CARICAPTURES ASEAN

REGIONAL

CARI CAPTURES • ISSUE 141

Thai businesses are against the

new tax structure that the Thai

government has imposed on

alcohol claiming it to be unfair,

while Vietnam tries to adjust tax

on imported cars.

Thailand has raised a new excise

tax on alcohol which has been

criticised by business operators

who consider the new structure

unfair

The new rates are supposed to

increase the competitiveness of

local products against imported

ones, but many argue that

there are inconsistencies in the

01

rating because of the way it is

calculated

Producers are the ones that have

to pay the tax but the tax is based

on wholesale price excluding

VAT instead of ex-factory prices

used previously, meaning that

the amount producers wi l l

have to pay depends solely on

wholesalers’ pricing

Imported alcohol beverages

account for only 10% of the

130 billion baht (US$4 billion)

in the Exc ise Department

annual revenue from alcohol,

but the government foresaw

the potential of further entry

17 SEPTEMBER 2013

Bangkok Post (5 September 2013)Viet Nam News (9 September 2013)

THAILAND, VIETNAM IMPOSE NEW TAXES

of imported products following

increasing market liberalisation

Meanwhile, the Vietnamese

government is attempting to

tackle inconsistencies in its tax

structure on imported vehicles

Vietnam’s Ministry of Finance

has proposed raising the special

consumption tax on vehicles

i m p o r t e d b y V i e t n a m e s e

repatriating citizens to similar

rates applied to cars imported

for domestic purchase

Currently, repatriating citizens

pay taxes at a rate of 50% of the

purchase price while those cars

imported for domestic purchase

have a VAT, an import tax, and a

special consumption tax of over

100% of the purchase price

The move is aimed at preventing

exploitation but a number of

Vietnamese people living abroad

for only short periods had

brought vehicles to the country

as assets

ASEAN ALCOHOL PRODUCTS EXCISEIN THAI BHAT [THB] & BY CATEGORY [PER UNIT]

MALAYSIA

INDONESIA

CAMBODIA

VIETNAM

THAILAND

LAOS

SINGAPORE

MYANMAR

BRUNEI

PHILIPPINES

BEER330ml

LIQUOR

700ml

WINE750ml

12.21

23.39

4.86

9.72

27.95

9.72

2.49

19.15

11.47

8.51

413.17

18.23

106.33

113.62

91.1 RRL 109.3 LCL 334.1 IMP

132.76

473.32

112.0

82.0

98.1 LCL 130.63 IMP

97.51

167.0

99.0

117.57

83.54

12.46

158.58

99.0

41.92

228.1 LCL 396.5 IMP

LCLIMPRRL

LOCALIMPORTEDRURAL

THAILAND VIETNAM

Source: Rob Preece (2012) World Customs Journal, Volume 6, Number 1

CARI CAPTURES • ISSUE 141 17 SEPTEMBER 2013

DISCLAIMER: The news articles contained in this report are extracted and republished from various credible news sources. CIMB ASEAN Research Institute (CARI) does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information and opinion contained in this report. Should any information be doubtful, readers are advised to make their own independent evaluation of such information.

The Jakarta Globe (10 September 2013)

INDONESIAN TV OPERATORS OPTIMISTIC ABOUT SECTOR GROWTH DESPITE PIRACY04

Indonesian pay TV operators are

optimistic about growth in the

sector, but growth in the industry

is challenged by piracy.

Pay TV operators are eyeing

I n d o n e s i a ’ s m a r k e t f o r

subscription television which has

been identified as one of Asia’s

most lucrative growth markets

for subscription television due

to its burgeoning middle class

and high percentage of homes

with television

About 40 million households

in Indonesia have a television,

and of that about 22 million are

believed to be able to afford paid

TV subscriptions, according to

BigTV

BigTV, launched on 9 September,

is the latest competitor in the

subscription TV market, and

aims to sign up three million

Singapore has overtaken Japan

to become Asia’s largest foreign

exchange hub for the first time

and is now just behind the United

Kingdom and the US. in the

US$6.67 trillion global foreign

exchange trading market, a report

by the Bank for International

Settlements shows.

