Thursday, October 25, 2012

Indonesia under fire over death-row convicts in Malaysia


An Indonesian non-governmental organisation stated yesterday that the government had not provided legal aid for two brothers on death row for murder in neighbouring Malaysia.

Migrant Care executive director Anis Hidayah confirmed that the two Indonesians, who were found guilty of murdering an ethnic Indian burglar who broke into their lodgings, were represented by lawyers hired by their employer, not by the Indonesian Embassy in Kuala Lumpur or the Indonesian Task Force for Troubled Migrant Workers, as had been claimed.

"We are very disappointed with the Indonesian government, which has done nothing to protect the two Indonesian citizens. If they had proper representation, they would not be facing harsh punishment," Hidayah, who was visiting the two convicts at Kajang Prison in Selangor, Malaysia, told The Jakarta Post by telephone yesterday.

Migrant Care focuses on providing legal advocacy for migrant workers.

Manpower and Transmigration Ministry spokesman Suhartono said in Jakarta that the government had provided maximum legal aid to the two convicts even though they had entered and worked in Malaysia illegally.

"The government has given maximum legal aid to the two Indonesian citizens," Suhartono said.

He declined to identify the lawyers supposedly hired by the Indonesian Embassy to represent the two defendants during their trial at the Shah Alam Higher Court in Selangor.

Frans Hiu, 22, and Dharry Frully, 20, from East Kalimantan, were sentenced to death on October 18, after they were found guilty of murdering Kharti Raja on Dec. 3, 2010.

The murder happened when the two and a Malaysian co-worker were awakened from their sleep by the presence of Raja in their lodgings.

He had failed to gain entry through the back door and instead attempted to enter the shop-house through the ceiling, but startled them awake when he fell through it.

The two brothers tied Raja up and dragged him outside and waited for the Malaysian police to arrive. They said the burglar was under the influence of drugs or alcohol and they were therefore able to apprehend him easily.

Hiu told the court that he and his brother did not kill Raja.

Hiu said further that the burglar was dying when they dragged him out of the premises.

However, the indictment stated that the two killed the victim through blunt force trauma.

Hidayah called on the Indonesian government to hire a professional lawyer to appeal to the Supreme Court or apply for amnesty from the Malaysian king to save the brothers from the death sentence.

Their father Bong Jit Min, 55, met with House of Representatives Commission IX on labour and health affairs yesterday to ask for the House's help to save his sons from the gallows.

Rieke Diah Pitaloka, a member of the House commission, said her commission had coordinated with the Foreign Ministry to provide legal advocacy to the two migrant workers.-Asia News Network (October 25, 2012)

Singapore Airlines to end world's longest flights


The world's longest commercial flight — Singapore to Newark, N.J. — is being cancelled.

Singapore Airlines announced yesterday that it will end its nonstop flight between Singapore and Newark, a distance of about 9,500 miles. A slightly shorter route between Singapore and Los Angeles will also end. The two routes were flown on gas-guzzling Airbus A340-500s.

The airline found the only way to make the routes profitable was by configuring the plane with 98 business class seats that sell for about $8,000 roundtrip. Other airlines operate the same plane with about 250 seats in first, business and economy classes.

The flight from Newark, right outside New York, to Singapore takes about 18 hours. The trip from Los Angeles is about 1,500 miles shorter but takes 18 hours and 30 minutes.

Headwinds over the Pacific Ocean slow the Los Angeles flight while the Newark flight goes over the North Pole and can fly faster. The Newark flight is the longest distance flight in the world and the Los Angeles one holds the record for duration. The flights started in 2004.

The new titles for longest flights will go to a Qantas route between Sydney and Dallas — which at about 8,500 miles is the longest route — and a Delta flight between Johannesburg and Atlanta, which at 17 hours will hold the title of longest duration.

Singapore Airlines is selling its five A340-500s back to Airbus as part of a deal announced yesterday. Singapore is ordering five more Airbus A380s and another 20 A350s. The planes have a list price of $7.5 billion but airlines often negotiate steep discounts for large orders. Deliveries are due to begin in 2017.

