IU USA recommend- Investing in Indonesia and the Philippines for Growth

What we now see is the emergence of a new economic world order. And I think that most in the industry have come to grips with it. Last week MarketWatch came out with its first special report in a new series dubbed the "New Tigers."

As they state, the developed world can't be counted on as the "end all, be all" turbine of growth it was once considered. I think we've all heard about its sovereign debt issues. Filling the void are rising, new dynamic economies that have set themselves up to drive global economic growth for decades to come – the new tigers.

The first edition looks at the two up-and-coming jewels of Southeast Asia. Here is the case for Indonesia and the Philippines.

They've Come A Long Way

Remember the Asian financial crisis that started back in July of 1997? It created hysteria that there might be a global economic meltdown because of financial contagion stemming from the region.

At that time, the IMF bailed out Indonesia and the Philippines. Now in 2012, both countries have pledged $1 billion each to the International Monetary Fund.

In economic terms, Southeast Asia's stock is rising. Indonesia and the Philippines are seen as leading the way. As we stated before, the traditional economic heavyweights are burdened with excess debt, and now we see the historic regional heavy-hitters – China and India – losing some of their luster.

What's all the hype about? Here are some intriguing things both countries share:

• Each country has a rapidly growing economy with rising incomes.
• Each country possesses a large and young labor force ( English Speaking people in the Philippines counts a plus factor).
• Both Indonesia and the Philippines have a growing middle class.
• Both countries have stable elected governments that have passed legislation that has inspired investor confidence.
• Both countries have solid banking industries.
• And each has a strong position in foreign-exchange reserves that could protect against runs on their currencies.
• Andrew Swan, head of Asian fundamental equities at BlackRock, stated, "You have a real contrast, which is why these markets have been doing well… We've had three to five years of great growth. But because there is so much room for growth, this can go on for so many more years."

More Reasons to be Bullish…

• Both Indonesia and the Philippines were given credit rating upgrades last year. (Indonesia is now considered investment grade by both Moody's and Fitch.)
• Each country's stock market is among the world's best performing over the last four years.
• The IMF believes that real GDP in the Philippines will grow by 4.2% in 2012 and by 4.7% next year.
• The forecast for Indonesia is even more impressive. The IMF expects their GDP to grow by 6.1% this year and 6.6% in 2013.
• Each country's fiscal house seems to be in order. Both have a very different balance sheet than a lot of those developed countries in the West. Indonesia's gross government debt was about 25% of GDP last year. The Philippines debt was about 41% of GDP in 2011. This gives both countries more room to boost their economies if that situation ever arises. In comparison, Japan's debt-to-GDP is above 200%.

This only presents the case for economic soundness. This isn't your daddy's or grandfather's emerging markets. Suffice it to say, this also isn't the Western world we've been accustomed to.

The special report goes into a lot of information. And I believe this is the heart and soul of what we need to look at. Part II of this piece looks at the strong banking industry in each country and the opportunities out there for global investors. These are plays that everyone will need to consider for years to come.-Rebuilding for the Better Philippines (October 08, 2012 11:00AM)

PH is among Southeast Asia's 'New Tigers'

The Philippines' recovery from the Asian financial crisis and its high potential for growth has prodded a business website to name it one of the "New Tigers" in Southeast Asia.

The Philippines, as well as Indonesia, have "come of age" and are "poised to drive future growth and grab more economic power," Market Watch said.

"In an economically vibrant Southeast Asia, Indonesia and the Philippines stand out as the region's 'New Tigers' with the potential to leave a bigger imprint on global growth for years to come while the developed world struggles with excess debt and traditional regional heavyweights China and India lose momentum,"  it added.

This review of the Philippines is the latest in a string of recent positive assessments and forecasts, most of them noting deep-seated governance reforms and its impact on ease of doing business.

The Philippines and Indonesia's edge over other countries in the region, Market Watch said, include "large and young labor force, an expanding middle class and... elected governments with policies inspiring investor confidence."

Sturdy banks and enough foreign exchange reserves also put the countries at an advantage, it added.

National debt also remains low in the Philippines and Indonesia compared to countries in the West, "leaving both enough room to boost their economies in case of need," the report said.

Market Watch also noted that the two countries' stock markets "are among the world's best performing since the end of 2008."

Marking the two countries' takeoff, Market Watch said, is their leap from borrower to lender status in the International Monetary Fund, with each pledging $1 billion to replenish the multilateral bank's funds.

This, as Market Watch noted that the IMF bailed out the two countries during the Asian Financial Crisis of the late 1990s.

These developments have not escaped the view of global investors which are now turning their heads toward the Philippines and Indonesia, Market Watch said.

"Both markets have been a popular choice for investors since 2009 and have extended a solid upward run with sharp gains so far this year," it noted.

Market Watch highlighted the Philippines' status as second to Thailand's best-performing stock exchange in Asia so far this year, rising 18 percent. Indonesia's Stock Exchange meanwhile gained 4 percent.

"Signaling the strength of foreign investor interest in both the Philippines and Indonesia, new products have been developed to provide overseas investors with more options to access those markets," it noted.

The two countries are not free from risks, however, with Market Watch noting that challenges include "sustaining political stability, tackling widespread corruption and improving their poor infrastructure."

The Philippines' heavy dependence on remittances from overseas workers may also prove to its disadvantage amid a weak global environment, the report added.

This, even as it echoed forecasts that the services sector and high remittances will drive economic growht in the Philippines this year.

"To sustain its trajectory, the Philippines needs to not only get more value out of existing industries, but also forge new ones," Market Watch said.-Yahoo News (October 08, 2012)

Philippines, US Marines begin annual joint exercises

The Armed Forces of the Philippines (AFP) starts joint exercises today with soldiers of the United States (US) to strengthen their defence partnership amid continuing tensions between Manila and Beijing over the ownership of the Panatag (Scarborough) Shoal and other disputed islands in the West Philippine (South China) Sea.

