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