M'sia tax rate second lowest in Southeast Asia

Malaysia maintained its top rate of personal income tax at 26 per cent in 2010, which was the second lowest rate compared with five other countries in Southeast Asia, according to KPMG's annual Individual Income Tax and Social Security Rate survey.

“The rate was reduced from 28 per cent to 27 per cent in 2009 and further reduced to 26 per cent in 2010,” said the audit firm in a recent statement.

“Although it was recently announced that the tax rates affecting three chargeable income bands ranging from 2,501 ringgit (US$819.73) to 50,000 ringgit will be reduced by 1 per cent, this will have minimal impact on an eligible individual taxpayer as the tax reduction only amounts to 475 ringgit,” KPMG said.

Singapore maintained the lowest rate in the region, followed by Indonesia, Philippines, Vietnam and Thailand.

In the same statement, KPMG international executive services head Datin Pauline Tam said there could be a possibility that the 26 ringgit top tax rate in Malaysia would be reduced when the government introduced the goods and services tax.

“It will be good if the Government could give a firm commitment to its reduction as this will be very welcome to businesses and entrepreneurs. Being open for business' is not just about the corporate tax regime.

“Personal tax is a major issue for entrepreneurs, high net worth individuals and senior executives, many of whom can and do exercise considerable discretion over where they choose to locate.”

Tam however added that “headline top rates of tax don't tell the whole story.”

“For example, here in Malaysia, while the top rate of personal income tax is 26 per cent, on earnings of $100,000, a single individual's effective tax rate is 21 per cent. When comparing rates in different countries, it's important to consider the threshold at which the rate kicks in and the effect of social security taxes which may be levied.

“Indeed, the survey shows that when considering the combined effective social security and income tax rate levied on a salary of $100,000 and $300,000 respectively in a range of six countries in South-East Asia, Malaysia is lower than countries such as Indonesia, Thailand, Vietnam and the Philippines.”

The survey of personal tax and social security rates with historical data from 2003-2012, covers 114 countries and concentrates on the highest level of personal tax payable to the central government.-Asia News Network (October 22, 2012)

China to make joint effort with Vietnam to advance bilateral relations: FM

Chinese Foreign Minister Yang Jiechi (2nd R) meets with Vietnamese Deputy Prime Minister and Foreign Minister Pham Gia Khiem (2nd L) in Bali, Indonesia, July 21, 2011. (Xinhua/Chen Duo)

Chinese Foreign Minister Yang Jiechi said in Bali Thursday that China hopes to make joint effort with Vietnam to advance the bilateral relations on the right track.

China and Vietnam have established a comprehensive strategic partnership, which is worth cherishing, said Yang during a meeting with his Vietnamese counterpart Pham Gia Khiem on the sideline of the ASEAN Foreign Ministers' Meeting.

He said China attaches great importance to its relations with Vietnam and proposed the two countries maintain high-level exchanges, conduct frank exchange of views, and jointly boost China-ASEAN strategic relationship to a new height.

As to the South China Sea issue, Yang said the two sides should properly address maritime dispute through negotiations from the perspective of bilateral relations and regional stability.

He said the two countries should also actively seek solutions to avoid internationalizing and complicating the South China Sea issue.

Yang said he appreciated the agreement reached at the China- ASEAN Senior Officials' Meeting on the guidelines of implementing the Declaration on the Conduct of Parties in the South China Sea ( DOC), adding that he hopes all the parties can take practical actions to promote pragmatic maritime cooperation.

The Vietnamese foreign minister said the bilateral relations have maintained positive development in recent years and the Vietnamese side will further enhance high-level exchanges and cooperation with China.

He appreciated the help and support that China had provided and cherished the traditional relationship between Vietnam and China.

Vietnam will properly settle maritime problems with China through peaceful negotiations and strive to reach consensus with China as soon as possible, he said.

Vietnam welcomes the agreement on the guidelines of implementing the DOC, added the foreign minister.-People's Daily Online (October 22, 2012 10:27AM)

US, ROK, China, Japan to attend ASEAN Summit in Cambodia

U.S. President Barack Obama, South Korean President Lee Myung-bak, Chinese Premier Wen Jiabao and Japanese Prime Minister Yoshihiko Noda have already confirmed their participation in the 21st ASEAN Summit and related Summits here on Nov. 15-20, said Cambodia's Foreign Minister Hor Namhong on Monday.

"All heads of states and governments of the member states of the Association of Southeast Asian Nations (ASEAN), President of South Korea, President of the U.S., Chinese Premier and Japanese Prime Minister will come to join the Summit," he told reporters after a meeting with visiting Indonesian Foreign Minister Marty Natalegawa.

He said that in the meeting with Marty, both sides discussed the preparation for the 21st ASEAN Summit here next month besides talks on bilateral relation boost.

Founded in 1967, ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.-China.org.cn (October 22, 2012)

Philippines – Russia $1.6 billion bilateral trade in 2011 push greater trade, investment

Philippines and Russia are seeking new ways to expand trade and investment, officials from both sides said, considering there is much room for improving the countries' $1.6 billion bilateral trade in 2011.

Russian Ambassador Nikolay Kudashev, honorary chairman of the Philippine-Russia Business Assembly (PRBA), said in a speech at the business matching forum on the sidelines of the Manila FAME exhibition that travel, supply chain, food trade, education, and information technology were just some of the areas that could benefit from sustained bilateral meetings.

