29 OCTOBER 2012 ISSUE 99 CARI CAPTURES 1 4 8 2 5 9 3 7 6 10 BETA ASEAN Laos, China 01 02 DOING BUSINESS INDEX: HOW DID ASEAN FARE? LAOS COMMITTED The World Bank recently released its Ease of Doing Business Index and while many ASEAN countries improved in rankings, there is still room for improvement. As a region, ASEAN’s overall rankings improved with the top gainers being Cambodia, Brunei, and Laos, moving up eight, four, and three places respectively Cambodia improved by making credit more accessible to investors, while Brunei improved its construction permit allocation, and Laos simplified regulatory barriers to starting businesses and trading across borders In ASEAN, Singapore maintained its position at the top of the list, while Malaysia followed in second Malaysian Minister of International Trade and Industry, Mustapa Mohamed claimed that Malaysia’s performance validates the Vientiane will invest US$7 billion in a high-speed rail network after the Chinese Export-Import (EXIM) Bank and its firms pulled out of the project. The Trans-Mekong high-speed rail network was launched two years ago between China and Laos and would connect Kumming and Vientiane The high-speed rail would also connect to Thailand through the pre-existing Thai-Lao border China’s EXIM bank announced that the rail network with Laos was not feasible and cancelled joint investment plans Laos National Assembly decided to go ahead with the 420-km rail project despite Beijing’s withdrawal, believing in the importance of rail connectivity for the landlocked country The high costs of the project is due to the need of building 76 tunnels and 154 bridges through mountainous terrain Why it Matters: Despite close ties between Laos and China, Vientiane will not wait on Beijing showing that it is committed and ready to invest in its own infrastructure. It is possible that this potentially opens doors to other partnerships with ASEAN members and India in similar projects. This would be a strategic and favourable decision on the part of ASEAN governments in diversifying the Laotian investment ties away from China. Travel News Daily (24 October 2012) success of the Prime Minister’s economic policies, despite the country slipping four positions to 25th in the Global Competitiveness Index The Philippines lagged behind Cambodia, falling two places to the 136th position It is worrisome that the Philippines has not made significant gains in the Doing Business index in the last decade Why it Matters: Ease of Doing Business reflects how the business and investment environment in a particular country is. It does not indicate the economy’s competitiveness like the World Economic Forum’s Global Competitiveness Index. ASEAN policy makers and the private sector has to understand this nuance and make adjustments accordingly to improve the country’s performance in both indices. The World Bank (23 October 2012) TO HIGH-SPEED RAIL, DESPITE CHINESE WITHDRAWAL Source: Doingbusiness.org Ease of Doing Business
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29 OCTOBER 20 12 I SSUE 99
CARICAPTURES
1
4
8
2
5
9
3
76 10
BETA
ASEAN
Laos, China
0102
Doing Business inDex: How DiD
AseAn fAre?
LAos
CommitteD The World Bank recently released
its Ease of Doing Business Index
and while many ASEAN countries
improved in rankings, there is still
room for improvement. As a region, ASEAN’s overall rankings
improved with the top gainers being
Cambodia, Brunei, and Laos, moving up
eight, four, and three places respectively
Cambodia improved by making credit
more accessible to investors, while Brunei
improved its construction permit allocation,
and Laos simplified regulatory barriers
to starting businesses and trading across
borders
In ASEAN, Singapore maintained its
position at the top of the list, while Malaysia
followed in second
Malaysian Minister of International Trade
and Industry, Mustapa Mohamed claimed
that Malaysia’s performance validates the
Vientiane will invest US$7 billion in
a high-speed rail network after the
Chinese Export-Import (EXIM) Bank
and its firms pulled out of the project. The Trans-Mekong high-speed rail network
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.