Trading volume surged in the

past three years with the city’s

average daily foreign exchange

customers over the next five

years, but the current market

leader MNC Sky Vision has about

2 million subscribers

The current pay TV subscriber

base is estimated at three million

people, up from just 1.8 million in

02 SINGAPORE EMERGES AS ASIA’S TOP FOREIGN EXCHANGE HUB

03Bloomberg (6 September 2013)

2011, but that figure is expected

to rise to up to five million by

the end of the year and pay TV

revenue is expected to more than

triple over the period

The expansion of the pay TV

market is however facing a major

obstacle as the rate of theft and

piracy in Indonesia is increasing

There are around 2,500 illegal

operators in Indonesia who

rebroadcast TV channels and

charge their customers a tenth

of the normal price, according

to the Indonesian Cable TV

Association

The Indonesian Mult imedia

Operators Association's (APMI)

efforts of identifying i l legal

operators and reporting them

to the police are starting to

bear fruit, and while many illegal

operators have been shut down

some are working to legalise

their operat ions and offer

legitimate rebroadcasts

the Yen was the most traded

currency with the Euro following

right behind. The Australian

dollar stood as the fifth most

traded currency; the Singapore

dollar at the seventh position;

while the Yuan climbed up to the

ninth position from 17th three

years earlier

WORKERS’ CONDITIONS IN INDONESIA AND SINGAPORE IMPROVING

Indonesia is planning on building

low-cost apartments to improve

the livelihood of workers who

have been demanding a pay

raise, meanwhile in Singapore

workplace deaths and injuries

are decreasing.

In Indones ia , the Jakar ta

administration is planning to

improve the living conditions

o f i ndus t r i a l worke r s by

building thousands of low-cost The Jakarta Post (5 September 2013)

The Sunday Times (5 September 2013)

apartments around industrial

areas and charging them only

low utility fees

The p lan comes fo l lowing

workers’ demand for a 68%

pay raise by next year because

of increased living expenses

following the July fuel price hike

Workers have said that they

spend over 30% of their salary

on rent and transport and

demanded a raise from the

current provincial minimum wage

of Rp 2.2 million (US$196) to Rp

3.7 million, but the living costs

in Jakarta is estimated at Rp 4

million

Meanwhile in Singapore, the

latest figures from the Workplace

Safety and Health Institute show

that there were fewer workplace

deaths and injuries in the first

half of this year compared with

last year

Workplace deaths were 25 in

the first six months compared

volume standing at US$383

billion as of April 2013, a 44%

year-on-year jump

Singapore’s average interest-

rate derivatives trading volume

is also the highest in the region

at US$37 billion over the same

period

S ingapore wi l l be able to

strengthen its financial centre

to serve the investment and

risk management needs of the

f inancial institutions in the

region as its growing strength in

foreign exchange complements

the development of its capital

market and asset management

industry

The survey by the Bank for

International Settlements also

showed that the global foreign

exchange trading jumped to an

average US$5.3 trillion a day in

April due to the greater Japanese

yen volume

For the period up to April 2013,

SINGAPORE

SINGAPOREINDONESIA

INDONESIA

with 26 last year, while minor

workplace injuries fell from 5,160

cases to 5,029, and occupational

disease cases were down to 372

from 634 in the first half of 2012

There was however an increase

of major workplace injuries, to

257 in the first half of this year

compared with 255 in the same

period last year

SARTORIUS

ONE

INDONESIA

PHILIPPINES

VIETNAM

THAILAND

MALAYSIA

SINGAPORE

3%

15%17%

38%

54%65%

ASEAN-6 PAY-TV PENETRATION

5,345,228

TOTAL LEAKED SUBSCRIBERS

US$ 433,239,739NET PIRACY COST

Source: CASBAA, Asia-Pacific Pay-TV Industry 2010

CARI CAPTURES • ISSUE 141 17 SEPTEMBER 2013

DISCLAIMER: The news articles contained in this report are extracted and republished from various credible news sources. CIMB ASEAN Research Institute (CARI) does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information and opinion contained in this report. Should any information be doubtful, readers are advised to make their own independent evaluation of such information.

RAIL BUSINESS ASIA 201305

MALAYSIA

ASEAN’S STANDPOINT ON SYRIA CRISIS07

ASEAN nations say “No” to a US

strike against Syria while calling

for the Syrian government to

resolve the issue in the country

peacefully.

Prospects of a potential US attack

against Syria had caused ASEAN

stocks to fall, adding pressure

to the emerging economies that

are already plagued with fiscal

troubles. Indonesia, Malaysia

and Thailand took a harder hit

from the jitters around global

crude oil prices as they provide

Jakarta Globe (27 August 2013)Channel News Asia (30 August 2013)

Reuters (4 September 2013)CBS News (10 September 2013)

on the resolution but continues

to push forth the idea of an

airstrike against Assad’s regime

if the effort fails. The British

will be joining forces with U.S.

and France to ensure that the

proposal is realised

US President Obama and Russian

President Putin seem now to

have reached agreement on a

plan on Syria and a UN resolution

is being worked on

One of the projects include

the first phase of the ASEAN

Rail Centre in the Perak state;

a production, assembly and

overhaulcentrefortrainsinthe

ASEANregion

Rail Business Asia 2013 has been

held in Malaysia.

