Malaysia likely emerged from recession: think-tank

Asian Defense News: KUALA LUMPUR (AFP) - – Malaysia's economy likely emerged from recession in the fourth quarter of 2009 and will post 3.7 percent growth in 2010 as the global economy recovers, a leading think-tank said Tuesday.
Southeast Asia's third-largest economy suffered three consecutive quarters of contraction in 2009 and the government forecasts it will shrink 3.0 percent over the year before rebounding to modest growth of 2.0-3.0 percent in 2010.
"The technical recession is likely to end in the fourth quarter 2009," the Malaysian Institute of Economic Research (MIER) said in a report.
"This is supported by effects of the larger public infrastructural expenditure, manufacturing turnaround, improved services trade, and higher domestic spending," the influential think-tank said.
The MIER maintained its forecast for Malaysia's export-dependent economy to contract by 3.3 percent in 2009, before growing at 3.7 percent this year and 5.0 percent in 2011.
"From 2010 onwards, we expect the economy to be on a normal track," MIER chief Zakariah Abdul Rashid told reporters, saying the services sector "will be a pillar of strength" against a stodgy manufacturing sector.
"However, the road ahead will be a bumpy one so we have to be cautious," he said, citing downside risks such as weak business and consumer sentiments, as well as volatile commodities prices that may impede a faster recovery.
Malaysia has announced two stimulus packages. The second package unveiled in March last year was billed as containing some 60 billion ringgit (17.7 billion dollars) in measures to pump-prime the economy.
The government in its 2010 annual budget slashed operating expenditure by 13.7 percent to 138.3 billion ringgit (40.7 billion dollars), to reduce the fiscal deficit from 7.4 percent in 2009 to 5.6 percent this year.

*AFP - Wednesday, January 27

PM Lee maps out 3 priorities for govt: economy, population, politics

Asian Defense News ~ SINGAPORE: Economy, population and politics are the key areas the Singapore government has marked as major priorities going forward, said Prime Minister Lee Hsien Loong.
Speaking at the Singapore Perspectives Conference on Monday, he said they are not one—off projects but are continuing challenges for a long time to come.
Home, Heart, Horizon — the theme of the annual Singapore Perspectives Conference went to the very heart of the issues that the prime minister wanted to discuss.
Picking up on the issue of productivity, Mr Lee said economic policy is not just about achieving the highest GDP figure but also ensuring the quality of growth.
He added: "Becoming more productive is not just a matter of working harder but also means restructuring, and change and flux, uncertainties, experiments, discontinuities.
"There will be good years when we should go faster and there will be other years which are tough where we will do more poorly. But overall, if you take over the next decade, I think five per cent will be a stretch. So MTI is now studying what is a realistic long—term growth target will be.
"Workers cannot expect to be carried along by a generally rising tide. They too have to be psychologically prepared to adopt and to change and to make the effort to upgrade themselves not just once, but again and again, continually throughout their working lives."
So Singapore’s economic policies must foster this transition, something the Economic Strategies Committee will address in its report next week. Mr Lee said the government will respond to the committee’s report in the Budget on February 22.
Mr Lee also added that a key attribute to sustaining economic growth is the importance of rejuvenating the population and also attract the best talent. He stressed that the best economic policies in Singapore will not bring about growth if the population starts to decline.
He said: "I am not sure what is the right measure to cause more babies to be born. After the mountain has moved we are waiting for the mouse to come out.
"The Korean government department has recently decided that they will have one early day off, turn off the lights, you go home and hope you have more time with family and babies to come. We have not yet tried that. I’m not sure we can overcome that."
Last year, there were 170 fewer babies born, compared with 2008. This would mean that the country’s total fertility rate would have gone down further and he added that this was perhaps because of the economic troubles.
Mr Lee noted that this was a grave trend and if unchecked, Singapore will face not just an ageing but a shrinking population. So besides more pro—family incentives, there is a continuous need to top up the population through immigration, in a calibrated way.
Finally, underpinning Singapore’s ability to tackle its challenges is having a good political system, which Mr Lee said still depends on having the right people in charge. He said leadership renewal will be a major issue at the next general election.
He said: "There is a mini general election fever in town. The general election is due sometime within the next two years but it is not imminent."
Mr Lee is confident that by the next general election, the People’s Action Party will field a team with the next generation leadership in place to assure the country’s future. — CNA/vm