In a statement, First Lt. Cherry Tindog, director of the Philippine Marine Corps public affairs office, said the 10-day Philippines-US Amphibious Landing Exercise (Phiblex) 2013 would focus on humanitarian assistance, disaster response and relief preparedness, maritime security and community development.

Annual training

Tindog said Phiblex was held yearly, providing joint training not only to Philippine Marines and US troops, but also the Philippine Army, Air Force and Navy.

The US helicopter carrier USS Bonhomme Richard, escorted by two frigates, arrived in this free port on Friday carrying 2,200 American troops. The ship carries amphibious assault vehicles, light armoured vehicles, helicopters and Harrier fighter jets.

The USS Olympia, a submarine, docked here on Thursday, but it was not clear if it will join the exercises. The US Embassy, in a statement, said the Olympia’s visit “highlights the strong historic, community and military connections” between the US and the Philippines.

Exercise venues

The training venues are the Subic Bay International Airport here; Fort Magsaysay in Nueva Ecija; Marine Barracks Gregorio Lim in Ternate, Cavite; Crow Valley in Tarlac; Naval Station Apolinario Jalandoon in Puerto Princesa City, Palawan, and the Naval Education Training Command in San Antonio, Zambales.

“[The conduct of Phiblex 2013] perpetuates a long and lasting partnership founded firmly on the common heritage between freedom-loving countries committed to true service and the preservation of liberty and democracy,” the Phiblex command said in a statement.-Asia News Network (October 08, 2012)

EU plans to direct aid to Laos, other poor countries

The European Union (EU) will focus more on the world's poorest and least developed countries, including Laos, under its planned new aid reforms which come into force in 2014.

Head of the European Parliament delegation to the ASEP7 meeting George Sabin Cutas on Friday told Lao media of the likely aid increase.

Cutas said the EU aid policy is in the process of being redefined, despite calls by some parliament members to cut aid funding due to the need to exercise financial restraint in the face of economic turmoil.

“We have to somehow reduce our budget, but where the cuts come from is the question we have to answer,” Cutas said.

“As a deputy, I will fight to keep the budget level, including the amount of funding for humanitarian assistance, which if it doesn't remain the same will only increase, not decrease.”

European institutions are in the process of reexamining their development assistance. This is based on a policy called Agenda for Change, and the EU parliament will be adopting its new financial model shortly.

Under the EU's aid reforms, emerging economies like China, Brazil, Indonesia, Malaysia and Thailand will lose funding as they are no longer seen to be in need.

The shift will concentrate EU aid on the world's poorest countries, where its funds can make a tangible difference – rather than spending it in areas of rapid economic growth.

From 2014, there could be a substantial increase in the EU's funding to Laos. Although there are no precise figures yet, the union's financial assistance could double – if not more.

This is due to the fundamental change in the EU's cooperation policy which will have a stronger focus on the poorest and least developed countries. Laos will naturally benefit from this change, according to the EU Delegation in Vientiane.

European Member States will jointly implement the new policy. The main areas of intervention will remain in line with the Lao government's policy to eradicate poverty, and to achieve its Millennium Development Goals. This includes support for the implementation of the national socio-economic development plan, rural upland development and food security, governance, trade, climate change, and unexploded ordnance (UXO) clearance.

EU-Laos relations stretch beyond development assistance. Both sides are enjoying a more mature relationship on other levels such as political dialogue, in particular a genuine discourse on human rights every year. There have also been discussions on trade and economic relations while Laos sought accession to the WTO this year.

The EU and Laos have enjoyed a continuing and fruitful relationship since both sides signed the 1997 Cooperation Agreement.

The signing paved the way for EU assistance which has amounted to an average of 16 million euros per year across numerous cooperation sectors, mainly rural development, food security, education, health, and UXO.

At a regional level, the EU wants to develop and support better local cooperation, in particular between countries around the Mekong River sub-region.-Asia News Network (October 08, 2012)

WB maintains 6.6 pct GDP growth for Cambodia in 2012

The World Bank kept Cambodia's economic growth at 6.6 percent this year -- the same rate of its May's forecast, according to its East Asia and Pacific Economic Data Monitor released Monday.

In its May's report, it said that Cambodia has been one of the fastest growing countries in the world over the past 10 years, experiencing average annual growth of over 8 percent since 2000.

The country's economy is relying on four main pillars -- garment export, tourism, agriculture and construction.

The WB's projection is 0.1 percentage point higher than that of the Asian Development Bank and the International Monetary Fund.The two institutions forecast the country's GDP at 6.5 percent this year.

However, all the forecasts are lowered than the 6.9 percent growth projection by the government, based on the increases in garment export, tourism and construction.

According to the official figures, during the first seven months of this year, the country exported garment products in equivalent to 2.51 billion U.S. dollars, a 8 percent rise compared with the same period last year.

In the first eight months of this year, on the tourism side, the Southeast Asian nation attracted some 2.33 million foreign tourists, a 24 percent rise compared with the same period last year, whilst in the construction, the country attracted investment of 1.53 billion U.S. dollars in construction projects, a 74 percent rise.-Sina English (October 08, 2012 5:36PM)

Why is Thailand so popular among tourists?

Thailand is one of the most popular tourist destinations among travelers from all over the world. Over 12 million people visited the country’s capital, Bangkok, last year. Therefore, it is not surprising that Thailand heavily relies on its tourism income. It makes up an impressive 6% of the entire economy of the country. In addition, Bangkok is more visited than major cities like New York, Vienna, Rome and even Singapore.

But why is Thailand so popular among tourists? What makes the South Asian country so special? Ahead of Eid Al Adha public holiday, it may good to answer these questions in order to make the most of your short holiday break. Hmm, where shall we begin…?