"Long awaited for the two of us are solutions for secure supply chains and establishing direct routes of communication between the Philippines and the Far East of the Russian Federation. They would not only enable Manila with the access to the riches of Russia but at the same time would equip it with alternative means of access to the markets of Central Asia and Western Europe involving Russia's transit potential," Kudashev said.

On food security, the envoy said that combining the Philippines' agricultural production and Russia's supply chain solutions as well as advanced space imaging for disaster risk management could be "mutually beneficial." Also "enchanting," he said, is the prospect of innovations from establishing linkages in education and technology.

"The recent establishment here in Manila of the regional office of the Russian NODA Software Company would prove that there is an ample space for cooperation," he said.

Consul to the Russian Federation Armi Garcia, honorary president of PRBA, said there was increased interest among Russian tourists to explore the Philippines, renewing bilateral talks on the possible expansion of an air services agreement to include direct Manila-Moscow flights.

There are presently chartered Moscow-Cebu City flights under the air deal signed in 2009.

"I am optimistic there will be increased bilateral cooperation through what I call the 'Movement 3.' It starts with tourism and culture exchange and when there is some familiarity with the Philippines and what it can offer, then comes trade development, and then investments," Garcia said.

Yevgenia Konkol, chair of the Russia-Philippine Business Council (RPBC), said there are 39 Russian enterprises cooperating with or at least in discussion with Philippine counterparts.-Rebuilding for the Better Philippines (October 22, 2012)

Vietnam PM apologizes for mismanaging economy

Vietnam's embattled prime minister has apologized to the nation for mismanaging the economy and is pledging to step up reforms.

Nguyen Tan Dung was publicly rebuked last week by the Communist Party following a meeting of its central committee. Some reports suggested that he had survived a leadership challenge.

The growth of Vietnam's once-booming economy has slowed to around 5 percent this year. It has been dragged down by debt-ridden banks and inefficient state-owned enterprises.

Dung told the national assembly on Monday he takes personal responsibility for heavy losses run up by Vinashin and Vinalines, two state-owned shipping sector companies.

He pledges that reforms aimed at cutting those and other state-owned companies down to size will speed up in 2013.

Dung predicts growth of 5.5 percent next year.-The Philippine Star (October 22, 2012 1:01PM)

In Myanmar, only sickest HIV patients get drugs

Thein Aung has been trained not to show weakness, but he's convinced no soldier is strong enough for this.

He clenches his jaw and pauses, trying to will his chin to stop quivering and his eyes not to blink. But he's like a mountain that is crumbling. His shoulders shake, then collapse inward, and he suddenly seems small in the denim Wrangler shirt that's rolled up to his elbows and hanging loosely off his skinny arms. Big tears drip from his reddened eyes, and he looks away, ashamed.

As he sits outside a crowded clinic on the outskirts of Myanmar's biggest city, he knows his body is struggling to fight HIV, tuberculosis and diabetes — but he can't help wishing he was sicker.

Although Aung is ill enough to qualify for HIV treatment in other poor countries, there's simply not enough pills to go around in Myanmar. Only the sickest of the sick are lucky enough to go home with a supply of lifesaving medicine here. The others soon learn their fate is ultimately decided by the number of infection-fighting cells found inside the blood samples they give every three months.

The World Health Organization recommends treatment start when this all-important CD4 count drops to 350.

In Myanmar, it must fall below 150.

____

Antiretroviral therapy, in the past considered a miracle only available to HIV patients in the West, is no longer scarce in many of the poorest parts of the world. Pills are cheaper and easier to access, and HIV is not the same killer that once left thousands of orphaned children in sub-Saharan Africa.But Myanmar, otherwise known as Burma, remains a special case. Kept in the dark for so many decades by its reclusive ruling junta, this country of 60 million did not reap the same international aid as other needy nations. Heavy economic sanctions levied by countries such as the United States, along with virtually nonexistent government health funding, left an empty hole for medicine and services. Today, Myanmar ranks among the world's hardest places to get HIV care, and health experts warn it will take years to prop up a broken health system hobbled by decades of neglect.

"Burma is like the work that I did in Africa in the'90s. It's 15, 20 years out of date," says Dr. Chris Beyrer, an HIV expert at Johns Hopkins University who has worked in Myanmar for years. "If you actually tried to treat AIDS, you'd have to say that everybody with every other condition is going to die unless there are more resources."

Of the estimated 240,000 people living with HIV, half are going without treatment. And some 18,000 people die from the disease every year, according to UNAIDS.

The problem worsened last year after the Global Fund to Fight AIDS, Tuberculosis and Malaria canceled a round of funding due to a lack of international donations. The money was expected to provide HIV drugs for 46,500 people.

But as Myanmar wows the world with its reforms, the U.S. and other nations are easing sanctions. The Global Fund recently urged Myanmar to apply for more assistance that would make up the shortfall and open the door for HIV drugs to reach more than 75 percent of those in need by the end of 2015. It would also fight tuberculosis, a major killer of HIV patients. TB in Myanmar is at nearly triple the global rate as multi-drug resistant forms of the disease surge.

The aid group Doctors Without Borders has tried to take up the slack by providing more than half the HIV drugs being distributed. But every day, physicians at its 23 clinics must make agonizing decisions to turn away patients like Aung, who are desperately ill but still do not qualify for medicine because their CD4 counts are too high.

"It's very difficult to see those kind of situations," says Kyaw Naing Htun, a young doctor with a K-pop hairstyle and seemingly endless energy, who manages the organization's busy clinic in Insein. He says about 100 patients who should be on drugs are turned away every month in Yangon alone. "It takes a lot more resources when they come back sicker. It's a lose-lose game."