Singapore currently operates 19 A380-800 superjumbos. It already had firm orders in place for 20 A350s, for delivery starting in 2015.

The A340s currently used on the world's longest flights will be retired by the end of 2013. Singapore will continue to serve New York on its existing A380 route which connects in Frankfurt. Los Angeles has existing A380 service via Tokyo, which will also continue.-The Philippine Star (October 25, 2012 5:26AM)

The search for the ASEAN 'Ultimate Football Fan' is on





Southeast Asian football fans have a passion for the game that is like nowhere else in the world.

They bring a vibrancy and intensity to the sport that alights the senses and makes the AFF Suzuki Cup such an incredible tournament where the Philippine Azkals are looking to surpass their semifinals stint two years ago.

With just a month to go before AFF Suzuki Cup 2012 kicks off, fans are being given the chance to show their passion and be in with a chance to win the Ultimate AFF Suzuki Cup prize pack including a Suzuki Nex motorcycle, Samsung Galaxy S3 Mobile Phone, Toshiba tablets, Nike products and Nikon cameras!

It’s easy to enter with fans simply having to “like” the official AFF Suzuki Cup Facebook page (www.facebook.com/affsuzukicup) and upload a photo showing why they should be voted as ASEAN’s Ultimate Fan!

Sharing is key as it will be other fans who vote for the eventual winner so entrants will need to rally their friends to show they truly deserve the title and the spoils that go with it.

“Following a record breaking event in 2010, we wanted to reward fans for the unwavering support of their national teams. What better way to do that than through a search for ASEAN’s Ultimate Fan,” said Ian Mathie, Senior Vice-President, Football – South Asia, Asean and Australia. “We have seen outstanding growth across our digital platforms and this promotion will continue to develop this area and further position the AFF Suzuki Cup at the forefront of the development of ASEAN football”.

The 2012 AFF Suzuki Cup will be held from November 24th to December 22nd with group stage matches in Malaysia and Thailand. The semi-finals and final matches will be played on a home and away basis.-The Philippine Star (October 25, 2012 2:30PM)

Philippines is the best place in Asia for Women dreaming power and Gender Equality: WEF




Philippines is Asia's best in closing gender gaps

GENEVA -- (AFP) - Women are closing the gender gap with men in health and education but struggle to get top jobs and salaries, data from a study of 135 countries showed on Wednesday (October 24, 2012).




Top 10 Global Gender Equality Ranking


  1. Iceland (1st)
  2. Finland (2nd)
  3. Norway (3rd)
  4. Sweden (4th)
  5. Ireland (5ft)
  6. New Zealand (6th)
  7. Denmark (7th)
  8. Philippines (8th)
  9. Nicaragua (9th)
  10. Switzerland (10th)

ASEAN Association of Southeast Asian Nations Rankings


  1. the Philippines (8th)
  2. Singapore (55th)
  3. Thailand (65th)
  4. Vietnam (66th)
  5. Brunei Darussalam (75th)
  6. Indonesia (97th)
  7. Malaysia (100th) a
  8. Cambodia (103rd)
  9. Myanmar and Laos are not included in the list.

Top 5 Worst Place for Women with Lowest gender Equality Ranking that Stuck at the bottom of the list are


  • Yemen (135th)
  • Pakistan (134th
  • Chad (133rd)
  • Syria (132nd)
  • Saudi Arabia (131st)

"Gaps in senior positions, wages and leadership levels still persist," even in countries that promote equality in education and have a high level of economic integration among women, the World Economic Forum (WEF) said in its annual Global Gender Gap Report.

The new figures were released just hours after a European Union initiative to set a 40-percent quota for women on the boards of listed companies stalled because of a lack of support.

The report, which covered more than 90 percent of the world's population, looked at how nations distribute resources and opportunities between women and men.