Exceptional Hospitality and Services

For a start, in Thailand you can meet some of the most polite, warm and welcoming people. The country is even known as “The Land of Smiles”. People in the Kingdom of Thailand always seem happy and cheerful. In addition, they are extremely helpful. For example, if you have difficulties understanding the local language, Thai, people will politely offer you to translate you the necessary information.

Services in Thailand are also at a top level. Shop assistants in the Land of Smiles greet you from the moment you enter their store. They instantly smile and even give you a big welcoming hug. In addition, restaurant and hotel services are more than satisfying. Thailand is famous for its unique cuisine. As a result, restaurants are often very busy. Despite that fact, clients never wait to be seated. Moreover, they are served surprising quickly. In big restaurants, the chef will often come out the kitchen to ask you whether you enjoyed your exotic dish. The service staff in Thailand is very professional and dedicated to customers.


Beautiful Nature

Thailand is place with rare and divine nature. The country is known for its astonishing beaches. The sceneries in Thailand resemble a postcard and lure millions of sun-hungry tourists every year. In addition, there are many lush islands along the costs of the Kingdom. The beach water is aquamarine blue and it is perfect for swimming and diving.

Affordable Prices

Thailand is somewhat shockingly cheap, both for living and visiting. Food, accommodation and traveling prices are very low. For example, you only need about $4 for daily food expenditures. Moreover, you can get a nice cozy room only for $10 per a night. With such low prices you will have more money to spend on shopping and entertainment. You can even pamper yourself with a world-class luxury hotel room. Because of its affordable and reasonable prices, Thailand is perfect for long vacations.-Dubai Chronicle (October 08, 2012)

World Bank lifts PH growth forecast for 2012

The World Bank on Monday raised its growth forecast for the Philippines even as the lender warned of a slowdown in East Asia and the Pacific amid a "fragile" external environment.

In a report, the Washington-based lender said the Philippines' gross domestic product would grow 5 percent this year and in 2013. The latest growth forecast for this year is higher than the 4 percent estimate made last June

The bank's latest forecast however is at the low end of the government target of betwen 5-6 percent for 2012, as well as the lender's 7.2 percent average forecast for East Asia and the Pacific.

In the first six months of the year, the Philippine economy grew by 6.1 percent from last year's 4.2 percent.

The World Bank projected that Indonesia will grow faster at 6.1 percent this year and 6.3 percent in 2013. Likewise, Vietnam is forecast to expand 5.2 percent this year and 5.7 percent next year. Malaysia is seen to clock in growth of 4.8 percent and 4.6 percent, while Thailand, 4.5 percent and 5 percent.

"Within the EAP region, the risk remains of a more pronounced slowdown in China than currently expected, while commodity exporters are at particular risk of a global slowdown," the bank said.

The World Bank said China's GDP growth is projected to slow down to 7.7 percent this year from 9.2 percent last year.  In 2013, however, China’s growth is expected to rebound to 8.1 percent as the impact of stimulus measures kicks in, supported further by an uptick in global trade.

Pamela Cox, World Bank East Asia and Pacific regional vice president said weaker demand for East Asia’s exports is slowing the regional economy. But compared to other parts of the world, East Asia is still growing strongly, and thriving domestic demand will enable the region’s economy to bounce back to 7.6 percent next year.

The report added that considerable downside risks remain should conditions in Europe deteriorate sharply, with the risks high that developing economies might be affected.

"A crisis in the Eurozone will adversely affect the economies in the East Asia and Pacific mainly through trade and links to the financial sector," the bank said.

"Policy makers in the East Asia and Pacific Region will have to continue managing growth and reducing poverty in an environment that will remain volatile. Countries that have experienced rapid expansion of credit need to be cautious, while exporters of commodities should continue to take measures and build institutions that help manage volatile commodity revenues," it added.-Interaksyon (October 08, 2012 10:27AM)

World Honored Tetangco Jr as one of the 5 best Central Bank Heads in Earth

BSP Governor Amando Tetangco Jr.: The man, who turned the economy around

"To always be a blessing to others" is his principle in life, and true to his guiding principle, Amando Tetangco Jr., the governor of the Bangko Sentral, has been a blessing not only to his family but to the whole country as well.

Just how the Philippine economy climbed out of the deep hole it was in during the 1970s and 1980s is a story in itself that is worth telling. One of the men responsible for the economy's climb is Tetangco, along with other officials of Bangko Sentral, who over the past decade stabilized inflation and induced policies to spur economic growth.

"As a central banker, I am privileged to have been part of the process of transformation of our institution from being deeply in debt and unable to meet its obligation without a debt restructuring program to a central bank that is now a net creditor with record high gross international reserves," Tetangco says.

The Philippines, which had a debt crisis in the early 1980s, now has gross international reserves exceeding $80 billion, enough to support a year of imports, which is much greater than the international benchmark of just three months. The amount also exceeded the country's foreign debt of just $62.5 billion as of June.

Unknown to many, a significant part of the reserves are invested in the US treasuries, making the Philippines a lender of billions of dollars to the US.

Even President Aquino, who replaced all Arroyo appointees when he assumed office in 2010, saw the wisdom in naming Tetangco for a second six-year term. Tetangco was first appointed governor of the Bangko Sentral in July 2005.

Recently, Gobal Finance cited Tetangco Jr. as one of the five best central bank heads in the world, actually for the fourth time since 2006. International credit rating agencies also mentioned the good performance of the Bangko Sentral in handling inflation and the balance of payments in justifying their upgrade of the country's credit rating.

Before joining the Central Bank of the Philippines in 1974, Tetangco worked at the Management Services Division of accounting firm SGV & Co.