*Channel NewsAsia - Tuesday, January 26

India ranked 84th in corruption index

Asian Defense News: India continues to be widely perceived as a highly corrupt nation, with Transparency International's corruption perception index (CPI) 2009 ranking the country at 84 out of the 180 surveyed. There is no significant difference from India's earlier standing at the 85th position last year.
India's integrity score, a major component of the survey, stands at 3.4 out of the highest score of 10, which indicates that the country has a long way to go as far as eradicating corruption is concerned. However, the good news is that India's integrity score is the second-highest one among all south Asian countries. Bhutan, with a score of 5, fared the best in the integrity parameter among all south Asian countries.
The top three countries with the highest CPI score and rank are New Zealand, followed by Denmark and Sweden. A country with a higher score is considered to be less corrupt.
India's rank has been calculated by collecting data from 13 sources. All sources measure the overall extent of corruption by gauging the frequency and size of bribes in public and political sectors. The survey does not take into consideration corruption in private sector enterprises.
India was ranked 72nd in 2007. However, the cash-for-vote scandal in 2008 brought the country down to the 85th position in the same year. The perception of corruption among politicians and public service officers still persist and has continued to affect India's rankings in the index in 2009.
"It is a commonly perceived notion that politicians are spending too much on elections and that corruption prevails. India's performance for this year is not a flattering one and one can only draw comfort from the fact that it has not fared worse than last year," Transparency International India Chairman R H Tahliani said.
Out of the various departments analysed, India's police department fares the worst in terms of corruption, while school education was the sector where least corruption prevails. The most corrupt state is Bihar, followed by Jammu and Kashmir and Madhya Pradesh.

Posted On: 26-Jan-2010 08:17:27 By: Ch. Narendra

India and Nigeria discuss cooperation in Hydrocarbon Sector

Asian Defense News: The Minister of Petroleum and Natural Gas Murli Deora met Henry Odein Ajumogobia, Minister of State of Petroleum Resources during his visit to Nigeria and held discussions on various issues. Dr. Emannual Egbogah, Special Advisor to the President on Petroleum matters was present. Mr Deora was scheduled to have meetings with Dr. Rilwanu Lukman, Minister of Petroleum in Nigeria; however, because of bereavement in the family of Minister of Petroleum, that meeting could not take place.
The Minister was accompanied by Ministry officials and CEOs of ONGC, IOC, GAIL and Oil India Ltd.
On the Nigerian side, senior Ministry officials and Top Management of National Nigerian Petroleum Corporation were present.
During the meeting, the following major issues were discussed:
1. ONGC(Videsh )Ltd through a JV that is OMEL is operating in two exploration blocks namely OPL 279 and OPL 285 which are deep water blocks. It was informed in the meeting to the Nigerians that the exploration is on track and that Govt of India has recently approved OVLs share of investments of USD 359 million. It was also informed that one well has been spudded. OVL sought assistance in resolution of issues relating to repayments in respect of another block. It was informed that the Steering Committee meeting would take place in about two days time to settle outstanding issues.
2. GAIL India Ltd along with its consortium members has been shortlisted as one of the fifteen companies for having qualified in the participation of an ambitious USD 30 billion National Gas Master Development Plan and its implementation. GAILs interest in participation in this huge development plan was reiterated and GAILs strengths and expertise were highlighted to the Nigerian side. GAIL expressed its interest in setting up of petrochemical plants, LPG plants and LPG transportation pipelines in which they have very strong technical and managerial expertise. As Nigeria is embarking on its development of natural gas resources which are currently under utilised, this offer was received with a great deal of interest.
3. Currently India imports about 10% of its crude oil requirement from Nigeria. The interest to procure more crude from Nigeria was reciprocated. Indian Oil Corporation offered to assist in the refinery upgradation, improving operations of refineries by imparting training to the technical personnel, providing consultancy etc. The Nigerian side said that it is a priority area for them and would look forward to cooperation in this sector.
4. Another area of interest of the Indian companies is in LNG liquefaction plants. As Nigeria is planning to have new plants, both IOC and GAIL have expressed interest in participation in such projects.
5. Oil India Limited which is a consortium partner in a block gave an account of its activities and sought assistance in finding a suitable Nigerian partner company to fill in the gap created by exit of one of its partners.
6. The Minister of State mentioned about the new Petroleum Bill which would bring in reforms in the sector. He said that it would bring in a situation of exploration companies to also orient towards bringing about socio-economic developments in the region where they operate.
Minister of Petroleum and Natural Gas expressed the hope that more Indian companies would get opportunities to invest in Nigeria when the new bill becomes an Act. He also mentioned about OVL’s activities. OVL has set up the first Geological and Geo-physical Centre in Nigeria. Special Advisor to the President highlighted the need for providing a stake to the communities. He appreciated the model of Indian companies in this regard.
*Posted On: 26-Jan-2010 06:54:41 By: Ch. Narendra