Malaysia played host to rail policy

makers, asset owners, operators

and leading rail industry players

at Rail Business Asia 2013 held

at the Kuala Lumpur Convention

Centre

Malaysian Prime Minister Najib

Razak officiated the opening

ceremony on 10th September

joining 20 other leaders in the

industry in sharing their views

on innovation and stability in

the rail industry

He also announced that the

government plans to spend

approximately RM160 bill ion

(US$49.34 billion) on rail related

projects until the year 2020 The Herald (4 September 2013)

ASEAN

a substantial amount of fuel

subsidies

Malaysia’s Foreign Minister,

Datuk Seri Anifah Aman has said

that Malaysia is against the use

of chemical weapons regardless

of the reasons to use. He added

that Malaysia is not supportive of

any military intervention in any

country, citing the vast collateral

damage arising from military

actions

Singapore and Indonesia both

condemned the use of chemical

weapons and showed support

towards the involvement of

Un i ted Nat ions and other

members of the international

community to help resolve the

issue peacefully

Vietnam welcomes the Russian

proposal to place Syrian chemical

weapons under international

supervision

Syrian President Bashar Assad

a n d h i s g o v e r n m e n t h a s

accepted the Russian plan to

turn over its chemical weapons

stockpile to prevent US action.

US President showed his support

REBELS ATTACK ZOMBOANGA

Aljazeera (10 September 2013)The Guardian (14 September 2013)

Rebel fighters have taken hostage

over 100 civilians in the southern

Philippines.

Around 200 fighters from a

faction of the Moro National

L iberat ion Front at tacked

communities in the coastal

Zomboanga city taking over 100

hostages on 9 September

The military has reported that

over 20 people have been killed

promises

The group is currently engaged

in peace talks facilitated by

neighbour ing Malays ia but

factions of the rebel group

continue to engage in violence.

The decade long fighting has

claimed the lives of an estimated

150,000 people

including 15 rebels and 24,000

residents have been displaced

due to the violence

The military has since surrounded

the rebe l he ld areas and

sporadically exchanged gunfire

with the entrenched fighters

during the ensuing standoff

Vice president Jejomar Binay

sa id the rebel leader Nur

Misuari agreed to a ceasefire

on Fr iday over the phone.

However, Defense Secretary

Voltaire Gazmin said the rebels

continue to fire in violation of

the agreement

The Moro National Liberation

Front is a rebel group fighting

to create a autonomous region

in the predominantly Muslim

Southern Philippines. The group

made peace with the government

in 1996 but since has accused the

government on reneging on its

06ASEAN

ASEAN USA SYRIA

CHEMICAL WEAPONS & THE SYRIAN CIVIL WAR - A TIMELINE

21 AUGUST 31 AUGUST

The first reported use of chemical weapons in Ein Tarma and Zamalka, causing approximately 355 deaths

25 AUGUSTSyria agrees to allow UN inspectors to the scene of the alleged chemical attack but critics already argue it is too late

US President Obama announced that he would seek authorisation for airstrikes on Syria

5 SEPTEMBERUK government confirms that Sarin gas had been used

10 SEPTEMBERHuman Rights Watch released a report that concluded that the Syrian government “were almost certainly responsible”

Syria accepts Russian’s plan to surrender its chemical weapons

17 SEPTEMBER

The UN released a report confirming the use of chemical weapons. The UN Secretary-General states that a war crime has been committed and that the international community has a moral responsibility to hold those responsible accountable

LATE

SYRIA

AUTHORISATION

REQUIRED

SARIN GASCONFIRMED

Source: www.bbc.co.uk, www.telegraph.co.uk

PHILIPPINES

CARI CAPTURES • ISSUE 141 17 SEPTEMBER 2013

DISCLAIMER: The news articles contained in this report are extracted and republished from various credible news sources. CIMB ASEAN Research Institute (CARI) does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information and opinion contained in this report. Should any information be doubtful, readers are advised to make their own independent evaluation of such information.

The 63rd Miss World pageant is set for a

spectacular show in Bali despite receiving

protests from hard-line Islamic groups. The

bikini section has been removed in view of

the local religious and cultural beliefs.