____

Aung first learned about the virus living inside him in April. He had dropped weight and wasn't sleeping well, but figured it was the TB and diabetes running him down.

When the test came back positive for HIV, he was shocked and scared: How? Why?

"I wanted to commit suicide when I found out the results," he says softly, looking away. "What upset me most was my wife. She says I shouldn't die now because we have children."

The questions swarmed and consumed him, followed by a flood of worry and guilt that he had possibly infected his spouse. Then the bigger concern: What's next?

Unlike many living in a country closed off to the world for the past half century of military rule, Aung, an Army staff sergeant, had some firsthand knowledge about HIV.

He had watched the disease rot one soldier from the inside out, punishing him with a cruel death. But he also saw another get on treatment and live a normal life, despite the military kicking him out.

With the images of those two men locked in his head, Aung decided to fight to save himself and ultimately his family. No one but his wife could know, or he would lose his job and their home on the military base because of the deep fear and discrimination surrounding the disease. Drugs were his only chance to keep the secret.

"If I get the medicine, and I can stay in this life longer, I will serve the country more and my family will not be broken," he says. "My family is invaluable."

At the clinic in Insein, an area of Yangon better known for a notorious prison, Aung, who is using another name to protect his identity, waited nervously for the results of his first blood test.

CD4 count: 460. Low enough for drugs in the U.S., but well above the 150 cutoff in Myanmar. He was given TB meds and told to come back in three months.

____

Many of the 200 people crammed into the two small buildings of an HIV center just outside Yangon are simply waiting to die.

Beloved opposition leader Aung San Suu Kyi visited patients there in November 2010, just days after being freed from house arrest, appealing to the world for more medicine. She also spoke passionately in July about the stigma of HIV via a video link to the International AIDS conference in Washington, saying, "Our people need to understand what HIV really is. We need to understand this is not something that we need to be afraid of."

There are no doctors or nurses stationed at the hospice supported by Suu Kyi's National League for Democracy party, forcing patients to care for each other. One man hangs a drip bag on a plastic string from the ceiling over an emaciated body. Other caregivers — many of whom are also infected — wave paper fans beside their loved ones for hours, providing the only relief they can offer.

Infected children whose parents have already passed away play barefoot in the stuffy, crowded rooms. Bodies, some nothing more than breathing corpses, are stacked side by side on bamboo slats above dirt floors.

Another room is packed with 20 women stretched out on straw mats crisscrossing the wooden floor. A young mother sobs in one corner as she breast-feeds a 7-day-old baby girl. She did not take HIV drugs until late in her pregnancy, and now must wait up to 18 months to know for sure whether her only child is infected.

"The funding is limited for the enormous number of patients," says newly elected parliament member Phyu Phyu Thin, who founded the center in 2002 and was jailed by the former government for her HIV work. "Waiting to get the medicine under the limits is too risky for many patients because they can only get it when their health is deteriorating."

____

Aung looks the part of a soldier with his shaved head and wiry build. He spent the first decade of his 27 years in the military fighting in domestic ethnic wars, away from his wife and two children.

It's this past life that devours him each night when sleep refuses to come. He served as a medic then, and regularly came into contact with the blood of wounded soldiers. He also had sex with other women. The question that haunts him most is, which one is to blame? He'll never know.

He takes sleeping pills every night to be released from these thoughts. But relief does not come, as chills and night sweats drench his body and the constant urge to urinate keeps him running to the toilet.

He's lost 10 pounds in the past month, dropping from 130 pounds to 120. His cheeks are starting to sink, and his eyes look hollow. His strength is also fading, and he can no longer lead grueling daily runs with the trainees. He uses his TB as an excuse, but he fears his superiors will not be fooled much longer.

"I try to hide it as much as I can, but some people have started rumors about me, so I try not to face them directly," he says. "I want to be strong like the other people. I'm trying, but now my body cannot follow my mind."

His wife refuses to be tested until Aung gets on the drugs. She worries that if she comes back positive, her guilt-ravaged husband will kill himself.

"She doesn't want me to be depressed," he says. "If she is positive, I will be very, very depressed."

The disease has forced him to rethink who he is. He's killed people in combat, cheated on his wife and witnessed many horrors in his lifetime. But he wants a chance to make up for his wrongs.

As a Buddhist, he believes his disease is a punishment for misdeeds in a previous life. He vows to be a better man by helping others and giving what little he has to charity.

He says sicker patients deserve treatment first. Still, as he sits waiting for his second blood test, he can't help wishing his immune system was weak enough to help him reach the magic number.

But when the doctor reads his results, he knows he will leave empty-handed again.

CD4 count: 289. Still too high.

His only choice is to try again in three months, hoping he'll be sick enough then.-The Philippine Star (October 21, 2012 12:00PM)

Canada blocks Malaysia' s Petronas energy takeover deal

Canada has blocked a $5.2-billion bid by Malaysia's state-owned oil giant Petronas to take over Calgary-based Progress Energy Resources Corp.

In a statement issued late Friday night, Industry Minister Christian Paradis said the proposed takeover did not meet Canada's "net benefit test".

"I can confirm that I have sent a notice letter to Petronas indicating that I am not satisfied that the proposed investment is likely to be of net benefit to Canada," Paradis said.

The minister did not explain his decision, saying only that it was made after "a careful and thorough review of the proposed transaction."