It found that the Nordic countries, headed by Iceland, Finland and Norway, had done the best job of closing the gap, while Chad, Pakistan and Yemen had the worst rankings.

While almost all countries had made progress in closing the gap in healthcare and education between women and men, only 60 percent of countries had managed to narrow the economic gender gap and only 20 percent had progressed on a political level, the study said.

Of the top four global economies, the United States, Japan and Germany all made progress in closing their economic gender gap in 2012.

However, they slipped in the overall ranking, which also looks at health, education and politics, with Germany falling two spots to 13th place, the United States sliding five spots to 22nd, and Japan dipping to 101st from 98th last year.

China, which took a step backwards when it came to closing the economic gender gap, also fell in the overall ranking to 69th place from 66th last year.

Greece, which ranked 82nd, registered one of the biggest falls since 2011, when it ranked 56th -- largely owing to a change in the percentage of women holding ministerial positions, from 31 percent in 2011 to only six percent in 2012.

Countries such as Nicaragua (9) and Luxembourg (17) climbed up the ranking thanks to an increase in the percentage of women in parliament.

Reducing the male-female employment gap has been an important driver of European economic growth in the last decade, the report said.

It added that introducing even more equality could boost US gross domestic product by nine percent and eurozone GDP by up to 13 percent.

EU Justice Commissioner Viviane Reding said Tuesday that a move to set a 40-percent quota for women on the boards of listed companies had been delayed amid an ongoing row over the lack of female candidates for a key European Central Bank (ECB) job.

Reding, who was scheduled to present the plan, said on Twitter: "Gender balance directive postponed," owing to insufficient support for the idea within the 27-member European Commission.

The delay came a day after the European Parliament's economic affairs committee rejected the nomination of Luxembourger Yves Mersch to the ECB executive board, because it would result in an all-male board until 2018.

The WEF report said that closing the global gender gap was fundamental to economic growth and stability. It pointed out that no country in the Middle East or North Africa featured in the top 100 of the index: these were regions often troubled by instability and frequently pointed to when gender inequality is discussed.

Elsewhere in Africa, however, five countries ranked in the top 30.

By region, the Philippines (8) remained the highest-ranking country from Asia in the index.

With women making up 50 percent of countries' "human capital", governments needed to find ways to benefit from their talent, insisted Saadia Zahidi, senior director at the World Economic Forum.

"If that capital is not invested in, educated or healthy, countries are going to lose out in terms of their long-term potential," she said.

Only six countries had showed an improvement of 10 percentage points since the report launched seven years ago, Zahidi added, and almost 75 countries have improved by less than five points.

"So the progress is very slow... even though we are seeing a trend in a positive direction," she said.

Philippines leads Asian countries in Global Gender Gap Report

The Philippines remained as the top Asian country in ensuring that men and women have equal access to rights and privileges, including economic opportunities, a report released Wednesday by the World Economic Forum showed.

The country remained at the 8th spot of the World Economic Forum's Global Gender Gap Index 2012, which ranks countries based on their ability to close the gender gap in healthcare, education, political participation and economic equality.

"The Philippines remains the highest-ranking country from Asia in the Index. It ranks 1st on both education and health and is also among the top 20 on economic participation and political empowerment. The Philippines is the only country in Asia this year to have closed the gender gap in both education and health," the report said.

It added that the country also performs in the top 10 of indicators that include legislators, senior officials and managers, literacy rate, enrolment in secondary education and years with female head of state.

The Philippines has already elected two women presidents which include Corazon Aquino and Gloria Macapagal-Arroyo. In August, President Benigno S. Aquino III appointed Maria Lourdes Sereno chief justice of the Supreme Court, the first female to hold the position.

Ranked ahead of the Philippines are Iceland (1st), Finland (2nd), Norway (3rd), Sweden (4th), Ireland(5), New Zealand (6th) and Denmark (7th), while Nicaragua (9th) and Switzerland (10th) rounded out the top 10.