Opium farming surges in northern Myanmar: group

Asian Defense News: BANGKOK – Opium cultivation in Myanmar is increasing rapidly in areas under the control of the military government, an ethnic minority organization said Tuesday.
Myanmar is the world's second-biggest producer of opium, which is the main ingredient in heroin, though it trails Afghanistan by a large margin. The ruling junta has vowed to eliminate the drug.
However, opium cultivation in Shan State the major production area has tripled in certain areas over the past three years in Myanmar, also known as Burma, according to a report by the Palaung Women's Organization. The Palaung are an ethnic minority in the northern state.
Researchers found cultivation in two townships under government control rose from 2,380 acres (964 hectares) in 2007 to 11,230 acres (4,545 hectares) in 2009.
"The number of villages growing opium has tripled from 2006 to 2009," Lway Aye Nang, an executive committee member for the organization, said at a news conference Tuesday in Bangkok.
The areas had been under the authority of the rebel Palaung State Liberation Army, but the insurgent group ceded control in 2005 after laying down its arms.
Soldiers, local officials and pro-government militiamen were profiting by extorting opium farmers, said Palaung researcher Lway Dang Jar. The report said drug addiction in the area was increasing with "devastating" impact.
Critics of the military regime have accused it of abetting or turning a blind eye to the illicit drug trade.
Myanmar officials were not immediately available for comment.
A United Nations Office on Drugs and Crime survey of opium poppy in Myanmar released in December 2009 found cultivation increased to a total of 78,330 acres(31,700 hectares) throughout the country, an 11 per cent rise from 2008.
The U.N. agency would not immediately respond to a request for comment.

*AP - 2 hours 53 minutes ago

Australian PM's nephew fined after racism protest

Asian Defense News: MELBOURNE, Australia – Prime Minister Kevin Rudd's nephew was fined for offensive behavior after dressing in a Ku Klux Klan costume to protest racism at a demonstration outside the Australia Open tennis championship on Tuesday.
Van Thanh Rudd, the son of the prime minister's brother Malcolm Rudd, and another man were protesting a recent spate of violence against Indians in Melbourne when police broke up the demonstration and told them to move along. They were each issued a 234 Australian dollar ($210) ticket for offensive behavior, Victoria state police said.
There has been a highly publicized spate of street violence against Indian students in recent months in Melbourne, Australia's second-largest city. Australian police say that while some attacks on Indians are racially motivated, many are ordinary crimes.
Earlier this month, Australia condemned an Indian newspaper cartoon that depicted an Australian police officer as a member of the Ku Klux Klan. The cartoon, published in New Delhi's Mail Today, satirizes Victoria police for saying there is no evidence the recent stabbing murder of an Indian-born Australian resident in Melbourne was racially motivated.
Van Thanh Rudd told Australian Broadcasting Corp. the protest was also meant to call attention to the plight of asylum seekers who are turned away from Australian shores.
The prime minister's office declined to comment.