He finished his elementary and high school education at Don Bosco Academy in Pampanga and took up AB Economics at the Ateneo de Manila University where he graduated cum laude. He also studied Graduate courses in Business Administration in the same university.

As a Central Bank scholar, Tetangco took up his MA in Public Policy and Administration with concentration in Development Economics at the University of Wisconsin in Madison, USA.

Tetangco rose from the ranks of the BSP hierarchy, occupying various positions for over three decades.

He started as a statistician at the Department of Economic Research. "It was a job application letter I sent in 1974 to then Governor Licaros that started my journey as a central banker," Tetangco recalls in an interview.

Tetangco says being an economist was a childhood dream. "Having studied Economics, I believed I could contribute to the role of the Central Bank consistent with national efforts to make our economy grow on a balanced and sustained manner and, in the process, make people's lives better," he says.

The Philippine economy today is very different from what it was when Tetangco joined the Central Bank in the mid-1970s.

"At that time, the economy was less open to the rest of the world with government's import substitution strategy and capital account restrictions. Trade policy was quite tight and trade barriers were high in order to shield local industries from foreign competition in the domestic market," Tetangco says.

He says inflation was also a source of concern, because the domestic economy was insulated from international competition that could keep local price levels in check. Meanwhile, upside cost pressures were building up due to the rapidly increasing global prices of petroleum products following the oil embargo by the OPEC in 1973.

"With domestic prices rising faster than those in the country's trading partners during that time, the country's competitiveness started to erode, especially since the peso was essentially fixed against the US dollar. Exports were not growing enough and the country had to resort to foreign borrowing to meet its requirements for foreign currency which resulted to the doubling of the country's external debt and the deterioration in the country's balance of payments position," Tetangco says.

The Philippine economy today

He notes that today, the Philippine economy has become more open, with the broadly protectionist underpinnings of previous policies giving way to a more market-oriented and less heavy-handed approach to managing the country's resources.

"The gradual removal of restrictions on foreign direct investment has paved the way for the inflow of investments in the private sector as well as in infrastructure, which aided the country's modernization," he says.

In addition, the crisis experienced by the country in the 1980s provided the country with an opportunity to internalize important economic lessons as fiscal and monetary authorities implemented various reforms towards a stronger and more stable financial system as well as more sustainable economic growth, he says.

"The past crises have also brought to light the importance of policy coordination in promoting macroeconomic stability. The close coordination of monetary, regulatory, and fiscal policies was critical to the restoration of the country's stability, which in turn, paved the way for business confidence to improve and for economic recovery to take root," Tetangco says.

"Certainly, there have been noticeable improvements in the economy in general. Our external payments position is healthy resulted by remittances and sustained receipts from tourism and the business process outsourcing sectors, which could not have been possible without improvements in infrastructure, governance, and even human capital. But we need to double our efforts in alleviating poverty," Tetangco adds.

Given these developments in the country, he says that five or 10 years from now, strong macroeconomic fundamentals and a favorable demographic transition will support a significant rise in the country's activity over the medium term.

"The working population will contribute positively to growth potentials when they are nourished properly, healthy, and appropriately educated," he says.

Despite his success as an economist and as a central banker, Tetangco believes that no one has a monopoly of good ideas thus, reflecting his democratic style of management but he says that once a decision is made, he expects all parties to unite behind it and ensure its successful implementation.

"I encourage people to articulate their thoughts, to discuss their opinions. I also demand complete staff work to ensure that we benefit from a 360-degree assessment. Then I make the decision," he says.

During weekdays, his typical office day is a mix of meetings within the bank such as interagency consultations, handling phone calls, answering media questions, wading through many documents to read and memos to sign, delivering speeches, and attending business or cultural functions after office hours.

Despite his busy schedule at work, he sees to it that he has time to do workouts at the gym before leaving home. He had a heart bypass in February 2010.

Outside the Bangko Sentral, Tetangco describes himself as a regular kind of guy who has friends and a growing family.

"I have a wife I have been happily married to for 27 years now with whom I have two daughters and a son. My son is married and he and his wife have made me and my wife grandparents," he says.

During weekends, he and his family hear mass together. They go to the mall and watch movies. Sometimes he and his friends play golf, do target shooting, and watch Ateneo's basketball games.

His biggest accomplishments

Tetangco accomplished a lot of things for the economy, but he also treasures his family as one of his greatest achievements. "On a personal level, I find great satisfaction in seeing the members of the Elma Plana- Say Tetangco family happy, healthy, actively engaged in pursuing their personal goals, but remaining very close and supportive of each other," he says.

As head of the Bangko Sentral, he says that he is proud that the BSP continues to successfully implement its Constitutional mandate to craft and implement monetary and banking policies that keep our economy stable and able to promote inclusive growth.

Tetangco says being selected as one of the rated "A" central banker in four of the seven years he served as governor of the Bangko Sentral is one of his biggest accomplishments in life but he thinks the credit properly belongs to all BSPers and to the Philippines.

With these accomplishments, he cites his family as his source of strength and inspiration.

"My wife and children who love and support me, in sickness and in health and even when work sometimes get in the way of family affairs, my father who was an honest and hardworking public servant, my mother, an inspiring woman who by her words and deeds quietly instilled the values of honesty, integrity and responsibility in our family of nine siblings, and my brothers and sisters who have always been very supportive of my work as a public servant," he says.

Given his success, a lot of people would surely want to be just like him. Tetangco's advice is to keep their integrity intact and develop a strong sense of purpose.

"They should always have the discipline, the focus, the tenacity, and the passion to be the best they can be, even when no one is watching," he said.-Manila Standard Today (October 08, 2012)

Singapore needs over 1,600 healthcare workers in near future

There will be about 1,600-1,700 vacancies in healthcare sector to meet the needs of the 10 new nursing homes which will be set up in Singapore from now till 2016, Gan Kim Yong, the city-state's Health Minister said on Saturday.

