congressional Republicans.

Stocks rallied in early January after a compromise temporarily avoided the fiscal cliff, and the Standard & Poor’s 500 index .SPX has risen 6.3 percent since the start of the year.

But the benchmark index lost steam this week, posting its first week of losses since the start of the year. Minutes on Wednesday from the last Federal Reserve meeting, which suggested the central bank may slow or stop its stimulus policy sooner than expected, provided the catalyst.

National elections in Italy on Sunday and Monday could also add to investor concern. Most investors expect a government headed by Pier Luigi Bersani to win and continue with reforms to tackle Italy’s debt problems. However, a resurgence by former leader Silvio Berlusconi has raised doubts.

China

Economic growth is expected to pick up 0.43 percentage points from last year to reach 8.23 percent in 2013, according to a report released Saturday.

Export growth will accelerate to 12.22 percent this year, up from 7.9 percent in 2012. Import growth will hit 17.83 percent, in comparison to 4.3 percent last year, said a report compiled by Xiamen University and the Economic Information Daily, a subsidiary of the Xinhua News Agency.

Although global monetary easing has to some extent piled up inflationary pressure for China, the economy will not see serious price hikes this year, the report said.

It projected the rate of inflation at 3.11 percent for 2013, up from 2.6 percent last year.

The report suggested restructuring income distribution as a fundamental government measure to correct the imbalance of the country’s economic structure, which is featured by declining ratios of final consumption, especially residential consumption, in gross domestic product.

The report, the 14th of its kind so far, employs a macroeconomic model to calculate and demonstrate economic trends in the country.

Japan

Japanese Prime Minister Shinzo Abe stressed that his “Abenomics” recipe would be good for the United States, China and other trading partners.

“Soon, Japan will export more, but it will import more as well,” Abe said in the speech. “The U.S. will be the first to benefit, followed by China, India, Indonesia and so on.”
Abe said Obama welcomed his economic policy, while Deputy Chief Cabinet Secretary Katsunobu Kato said the two leaders did not discuss currencies, in a sign that the U.S. does not oppose “Abenomics” despite concern that Japan is weakening its currency to export its way out of recession.

The United States and Japan agreed language during Abe’s visit that could set the stage for Tokyo to join negotiations soon on a U.S.-led regional free trade agreement known as the Trans-Pacific Partnership.

In a carefully worded statement following the meeting between Obama and Abe, the two countries reaffirmed that “all goods would be subject to negotiations if Japan joins the talks with the United States and 10 other countries.

At the same time, the statement envisions a possible outcome where the United States could maintain tariffs on Japanese automobiles and Japan could still protect its rice sector.

“Recognizing that both countries have bilateral trade sensitivities, such as certain agricultural products for Japan and certain manufactured products for the United States, the two governments confirm that, as the final outcome will be determined during the negotiations, it is not required to make a prior commitment to unilaterally eliminate all tariffs upon joining the TPP negotiations,” the statement said.

Abe repeated that Japan would not provide any aid for North Korea unless it abandoned its nuclear and missile programs and released Japanese citizens abducted decades ago to help train spies.
Pyongyang admitted in 2002 that its agents had kidnapped 13 Japanese in the 1970s and 1980s. Five have been sent home, but Japan wants better information about eight who Pyongyang says are dead and others Tokyo believes were also kidnapped.

Abe also said he hoped to have a meeting with new Chinese leader Xi Jinping, who takes over as president next month, and would dispatch Finance Minister Taro Aso to attend the inauguration of incoming South Korean President Park Geun-hye next week.




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Indonesia - Indonesia’s ELT and the ASEAN Economic Community

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A single regional common market of ASEAN countries will be created when the ASEAN Economic Community (AEC) comes into force in less than three years. Under the AEC, there will be a free transfer of professionals in eight fields, namely, tourism, medicine, dentistry, engineering, architecture, surveying and accounting.

It cannot be predicted how much this will affect people’s lives. Still, it is crucial to prepare our students and future generations since they will have to compete with people from neighboring ASEAN countries for careers.

A recent conference at the National University of Singapore was a perfect venue to discuss the matter. Themed “Culture in Foreign Language Learning: Framing and Reframing the Issue”, the event provided teachers from ASEAN countries with a chance to find university partners to conduct teaching and research collaboration as part of their preparations for the AEC.

Indeed, during the three-day conference, discourses on culture and foreign-language teaching and discussions on the importance of understanding ASEAN cultures and languages as well as English for employment for national competitiveness spilled over into lunch and dinner times.

Should developing students’ competence in the cultures and languages of ASEAN countries and English be considered important leading up to AEC, the question is what the students have done so far.

A new friend who is an English lecturer from a very reputable university in Thailand told me that her university had just opened its first PhD program in English language teaching (ELT). She said globalization and the fast approaching AEC would surely demand a tremendous explosion of English-related work around ASEAN specifically and the world generally. There is an increasing need for proficient English teachers and users and it has made the study of English as an international language more important than ever. What is its relevance for Indonesia then?