"Due to the strict confidentiality provisions of the (Investment Canada) Act, I cannot comment further on this investment at this time," he added.

Under the terms of the Investment Canada Act, Petronas now has up to 30 days to make any changes to the proposed deal and send it back to Ottawa for another review.

Even as the Canadian government rejected the takeover, it painted itself as a friend of outside investors.

Paradis said his government has a "long-standing reputation for welcoming foreign investment" and "remains committed to maintaining an open climate for investment".

Progress Energy chief executive Michael Culbert said Petronas will appeal the decision, according to Bloomberg.

"We' re very surprised by the decision," Culbert said. "We believe that the transaction is of net benefit to Canada and Progress will be continuing to work with the federal government to prove that point."

Progress Energy Resources Corp. is a natural gas weighted exploration and production company based in Calgary, Alberta in Western Canada.

The company's assets are concentrated in the Foothills of northeast British Columbia and the Deep Basin of northwest Alberta where it has built an enviable land, reserves and production base.

Canada is grappling with concerns that approval of the deals could spark a flurry of takeovers of energy companies. The country is home to the world's third-largest proven oil reserves, most of them in the western province of Alberta.

Canada last blocked a foreign takeover in 2010, when it stunned markets by rejecting BHP Billiton's Canadian $39 billion bid for Potash Corp, the world's largest fertilizer maker.

BHP also had a 30-day period to come back with additional undertakings but withdrew its offer, sensing the bid was unlikely to be approved in the face of political opposition.-The Philippine Star (October 21, 2012 1:00PM)

US USS George Washington Aircraft supercarrier Arrive Vietnam, Philippines

US shows its maritime resolve in disputed West Philippine Sea (South China Sea)

US USS George Washington Aircraft Carrier arrived Vietnam Saturday and will depart and scheduled to Arrive Manila this Wednesday October 24, 2012

America sent a nuclear-powered aircraft carrier on a cruise through the West Philippine Sea (South China Sea),  on Saturday, projecting its power in waters that are fast becoming a focal point of its strategic rivalry with Beijing.

The USS George Washington's mission could raise hackles in China, which is locked in disputes with Vietnam, the Philippines and other governments over ownership of islands in the region.

It will likely reassure the jittery smaller nations of Washington's support in their tussles with China, whose growing economic and military might is leading to a greater assertiveness in pressing its claims in the West Philippine Sea (South China Sea). The United States is building closer economic and military alliances with Vietnam and other nations in the region as part of a "pivot" away from the Middle East to Asia.

China is also locked in an unexpectedly fierce dispute with American ally Japan over the ownership of islands in the nearby East China Sea. On Friday, Beijing staged military exercises near the islands to demonstrate its ability to enforce its claims.

China claims nearly all of the West Philippine Sea (South China Sea), where the U.S. says it has a national interest in ensuring freedom of navigation in an area crossed by vital shipping lanes. Vietnam, the Philippines and several other Asian nations also claim parts of the sea.

The U.S. Navy regularly patrols the Asia-Pacific region, and the trip by the George Washington off the coast of Vietnam is its second in two years.

A second aircraft carrier, the USS John C. Stennis, is also conducting operations in the western Pacific region, according to the U.S. Pacific Fleet.

"China will take this as another expression by the United States of its desire to maintain regional domination," said Denny Roy, a senior fellow at the East-West Center in Hawaii. "The U.S also wants to send a message to the region that it is here for the long haul .... and that it wants to back up international law."

Vietnam is pleased to accept help from its one-time foe America as a hedge against its giant neighbor China. It has reacted angrily to recent moves by Beijing to establish a garrison on one of the Paracel islands, which Vietnam also claims. The United States also criticized the move by Beijing.

"Vietnam requests China to respect the sovereignty of Vietnam and refrain from taking any other similar wrongdoings," the Foreign Ministry said this month.

While most analysts believe military confrontation in the waters is highly unlikely, they say tensions are likely to increase as China continues pressing its claims and building its navy.

US Navy super carrier to visit Manila

US USS George Washington Aircraft Carrier US Navy's largest aircraft carriers is scheduled to arrive in Manila Wednesday Oct 24 2012.

In a press statement, the US Embassy in Manila said the nuclear-powered USS George Washington will visit the Philippines on October 24, Wednesday, "for a goodwill visit that will further enhance the strong historic ties between the United States and the Republic of the Philippines."

It said the U.S. and Philippine Navy counterparts will conduct community relations projects and professional exchanges.

The American nuclear-powered super carrier is the fourth United States Navy ship to be named after George Washington, the first President of the United States.

Commissioned on July 4, 1992, the aircraft carrier can accommodate approximately 80 aircraft, around 6,250 crew members, and with a flight deck of 4.5 acres (18,000 m²) in size.

The US aircraft carrier will be welcomed by the Philippine Navy and will be escorted to another point in Manila Bay. With a report from Philippine Information Agency.-Rebuilding for the Philippines (October 20, 2012)

Philippines, Australia Hold 5 Days LUMBAS Maritime Exercise

The Philippine Coast Guard (PCG) is gearing up for a five-day LUMBAS maritime training exercise with the Philippine Navy and the Royal Australian Navy that begins tomorrow, Oct. 22.

Members of the PCG-Special Operations Group (SOG) as well as the Coast Guard's search and rescue vessel BRP Pampanga and helicopter will be deployed to the joint maritime exercise.

Coast Guard spokesman Commander Armand Balilo, said the SOG personnel are scheduled to participate in the joint training to improve their knowledge, skills and tactics in maritime operations.