*AP - Wednesday, January 27

China sentences four more to death in Xinjiang

Asian Defense News: BEIJING (AFP) - – A court in China's Xinjiang region has sentenced four people to death over deadly riots in July, bringing to 26 the number of those condemned to die for the unrest, a government official said on Tuesday. The verdicts were handed down on Monday by a court in the regional capital Urumqi -- the site of deadly clashes that left nearly 200 dead and over 1,600 injured.
"They were sentenced yesterday by the Urumqi Intermediate Court," a spokesman at the Xinjiang government who gave only his surname, Li, told AFP.
"Four people were sentenced to death, one was sentenced to death with a two-year reprieve and eight others got prison terms of up to life."
A death sentence with a reprieve is normally commuted to life in prison.
The sentences brought to 26 the number of people who have been reported executed or condemned to die over their roles in the unrest, some of the worst ethnic violence in China in decades.
The Xinjiang Daily newspaper said verdicts came in five separate cases with the 13 defendants charged with the "violent crimes of attacking, smashing, looting and burning", a Chinese term that means violent rioting.
The defendants' names provided by the Xinjiang Daily appeared to be Uighur, the Turkic-speaking Muslim minority group that has long complained of Chinese repression.
During the initial eruption of violence on July 5, Uighurs attacked Han Chinese, but in subsequent days mobs of Han roamed the streets seeking revenge.
Uighurs say the violence was sparked when police cracked down harshly on peaceful demonstrations in Urumqi that were held to protest the beating deaths of two Uighur migrant workers at a factory in southern China.
Authorities quickly implemented a clampdown on communications in and out of Xinjiang after the riots, blocking Internet access, text messages and international phone calls.
These restrictions have only just been lifted, although the Internet is still only partly accessible.
China says it faces a serious separatist threat in Xinjiang and has vowed harsh retribution for those found guilty of wrongdoing in the unrest.
State media said earlier this month that funding for public security in Xinjiang would nearly double in 2010.
A budget proposal placed before Xinjiang's legislature called for 2.89 billion yuan (423 million dollars) to be spent on public security, up from 1.54 billion yuan in 2009, the official China Daily reported.
But exiled Uighurs say Beijing exaggerates the separatist threat to justify harsh controls in the strategic western region, which is rich in energy reserves and borders on several central Asian countries.
Earlier this year, authorities also issued orders to step up identity checks and monitor religious activities in Xinjiang in a renewed bid to quash terrorism, separatism and extremism, state media reported.
*AFP - Wednesday, January 27

Car bomb wounds 6 near US base in Afghan capital

Asian Defense News: KABUL – A Taliban suicide car bomber struck near a military base in Afghanistan's capital Tuesday, wounding at least six people, Afghan and NATO officials said.
The militant group claimed responsibility for the attack in a text message to The Associated Press from a phone number commonly used by the insurgent group. The target was an international military convoy, the extremist group said.
An AP reporter at the scene saw the wreckage of a vehicle from afar. U.S. soldiers had blocked off access to the site right outside Camp Phoenix, an American base inside Kabul.
The attacker was driving a minibus laden with explosives that wounded at least six Afghan civilians when it went off, said Jamil Jumbish, the head of Afghanistan's criminal investigation unit. Jumbish said he had no reports of deaths but added that he did not know if there were any casualties among NATO forces.
NATO forces confirmed an explosion about 5 p.m. local time outside the main gate of Camp Phoenix. A statement issued by the international military coalition said initial reports indicated it was a vehicle-born bomb but did not give further details.
Lt. Nico Melendez, a NATO spokesman, said he did not yet have reports of injuries.
The strike follows on a bold attack last week by Taliban militants on government buildings in the heart of Kabul. The Jan. 18 attack paralyzed the city for hours and left five civilians and Afghan security forces dead, along with the seven assailants.
*AP - Wednesday, January 27

Moderate quake hits southern Sumatra

Asian Defense News: New Delhi ~ A 5.4 magnitude earthquake rocked southern Sumatra Island of Indonesia today, official sources said.
According to India Meteorological Department, there were no immediate reports of damage or casualty from the quake, which was epicentred at 00.1 degrees south Latitude and 99.3 degrees east Longitude.
The tremor struck the Island at about 1223 hrs (IST), the IMD said.