Opening more PhD programs in ELT in Indonesia and learning ASEAN languages looks pressing for Indonesia, but there is a more attainable goal to pursue that has something to do with our ELT curriculum and the way we teach culture.

Andy Kirkpatrick, a chair professor of English as an international language at the Hong Kong Institute of Education stated that the ELT curriculum in Indonesia (and other parts of Asia) needs to include information about the cultures and people of ASEAN and the Asian region instead of informing students about the cultures of English native speakers, and ask students to be ready to discuss their own cultures and issues they deem important in English. Kirkpatrick also highlighted the need to build learners’ intercultural competence through learning English.

Developing our students’ intercultural competence requires us to change the types of culture that we teach and the way we teach culture. We tend to think that when we learn English, we must only learn about foreign cultures, especially American and British culture. However, it should not be the case anymore. We also have to teach about the cultures of ASEAN countries.

When we teach culture to our English students, we should refrain from overloading the students with cultural facts about American and British culture, which usually happens in many English-language classrooms here. Such a method will only lead to the stereotyping of people from other countries. Instead, teachers need to actively guide learners to reflect on cultural differences and similarities in order not to be judgmental.

By doing so, teachers can help learners escape from “bad” and “good” cultures but lead the students to realize what seems to be “right” in their culture might be “wrong” in other cultures and vice versa. In other words, by changing the way we teach culture in our classes, we teachers can cultivate the notion of tolerance, which many, including President Susilo Bambang Yudhoyono, believe to be one of the fruits of education.

The AEC is unquestionably a work in progress which will bring challenges and opportunities. Our task is to be prepared for that. Some efforts toward the AEC can take shape in big projects such as joint research with universities from other ASEAN countries or to open more PhD programs and classes on ASEAN languages.

Yet, some tasks can be simpler and produce quicker results, such as adding a new component to our curriculum which is to learn the cultures of ASEAN countries and change the way we teach culture. This does not require much of a budget but a strong will to work hard and learn more about how to develop students’ intercultural competence. 

Should we decline to prepare ourselves now, we will have no one to blame but ourselves for being left behind when the AEC comes.

Lidya Siregar

The writer lectures at the faculty of english letters, Maranatha University in Bandung.



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ASEAN - Asean facing crisis of core leadership, university forum told

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Asean needs to form a core decision-making mechanism as the regional organisation faces various regional challenges, a Thammasat University forum was told yesterday.

Zhang Xizhen, a lecturer visiting Pridi Banomyong International College of Thammasat University, said Asean's unity had become weaker and the bloc was now significantly divided because of a lack of core leadership.

Mr Zhang said other international organisations have core decision makers such as the United Nations with five permanent members while the European Union had Germany and France.

Asean in the past decades had a number of decisive national leaders such as Lee Kuan Yew of Singapore, former Indonesian president Suharto and Mahathir Mohamad of Malaysia. Mr Zhang said Asean had been able to resolve contentious issues as a result.

Now that Asean has been enlarged and connects with several major powers such as those in East Asia, without core leadership the grouping was therefore facing difficulties in steering its direction, Mr Zhang said.

He said that, unlike in the past, Asean has faced difficulty in reaching a consensus in dealing with the South China Sea issue, as some members in maritime disputes with China wanted to address the matter strongly but others did not.

He said the return of the US to addressing regional affairs could make it difficult for Asean to find a balance between its relationship with competing superpowers.

He suggested that Indonesia and Singapore should take up roles as the core leaders of Asean.

The problem of Thailand in playing a leading role was the country did not have strong leadership, political stability or a robust economy, he said.

Ralf Emmers, an academic from S Rajaratnam School of International Studies, Nanyang Technology University, Singapore, said the South China Sea problem undermined two core principles of Asean - neutrality and solidarity.

Prapat Thepchatree, director of Thammasat University's Centre of Asean Studies, said Asean, with an estimated economic size of US$8 trillion in 2030, was confronting multi-pronged challenges ranging from improvements in democracy, human rights issues and political progress in Myanmar, to border disputes.

Mr Prapat said the Asean Intergovernmental Commission on Human Rights (AICHR) remained a limited tool for addressing the rights issue.

Asean defence and military cooperation, which is still in its infancy, also needs to integrate more with other global players, Mr Prapat said.

Suthiphand Chirathivat, executive director of Chulalongkorn University's Asean Studies Center, suggested that development of small- and medium-enterprises (SMEs) was the way forward for Asean in the lead-up to the Asian Economic Community (AEC).

But there would be several obstacles within Asean, particularly Thailand, as governments in the bloc lacked coherent strategic policy support for AEC implementation, Mr Suthiphand said.




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ASEAN - ASEAN, Netherlands to improve cooperation

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JAKARTA, Feb. 22 (Xinhua) -- ASEAN Secretary General Le Luong Minh and visiting Foreign Affairs Minister of The Netherlands Frans Timmermans exchanged views on possible aspects to further strengthen cooperation between ASEAN and the Netherlands as well as ASEAN with the European Union (EU), a statement of ASEAN Secretariat said here Friday.

During the meeting held at the ASEAN Secretariat on Thursday, the two leaders discussed a variety of issues including developments in ASEAN, especially Myanmar, the needs of ASEAN and future developments of ASEAN-the Netherlands relations.