Gan said his ministry will step up efforts to fulfill this vacancies, by seeking personnel resources from educational institutions like the institutes of technical education and polytechnics, as well as encouraging the conversion of mid-career healthcare workers to join these nursing homes, local media Channel NewsAsia quoted as saying.

Those retirees who can come back to work part-time are also considered to be one of the areas which can relieve the shortage.

The ministry last Friday announced that they will build 10 new nursing homes by 2016, which is said to add an estimated 3,300 beds to the existing nursing home capacity of 9,000, aiming at supporting a growing senior population.

The latest official data shows that the proportion of Singapore residents aged 65 years and above rose to 9.9 percent at the end of this June, rising from 9.3 percent during the same period last year.-The Philippine Star (October 07, 2012 4:00PM)

3 Japanese self defense ships arrive in Cambodia

Three Japanese maritime self defense force ships docked at Cambodia's Sihanoukville Autonomous Port on Saturday morning for a 5-day visit to promote ties and exchange experience between two countries' naval forces.

The ships were greeted by Cambodian Rear Admiral Ros Veasna, deputy commander of Ream Naval base in Preah Sihanouk province.

According to a press release from Japanese Embassy to Cambodia, the 3 ships, named Kashima, Shimayuka and Matsuyuki, are led by Rear Admiral Hidetoshi Fuchinoue, commander of Japan Training Squadron.

"The visit is to strengthen friendship relations between the two nations," the press release said. "It will also give opportunities for 194 Japanese cadet school graduates to learn about culture and military as well as to strengthen friendship with Cambodia through various exchange programs."

During the stay in Cambodia, Rear Admiral Fuchinoue plans to visit Phnom Penh to pay courtesy call on Cambodian Deputy Prime Minister and Defense Minister Tea Banh and commander of Cambodian Royal Navy Tea Vinh on October 8, it added.-China Org. (October 07, 2012)

Police, suspect hurt by roadside bomb in southern Thailand

Two police and a criminal case suspect were wounded yesterday after a 20 kilogram roadside bomb went off in Yala's Muang district while officers from Pratae station transferred the suspect to Muang Yala station.

The explosion, at 10.30 a.m. on Ban Niang-Yaha road in Tambon Yala, turned the police pick-up over. Injured were Lieutenant Thanawat Boonmak, Police Sergeant Paosi Samae and suspect Assaming Adi.

Police blamed separatists. They said suspected insurgents also planted road spikes and a suspicious box on the road to slow down investigators at the scene.

Meanwhile, a villager was shot dead and his wife injured in a drive-by shooting in Sai Buri Pattani's district yesterday.

The couple, driving their pick-up home in Narathiwat at 1 p.m. on the highway 42 (Pattani-Narathiwat), was shot by two men on a motorcycle. Nareudom Thab-ngern, 48, died instantly while his 42-year-old wife Liab Saiyos had her arm grazed by the bullet.

Police were checking to see if the shooting stemmed from a personal conflict or ongoing violence in the region.-Asia News Network (October 07, 2012)

Philippines, Muslim rebels reach peace deal

Philippines President Benigno
Aquino announces a historic
peace deal October 7. 

The Philippines has reached a preliminary agreement with Muslim rebels, the president announced Sunday, marking a major milestone after decades of militant insurgency in the nation's south.

The Moro Islamic Liberation Front has fought for decades for an independent Islamic state in southern Philippines. It has been blamed for rampant attacks in the region.

President Benigno Aquino III described the deal as a "framework agreement" for establishing a new autonomous region to be administered by Muslims in the south.

It comes after negotiations between his government and the rebels in talks mediated by Malaysia.

"This framework agreement paves the way for a final, enduring peace in Mindanao," Aquino said. "It brings all former secessionist groups into the fold; no longer does the Moro Islamic Liberation Front aspire for a separate state."

It also provides a framework on issues such as power structure and revenues in the southern region.

"This means that hands that once held rifles will be put to use tilling land, selling produce, manning work stations and opening doorways of opportunity for other citizens," he said.

The new autonomous region will be named Bangsamoro.

"It deserves a name that symbolizes and honors the struggles of our forebears in Mindanao, and celebrates the history and character of that part of our nation," the president said.

The preliminary deal marks a major milestone after years of negotiations with the Moro group to help end an insurgency that has killed tens of thousands.

The Moro group is estimated to have 12,000 members, but military sources say it may have been splintered when government troops conducted offensives in 2000.-Cable News Network (October 07, 2012 0735GMT)

Controversy over Cambodia PM's land titling plan

Cambodian students have fanned out across the impoverished nation to help grant land titles to villagers in an ambitious but contentious new scheme spearheaded by the prime minister.

When Hun Sen announced his titling plan in June, apparently without first consulting local authorities and communities, it was billed as a way to clamp down on land conflicts, seen as Cambodia's most pressing human rights issue.

But the strongman premier later backtracked, saying the more than 1,600 student volunteers recruited would not be measuring land in disputed areas at all, baffling campaigners who already lamented a lack of detail about the plan.

"For those in non-conflict areas it's very good, but it doesn't address the major problem. People who are most in need of land titles won't receive them," said Nicolas Agostini of local rights group ADHOC.

The university students are now tasked with demarcating 1.8 million hectares (4.4 million acres) of uncontested territory so officials can issue titles to 470,000 families within the next few months.

In the project's first major milestone last month, Hun Sen personally delivered more than 500 property titles to families in Kratie, the same eastern province where security forces shot dead a 14-year-old girl during a land battle with villagers in May, in a case that shocked the nation.

Land ownership is a highly controversial issue in Cambodia, where the communist Khmer Rouge regime banned private property in the late 1970s and many legal documents were lost.