Among the Association of Southeast Asian Nations, the Philippines is followed by Singapore (55th), Thailand (65th), Vietnam (66th), Brunei Darussalam (75th), Indonesia (97th), Malaysia (100th) and Cambodia (103rd). Myanmar and Laos are not included in the list.

Among economic powerhouses, the United States is ranked 22nd, China is 69th and Japan is 101st.

Stuck at the bottom of the list are Saudi Arabia (131st), Syria (132nd), Chad (133rd), Pakistan (134th) and Yemen (135th).

The report said there is a strong correlation between countries at the top of the index and the countries that are most economically competitive.

"The key for the future of any country and any institution is the capability to attract the best talents," said Klaus Schwab, WEF founder and executive chairman.

"In the future, talent will be more important than capital or anything else. To develop the gender dimension is not just a question of equality; it is the entry card to succeed and prosper in an ever more competitive world," he added.-Rebuilding for the Better Philippines (October 25, 2012)

Tuesday, October 23, 2012

What is driving the Philippine economy?


It is remarkable that the Philippine economy has been showing dynamism this year so far, even with a sluggish world economy. This implies that the energy driving our economic growth lately is coming from within. Indeed it is internal demand—that is, we Filipinos ourselves purchasing our goods and services—that has provided the current impetus for heightened economic activity, thereby providing increased jobs and incomes for Filipinos. I will explain some of the evidence on this below.

In basic economics, we are taught that the products and services produced in the economy are bought by four major sectors: private consumers for their consumption needs; businesses and firms for their real investment requirements such as structures, equipment and materials; government for public infrastructure and services, and for its own consumption requirements like office supplies and equipment; and foreigners who buy our products and services as we export them abroad, or buy them here as tourists.

Growth in spending by any or all of these would propel growth in the economy as a whole, as increased demand for goods and services would certainly draw a response of greater production on the part of the economy’s producers.

What’s more, any rise in spending by any of these four sectors of the economy provokes a multiplier effect that leads to even more growth in economic activity. This is because any new spending leads to a chain reaction of new incomes and consequent new spending. If a company spends 100 million pesos (US$2.4 million) on a new factory, this turns into 100 million pesos in total incomes received by contractors, engineers, construction workers, suppliers of equipment and construction materials and others.

But that’s not the end of it. Those various people now have more money to spend or save as they choose. If people save 20 pesos out of every additional 100-peso income they receive on the average, then the original 100 million pesos of investment spending turns into a new round of 80 million pesos in spending on various things such as food, clothing, appliances, etc. that those construction people normally spend their incomes on. And since anyone’s spending turns into someone else’s income, that second-round 80 million pesos in incomes turns into a third round of spending amounting to 64 million pesos. This becomes yet another round of incomes spurring yet another round of spending, and so on down the line.

Ultimately, the 100 million pesos originally spent by the investing firm will actually create five times as much (500 million pesos) total production and incomes. The mathematically inclined can figure out that if the saving rate is 20 per cent or 0.2, the multiplier works out to be one divided by that, or five.

So if people tend to save less, say 10 per cent, every spending gets multiplied by even more (that is, 10) and generates 10 times more production and incomes in the economy. And even more so if those savings are kept within the country, so that the banks receiving them could further put that money to work within our domestic economy, say by lending the savings to a company that would invest it in a new factory—thereby repeating the same story above.

Official data suggest that there is indeed more domestic spending by consumers, investors and government lately, even as foreign purchases of our products (especially in Europe) had slowed down due to their own homegrown difficulties. In particular, government spending for both its consumption requirements and for public construction has dramatically swung around from a negative performance last year. In the first half of the year, government consumption spending grew 12.3 per cent, a dramatic turnaround against the 4.6-per cent drop in the same period last year.

Government construction spending jumped 55.4 per cent after falling 51.1 per cent last year. The government, stung by criticisms that it directly dragged down the economy last year with reduced spending as it worked to plug corruption loopholes, has now come back with a vengeance. And this time, having done what it did last year, it has greater confidence that the money it spends goes (mostly?) to the intended purposes, rather than be siphoned off to bank accounts abroad and killing the usual multiplier effect. (Remember the question on why a neighbouring country that appears to have as much corruption as we do manages to have its economy grow faster than ours? The explanation offered has been that their corrupt officials keep the money at home, while ours stash the money abroad.)

