CARICAPTURES

BETA

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21ST ASEAN

SUMMIT

The 21st ASEAN Summit marked several

achievements, despite critics’ concerns that

external forces and regional differences may

cause ASEAN to lose its focus. ASEAN leaders agreed that the ASEAN

Economic Community (AEC) will be

launched at the end of 2015, providing

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ASEAN

STAYS ON TRACK

ample time for member countries to prepare

themselves and achieve the remaining 24%

of the AEC scorecard

The summit also saw the launch of the

ASEAN Institute for Peace and Reconciliation,

and adoption of the ASEAN Human Rights

Declaration (AHRD), which outlines the

principles and objectives for the promotion

and protection of human rights in ASEAN

The establishment of the ASEAN Regional

Mine Action Centre in Cambodia was

approved, to deal with the menace of land

mines

ASEAN and its six dialogue partners

(Australia, China, India, Korea, Japan and New

Zealand) officially launched negotiations to

form a mega free trade agreement called

the Regional Comprehensive Economic

Partnership (RCEP)

SOUTH CHINA

SEA TENSIONS

Maritime disputes in the South China Sea

are once again testing ASEAN’s unity, as

statements by member states showed. After the conclusion of meetings, Kim

Hourn, a Cambodian foreign ministry official,

said that Southeast Asian leaders decided

that they will not internationalise the South

China Sea issue from now on — a route that

ASEAN, China,

China preferred

The statement was immediately refuted by

five ASEAN countries namely Vietnam, the

Philippines, Brunei, Malaysia, and Singapore

When the ASEAN Chair, Cambodian Prime

Minister Hun Sen, finished his concluding

remarks, the Philippines President Benigno

H.E. Mr. Le Luong Minh, a candidate from the

Socialist Republic of Viet Nam, was appointed

as the upcoming Secretary-General of ASEAN

based on alphabetical rotation for a 5 year term

commencing January 2013 – December 2018

The ASEAN Secretariat officially launched

a handbook to help ASEAN businesses face

the economic community in 2015, titled AEC

Handbook for Business 2012

The handbook was launched at the ASEAN

Business and Investment Summit 2012, along

with a Directory of Innovative SMEs in ASEAN

2012, by the Secretary General of ASEAN, Dr.

Surin Pitsuwan

China Daily, ASEAN Secretariat, Jakarta Post (20 November 2012)

Aqunio intervened and said “there were

several views expressed yesterday on

ASEAN unity which we did not realise would

be translated into an ASEAN consensus… for

the record, this was not our understanding…

the ASEAN route is not the only route for

us… as a sovereign state, it is our right to

defend our national interests”

The four ASEAN South China Sea

claimants, Vietnam, the Philippines,

Malaysia, and Brunei, will convene next

month to discuss their overlapping claims

China’s actions are seen by critics to have

undermined its legitimacy as a fair and

responsible stakeholder in the region, as well

as Cambodia’s position as the ASEAN Chair

In July 2012 at the ASEAN Foreign

Ministers Meeting, the member states failed

to release a joint statement on this issue for

the first time in its 45 year history

Reuters (19 November 2012)

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FLARE AT THE

EAST ASIA SUMMIT

DISCLAIMER: The news articles contained in this report are extracted and republished from various credible news sources. As such, 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.

ASEAN LEADERS WELCOME

DIALOGUE PARTNERS IN MEGA

ASEAN and its six dialogue partners

(Australia, China, India, Korea, Japan

and New Zealand) officially launched

negotiations to form a mega free

trade agreement called the Regional

Comprehensive Economic Partnership

(RCEP). The RCEP trade area will include ASEAN

and its six dialogue partners, but also has

an open accession clause that allows any

ASEAN FTA partner or economic partner

to join

The term “dialogue partner” refers to a

mechanism which defines ASEAN’s strategy

in the regional architecture, linking ASEAN

ASEAN+6

INDONESIAN

WORKERS

Indonesian labourers rallied in Jakarta

to protest a 2011 law which requires

salaried workers to contribute a

percentage of their pay to social security

bodies, and non-workers to also pay for

access to the system. The people are not against social security,

but it is the government’s responsibility to pay

for these services, said the Chairman of the

National Workers Union, Bambang Wirayoso

The demonstration which took place on

November 21 at the presidential palace was

also for higher wages, as economic expansion

has increased the country’s cost of living

Inflation last month reached the highest in

the year, and GDP growth exceeded 6% for

an eighth quarter amid rising investment

Jakarta Globe (21 November 2012)