Members of hard-l ine Is lamic groups

protested against the Miss World Pageant,

saying that the exposure of skin by women in

such competitions violates Islamic teachings

Thousands of protestors took to the streets in

Jakarta, Surabaya, Bandung and Yogyakarta.

Rejection also came from the country’s most

influential group of clerics, the Indonesia

Ulema Council, whose fatwas are followed

by many Muslims

Chair of the Miss World Organisation, Julia

Editorial Team: Sóley Ómarsdóttir, Nicole Khoo Designer: Hizzad Dinno Consultant Editor: Tunku ‘Abidin Muhriz

MYANMARMONITOR08

The Guardian (5 September 2013)The Diplomat (10 September 2013)

THAILANDECONOMY

TheAsianDevelopmentBank(ADB)onWednesdaysaidthatitremainsoptimisticonMyanmar‘seconomicprospectsandpredicts the country will achieve 6.8%growth in this fiscal year comparedwith 5.5% last year. The boost will befuelledbystrongexportearnings fromresourcessuchasgas,hydropowerandthe boom in tourism. After 2014, theMyanmar economy will grow by 7-8%yearly through 2030, said ADB's vicepresidentZhaoXiaoyu.

Channel NewsAsia (11 September 2013)

TheMyanmargovernmentisworkingwiththeADBtodrawuparevisedcompanyactbytheendof2014.ItaimstoimprovetransparencyandupdaterulesgoverningtheoperationsofcompaniesinMyanmar.The current act has been in existencesince1914andhasnotbeenrevisedforthelast99years.

Channel NewsAsia (10 September 2013)

Myanmaropenedtenderson8SeptemberforinternationalconsultantstohelpthegovernmentdrawupthecontracttermsforpotentialinvestorsintheKyaukPhyuspecialeconomiczone(SEZ)inRakhinestate,whichhasbeentornwithsectarianviolence foroverayear.Theproject isexpectedtocostaboutUS$227millionintheinitialphase,officialssaid,andisexpectedtocreateabout70,000jobs.

Bangkok Post (8 September 2013)

POLITICS

Agovernment-appointedcommitteethatoverseesMyanmar'sBuddhistmonkhoodhasissuedadirectivebanninganti-Muslimorganisations. The majority of the 237people thatdiedand the 150,000 thatwere displaced by sectarian violenceoverthepastyearwereMuslims.

Reuters (11 September 2013)

The Myanmar government intends tolay out plans for a national cease-fireagreementbyOctober.MembersoftheUnited NationalitiesFederal Council, agroupof11armedethnicgroups,metwithpresidentialenvoyAungMintodiscussacomprehensivepeaceagreement.

UPI (10 September 2013)

A landing gear malfunction was the cause of a

crash at Suvarnabhumi Airport. As night fell,

some workers were hard at work blacking out

the logo on the plane body.

Thai Airways International (THAI) flight TG679

which was carrying more than 280 passengers

skidded off the runway at Suvarnabhumi

Airport, Bangkok, injuring a total of 14

passengers and causing a massive delay in

all outbound flights from the airport

Airports of Thailand Plc said the problem

occurred after the plane has landed as one of

the plane’s tyres burst. He added that THAI

would be taking full responsibility of the

cost of damage to the runway amounting to

1 million baht (US$ 31,427)

INDONESIANS PROTEST AGAINST MISS WORLD PAGEANT10

Bangkok Post (9 September 2013)The Guardian (9 September 2013)

CRASH LANDING IN BANGKOK09

Soon after the accident, workers were seen

to be painting over the Thai Airways logo

on the tail and the body of the plane, which

was later explained as an effort to protect

the image of the airline and of Star Alliance

This accident happened less than two weeks

after a Thai Airways Airbus A380 hit severe

turbulence as it was descending to Hong

Kong’s airport which had caused 20 casualties

Morley, had earlier confirmed that none of

the contestants would be wearing a bikini

for the contest

The opening ceremony kicked off in Bali on

the 8 September and announcements were

later made that the next stages of the pageant

would also take place in Bali later on 20 and

28 September despite strong protests

INDONESIA

ASEANCONTESTANTS

THE

NATALIE

MEGAN VANIA

MELINDER

THAOMARIA-ANNA

A month long event to decide

the year’s Miss World

PreliminaryTo enter the final round,

contestants must win their country’s national beauty contest or a Miss

World National Preliminary

7 challenges which boosts a challenge

winner’s prelim score

ChallengeEvents

Final Round

T H E M I S S W O R L D J O U R N E Y

Source: en.wikipedia.org, missworld.com