Timmermans took the opportunity to congratulate Minh for assuming the role as the new ASEAN secretary-general for the period of 2013-2017.

He underlined the government of the Netherlands'strong commitment to further intensifying its cooperation with ASEAN in education, human rights, investment and science and technology sectors.

In response, Minh warmly welcomed Timmermans and his delegation to the ASEAN Secretariat and thanked the Netherlands for its assistance to the efforts in capacity building of the ASEAN Secretariat.

Minh said that ASEAN Secretariat looks forward to enhancing the relationship between ASEAN and the Netherland in addition to ASEAN and EU.

Source: XINHUA


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Vietnam - Vietnam to host 19th ASEAN Economic Ministers Retreat

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HANOI, Feb. 22 (Xinhua) -- The 19th ASEAN Economic Ministers ( AEM) Retreat and related meetings will be held on March 6-9 in Vietnam's capital Hanoi, according to an announcement by the Ministry of Foreign Affairs on Friday.

At the AEM Retreat, economic ministers from 10 ASEAN member countries will work together to map out directions for 2013 in order to boost regional economic integration towards building the ASEAN Community by 2015.

The 19th AEM Retreat will be held at the same time with the 3rd ASEAN-EU Business Summit (AEBS) with the participation of high- ranking leaders of Vietnam, Vietnamese Minister of Industry and Trade, Minister of Brunei, EU Trade Commissioner and ASEAN Secretary General.

During the AEBS, a protocol on amendment of a number of ASEAN economic agreements on trade will be signed.

In addition, the 3rd AEBS will also discuss the establishment of a public-private dialogue forum and issues related to business activities as well as the regulations and the potential for cooperation between the two economic regions.

Source: XINHUA 


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Laos - Pressure Mounts on Laos Over Missing Activist

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Laos is facing mounting international pressure over the disappearance of civil rights worker Sombath Somphone last December.

Some have called for the Association of South East Asian Nations (ASEAN) to intervene, with high level diplomatic efforts underway by the United States and Australia.

Australian Foreign Minister Bob Carr raised the issue with his Laotian counterpart and Laos Prime Minister Thongsing Thammavong during a visit this week, telling them that Sombath had many friends in Australia who admire his work who were very worried about his disappearance.

Carr chose his words carefully, saying he did not want to stress Sombath’s wife, Singaporean Ng Shui Meng, who has campaigned for her husband’s release. He said he had gained assurances from the Laos leader that the relevant departments would continue to pursue the issue and added that Australia would also continue to take an active interest in the case.

Carr was speaking to reporters in Bangkok after his visit, following an appeal by Daniel Baer, Deputy Assistant Secretary of State for Democracy, Human Rights and Labor, to Laos for more information on the missing 62-year-old, who campaigned tirelessly for sustainable development.

Laos maintains that Sombath may have been the victim of a personal dispute and say they have no knowledge of his whereabouts. Observers remain skeptical, given that he was last seen in police custody. Further, there is CCTV footage that shows him being taken from a police post by two unknown people after he was pulled over while driving home from work.

“It’s been incredibly frustrating to not have more visibility into the progress of the investigation,” Baer told Agence France-Presse by telephone after talks with the Lao vice foreign minister. “I was assured that they are investigating — that’s what the vice minister told me — but I made sure that he understood that not having more information is not helpful.”

New York-based Human Rights Watch has also urged ASEAN to intervene, which is unlikely given ASEAN members’ insistence that they do not interfere in the internal affairs of neighboring countries.

“The Lao government’s long silence about Sombath Somphone’s whereabouts increase our concerns for his safety,” said Brad Adams, Asia director of Human Rights Watch.

“The authorities seem more focused on deflecting international criticism than genuinely investigating Sombath’s disappearance,” Adams added in a letter to the ASEAN human rights commission.

Adams is right. Laos is on a borrowing binge, with billions of dollars being invested in the country by Chinese, Thai and Malaysian investors for the construction of roads, dams and power stations. The government hopes these infrastructure projects will lift the dirt poor communist country out of poverty.

However, the poor human rights record, fanatical grip on freedom of the press and entrenched corruption of the one-party state are images the country has long struggled to dispel. The disappearance of Sombath only adds to the negative perceptions.

Sombath’s disappearance came barely a month after ASEAN signed off on its human rights declaration, after years of debate. While ASEAN leaders described the declaration as a landmark moment, critics said it was insufficient and actually gives countries the right to ignore human rights rather than protecting them. The ongoing situation in Laos unfortunately seems to support this view.

Luke Hunt



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Philippines - Philippines pleasant to see Timor-Leste as new ASEAN member: official

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MANILA, Feb. 22 (Xinhua) -- The Philippine government is looking forward to welcoming Timor-Leste as the 11th member of the Association of Southeast Asian Nations (ASEAN), a senior government official said Friday.

Philippine Foreign Affairs Secretary Albert del Rosario said that during his bilateral meeting with visiting Timor-Leste Minister of Foreign Affairs and Cooperation Jose Luis Guterres, the latter highlighted his country's campaign for ASEAN membership.