Indonesia

RALLY AGAINST

SOCIAL SECURITY

LAW IN JAKARTA

with the fastest growing regions in the

world, and enabling cooperation in finance,

food security, education and connectivity

ASEAN’s less developed countries such

as Cambodia, Laos, Myanmar and Vietnam

have benefitted from this arrangement

The RCEP was initially proposed by ASEAN

at the ASEAN Summit in 2011

This economic and technical cooperation

will allow all parties to maximize the

opportunities made available by deeper and

broader economic engagements regardless

of their level of development

Why it matters: The RCEP initiative will

further enforce ASEAN’s centrality in the

global architecture

Channel News Asia (19 November 2012)

WORK ON

LAOS-CHINA

Laos, China

RAILWAY TO

START NEXT YEAR

FREE TRADE AGREEMENT

The construction of a US$7 billion railway

between Laos and China will commence

next year, after a Chinese bank decided to

offer Laos a loan for the stalled project. Initially, the two countries planned to jointly

fund the project but Beijing pulled out due to

concerns about profitability

The railway between the Chinese border to

Vientiane will be a link in a vast network set to

connect China’s Kunming city with Singapore

The line will be 420 km long, with 76 tunnels

and around 150 bridges

A Chinese firm will carry out the construction,

planning to finish the project in five years

The plan has already caused a stir in

Laos as the new railway will likely force

thousands of people to relocate

Why it matters: This is the largest

infrastructure project undertaken by

Laos, and the country currently has no

railway apart from a short stretch near

the Thai border. A huge project like

this will create many jobs and boost

the economy. Laos is also planning to

build a line connecting the country with

Vietnam in 2013. These two lines will help

strengthen ASEAN connectivity.

The Malaysian Insider(18 November 2012)

DISCLAIMER: The news articles contained in this report are extracted and republished from various credible news sources. As such, 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.

PHILIPPINES BANKS MAY MERGE, BUT DON’T

EXPECT BROADER CONSOLIDATION

Talks about a bank merger in the

Philippines, which would create the

country’s largest bank by assets, is

mistakenly seen by investors as a signal

for more banking consolidation to come.

Philippines

US President Barack Obama became

the first sitting US president to visit

Myanmar on Monday 19 November,

when he visited the country on his way

to Cambodia to attend the East Asia

Summit. The US President had separate

meetings with Myanmar President Thein

Sein and opposition leader Aung San Suu

Kyi in Yangon, before heading to Yangon

University where he addressed the

nation. He discussed the role of citizens

in democracy, warning that the reform

process will not be successful without

national reconciliation, and urged for the

end of sectarian violence in Rakhine state.

The Star (19 November 2012)

A day before Obama’s visit, the

Myanmar government agreed to sign the

International Atomic Energy Agency’s

additional protocol, which grants the

UN nuclear agency right of access to

possible undeclared activities. Myanmar

was suspected of pursuing military and

nuclear cooperation with Pyongyang

under the previous military junta.

AFP (18 November 2012)

Ahead of US President Obama’s visit to

Myanmar, the US government announced

it is issuing a waiver and general license

to ease the ban on imports from Myanmar

into the US. Secretary of State Hillary

Clinton had announced in September

that the US would begin the process of

easing restrictions on imports. Due to

possible links with the previous military junta,

the importation of jadeite and rubies mined or

extracted from Myanmar are still banned.

US Department of State (16 November 2012)

Myanmar government released 66 prisoners

ahead of US President Obama’s visit to the

country, mostly political detainees. The release

was smaller than previously anticipated, but

activist groups believe there to be still about

200 political prisoners behind bars.

The Irrawaddy (19 November 2012)

0 7 MYANMAR MONITOR

Bank of the Philippine Islands, the

country’s third largest bank by assets

owned by Ayala Corp, has confirmed that

it is discussing the possibility of acquiring

a stake in Philippine National Bank, the

seventh largest, owned by the LT Group

As a result of the announcement, shares

in smaller banks climbed, indicating that

investors expect further consolidation of the

Philippines’ bank sector, as smaller banks are

seen to be likely acquisition targets

Shares in the LT Group are controlled by

77-year old Lucio Tan, the country’s second

richest man, leading analysts to believe that

the merger is a one-off deal driven by Lucio’s

unique succession management strategy

April Lee-Tan, a banking analyst at

CitisecOnline posits that Lucio seeks a joint

venture with industry leaders as an alternative

to turning the bank over to his heirs

Financial Times (21 November 2012)

Myanmar and Thailand have invited capable

international investors to engage in the

Dawei Special Economic Zone (SEZ) project,

official media reported Tuesday. Thailand,

will implement regional development tasks

including roads, deep seaport, industrial

zone, power plant, water supply, water

treatment system, communication and a

high speed train in the Dawei SEZ, according

to a Myanmar-Thai joint declaration issued in

Phnom Penh during the 21st ASEAN Summit.