The main objective of this year's LUMBAS exercise is to provide training on selected personnel of PCG, Filipino and Australian sailors on vessel boarding, border protection, gas and oil security, and law enforcement.

Balilo said the PCG personnel will be interacting with their foreign counterparts to further hone their interoperability skills.

"Interoperability starts from the grassroot level and through the nurturing of friendly relations with training participants," he said.

Balilo emphasized that the maritime joint exercise will allow PCG personnel to have the opportunity to know their counterparts better and establish a good working relationship.

During the LUMBAS, participants will be able to undergo lectures and harbor training to be held in the headquarters of PCG and Philippine Navy in Manila, while the vessel boarding would be conducted in the Manila Bay.

The PCG is regarded as one of the most challenged coast guards in the world. The Philippines has the fourth longest coastline in the world, next to Indonesia, Russia and Canada.

Because of this, the Coast Guard carries many responsibilities on its shoulders that require extensive training.

Apart from LUMBAS, there are members of PCG-SOG being trained to detect weapons of mass destruction under the United States maritime law enforcement course.

On its second week, they are taking up the advance boarding course as well as exercise on radio encryption using the recently donated encrypted radio by the US Export Control and Boarder Security (EXB).

The US Regional EXB handles all the programs and training, which are being given to their Filipino counterparts.-Rebuilding for the Better Philippines (October 20, 2012)

Southeast Asian leaders pay last respects to Cambodian king

Singapore Prime Minister Lee Hsien Loong and Philippine Lower House Speaker Feliciano Belmonte will be visiting the Royal Palace tomorrow to pay tribute to the late King Father of Cambodia.

The Ministry of Foreign Affairs and International Cooperation said Lee and his wife would pay their respects at 11:00 on Sunday morning while Belmonte would visit 30 minutes later.

The ministry said that Indonesian Foreign Minister Marty Natalegawa also plans to fly to Cambodia and visit the palace at 15:00 on Monday afternoon.

Lee will also meet with Prime Minister Hun Sen after visiting the palace while Natalegawa is scheduled to meet Foreign Minister Hor Namhong, the ministry said.

Vietnamese Prime Minister Nguyen Tan Dung, Lao Prime Minister Thongsing Thammavong, and Thai Prime Minister Yingluck Shinawatra were the first foreign leaders to visit the palace to pay their respects. They also met separately with Hun Sen.

Chinese President Hu Jintao and Premier Wen Jiabao paid tribute to former king Norodom Sihanouk at a ceremony in Beijing Wednesday before the body was flown back to Cambodia.

Sihanouk died in Beijing Monday at the age of 89.-Asia News Network (October 20, 2012)

Indonesia imports rice despite sufficient supply

The Indonesian government has said that the national rice stock is enough to cover the nation’s needs for the next seven months.

“As of now, our national rice stock stands at 2.1 million tonnes and this is enough for 7.7 months. This is quite an adequate stock rate,” Coordinating Economic Minister Hatta Rajasa told reporters after a meeting with the State Logistics Agency (Bulog) at his office in Jakarta yesterday.

Regardless of the adequate national rice stock, Agriculture Minister Suswono said that the government would still import a maximum volume of 1 million tonnes of rice this year.

Suswono said the import was needed to fill the target of 2 million tonnes held in the Bulog’s rice reserve by the end of the year.

“Bulog’s rice reserve stock is estimated to stand at around 1 million tonnes by the end of this year...This means the government will need to make up the deficit with imports,” Suswono said.

Suswono said that the permission to import 1 million tonnes of rice had been issued by the Trade Ministry. However, it was likely that the government would only import 700,000 tonnes to cover rice reserve requirements.

Hatta stressed that Bulog needed to maximise its rice procurement from local farmers before the government moved on import plans.

“The main issue is not whether we have enough stock but rather how to strengthen our reserves. We want a strong reserve to prevent speculation and price fixing,” Hatta said.

The government had predicted that Indonesia’s total rice production might stand at 38 million tonnes this year, while consumption would reach 34 million tonnes. This means that the country would be able to book 4 million tonnes in rice surplus.

Deputy Agriculture Minister Rusman Heriawan said that in order to achieve food security, Indonesia would need 10 million tonnes of rice surplus annually.

Indonesia was self-sufficient in 2008 and 2009, however, it started to import rice to maintain its reserves in 2010 after a failure in harvest expectations.

Shrinking farmland areas and lower productivity have been regarded as the main factors that determine the country’s dependence on imports.

Hatta said that in order to alleviate a potential food crisis, the government had also allocated 2 trillion rupiah (US$104 million) to emergency food funds.

“[A total of] 1.4 trillion rupiah has been allocated for the agriculture ministry and 600 billion rupiah for food security credit programmes [KKP],” Hatta said.

Hatta added that the utilisation of emergency funds would be determined by the finance ministry with the coordinating ministry for the economy determining the criteria of a food emergency crisis.

Indonesia has signed agreements with Thailand, Vietnam and Cambodia to import rice should the country need it.

Rice imports have been a thorny issue between the government and some law makers at the House of Representatives.

The House has passed, on Thursday, a revision to the 1996 Food Law, which was aimed at strengthening food production in the country and moves food import to a last resort measure.

The law authorises the establishment of a new agency whose main mission would be to ensure food security.

A number of lawmakers recommended that this new agency should be at ministerial level.-Asia News Network (October 20, 2012)

Thailand-Vietnam business council on the cards

A joint Thailand-Vietnam business council will be proposed during a bilateral Cabinet meeting to be held in Hanoi on October 27.