The data show that firms’ investment spending on durable equipment, breeding stock and orchard development and on intellectual property products have likewise sped up significantly from last year’s pace.

Private consumption growth is similarly brisk at 5.7 per cent. Interestingly, among the strongest sources of growth in people’s spending are communication (with our continuing fascination for ever more sophisticated smart phones), restaurants and hotels, and recreation and culture. These suggest to me that domestic tourism has been a particularly important driver of our growth. One only needs to experience the now common flight delays and overcrowded airports to be convinced that Filipinos are travelling a lot more—and perking up the economy in the process.

The good news is that spending by foreigners on our products—i.e., our exports—has lately resumed growth after contracting last year.

Even then, the latest figures suggest that the export turnaround may be tentative. But I wouldn’t lose sleep over this one. After all, our economy is now speeding along on its own steam, through the Filipinos’ own spending, multiplier effect and all.-Asia News Netwrok (October 23, 2012)

M'sian party battles for survival as polls loom




The Malaysian Chinese Association (MCA), founded 63 years ago to protect Chinese interests as the nation fought for independence from the British, is now fighting for its own survival.

At its party congress over the weekend, its last before the next general election, this key political ally of the ruling Barisan Nasional (BN) urged its members to prepare for a "do or die" battle, amid predictions that it could suffer severe losses at the poll.

"We are ready for war," its president Chua Soi Lek told 1,700 party delegates. The party claims a membership of one million.

Chinese Malaysians, who make up about 31 per cent of 13 million voters, shunned the BN in the 2008 general election. The BN, especially the MCA and another Chinese-based party, Gerakan, suffered record losses although it held on to power.

The MCA lost support because it was seen as being subservient to Prime Minister Najib Razak's Umno party - the linchpin of the BN - which had become stridently pro-Malay in its outlook and policies.

Since then, the MCA has sought to win back Chinese support by, among other things, getting increased funding for Chinese schools.

It has also warned the Chinese against flirting with the opposition Parti Islam SeMalaysia (PAS), which has the ultimate goal of enacting hudud law in the country.

Hudud is the Islamic law which prescribes punishments like chopping off the hands of thieves. It has been enacted in Kelantan and Terengganu but not enforced because it breaches the federal Constitution, which gives the federal government jurisdiction over punishment for criminal offences.

The MCA's real target is PAS' Chinese-based ally, the Democratic Action Party (DAP), the strongest party in the opposition Pakatan Rakyat coalition. PAS and the Malay-based Parti Keadilan Rakyat have lost some ground since 2008. Since then, Chinese support has flowed steadily from the MCA to the DAP, which has stood up to an increasingly pro-Malay government.

Political analyst Fui K. Soong, who heads the independent Centre for Strategic Engagement, said the anti-hudud campaign could gain some traction because the Chinese have a long history of being uncomfortable with Islamic policies.

However, in 2008, Chinese Malaysians set aside their reservations about PAS because they were even more opposed to the ruling Umno's pro-Malay positions.

"I think the Chinese are quite split on this issue; there is a silent majority and the MCA is trying to sway them," she said, adding that those who are worried about Islamic law are unlikely to speak up.

DAP strategist Ong Kian Ming said that while many Chinese remain very uncomfortable with hudud, many voted for PAS candidates in by-elections held since 2008. "Their fear of hudud has been overtaken by their disapproval of the BN, MCA and Umno."

DAP's top leaders have stood firm against hudud becoming a part of Pakatan Rakyat's policies.

"MCA is stepping on dangerous ground here as this could turn off many Malay voters, especially the fence-sitters," Mr Ong said.

The MCA's attack on hudud has already irritated PAS, whose deputy president Mohamad Sabu yesterday said the MCA was insulting Islam, and not just its political rivals.