Xinhua (20 November 2012)

The Organisation of Islamic Cooperation

(OIC) and a number of foreign ministers

from member states are planning a visit

Myanmar for discussions on ways to resolve

the crisis in Rakhine state. President

Thein Sein has also asked Indonesia’s

President Yudhoyono to help his

government in resolving ongoing ethnic

tensions, on the sidelines of the 21st

ASEAN Summit in Phnom Penh.

The Sun Daily, The Jakarta Post (21 November 2012)

The Centre for Economic and Social

Development and Extractive Industries

Transparency Initiative (EITI) will check

the use of income from petrol and natural

gas, after the revenue from the sales of

natural gas in 2010-2011 have gone missing.

The Auditor-General also reported a total

of 60 billion kyat (US$70 million) missing

revenue from 15 ministries over the last fiscal

year. One-third of the funds has since been

returned, said the report, with many of the

involved staff members already punished for

their role.

Eleven News (16 November 2012)The Irrawaddy (15 November 2012)

Nine top US universities and colleges

have formed an academic partnership to

help Myanmar rebuild its higher education

capacity. Under an initiative launched by

the Institute of International Education (IIE),

the universities will develop institutional

partnerships with universities in Myanmar

as part of the IIE’s International Academic

Partnership Program (IAPP). The IIE will lead

a delegation of US university faculty and

administrators to Myanmar in February 2013

to hold public workshops at a number of

universities in Myanmar.

The Irrawaddy (21 November 2012)

GREENPEACE WARNS OF CHEMICAL

USE BY FASHION BRANDS IN INDONESIA

05 1212 12‘11 ‘11

DISCLAIMER: The news articles contained in this report are extracted and republished from various credible news sources. As such, 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.

An investigation conducted by the

environmental campaign organisation,

Greenpeace International, found that

high-street fashion brands produced

in Indonesia contain dangerous

chemical substances that cause

severe health problems. Greenpeace said that apparel produced by

20 popular global brands, including Armani,

Benetton, Calvin Klein, Diesel, Esprit, Gap, H&M,

Levi’s, Mango, and Zara, were contaminated

with nonylphenol ethoxylates (NPEs)

NPEs break down into nonylphenols in the

water and are known to be persistent and

bio-accumulative toxic substances, which

Indonesia

act as hormone disruptors in the body

and also accumulate in the tissues of fish

and other organisms, according to Rose

Lai, Greenpeace’s pollution prevention

campaign director in Taiwan

Tests found that some Zara items

contained substances that break down to

form cancer-causing or chemicals which are

unacceptable for both consumers and the

people living near the factories where these

clothes are made

Greenpeace demanded that garment

manufacturers disclose all chemicals used

in their manufacturing process and urged

the government to release a list of banned

chemicals

Asia News Network (21 November 2012)

SINGAPORE RANKED AS LEAST

EMOTIONAL COUNTRY IN THE WORLD

According to a new Gallup poll,

Singaporeans are the least likely in

the world to reveal experiencing

any emotions, with only 36% of

Singaporeans reporting positive or

negative emotions on a daily basis. Jon Clifton of Gallup acknowledged the

country’s economic success, but said that if

you look at everything that makes life worth

Singapore, Philippines

living, Singapore is not doing so well

The Philippines which is ranked as the

world’s most emotional society recorded

60% of Filipinos who feel both positive

and negative emotions on a daily basis

Analysts state that being emotional

does not necessarily equate with being

happy as the Philippines ranks poorly in

the 2012 World Happiness Index at 103

out of 155 countriesThe Guardian (21 November 2012)

INDONESIA

READIES NEW

Indonesia drafted a new food law to

enable self-sustainability of staple foods,

by elevating its state procurement

agency’s role into a “super body”. The new law aims to help the government

achieve self-sufficiency in staple foods such

as rice, soybeans, sugar, beef and corn

The new super body is to be created

within three years, and its remit may include

setting minimum prices, import limits and

tariffs to protect local farmers

Reuters confirmed that the law — which is

highly interpretable — covers food safety,

stocks, trade, procurement, prices, distribution

and consumption of unspecified staples

Critics say it could lead to curbs on trade of

staples, hinder investment and increase prices

The law will stress food sovereignty and

autonomy, giving priority to domestic sources,

while making imports the last resort, according to

Achmad Suryana head of the Food Security Agency

Indonesia is the world’s top importer of sugar,

Asia’s largest buyer of wheat, and imports two

million tonnes of rice and corn per year

Reuters (20 November 2012)

Indonesia

FOOD LAW FOR SELF-

SUSTAINABILITY

Editorial Team: Manissa van Geyzel, Chayut Setboonsarng, Sóley Ómarsdóttir Consultant Editor: Tunku ‘Abidin Muhriz

INDONESIA’ S

AGRICULTURE SECTO R

17

42

% of GDPcontributio n

million peopl eemployment

Source: World Bank 2011