Many observers have welcomed the land tenure security offered by the new scheme, which the premier says will encourage owners to invest in their property and boost the rural economy.

But Agostini said serious questions remained and attempts to silence or sideline independent observers were "not acceptable".

Hun Sen, 61, who has been in power since 1985 and is seeking re-election next year, has boasted of paying the students a monthly salary of some $220 out of his own pocket -- double of what the country's garment workers earn.

Rights groups say privately the scheme reeks of an election ploy by one of the world's longest-serving leaders who has vowed to stay in power until he is 90.

But campaigners face "a significant risk" if they go public with their concerns, a Western diplomat who did not want to be named told AFP.

When a well-known land rights advocate expressed reservations about using inexperienced students and suggested the scheme was an attempt to boost Hun Sen's image, he was threatened by a government-affiliated youth group.

"They told me if I continue to criticise government policy, they are not responsible for what happens to me," Sia Phearum said.

Local rights organisations voiced dismay at the threat, though long-time Cambodia watchers say it is not uncommon in a country where activists routinely face intimidation and criminalisation.

The government, in its haste to develop the impoverished nation, has in recent years come under fire from rights groups and the UN for granting swathes of land to well-connected firms, prompting a spate of evictions and increasingly violent protests pitting villagers against developers.

In some of the strongest comments yet on the new land titling scheme, UN human rights envoy Surya Subedi said in a report last month that non-governmental groups had been warned "not to intervene" with the project.

"Harassment and intimidation of individuals involved have been widely reported. The absence of civil society organisations has left many communities, families and individuals unaware of their rights," he wrote.

Subedi also pointed out that the titling project fails to address "the crux of the problem" by avoiding disputed land, and echoed concerns about the deployment of volunteers who often get just two days of training and are confusingly clad in military fatigues.

Land ministry spokesman Beng Hong Socheat Khemro dismissed Subedi's comments as having "no value", saying the students' role was to prevent future land conflicts and not to solve existing conflicts.

The youngsters are ideally suited to help because they have the skills to operate the satellite navigation system equipment used to measure land and because they are "honest", he said.-AFP (October 07, 2012 3:42PM)

Myanmar Extends Fight Against Drug

Myanmar has extended its 15-year drug eradication plan by another five years, Xinhua reported Saturday.

The programme was to end in 2014 but has now been extended till 2019.

The Golden Triangle, covering an area of 950,000 sq km, is one of Asia's major illegal opium-producing areas. The region overlaps with Myanmar, Vietnam, Laos and Thailand.

Myanmar is taking a lead role in fighting drugs and is increasing cooperation with various stateholders, Home Minister Lieutenant-General Ko Ko said.

He called for realizing ASEAN's (Association of Southeast Asian Nations) objective of eradicating drug use within member countries by 2015.

Ko, who chairs the Central Committee for Drug Abuse Control, stressed the need for effective programmes in schools, workplace and community the tackle the menace.

He said the government has intensified efforts to destroy poppy plantations and control drug traffickers. Ko said about 3,900 offenders were punished in 2011.

Most of the world's heroin came from the Golden Triangle until the early 21st century when Afghanistan became the world's largest producer.-Daijiworld (October 06, 2012 3:42PM)

Jakarta's election and its message to the world

Indonesia's Jakarta has just conducted its gubernatorial election. Against the odds, newcomers, Joko "Jokowi" Widodo and his running mate, Basuki "Ahok" Tjahaja Purnama, emerged the winners.

As soon as pollsters revealed their quick count results on that election day on Sept. 20, my mother, a lifetime Jakarta citizen, sent me a message, saying, "Today we welcome a Chinese-Indonesian as deputy governor of Jakarta. You are right, times have changed!"

The times, indeed, really have changed, a new era of Indonesian pluralism has come to the fore. My mother's view is a reflection of other ordinary Indonesians of her generation, who were guided by the old paradigms; pessimism and scepticism about the likely changes in Indonesia concerning democracy and pluralism.

Nevertheless, beyond domestic politics and how it affects ordinary citizens, the victory of Jokowi and Ahok in the Indonesian capital's election is indeed an important milestone in the country's quest for a bigger role on the international stage. But what does this election result actually mean to the world?

The most important lesson we can take from the election is the image of Indonesia as a pluralist and democratic country.

It is a very clear message to the world that the largest Muslim-majority country chose a member of a minority group, both ethnically and religiously, as deputy governor of the national capital.

How can this unprecedented phenomenon send an important message to the world?

First of all, we have to consider the history of pluralism in the capital. Acts of violence targeting Chinese-Indonesians ahead of the regime change in May 1998 inflicted deep wounds on pluralism in Jakarta. But Ahok's election as second-in-charge in the capital means Jakartans have left religion and ethnicity behind, despite the widespread ethnic and religious slurs targeting Jokowi and Ahok.

The Indonesian government needs to exploit this sign of maturity to reaffirm the country's credentials as a predominantly Muslim yet democratic, pluralistic and non-aligned nation. With the third-fastest growing economy among the G-20 countries after China and India, plus political stability, the republic surely has to aim for a greater international role.

Chairing Asean in 2011 has given Indonesia opportunities to actively represent Asean in global forums such as the G-20 and the United Nations Security Council. However, following the Jakarta election, Indonesia can stake a claim to a role beyond that of promoter of the "Asean Community in a Global Community of Nations", which was the theme of the Asean chairmanship in 2011.

The strengthening of its pluralistic image resulting from the Jakarta election can further lay the foundation for Indonesia's "active" participation on the world stage, as mandated by the Constitution, particularly its preamble.

As a nation that that upholds pluralism, Indonesia stands a bigger chance of bridging conflicts, for example, between the Muslim world and the West.

Indonesia can support the causes of the Muslim world under "Muslim brotherhood", but at the same time encourage democratisation in the world.