"The Philippines looks forward to welcoming Timor-Leste into the ASEAN family," Del Rosario said in a statement.

During the bilateral talks, the two foreign ministers also discussed ways on further enhancing cooperation, particularly in the areas of education, defense, technical cooperation, and possible opportunities for trade and investment, the Department of Foreign Affairs (DFA) said.

Guterres also paid a courtesy call on President Benigno S. Aquino III in Malacanang, the presidential palace, where they discussed South-South cooperation between the two countries, the department said.

Aquino, through the visiting official, also extended his invitation to Prime Minister Kay Rala Xanana Gusmao to visit the Philippines at a mutually convenient date.

ASEAN, which was formed on Aug. 8, 1967, is currently composed of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

Source: XINHUA


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Asia - Food and Energy Security Vital to Asia: Diplomat

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New Delhi. As the economic relationship between the Association of Southeast Asia Nations and India grows, it is imperative that both sides address the issues of food and energy security, a senior Indonesian diplomat has said in Indian capital.

I Gusti Agung Wesaka Putra, the director general of Asean cooperation at the Indonesian Ministry of Foreign Affairs, said that as Asean-India relations reach a strategic level, the challenges of food and energy security should be high on the agenda, in addition to enhancing economic collaboration.

“On the question of food and energy security, Indonesia continues its calls for closer and concrete collaboration between Asean and India,” I Gusti said during the Delhi Dialogue V on Tuesday.

The Delhi Dialogue is an annual conference hosted by the Indian government that focuses on deepening the relationship between Asean and India.

The diplomat reminded leaders from both Asean and India that achieving food and energy security would be one of the most important and difficult challenges of the global community.

“As the global demand for food and energy continues to rise, our region, as one of the most populous in the world, will have to address these imminent challenges with immediate action,” I Gusti said.

“We deemed it necessary for Asean-India to identify and implement tangible projects on food and energy security.”

India is self-sustaining in rice, while Indonesia must import a large amount of grains to meet domestic demand. But India struggles to alleviate hunger, as poor distribution, among other problems, left 18 percent of the population, some 217 million people, undernourished from 2010 to 2012, according to the United Nations Food and Agriculture Organization. The FAO reported that 9 percent of Indonesians — 21 million people — were undernourished during the same period.

On the topic of energy security, India is one of the few countries that harnesses nuclear energy for electricity, a feat some in Indonesia hope to accomplish.

I Gusti asked India to share its expertise on digital connectivity with Asean countries, so that economic collaboration between them can be accelerated. He added that cooperation between Asean and India should be enhanced before the Asean Economic Community begins in 2015.

Salman Khurshid, the Indian cabinet minister of external affairs, said that his country is willing to cooperate with Asean in solving problems in the region.

“Asean and India are and will remain natural partners in defining their perspectives and addressing their common requirements of economic growth and prosperity,” Khurshid said.

Connectivity with Asean — geographical, institutional and people-to-people — is a strategic priority for India, he said.

“India and Asean member countries share a vision of a peaceful, prosperous and resurgent Asia, which contributes to global peace and security,” Khurshid added.

Trade between Asean and India stood at $79.9 billion last year, up 37 percent on a year earlier. The total exceeded the $70 billion target set by leaders from both India and Asean countries. Asean and Indian leaders declared their countries’ commitment to achieve $100 billion in trade by 2015.

Tito Summa Siahaan



Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Health care and Life Science with expertise in ASEAN 's area. We are currently changing the platform of www.yourvietnamexpert.com, if any request, please, contact directly Dr Christian SIODMAK, business strategist, owner and CEO of SBC at christian.siodmak@gmail.com. Many thanks.

Philippines - Century’s medical bldg zeroes in on tourists

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Century Properties Group, Inc. said it is on schedule to complete its 28-storey outpatient medical building in Kalayaan Ave., Makati.

Some 84 percent of its clinic spaces have been pre-sold.

The building will cater to foreign medical tourists as outpatients who will be offered services at an average of 40 percent discount from their home countries.

The building,  Centuria Medical Makati is now on its seventh floor of construction at Century City in Kalayaan Avenue.

Jose E.B. Antonio, Century Properties chairman said that Centuria will be completed next year, housing 553 clinics for doctor specialists.

“And if there is a need to run tests or conduct minor medical procedures for patients, Centuria will offer the use of its  facilities within the building: the day surgery center, radiology center, diagnostic laboratory, digital imaging, pharmacy, recovery suites, and an ambulance transfer service,” said Antonio.

Century Propertied said that foreign patients who wish to extend their stay in the Philippines can also be accommodated by Centuria who will have a travel desk and concierge services for flight arrangements and hotel bookings. 

Century has previously developed three medical buildings in Makati, Ortigas and Alabang.

 “Tourism is considered one of the pillars of our country’s economic growth. With the added push from the tourism and health departments of our government, Century Properties is very optimistic about the prospects of medical tourism in the Philippines. We know for a fact that similar outpatient medical facilities abroad are extremely doing well and we will bring the best practice to Centuria,” he added.