Government spokeswoman Sansanee Nakpong said yesterday that the goal of this cooperative initiative would be to increase the value of trade between the two countries by 20 per cent annually from now through 2015.

Co-chaired by the prime ministers of the two countries, the council would consider how to tighten the partnerships and transport connections between Thailand and Vietnam. As there are already transport agreements between Asean and China, the arrangements struck by the Thailand-Vietnam council would need support from all parties.

The council would also hold separate meetings on the economy, security, tourism, education and culture.

On economic issues, Thailand wants to see the value of bilateral trade rise by 20 per cent yearly from US$9.08 billion (279 billion baht) seen in 2011, which was up by 25.47 per cent from 2010. Of the total, Thailand's exports to Vietnam were valued at $7.05 billion last year.

Sansanee said Thailand also wanted to see more solid regional cooperation on rice trading, particularly with the support of Vietnam. Such cooperation would strengthen regional rice exports and benefit all Asean countries participating in that trade.

Thailand will also propose that Vietnam support the establishment of an Asean federation of rice millers and traders.

In addition, the economic cooperation will focus on ways to bolster trade, investment and tourism through the East-West Economic Corridor.

On social and cultural issues, the focus will be on exchange programmes.

Thailand and Vietnam will also explore ways to solve cross-border criminal problems, including drug and human trafficking, through military cooperation. Vietnam said it would attempt to deal with the issue of illegal fishing in Thailand's waters as well as illegal labour migration.

The two countries also inked three memoranda of understanding. These were a joint statement between the foreign ministers; an MoU on the Thailand-Vietnam security outlook between Deputy Prime Minister Chalerm Yoobamrung and the defence minister of Vietnam; and one on the proposed Thailand-Vietnam business council between the Federation of Thai Industries and the Thai Chamber of Commerce and their counterparts in Vietnam.-Asia News Network (October 20, 2012)

US invites Burma to military drills with Thailand

The US has invited Burma to observe a major military exercise in Thailand, officials say, in what is seen as a sign of improving relations.

Burma has yet to respond to the offer to attend the Cobra Gold exercise next year, which brings together US and Thai troops and observers from across Asia.

The US had stopped all co-operation with the Burmese military in the 1990s over its human rights record.

But it has begun lifting sanctions in response to Burma's series of reforms.

Thai and Burmese officials confirmed the invitation to the annual Cobra Gold exercise with BBC Burmese.

Thai Defence Ministry spokesman, Col Thanathip Sawangsang, said that Burma "is on the list of observers but it's not finalised yet".

A spokesman from the office of the Burmese president also confirmed the invitation, but said that they have yet to send an official response.

After decades of military rule, Burma has witnessed a series of political and social reforms since the military-backed civilian government came to power two years ago.

These include freeing hundreds of prisoners - political detainees among them - and introducing more press freedom.

Washington has been easing sanctions against Burma, including a recent decision to end economic sanctions.

But renewing ties with the Burmese armed forces is a far more delicate issue for the US, analysts say.

US officials are now openly talking of re-establishing co-operation with the Burmese military, says the BBC's South East Asia correspondent Jonathan Head.

This would challenge the predominant influence China has enjoyed for the past two decades in Burma, which has given its armed forces access to ports and monitoring posts on the Indian Ocean, our correspondent adds.

Cobra Gold, which began in 1980, is conducted in Chon Buri province, east of Thailand's capital, Bangkok.-British Broadcasting Corporation (October 19, 2012 13:20GMT)

US aircraft carrier cruises disputed Asian seas

America sent a nuclear-powered aircraft carrier on a cruise through the West Philippine Sea (South China Sea) on Saturday, projecting its power in waters that are fast becoming a focal point of its strategic rivalry with Beijing.

The USS George Washington’s mission could raise hackles in China, which is locked in disputes with the Philippines, Vietnam and other governments over ownership of islands in the region.

It will likely reassure the jittery smaller nations of Washington’s support in their tussles with China, whose growing economic and military might is leading to a greater assertiveness in pressing its claims in the West Philippine Sea. The United States is building closer economic and military alliances with Vietnam and other nations in the region as part of a “pivot” away from the Middle East to Asia.

China is also locked in an unexpectedly fierce dispute with American ally Japan over the ownership of islands in the nearby East China Sea. On Friday, Beijing staged military exercises near the islands to demonstrate its ability to enforce its claims.

China claims nearly all of the West Philippine Sea, where the US says it has a national interest in ensuring freedom of navigation in an area crossed by vital shipping lanes. Vietnam, the Philippines and several other Asian nations also claim parts of the sea.

The US Navy regularly patrols the Asia-Pacific region, and the trip by the George Washington off the coast of Vietnam is its second in two years.

A second aircraft carrier, the USS John C. Stennis, is also conducting operations in the western Pacific region, according to the US Pacific Fleet.

“China will take this as another expression by the United States of its desire to maintain regional domination,” said Denny Roy, a senior fellow at the East-West Center in Hawaii. “The US also wants to send a message to the region that it is here for the long haul …. and that it wants to back up international law.”

Vietnam is pleased to accept help from its one-time foe America as a hedge against its giant neighbor China. It has reacted angrily to recent moves by Beijing to establish a garrison on one of the Paracel islands, which Vietnam also claims. The United States also criticized the move by Beijing.

“Vietnam requests China to respect the sovereignty of Vietnam and refrain from taking any other similar wrongdoings,” the Foreign Ministry said this month.