Indonesia's US$2 million worth of food assistance to North Korea recently marked a new twist in decades of good relationship between the two countries, proving not only Indonesia's commitment to an active and independent foreign policy but also its readiness to help any country in need.

With such potential, Indonesia should not only "navigate in the turbulent world" as President Susilo Bambang Yudhoyono put it. Indonesia today has arrived at the right moment to steer between many reefs and at the same time help guide other ships on to the right course.

The people as stakeholders of this foreign policy should however reap all these dividends. They are responsible for advocating the pluralistic character of the nation.

Foreign policy analysts such as Robert Putnam, Peter Katzenstein and Kenneth Waltz have paid considerable attention to the importance of domestic politics in foreign policy.

In this sense, therefore, keeping a democratic and pluralistic society intact is a must in supporting and enhancing Indonesia's global role.

The recently concluded Jakarta election is just a starter. There are more challenges that need addressing before Indonesia can boast its adherence to pluralism.-Asia News Network (October 06, 2012)

Storm Gaemi to hit central Vietnam, coffee at risk

Tropical storm Gaemi is forecast to slam into Vietnam's central coast later on Saturday, dumping heavy rains and strong winds in the Central Highlands coffee belt, which could result in a decline in output, the government and traders said.

The storm, the seventh to hit Vietnam this year, would be centred near the coastal provinces of Binh Dinh and Phu Yen, with winds travelling at up to 74 km (46 miles) per hour, a government statement said.

It would weaken after landfall and move further west by Sunday, dumping wind and heavy rains in the northern part of the Central Highlands while en route to Cambodia, the statement said.

"Rain may not harm coffee cherries now but strong wind can cause young cherries to drop," said a coffee trader from Daklak, the country's largest coffee growing province and one of the five provinces in the Central Highlands.

The northern part of the region includes the provinces of Kontum and Gia Lai, which are the smallest in terms of coffee areas among the five, ranking after Daklak, Lam Dong and Dak Nong.

Around 80 percent of Vietnam's coffee comes from the region, where harvesting of the new 2012/2013 crop will begin in 10 days, with output initially expected to ease 7-10 percent from a record high 1.6 million tonnes in the previous 2011/2012 season.

A larger decline could tighten supply from the world's largest robusta producer, putting pressure on prices. Demand for robusta is expected to be strong in the current season, with steady buying seen in Europe's market this week.

Vietnam, with a north-south coastline, is widely exposed to storms and typhoons. More than 200 people have been killed or missing in the first nine months due to natural disasters including floods and landslides, government data show.-The Star Online (October 06, 2012)

Laos warns southern, central provinces of typhoon Gaemi

Lao Government Office has warned local residents and authorities in southern and central Laos of typhoon Gaemi's approach, which is threatening to bring flooding, strong winds, and landslides.

The tropical storm will move into Vietnam tonight, and is predicted to pass through Xekong, Attapeu and Champassak provinces from Saturday through to Monday, according to the Meteorology and Hydrology Department.

Typhoon Gaemi formed as a tropical depression in the central part of the South China Sea.

The department warned of light to heavy rains and strong winds through the southern provinces and centrally from Borikhamxay to Attapeu provinces.

The storm coincides with National Teachers' Day tomorrow, and schoolchildren will be on holiday on Monday. Families have been asked to keep an eye on their children in areas where there are weather alerts.

The department has also urged locals to listen out for weather forecasts.

Earlier this year, flooding caused by heavy rain destroyed many homes and killed people in the country's north, with Luang Prabang province the worst hit.

Rice and other commercial crops, roads, irrigation systems and businesses were also affected.-Yahoo News (October 06, 2012 4:12PM)

China offers Asean $474-M fund

Officials disclosed that China has offered a three-billion-yuan ($474 million) maritime cooperation fund with the 10-member Association of Southeast Asian Nations (ASEAN), some of whose members have territorial disputes with Beijing.

Vietnamese Deputy Foreign Minister Pham Quang Vinh said China announced the fund yesterday at the inaugural maritime forum of ASEAN and eight of its partners, including Japan, China, South Korea and the United States.

Pham said ASEAN and China are discussing possible activities to finance. ASEAN and China cooperate in maritime issues including navigation safety, biodiversity and search and rescue.

Tensions have flared over claims by China, the Philippines and Vietnam to South China Sea islands and waters believed to be rich in gas and oil. ASEAN members Brunei and Malaysia also have been embroiled in South China Sea rifts.

Territorial disputes were among the issues raised during the First Expanded ASEAN Maritime Forum (EAMF) and participating delegates agreed that measures are needed to contain the problem.

Officials of Vietnam and the United States said yesterday that “rules of the road” are needed to discuss various problems including territorial disputes that were highlighted during the meeting of the 18 countries, including 10 ASEAN member states.

The 3rd ASEAN Maritime Forum (AMF) that was chaired by Foreign Affairs Undersecretary for Policy Erlinda Basilio was held in Manila last Oct. 3 to 4.

Pham said the participants agreed that the territorial disputes should be resolved through international law, the United Nations Convention on the Law of the Sea (UNCLOS), and other documents that have been adopted by the parties concerned including the Declaration on the Conduct of Parties in the South China Sea (DOC).

“Among the challenges we are discussing also is the presence of territorial disputes and we discussed in a way how to contain it and how to ensure an environment of peace, stability and maritime security so that we can enhance cooperative activities,” Pham told reporters.

He said the delegates discussed them in general and underlined the importance of UNCLOS and international law.

Also tackled were issues on enhancing the areas of cooperation in the field of maritime and questions related to UNCLOS, the important document related to maritime cooperation and as a framework for order at sea, areas for possible cooperation within the framework of the expanded ASEAN maritime forum and maritime environmental protection.