In 2010, the Philippines posted $25.3-million in revenues for the health and wellness industry, 60 percent of which came from foreign visitors. Medical procedures in the Philippines can be 40-80 percent cheaper compared to US hospitals.

To ensure that the building specifications and design are in line with international standards for an outpatient healthcare facility, Century entered into a technical partnership with GE Healthcare in 2010.

To date, 84 percent of Centuria’s clinic spaces have been pre-sold. Clinic sizes range from 27 square meters to 187 square meters, with a current average price of Php 160,000 per square meter.

Antonio said Centuria is a rare offering of premium clinic spaces situated within the vertical mixed-use development called Century City, and a larger catchment area of residential villages, corporate offices and Makati’s three-million daytime population.

Century Properties is a full-service real estate firm with 26 years in real estate development, marketing and property management. Its medical arts developments include Medical Plaza Makati, Medical Plaza Ortigas and the medical arts facility of the Asian Hospital in Alabang.

Century Properties is also building the Century City Mall in Kalayaan Avenue, Makati. Its premium residential developments include the Azure Urban Resort Residences in Paranaque City, with a beach club designed by Paris Hilton; the Knightsbridge Residences at Century City, Trump Tower at Century City, the Milano Residences interior design by Versace Home, Acqua Livingstone interior design by MissoniHome; Acqua Iguazu yoo inspired by Starck; and the Residences at Commonwealth by Century.

ALBERT CASTRO



Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Health care and Life Science with expertise in ASEAN 's area. We are currently changing the platform of www.yourvietnamexpert.com, if any request, please, contact directly Dr Christian SIODMAK, business strategist, owner and CEO of SBC at christian.siodmak@gmail.com. Many thanks.

Malaysia - KL-Singapore high-speed rail link could inspire ASEAN neighbours, says ST

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KUALA LUMPUR, Feb 22 — The planned KL-Singapore high-speed rail link could become a model to spur greater connectivity among all ASEAN neighbours should the multibillion ringgit project achieve its 2020 deadline without major hiccups, politically-motivated or otherwise, Singapore’s The Straits Times (ST) said today.

In an editorial, the English daily noted concerns that the project may face momentary delays due to political interferences, but reminded that the endeavour could only improve bilateral ties and generate greater potential for citizens in both nations.

“If the project is managed well, the spin-off benefits of a completed rail link would be felt in many areas besides trade, investment, services, tourism and leisure,” the paper wrote.

“Indeed, a smooth journey in meeting the completion deadline of 2020 might help establish this project as a prototype for greater connectivity in ASEAN as a whole.”

Mass usage of the rail link, the paper added, could well be a “game-changer” for both Malaysia and Singapore, on top of improved government-to-government co-operation.

With an estimated 90-minute time travel between the two countries, a significant difference from the present eight-hour average by train or five hours by bus, the two regional neighbours could emerge as a “single urban eco-system” with commuters riding the rail daily for work or leisure.

“It’s the way people in London and Paris are able to think of it, really as twin cities where you can commute, go up there, do business, meet friends, have a meal and come back all within maybe two- thirds of the day,” Singapore’s Prime Minister Lee Hsien Loong was reported as saying when the rail link was announced on Wednesday.

“And I think it is going to be a game changer. It will transform the way people interact, the intensity of our co-operation and the degree to which we become interdependent on each other and therefore have stakes on each other’s success,” he added.

ST said, however, that the momentum must be sustained by sticking to the timetable, formulating a reasonable budget and establishing a sound business model for the mega-project.

“... the journey towards full realisation of the project might be tested by differences and obstacles,” the paper pointed out.

“There is already some concern that nativist political voices in Malaysia could try to hold the project hostage to their political agenda,” it warned.

Malaysia and Singapore agreed on Wednesday to build a high-speed rail link to connect Kuala Lumpur with the neighbouring city state and set 2020 as the estimated deadline for completion, bolstering already improved economic ties between the two nations.

When announcing the link with his Singaporean counterpart Lee, Prime Minister Datuk Seri Najib Razak had reportedly revealed that the project would be built via public-private partnership “with strong government participation”.

Malaysia, he added, will provide the infrastructure support for the rail link.

“We will certainly do our level best to meet the 2020 deadline. It may go slightly beyond that, but those are details in implementation,” Najib was reported as saying at the announcement in Singapore.

ST said the nature of this public-private partnership, as well as how the project could attract potential investments, and issues of safety, reliability and ecological soundness must be outlined properly to ensure a smooth journey towards meeting the 2020 deadline.

Since Najib took office in 2009, the first-term prime minister has been actively collaborating with Lee’s Singapore administration to iron out protracted disputes between both nations in hopes of shelving bitter rivalries and bolster economic co-operation.

ST noted that the high-speed rail link adds another feather to this cap, providing yet another basis for further win-win initiatives.

CLARA CHOOI



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Saigon Business Corporation Pte Ltd (SBC) is incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Health care and Life Science with expertise in ASEAN 's area. We are currently changing the platform of www.yourvietnamexpert.com, if any request, please, contact directly Dr Christian SIODMAK, business strategist, owner and CEO of SBC at christian.siodmak@gmail.com. Many thanks.