The MCA holds 15 of the 138 parliamentary seats controlled by the BN. Nine of the MCA's 15 parliamentary seats are Malay-majority while most of those that it lost in the 2008 election were Chinese-majority. The Malays now form the largest vote bank for the BN and MCA.

Surveys done by the independent Merdeka Centre show the Chinese tilted towards the opposition.-Asia News Netwrok (October 23, 2012)


Russian and Vietnamese top military officials meet in Moscow to discuss stronger military cooperation between the countries


Russian and Vietnamese top military officials will meet in Moscow today to discuss stronger military cooperation between the countries.

Defence Minister Anatoly Serdyukov and the chief of the General Staff of the Russian Armed Forces, Gen. Nikolai Makarov, will hold talks with the chief of the General Staff of the Vietnamese People’s Army, Lt. Gen. Do Ba Ty.

“During the talks they will discuss the state of and prospects for military-technical cooperation of the two countries and will also exchange opinions on some issues of mutual interest. In particular, they will focus on interaction in ensuring security in the Asia-Pacific Region,” the press service of Russia’s Defence Ministry said.

During its visit the Vietnamese delegation will take part in a keel laying ceremony for a submarine to be built at the Admiralty Shipyard in St. Petersburg for Vietnam.

Foreign guests will also visit the 5th motorized infantry brigade in Alabino near Moscow to see combat trainings and activities in daily life of servicemen.-Itar-Tass (October 23, 2012)

Asean, Japan Need to Shape More Suitable Relationship - Muhyiddin


Deputy Prime Minister Tan Sri Muhyiddin Yassin today emphasised the need for Asean nations and Japan to shape their future relationship into one more suited to the realities of the 21st century. 

He said that if in the past, Japan was Asean's principal partner in economic matters, today the regional economic engagement had expanded to include China, South Korea, India, Australia and New Zealand. 

"This, too, may change as there is a proposal to reformulate this network of Free Trade Agreements (FTAs) under an arrangement to be known as the Regional Comprehensive Economic Partnership (RCEP). 

"All these developments will ultimately have an impact on the status quo. As much as we are happy with the current state of affairs between the two sides, it is time for us to look for new ways to strengthen and deepen these relations," he said in his keynote address at the 38th Asean-Japan Business Meeting, here. 

Malaysia-Japan Economic Association (MAJECA) chairman Tan Sri Azman Hashim and Japan's Ambassador to Malaysia Shigeru Nakamura were also present at the event.

Muhyiddin suggested that to strengthen Asean-Japan relations, four areas had to be explored.

Firstly, he said, there was a need to promote Japanese investments in high value-added sectors such as green technologies, environmental technologies, bio-technologies and information communication technologies in the Asean countries.

Secondly, measures needed to be taken to double trade and investment volume and conclude the signing of the Asean-Japan investment and Asean-Japan services agreements, he said.

Thirdly, he said, it was necessary to improve Asean-Japan connectivity.

Fourthly, there was a need to create greater awareness of Asean among Japanese small and medium enterprises (SMEs), he said.

On the Asean Economic Community (AEC), Muhyiddin said Asean should not delay implementation of its plan to form an economic community by 2015.  

He said the progress of this project was being monitored at the leaders' level.

"In this context, let me reiterate the strong commitment of the Malaysian government to do what is necessary to form the AEC. Our success rate in the implementation of the AEC blueprint measures over 90 per cent," he said. 

Meanwhile, Nakamura read out a congratulatory message from Japan's Prime Minister Yoshihiko Noda who said Japan was determined to further deepen 'kizuna' (friendship) and would continue to expand political and security cooperation to maintain regional peace and stability.   

Strengthening the region's economic integration would benefit global economies, Noda said.

"Enhancement of Asean connectivity is an issue that Japan will actively work on together with the private sector. We want to continue to achieve growth together with Asean," he added.-Malaysian Digest (October 23, 2012 12:09PM)

Robust growth keeps PH on track to AEC 2015


The Philippines' strong macroeconomic fundamentals is the country's main advantage in its efforts to successfully integrate into the ASEAN by 2015. 