Travellers preferred South Korean airport overall

Asian Defense News: The South Korea International Airport at Incheon has been named the world's best terminal.US magazine, Global Traveler, gave Incheon airport, which is just west of Seoul, the annual "Best Airport in the World" award in New York.
The runner-up was Changi Airport of Singapore, with Schiphol in Amsterdam and Hong Kong's Chek Lap Kok ranking third and fourth respectively.
The winner was chosen through a survey of the magazines subscribers worldwide.25,000 readers took part in the survey.

Some Chinese milk tests positive for toxic chemical

Asian Defense News: Melamine-tainted dairy products have been taken off the shelves of convenience stores in southern China.
Even though it has been more than a year since hundreds of thousands of children became sick or died from tainted milk, the Chinese government has decided to remove the product after health inspectors found some cartons of milk, dating from early 2009, positive for melamine.
Milk in and around the province of Guizhou has been affected by the recall and includes products from three companies, Shandong Zibo Lusaier Dairy, Liaoning Tieling Wuzhou Food and Laoting Kaida Refrigeration.
Melamine in milk can cause kidney stones and kidney failure
The ingredient had originally been added to the milk to trick inspectors who were testing for protein.
Both melamine and protein are high in nitrogen.

Two Indian students assaulted in Melbourne

Asian Defense News: Melbourne ~ Even as Indian and Australian flags go side by side on their national day on Tuesday, two Indian students were allegedly assaulted by a group of thugs here.
Eight persons, described as being of Asian appearance, have been arrested after several hours of the incident and were being questioned, police said in a statement.
The accused had allegedly made comments to the duo before one of the student was pushed to the ground and kicked at about 10.20 pm (local time) last night in central Melbourne.
The 18-year-old Indian man suffered a wound on his left ear from what appeared to be an edged weapon, police said, adding the 22-year-old student was also punched to the ground and suffered minor abrasions to the forearm.
Police confirmed the two victims were Indian students but were unable to say whether the comments made were racial.
The 18-year-old was taken to St Vincents Hospital with lacerations to the left ear, while the other student did not required hospital treatment, an AAP report said.
The attack comes just weeks after an Indian student Nitin Garg was stabbed to death in a park in Yarraville in Melbourne’s inner-west.
Posted On: 26-Jan-2010 11:07:22 Source: Agencies

Taiwan, China to offer 385 charter flights for New Year

Asian Defense News: Taiwanese and Chinese airlines will operate 385 charter flights during the upcoming Chinese New Year holidays, the Civil Aeronautics Administration (CAA) said Tuesday.
In February, Chinese airlines will offer 287 round-trip flights to Taiwan, while Taiwanese airlines will provide 98 round-trip flights to China, CAA said.
The 10-day Chinese New Year holidays begin February 14.Due to the high frequency of flights, some are forced to operate in the early morning hours, the Central News Agency said.
The charter flights are in addition to 270 regular cross-strait flights per week, which were introduced on August 31 when Taiwan dropped its six-decade ban on air links with China.
There are some half a million Taiwanese working in China, either opening factories or working in high-tech companies.
The Chinese New Year, also called the Spring Festival, is the most important holiday for Chinese all over the world.

Indonesia delays deadline for single bank ownership

* No new deadline for single bank ownership rule
* Govt to study impact on four state-owned banks
* Policy forced Temasek to sell BII stake, Bank Niaga merger
* Analysts say govt could lower stake in top lender Mandiri
By Telly Nathalia and Neil Chatterjee