While most analysts believe military confrontation in the waters is highly unlikely, they say tensions are likely to increase as China continues pressing its claims and building its navy.-Philippine Daily Inquirer (October 20, 2012 3:21PM)

WORLDS NEWS: Japan's patrol boats chase Chinese ships off disputed islands

Five Chinese government ships were seen sailing close to Tokyo-controlled islands in the East China Sea Saturday, prodding Japanese patrol boats to chase them away from the disputed chain.

It was the first time in 10 days that state-owned Chinese ships were spotted near the islands as bad weather had prevailed due to a powerful typhoon passing through.

Japan's coastguard said its patrol boats were warning the Chinese vessels "not to violate territorial waters" and keeping them under surveillance off the island chain, known as Senkaku in Japan and Diaoyu in China.

Despite the warnings, one of the surveillance ships responded by radio in Chinese, "This ocean area is integral part of China and we are carrying out legitimate operations," according to a coastguard official.

Such vessels have been spotted loitering in waters off the islands as the dispute has escalated over the last two months, with boats at times entering a 12-nautical mile territorial zone.

Tensions peaked in mid-September after Tokyo nationalized a number of the islands.

The coastguard said it had spotted four Chinese maritime surveillance vessels sailing 24 to 35 kilometers off Uotsurijima -- the largest island in the chain -- in the morning.

It added that a Chinese fisheries patrol boat was also spotted about 42 kilometers off another island, Kubajima.

The five ships were located within the so-called 44-kilometre "contiguous zone" where the coastal state may exercise the controls necessary to prevent and punish infringement of its customs, fiscal, immigration or sanitary laws and regulations within its territory or territorial sea.-GMA News (October 20, 2012 4:00PM)

PHL, France ink pacts on energy, culture

The Philippines and France on Friday signed agreements to cooperate on energy production and culture, as both countries committed to beef up their bilateral ties.

President Benigno Aquino III and French Prime Minister Jean-Marc Ayrault witnessed the signing of the two agreements, Malacañang said on Saturday.

Aquino cited the agreements as “affirmation of how we value the development of a more dynamic and robust partnership between our two nations.”

“This is a partnership that enjoys firm foundations,” he said.

A Declaration of Intent between the Philippine and French governments for a Study for energy production from biomass was signed by French foreign trade minister Nicole Bricq and Foreign Affairs Secretary Albert del Rosario.

The second agreement involved the Philippine Exhibition at the Musee Du Quai Branly in Paris.

"Under the Declaration of Intent, the French Government will extend a grant amounting to 372,272 euros to fund a feasibility study on rice straw as fuel to generate electricity using Organic Rankine Cycle (ORC) technology; while in the Agreement, the Philippines was chosen to be the featured country in a Grand Exhibition to showcase 300+ artifacts on pre-colonial Philippines," the Palace said in a statement.

Ayrault said his visit was “a good time to improve trust and confidence” between the two countries.

“(T)his is a good time to improve trust and confidence by investors because we do want to restore healthy exchanges both economically speaking and in terms of trade, and we would like a healthy balance of trade between our two countries,” he said.

PNoy thanks France for role in PHL devt

Meanwhile, Aquino thanked France for playing an important role in the Philippines' development.

He cited France’s Official Development Assistance mechanism.

“France has remained a partner in upholding democracy and pursuing development. I thanked the Prime Minister for the continued contribution of France to achieving our development priorities through the Official Development Assistance mechanism, particularly in the areas of Climate Change, Sustainable Urban Development, and Capacity-building Projects for Local Government Units,” Aquino said.

He added Ayrault’s visit highlighted the interest of French businesses of the country's “efforts at reform and the positive economic developments” as both leaders committed to “accelerate the pace of our economic cooperation.”

“The Prime Minister and I agreed to accelerate the pace of our economic cooperation. Part of achieving this goal is easing the barriers that impede the growth of two-way trade and investment,” Aquino added.

For his part, Ayrault lauded the strength of Aquino and the Filipino people to rise above seemingly insurmountable odds, saying this trait was shared by the people of France.

“I would also like to pay tribute to your people, Mr. President, and I would like to pay tribute to the strength of the people and to your own personal struggle for liberty, for freedom, for democracy,” Ayrault said.-Black Peark (October 20, 2012 2:37PM)

PH donates P8.2-M to China

Despite a simmering territorial row in the South China Sea, the Philippine government is donating US$200,000 (over P8.2 million) to the Chinese government after recent earthquakes hit China’s southwestern provinces of Yunnan and Guizhou.

A Department of Foreign Affairs (DFA) statement said the donation is "a gesture of support and friendship" to the people of China.

The ceremonial handover of the donation was held during the courtesy call of Chinese Vice Foreign Minister Fu Ying on Foreign Affairs Secretary Albert F. del Rosario on Friday, October 19.

On September 7, two major earthquakes measuring 5.6 and 5.7 and several aftershocks hit Yunnan and Guizhou Provinces in southwestern China, causing the death of 80 and injuring more than 800 others.

Thousands of people were evacuated and were in need of relocation. Direct economic losses from the tremors were estimated at more than half a billion dollars, as reported by China’s state media Xinhua.-Black Pearl (October 19, 2012 9:00PM)

Phl, China to hunt down criminals together

The Philippines and China on Friday formally sealed a pact for that enhanced the two countries' cooperation in law enforcement and criminal prosecution.