“We actually identified that there is the challenge of territorial dispute. Everyone acknowledged the presence of territorial disputes, including all parties that have spoken this morning and we expect the need for ensuring the environment of peace, stability and maritime security including the parties need to abide by international law and UNCLOS so as not to allow the territorial disputes to become complex,” Pham added.

US Deputy Assistant Secretary of State Joseph Yun said the US did not give its view on territorial disputes during the meeting hosted by the Philippines, but he pointed to the need for rules and framework.

“I don’t think we gave any view on territorial disputes. I’m not sure how we touched. There was not much discussion on territorial disputes but we need rules of the road, the framework on how we discuss various problems including territorial disputes, on fishing and natural resources exploitation,” Yun said.

“I think there is a degree of feeling that this is not the forum where we discuss issues in depth and so it is not everyday you go about discussing everything. This is why I characterize this is foremost about cooperation and collaboration,” he said.

The ASEAN member-states discussed various cross-cutting maritime issues in ASEAN, as well as ways of enhancing cross-sectoral maritime cooperation, in line with the activities listed in the ASEAN Political Security Community blueprint. They also discussed recommendations made in previous meetings of the ASEAN Maritime Forum.

Experts from different sectors dealing with cross-cutting maritime issues were invited to provide information and share their views on these issues.

The ASEAN member-states discussed and exchanged views on maritime security and cooperation in ASEAN; maintaining freedom and safety of navigation and addressing sea piracy; protecting the marine environment and promoting eco-tourism and fishery regime in East Asia; and future work of the ASEAN Maritime Forum.

They agreed that maritime security and cooperation should contribute to the three pillars of ASEAN community building, namely, the ASEAN Political Security Community, the ASEAN Economic Community, and the ASEAN Socio-Cultural Community.

ASEAN made an assessment of the current status of regional maritime security and cooperation and shared country perspectives on the current prospects and challenges concerning maritime cooperation.-The Philippine Star (October 06, 2012)

Malaysian duo charged with abusing Indonesian maid

A Malaysian couple has been charged with beating, scalding and exploiting their Indonesian maid in the latest such abuse case in Malaysia despite new rules to better protect domestic workers, a prosecutor said Saturday.

A series of cases involving the abuse of Indonesian maids by their Malaysian employers has strained ties between the Southeast Asian neighbors. Indonesia this year lifted a three-year ban on sending maids to Malaysia after the countries agreed to better protect the workers, including giving them one day off per week.

Prosecutor Chuah Shyue Chien said Mohamad Shukur Suradi, 28, and his wife, Daeng Norulasyikin Bachok, 27, pleaded not guilty Friday to causing grievous harm to their 21-year-old maid, Marsini, who like many Indonesians uses one name.

Chuah alleged that the couple used a knife, a golf club, a clothes hanger and a belt to hit Marsini and scalded her with hot oil and water between July and Sept. 23 at their home in southern Johor state.

The car salesman and his teacher wife also were charged under the Anti-Human Trafficking Act with exploiting Marsini by making her work long hours and working against her will, Chuah said.

They face up to 35 years in jail and whipping if convicted for both offenses.

Chuah said Marsini, who started working for the couple in January, managed to escape from her employers and lodged a police report. He said she is currently in a shelter home to nurse her injuries.

The couple has been freed on bail, with a court date set for Oct. 16.

Indonesian Embassy officials could not be reached immediately for comment.

More than 200,000 Indonesian maids work in Malaysia. Indonesian officials say hundreds complain every year of mistreatment, overwork and unpaid salaries.-The Philippine Star (October 06, 2012 12:00AM)

PHL Peso forecast to end year at 40.80/dollar

The local currency the peso, which appreciated the past four weeks by around half a percent, closed 12.5 centavos higher on Thursday at P41.47 per dollar, boosting the likelihood that the local unit would gain more strength and end the year at about P40.80 per dollar under a foreign bank forecast.


At this level, the peso already exceeded the three-month outlook that the Manila unit of Citigroup released on Monday, when its chief economist for Asia and the Pacific said the currency should soon hit P41.50 per dollar.

Jonathan Ravelas, chief market strategist at Banco de Oro Universal Bank, said in a text message that the
market anticipates the peso to take the high road and gain even more strength as worker remittances flow more copiously in the remaining months of the year.

Money sent home by some 8 million overseas Filipinos has exceeded $11 billion in only the first half and should grow by at least 5 percent more than last year’s $22.3 billion.

Ravelas said that with the equities market index looking to hit 5,500 points, a surge in foreign buyers at the Philippine Stock Exchange should not come as a surprise.

As for the peso, he added, the exchange rate should not stray beyond P41.50 per dollar near-term.

Some traders said currencies in the region proved resilient also on Thursday no matter the impact of higher-than-anticipated jobs data in the US, which remains the largest trading partner of the Philippines.

Citi economist Johanna Chua, however, said yield-seeking foreign funds have since looked toward emerging markets like the Philippines whose growth and inflation dynamics offer the best possible returns and only minimum risk.

Also, the US Fed decision to embark on a third round of quantitative easing dubbed as QE3 adds pressure on fund managers to deploy the additional liquidity in so-called safe havens where returns are more or less guaranteed.

The problem with this is that there are few remaining safe havens that could be found anywhere at present and this was why emerging markets like the Philippines have become net recipients of foreign fund flows.

Countries not sensitive to asset- or property-price pressures should become natural targets for the yield-seeking foreign funds, Chua said.

QE3 has resulted in potentially more dollar liquidity than there are places to invest them in safely and destinations like the Philippines where inflation is benign and its fiscal sector continuing to consolidate have become attractive places for the fund managers, she added.

The peso averaged around P44.55 from 1998 up to present but has weakened past P56 per dollar at one point under the administration of then-President Joseph Estrada whose style of government partly led to his eventual ouster in 2001.-Black Pearl (October 05, 2012)