output of plastic(2011 - 2012)
ASEAN
Vietnam, Philippines
ASEAN
05
03
04 AseAn Aims to Corner gLoBAL
pLAstiCs mArket
VietnAm AnD pHiLippines At oDDs
on AseAn eConomiC Community
AnALysis:
impLiCAtions
Members of the ASEAN Federation of
Plastics Industries (AFPI) discussed
ways to become a global hub for
plastic production at the 14th AFPI
council in Ho Chi Minh City last week. The plastic industry is expected to grow
only 2-3% this year, similar to last year
The industry is facing many challenges
such as shrinking demand, decline in
plastic prices, volatile material prices, rising
With less then three years away
from implementation of the ASEAN
Economic Community, the Philippines
is uneasy about new competition,
while Vietnam is eager to learn from
its neighbours. Speaking at the Punongbayan & Araullo
CEO Business Forum in Makati City, Jollibee
Foods Corp chief finance officer Ysmael
Baysa warned that the Philippines could
stand to lose out in certain sectors of
the economy because the country is not
sufficiently prepared
Ysmael hypothesised that his fast food
chain, Jolibee, could source chicken and
sugar from Thailand, and rice and pork from
Vietnam over domestic producers after the
The signing of the peace agreement
between the Philippines government
and the Moro Islamic Liberation Front
(MILF) ended a four-decade conflict
and build an autonomous region in
Mindanao — to be called Bangsamoro
— has significant implications for
ASEAN neighbours. Three prime ministers from Malaysia
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.
myAnmAr
monitor06Politics
Around 84 people have been killed and
more than 28,000 people displaced in
recent communal clashes in Rakhine state in
western Myanmar. Survivors of the clashes
have criticised the government for the lack
of action.
Associated Press (30 October 2012)
President Thein Sein held his first ever
press conference for local press last week.
After being interviewed many times during
his recent visit to the US and after surviving
the hard questions on the inquisitorial BBC
program HardTalk, he said he is no longer
afraid of meeting with the media.
The Washington Post (21 October 2012)
Economy
Myanmar plans to build more than a
million residential flats in the next 15 years,
sources from the Construction Ministry
said. Myanmar is facing a housing shortage
but only 240,594 flats have been built
from 1989. It is estimated that 32.6% of the
country’s population live in urban areas.
Eleven News (26 October 2012)
The price of cars in Myanmar will continue
falling as the market opens up, according
to Commerce Minister Win Myint. “It is now
possible to buy a relatively new car for just
20 million kyat (US$23,000), whereas in the
past it would have cost 15 to 20 times that
amount.” The ministry recently authorised
the import of more than 60,000 motor
vehicles.
The Irrawaddy (24 October 2012)
Germany will provide technical and
financial assistance to Myanmar’s new
Hantharwaddy international airport.
Germany will also make investments in
construction and maintenance of sea ports
in Myanmar. Germany is Myanmar‘s second
largest donor after Japan with Myanmar still
owing an estimated ¤700 million (US$903
million) in unpaid debt
Mizzima (23 October 2012)
Foreign Affairs
Surin Pitsuwan, ASEAN’s Secretary-
General calls on ASEAN to act on the
escalating violence in Myanmar’s Rakhine
state, adding that without action there is
a serious risk that the country’s Rohingya
population becomes radicalised.
Bangkok Post (28 October 2012)
Myanmar will be invited to send observers
to the annual Cobra Gold exercise, a major
US and Thai-led multinational military
exercise, a step towards increased US
engagement with the Myanmar military.
Reuters (19 October 2012)
Malaysia, Indonesia
Myanmar
08
07
mALAysiA’s pArkson rAises
stAkes in inDonesiA’s mALL Boom
myAnmAr jumpstArts two more
speCiAL eConomiC Zones
Malaysian-based Parkson group,
which penetrated Indonesia’s retail
industry in 2011, has announced that
it will develop its first 150,000 sq ft
Parkson-branded department store in
the St. Moritz development, which is
owned by the Lippo Group. Alfred Cheng, executive director of the
Singapore listed Parksan Retail Asia Ltd
(PRA) says it plans to open at least four
stores a year for the next three years under
As plans for the Dawei Special
Economic Zone (SEZ) are becoming
clearer with the involvement of
Thailand and Japan, Myanmar is
jumpstarting the other two planned
SEZs in Thilawa and Kyauk Phyu. The Thilawa SEZ is located 25km south
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.
Editorial Team: Manissa van Geyzel, Chayut Setboonsarng, Sóley Ómarsdóttir
Consultant Editor: Tunku ‘Abidin Muhriz Designer: Iqbal Hakim
Philippines
Singapore
09
10
pHiLippines eyes working witH us AnD AseAn
on genetiCALLy moDifieD Crops
singApore pioneers worLD’s
first VertiCAL fArm
The Philippines, a leader in
biotechnology in Southeast Asia, is
willing to share its expertise with
the US and ASEAN countries on how
biotechnology improves farmers’
income and productivity. The statement by the Philippines’
Singapore has opened the world’s
first commercial vertical farm, which
uses 9-metre aluminum towers to
house various types of vegetables. Sky Green Farms began working on the