Asian Defense News: JAKARTA, Jan 26 - Indonesia will delay an end-2010 deadline requiring investors to own only a single bank in Southeast Asia's largest economy, giving the government more time to work out what to do with its major stakes in four banks.
Analysts said it was unclear exactly what would happen to the government's stakes, but any asset sales could attract strong interest to get exposure to a fast-growing economy that investors hope could reach investment-grade status in a few years.
The policy from the central bank requires all banks that share a major shareholder to merge, divest or create a single holding company.
The government owns controlling stakes in four major banks, including 66 percent of Indonesia's top lender Bank Mandiri , 56 percent of Bank Rakyat Indonesia >, 76 percent of PT Bank Negara Indonesia and 73 percent of the recently listed PT Bank Tabungan Negara .
"There has been no indication of the Indonesia government selling its stake in the banks. Mandiri has indicated that government ownership will be reduced to below 60 percent, to qualify for a lower tax rate. We do not know whether it will be through divestment or a new share issue," said Salman Ali, head of Indonesia research at Citi Securities in Jakarta.
The policy, originally set for 2008 but pushed back several times already, forced Singapore state fund Temasek [TEM.UL] to sell a stake in one of its two banks in Indonesia, and could bring about management changes at state-owned banks, government officials have said.
Said Didu, secretary of the state enterprises ministry, did not give a new deadline for the policy, which aims to consolidate the banking sector and help improve transparency.
MERGERS UNLIKELY
The policy led to the 2008 merger of Bank Niaga and PT Bank Lippo Tbk to form CIMB Niaga .
Purbaya Yudhi Sadewa, an analyst with Indonesian broker Danareksa, said it would be difficult for any potential further mergers to win shareholder approval.
Didu said the government had to tread carefully over the state-owned banks, because decisions could affect the banking system and the economy.
"We need to draft and do deep research about it, about its impact for state-owned banks," Didu told Reuters on Tuesday.
Singapore's state investor Temasek, which still owns 68 percent of Indonesia's PT Bank Danamon , sold its majority stake in Bank International Indonesia to Malaysia's Maybank in 2008 because of the policy.
Temasek profited from the deal, but investors have since been pouring into Indonesian markets in the past year to get exposure to Southeast Asia's strongest growth, a surge in the stock market <.JKSE> and a buoyant rupiah currency.
Fitch Ratings gave the country a vote of confidence on Monday, upgrading its sovereign rating [ID:nSGE60O0EV]. And private equity group CVC Partners joined retail firm Matahari Putra Prima in a joint venture buying Matahari's department store chain arm for $773 million on Monday.[ID:nSGE60O0J0]
Indonesia's stock market jumped over 80 percent and bonds posted equity-like returns last year as investors bought into the prospect that relatively stable politics and healthy economic growth could push the country to investment-grade status in a few years, alongside BRIC nations Brazil, Russia, India and China.

India, China border personnel meet to mark Republic Day

Asian Defense News: Leh: It was a scene of bonhomie as the border personnel of India and China met to mark the Republic Day in Chushul belt along the LAC in Ladakh, putting behind the tension over recent incursions by the PLA in the area.
Both sides also agreed on different measures to maintain peace, stability and to work for development of the region.
The Chinese delegation was received by the leader of Indian delegation Brigadier Y K Joshi.
After the reception, the Indian national flag was hoisted and both the Chinese and Indian delegations saluted the tricolour.
According to a Northern Command spokesperson, in the formal meeting held in atmosphere of mutual trust and camaraderie, greetings were exchanged by both the sides amid agreements to join hands in contributing to peace, stability and development of the region in consonance with border peace and tranquility agreements.
Posted On: 26-Jan-2010 17:22:19 Source: Agencies

Pakistan continues to violate ceasefire

Asian Defense News: New Delhi: Even as India celebrated its 61st Republic Day, Pakistan violated a ceasefire near the International border in Jammu twice on Tuesday.
Pakistan allegedly fired on two posts in Kanachak and Akhnoor in the wee hours of the morning.
A private television report said it was the 15th cease-fire violation by Pakistan in just one month.
Tuesday's first violation came around 2.30 a.m. when intermittent firing was reported in Kanachak area near the international border. The Alfa Machal post was allegedly targetted from across the border.
The second violation was on the Akhnoor sector's Tent Post, when two rockets were reporedly fired by Pakistani Rangers at about 2:45 a.m. from the Pakistan side.
"There was firing at around 2 a.m. in the morning today, and continued for a few hours," the channel quoted Jammu and Kashmir police chief Kuldeep Khoda, as saying.
"The intensity was initially huge, later on it died down a bit. We are watching the situation, our forces are there, they are very alert, our patrolling parties and the BSF are there supportnig them. And things are well under control right now," he added.
A red alert has been sounded in the Akhnoor sector in response to the cease-fire violation.

Posted On: 26-Jan-2010 18:38:16 By: Rizwan Khan