Asia - Obama 2.0 Confronts Asia

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President Obama was broadly successful in the Asia-Pacific during his first term. He’ll have to work harder the second time around.

President Barack Obama begins his second term with a new national security team in the making. Although at this time only John Kerry has been confirmed, its seem likely that most, if not all of his key nominees (former Senator Chuck Hagel, John Brennan and Jack Lew) will secure Senate confirmation in the coming weeks.

Obama has clearly resolved to make Asia his priority region on the foreign-policy front. He has spent more time in East Asia than in any other foreign region. Most Asian leaders have welcomed Obama’s reelection, though the political transitions in China, Japan and South Korea increase uncertainties over how long such views will prevail.

During its first term, the Obama administration managed to make progress in resolving some important issues and exploiting valuable opportunities regarding both traditional U.S. allies (such as Japan and South Korea) and emerging partners (ASEAN). In other cases, as with Russia and India, the results have been mixed. But during the next four years the administration faces major challenges in Afghanistan, Iran, North Korea, and above all China—for which no easy solutions are available.

The Pentagon has been able to expand defense cooperation with Southeast Asia, especially Singapore (preparations are currently underway for the basing of U.S. Navy Littoral Combat Ships at Changi Pier), Indonesia (new arms sales and joint training and education opportunities), and Vietnam (expanding engagement to encompass port visits, joint exercises, and defense dialogues).

Another core element of the Asia Pivot is bolstering local militaries’ capacities to deal with lower-level threats. For example, the Obama administration wants to enhance the air and naval capabilities of friendly maritime states so that they can help protect international waterways from pirates and other threats to freedom of the seas, allowing the U.S. Navy to focus on higher-end threats. To further this goal, the United States is selling 24 F-16C/Ds to Indonesia and coastal ships to the Philippines. Similarly, the United States is helping countries build stronger ground forces to suppress local terrorists and insurgents. Border security programs also extend to encompass the potential movement of nuclear and other dangerous materials to global markets. All these capabilities promote the security of the international air and maritime commons, which serve as the foundation of the global economy.

The Obama administration launched a sustained and largely successful diplomatic campaign to reenergize U.S. relations with ASEAN leaders, who complained that they were being neglected under the previous administration. Obama’s decision to accede to ASEAN’s Treaty of Amity and Cooperation was received very positively by ASEAN leaders, who also benefited from regular meetings with their U.S. counterparts. They also welcomed the administration’s successful outreach effort regarding Myanmar.    

Economic ties between ASEAN and the United States made major progress when, in November 2012, Obama hosted talks on the Trans-Pacific Partnership (TPP) initiative at meetings of the East Asia Summit and ASEAN in Cambodia. They set October 2013 as the date when they would like to reach an agreement creating a comprehensive regional trade agreement.

Given the complex technical, economic, and divisive political issues this endeavor would entail, the October 2013 timetable for signing a TPP agreement appears overly optimistic. But the rival Beijing-backed projects must also overcome major differences among their proposed members in terms of their resources, competitive advantages, and stages of development. A more serious problem is that, though the TPP initiative has come to symbolize renewed U.S. economic leadership in East Asia, its economic impact will remain modest unless Canada, Japan, Mexico, South Korea and other strong economies besides the United States join it.

Furthermore, ASEAN remains a relatively weak institution. Unless a strong country occupies the annually rotating chairmanship, the association will not be able to accomplish much. This problem was particularly evident last year under the Cambodian chairmanship, which was marked by ineffectual leadership and Beijing-tilting policies that prevented the association from adopting a strong stand on maritime sovereignty issues. For now, if the United States wants to promote any major initiatives in the region, it must do so primarily through its bilateral alliances and partnerships, or through less formal multilateral coalitions of the willing, rather than through ASEAN.

Fortunately, after years of strain, relations with formal U.S. military allies in the Pacific have improved during the Obama administration’s first term. President Obama and Prime Minister Julia Gillard renewed the U.S.-Australian alliance in November 2011, when they announced an agreement to place 250 U.S. Marines in Darwin, marking the first stage of a rotation plan that will see as many as 2,500 U.S. Marines rotate through northern Australia as well as other augmentations to the U.S. military presence in Australia.

By the end of the first Obama administration, the bilateral security relationship with Japan had rebounded from earlier tensions over local opposition to the Futenma Marine Air Station in Okinawa, and the new Japanese government’s desire to pursue a more balanced policy between Washington and Beijing. The United States has also stood in solid opposition to North Korea’s missile launches and China’s maritime assertiveness.

The Obama administration’s strong support for the Republic of Korea (ROK) in the face of the 2010 provocations of the Democratic People's Republic of Korea (DPRK)–the sinking of the South Korean warship Cheonan and its shelling of Yeonpyeong Island—made the United States popular in South Korea, particularly compared to China, which refused to condemn Pyongyang for its actions. Meanwhile, outgoing ROK President Lee Myung-bak has stood behind the U.S. demand that the DPRK end its nuclear weapons and ballistic missile development programs.