In an interview with Rappler before the October 23 forum on ASEAN 2015, ASEAN Deputy Secretary General Dr. Lim Hong Hin said the country's progress in meeting the agreements under the ASEAN Economic Community (AEC) has been significant. 

This is also one of the reasons for the optimism of the ASEAN why the country can also play a significant role in the Regional Community Economic Partnership (RCEP) which is being envisioned to be the largest Free Trade Agreement (FTA) in the world. 

However, Hin said its performance has slowed to 74% in the 2010 to 2011 period. This is significantly lower than the 94.55% it registered in the 2008 to 2009 review period. 

He said this performance is understandable since meeting agreements and measures to comply with the AEC will become more difficult as 2015 nears. Hin said meeting the agreements would require changes in Philippine laws and national policies - which both take time to accomplish.

Hin said, however, with the Philippine economy's robust growth which has made it the third fastest growing economy in the world, have helped keep the country's efforts on track to meet the conditions by 2015. Strong growth, he said, is attributed to better household and government spending as well as higher local investments. 

"The Philippines is on the right track. In the past, the Philippines has been considered as one of the developmentally challenged economy in Asia and its good that we are seeing a change in perception and the Philippine government is right on track in introducing the right policy and to go through the process to make sure that whatever policy gets introduced, the key beneficiary is the private sector and the people. This is something that you should be very proud of because you are on the right track," Hin said. 

Largest FTA worldwide

The RCEP, Hin said, intends to consolidate all the bilateral agreements of the ASEAN with six other countries - China, India, Japan, Korea, Australia, and New Zealand. 

Hin said the ASEAN is already in the process of consolidating the bilateral FTAs with these countries and its is launched in November this year. He explained that the RCEP will cover half of the world's population and a third of global Gross Domestic Product (GDP). 

The main issue in RCEP right now is dealing with the tariff reductions in all the ASEAN FTAs. The most ambitious of which, Hin said, is the Australia-New Zealand FTA with ASEAN which highlights zero tariff lines. 

This is a significant drop from where the other tariffs under ASEAN FTAs which still allow tariff rates to stay at 80% or even higher at 90%. 

"Since April the ministers, the senior officials, all the working groups have been very busy trying to come up with the guiding principles as to how we intend to govern this negotiation when it is launched. The Asean countries have met among themselves, they have also met with the 6 country we have bilat ftas, and they have come up with a template which shall be used as basis for (the agreements)," Hin said. 

"If successfully negotiated and completed, it will be the largest FTA in the world, partly because it will include half of the world population, you have china and india as partners, and you'll also be accountable for a third of world GDP," he added. 

Single currency not feasible

Despite efforts that are underway to finally merge the ASEAN into a single market by 2015, Hin said the region is not ready to adopt a single currency, similar to the European Union (EU). 

Hin said the ASEAN will become a free trade area but will require more time to become an economic and monetary union, which is what the EU is. 

What the ASEAN has done quite well on, on the financial side, is the creation of funds such as the Chiang Mai Initative (CMI). Hin said these funds have been instrumental in helping countries who encounter economic difficulties. 

Hin added that efforts to improve the financial sector in all ASEAN countries since the Asian Financial Crisis 1997 to 1998 have made it resilient to succeeding economic shocks. This includes the Global Economic Crisis of 2009 which left many Asian countries virtually unscathed. 

He added that efforts such as the ASEAN exchange, which facilitates cross-listing of firms in different stock exchanges in the region, has been instrumental in the free flow of trade, investment, and capital in the region.

"I think for the currency we have to wait for the right time when the right time will be, your guess is as good as mine. We still have a long way to go from a free trade area to an economic, monetary unit," Hin said.-Black Pearl (October 23, 2012 11:37AM)

Monday, October 22, 2012

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)

Sunday, October 21, 2012

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)