In a statement, the Department of Foreign Affairs (DFA) reported that both countries will start exchanging criminal records, sharing information on criminal cases and jointly locating suspects, leads and witnesses in the investigation of crimes by November this year under the Mutual Legal Assistance Treaty.

The pact, whose instruments of ratification were exchanged at the 18th Foreign Ministry Consultations between Manila and Beijing on Friday, will allow the country to engage in transnational criminal cases beyond its physical and legal borders, DFA said.

Foreign Affairs assistant secretary Irene Susan Natividad handed Chinese Ambassador to the Philippines Ma Keqing the documents to signal the full acceptance of the agreement.

The Philippines ratified the treaty last May while China ratified it in 2001, following the signing of the agreement in October 2000.  The ceremonial exchange of instruments of ratification in bilateral treaties is considered exceptional, as the act is commonly done only by notifying the agreeing party that internal conditions already allow the full enforcement of a treaty.-The Philippine Star (October 19, 2012 2:43PM)

WORLD NEWS: China flexes muscles with drills amid island row with Japan

China was set to dispatch naval vessels and aircraft to the East China Sea on Friday, flexing its muscles in exercises likely to further stoke a bristling territorial dispute with Japan.

A fleet of 11 vessels, including some warships, along with eight aircraft were to be sent to waters off its east coast, China has said, in Beijing's most confrontational act yet in a row that has chilled ties between the regional heavyweights.

The one-day exercises were announced late Thursday in a dispatch by official Xinhua news agency that China's defense ministry also posted on its own website.

The drill is aimed at improving China's preparedness to "safeguard territorial sovereignty and maritime interests," according to a statement from the East China Sea fleet, cited by Xinhua.

The defense ministry has made no direct comment on the wargames yet, and it was not immediately clear whether they had begun or exactly where they would take place.

The exercises would mark the latest provocative move in the dispute over the tiny Japan-controlled islets known as the Diaoyu chain in China and the Senkaku islands in Japan.

Tensions in the long-running territorial dispute have soared since the Japanese government's move last month to formally nationalise the islands, which triggered anti-Japan protests across China and hit the sales of Japanese-manufactured products.

China has since then taken a number of steps seen as snubbing Tokyo, including refusing to send top officials to a global economic conference in Japan this month.

China has previously sent maritime surveillance ships and fisheries patrol vessels to waters near the islands as the row has escalated.

On Wednesday, a Chinese naval flotilla passed near separate islands that are internationally recognized as Japanese.

Friday's exercise will include vessels from the marine surveillance agency and fishery administration, according to the Chinese reports, which did not give a detailed breakdown on the vessels.

Japanese Chief Cabinet Secretary Osamu Fujimura told reporters that Tokyo had few details on the drills.

"We decline to comment on the drill, but we will continue monitoring various Chinese moves," he said.

Chinese citizens staged massive demonstrations across the country last month, forcing some Japanese firms to suspend or reduce operations, and a number of official and cultural events held in both China and Japan have been aborted.

Reports this week said Japan and the United States were considering holding a joint military drill to simulate retaking a remote island from foreign forces.

The exercise, part of broader joint exercises to start in early November, would use an uninhabited island in Okinawa, Japanese media reports said, quoting unidentified sources.-GMA News (October 19, 2012 12:09PM)

S&P: Recommend Investors switch away from Indonesia in favor of the Philippines! Why?

Both Indonesia and the Philippines have some weaknesses to overcome before they break into the investment-grade rating category but are making steady progress, Standard & Poor's Ratings Services said in a report.

"The positive outlook on Indonesia recognizes ongoing improvement in the government's balance sheet and the country's income metrics. A modest improvement in the country's political and policy dynamics, combined with Indonesia's other credit attributes, could lead to an upgrade," credit analyst Agost Benard said on Thursday.

The stable outlook on the Philippines indicates that risks to the ratings are balanced, S&P said.

"The Philippines has narrowed its fiscal deficits, lessened its reliance on foreign savings, and rationalized the public sector. A more conducive political setting has replaced the turbulent and obstructionist environment that prevailed for well over a decade."

Indonesia faces key rating constraints due to the perception that reforms have stalled due to a lack of policy initiatives. The abandonment of a planned electricity tariff rise, inability to cut fuel subsidies and a rising trade deficit has added to this view, it said.

A positive outlook on the Indonesia rating suggests at least a one-in-three chance of an upgrade, S&P said, adding there is more upward than downward pressure on the rating.

At 11.41 a.m (0441 GMT) the Indonesian index was up 0.32 percent, while the Philippines index was up 0.06 percent

STOCKS NEWS INDONESIA

StanChart cuts stocks outlook to 'underweight' Standard Chartered Equity Research lowered its outlook on the Indonesian equity market to 'underweight' from 'neutral' citing concerns over lower corporate margins as food prices rise and commodity prices remain under pressure.

"We forecast this trend to continue and recommend investors switch away from Indonesia in favor of the Philippines, which we believe is only halfway through the same four-year re-rating process that Indonesia experienced between 2006 and 2010," analysts Clive McDonnell and Benjamin Wong said in a note on Thursday.

Investors have been steadily decreasing exposure to the Indonesian market as they look to reallocate to markets with lower valuation risk as recovery expectations revive in Asia, the research unit said.

Standard Chartered also cut its Jakarta Composite Index 12-month target to 4,400 from 4,500. At 10.55 a.m (0355 GMT) the Indonesian index was up 0.28 percent, while the Philippines index was up 0.11 percent.-Rebuilding for the Better Philippines (October 18, 2012)