The Philippines has welcomed the Obama administration’s strong interest in Southeast Asia and ASEAN, of which the Philippines is a leading member. The administration has strengthened the U.S.-Philippine security alliance by enhancing security and stability in the South China Sea (West Philippine Sea), modernizing the Armed Forces of the Philippines, supporting the peace process in Muslim areas of Mindanao, and promoting broad-based economic growth and democratic development in the Philippines.

Finally, on November 15, 2012, U.S. Defense Secretary Panetta signed a joint vision statement with Thailand’s Defense Minister, renewing the Thai-U.S. military alliance. Panetta emphasized the U.S. willingness to help develop and modernize Thailand’s military. 

Although these are welcome developments in U.S. bilateral relations with ASEAN nations, a persistent concern remains that a major event will impart a systematic shock to America’s partnerships with these regional players, driving these relations downward toward their historical mean. With relations so good, on average they will tend to worsen without continued efforts to keep ties strong.

A war in Korea might inflict such a blow. North Korea has now detonated three nuclear explosive devices already and is striving to make small nuclear warheads that can be launched on the DPRK’s improving ballistic missiles. Although the DPRK presently lacks missiles capable of reaching North America, it already possesses many missiles that can attack targets in Japan, including the U.S. forces based there. Thanks to its continued testing of long-range rockets, experts calculate that the DPRK could have an intercontinental ballistic with sufficient range to hit targets in North America within five years or less.

The Obama administration achieved remarkable success in securing international sanctions against North Korea for its proliferation activities, but recent UN reports indicate that the sanctions are not being applied effectively, with some Chinese nongovernmental entities working to circumvent them. Most importantly, the United States has made no progress in eliminating North Korea’s nuclear arsenal or engaging with the DPRK.

The Obama administration has been willing to negotiate nuclear and other issues directly with the DPRK, within the Six-Party framework, but since Pyongyang has continued its intransigence, most recently by launching a long-range missile in December and now threatening a third nuclear weapons test, the United States and its allies have shunned the DPRK diplomatically and punished it with additional unilateral and multilateral sanctions.

Under its policy of “strategic patience,” the Obama administration has demanded that the DPRK give some concrete indication that it will make major nuclear concessions. But this policy of patiently waiting for verifiable changes in DPRK policies entails several risks. First, it provides North Koreans with additional breathing room to refine their nuclear and missile programs. Second, the DPRK might launch even more ballistic missiles or detonate additional nuclear devices to confirm and support this development process, or may do so simply out of frustration over being ignored. Finally, the strategy of waiting for the DPRK to introduce major reforms risks allowing a minor incident to escalate if the ROK’s implements its post-2010 proactive deterrence policy of retaliating swiftly and vigorously to any DPRK provocation.

Whether Park Geun-Hye, the new ROK president, will remain as firmly supportive of U.S. nonproliferation goals as President Lee remains uncertain given her desire to distance herself from her predecessor as well as initiate an outreach effort toward Pyongyang’s new leadership, which has shown a willingness to experiment with new domestic if not foreign policies.

Iran looks to remain another enduring nonproliferation problem for the new Obama administration. The United States and its allies have found themselves in a challenging position regarding Iran’s nuclear program. Economic sanctions have thus far failed to induce Tehran to renounce plans to enrich large quantities of uranium, potentially suitable for manufacturing nuclear weapons (at a higher level of enrichment). Yet, the United States and other Asian leaders recognize that using military force in an attempt to destroy Iran’s nuclear program could easily fail and possibly backfire.

The lack of good options has generally kept trans-pacific differences regarding how to respond to Iran’s nuclear activities limited. Asian governments, including China and Russia, have generally adhered to some variant of a “two-track” policy that balances diplomacy with sanctions. Of course, as President Obama pointed out earlier, despite U.S. and other international efforts to negotiate a compromise, “It may be that their ideological commitment to nuclear weapons is such that they’re not making a simple cost-benefit analysis on this issue.”

The nature of the Iranian political system amplifies this problem. The intra-elite splits that have intensified since the disputed 2009 presidential election have complicated reconciliation efforts between Washington and Tehran. An unfortunate dynamic has arisen. Whenever Iranian negotiators have seemed to support a compromise deal regarding their nuclear policies or other activities, reformers as well as nationalists have attacked them for selling out Iran’s interests. An enduring U.S.-Iran reconciliation remains improbable until new political leaders emerge in Iran who enjoy genuine popular support and are capable of envisaging a genuine improvement in relations with the United States.

The Obama administration is striving to stabilize Afghanistan by the time it withdraws most U.S. combat troops, but whether it can realize such an achievement remains uncertain. At their meetings in Washington last month, Presidents Obama and Karzai agreed to accelerate the U.S. military withdrawal timetable. Obama justified the decision by citing the declared success of the U.S. military surge in Afghanistan in defeating al-Qaeda, weakening the Taliban, and building up the Afghan security forces. Obama later announced in his State of the Union address that 34,000 U.S. troops would be withdrawn over the next year, ahead of all combat troops being out of Afghanistan by the end of 2014.

Obama also discussed the nature of the post-2014 Afghan-U.S. military cooperation, but the two governments provided few details regarding how they planned to implement the Strategic Partnership that they signed last year in Kabul. Nor did the Afghan-U.S. discussions resolve uncertainties concerning how Afghanistan would ensure the holding of free and fair presidential elections in 2014, or achieve progress in the peace negotiations with the Afghan Taliban and their foreign sponsors in Pakistan.

In this regard, Pakistan might see, for the first time in its history, an elected civilian government transfer power to another team of elected civilians. Unfortunately, this spring’s national elections could bring to power politicians less supportive to U.S. interests than the current leaders, who have struggled to sustain minimum cooperation with the U.S. war on terror, especially the use of drone strikes, in the face of their citizens’growing hostility towards the United States. Whoever wins this year’s ballot will find it hard to rein in the elements within the Pakistani intelligence services that support the Islamist terrorists in Afghanistan and India. And the temptation will always exist in Islamabad to seek to squeeze Washington by suspending the Pentagon’s use of the ground supply lines through Pakistani territory that convey goods to the NATO troops in Afghanistan.

The administration’s Russian Reset actually helped NATO survive the year-long ban that Islamabad imposed for most of 2011, as the Pentagon was able to transport defense supplies through Russia and its Central Asian allies using the Northern Distribution Network that has been constructed during the Obama administration. Despite this promising improvement, Russian-U.S. relations remain strained over U.S. ballistic missile defense plans, while Washington has been unable to secure all the help it wants from Moscow regarding Iran.  The Russian government’s image among Americans has been deteriorating sharply since Putin’s return to the presidency, with the Pussy Riot scandal, ban on Americans adopting Russian orphans, and government crackdown on civil liberties. Russia’s weakening economy has decreased its global influence, including in Washington. On the other hand, Moscow was angered by the U.S. Congress passing, and President Obama signing, a new law that prohibits Russian officials thought to be involved in the death of Sergei Magnitsky from traveling to the U.S. or accessing its banking system. The Russian parliament responded by passing a self-defeating measure limiting Americans’ ability to adopt Russian orphans.

Although the Russian government has been working on its own Asian Pivot, the Obama administration continues to treat Russia as an afterthought in most of its regional initiatives. Russia might be tempted to align closer to China to address common concerns about U.S. military policies and to get Washington’s attention. Russia and China recently announced that they would cooperate to counter U.S. missile defenses, which they see as aimed at negating their nuclear deterrent and global influence. They are also expanding their energy trade.

The main unresolved issue affecting the Obama administration’s Asian pivot, however, is how China will fit into the new framework. U.S. officials are divided regarding whether Beijing represents a potential partner or problem. The administration has yet to find a robust balance between deterring and engaging Beijing, as well as between assuring its allies and friends that the United States would neither abandon them to China’s growing might nor entrap them in an unwanted confrontation with Beijing.

The Obama administration has tried to avoid confronting China directly by emphasizing general principles—freedom of the sea, peaceful settlement of territorial disputes, etc.—rather than pursuing policies designed explicitly to counter China. Nonetheless, PRC policy makers accuse the United States of stirring up trouble in their backyard. They complain about U.S. arms sales to Taiwan, U.S. missile defense deployments in Asia, and U.S. diplomatic interventions in Beijing’s maritime territorial disputes with Japan, the Philippines, and other countries.  Outside the PRC, Asian leaders have generally welcomed the renewed U.S. security presence and its increasing role in the region, but they have also taken pains to avoid being seen as siding with Washington against Beijing.

The Obama administration’s economic vision for East Asia, embodied in the TPP, also competes with that of China, which is actively lobbying countries to enter rival free-trade agreements that do not include the United States. For its part, the Obama administration has not formally excluded China from joining the TPP, but Beijing would need to revalue its currency, end subsidies to state-owned companies, better protect foreign intellectual property, and take other steps that China has either long resisted or proved unwilling to implement.

But perhaps the most serious challenge for the Obama administration’s Asian policy lies at home. The United States faces a tight fiscal environment that will constrain the resources Washington needs to implement its Asian pivot.

Even more than further increases in the Pentagon’s budget the United States needs to “rebalance the rebalance”—in other words, to augment the non-military elements of the pivot by increasing the resources available to the U.S. civilian national security agencies.

The current public preoccupation with military rebalancing—asking how many U.S. ships and planes will be in the Pacific—has given some Asians the misleading impression that the Pivot is essentially a grand redeployment of the U.S. military to contain China. Greater emphasis on the role of U.S. civilian agencies in the Pivot will help dispel this misperception and make it easier to gain support from cautious Asian leaders seeking a greater U.S. role in their region but not at the risk of antagonizing Beijing.

Richard Weitz



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Saigon Business Corporation Pte Ltd (SBC) is incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Health care and Life Science with expertise in ASEAN 's area. We are currently changing the platform of www.yourvietnamexpert.com, if any request, please, contact directly Dr Christian SIODMAK, business strategist, owner and CEO of SBC at christian.siodmak@gmail.com. Many thanks.