03 OCTOBER 20 1 1 I SSUE 48

CARICAPTURES

BETA

0 1

02

1

4

8

2

5

9

3

7

610

The ASEAN Infrastructure Fund, a

joint effort between ASEAN and

the Asian Development Bank, will

give ASEAN countries an avenue for

financing infrastructure projects and

allow it to invest its foreign reserves

within the region. The fund will be administered by the

Asian Development Bank and will be based

in Malaysia as a limited liability company,

to help make the Masterplan on ASEAN

Connectivity a reality by forging roads, rails

and energy links

The fund aims to finance six infrastructure

projects annually, selected based on

US$1.3B ASEAN INFRASTRUCTURE

FUND FUELLING REGIONAL BOOM

ASEAN

economic rates of return, as well as its

impact on poverty reduction

ASEAN suffers from low road and rail

density, as well as electricity and clean

water coverage compared to the OECD,

which requires capital outlays of US$60

billion annually to rectify the situation

A unique feature of the fund is that it

will issue debt targeted at central banks in

the region which hold substantial foreign

exchange reserves

ASEAN countries hold over US$700 billion

in foreign reserve

ASEAN has committed to lend US$4 billion

to the fund until 2020; ADB will finance about

US$9 billion

Business Worlds, Philippines (25 September 2011)

The recent ASEAN-UN Secretariat

dialogue held in New York was

co-chaired by Dr Surin Pitsuwan,

Secretary-General of ASEAN and Mr

Oscar Fernandez-Taranco, Assistant

Secretary-General of the UN.

SECRETARIATS OF ASEAN AND

UN FOSTER CLOSER TIES

ASEAN

The meeting was attended by

representatives of key UN specialised

agencies including UNDPA, ESCAP, CTED,

OCHA, UNDP, DPKO, and OHCHR

The meeting reviewed the progress

on six areas of cooperation: (i) attaining

the Millennium Development Goals and

narrowing the development gaps within

ASEAN; (ii) promotion and protection of

human rights; (iii) peace and security; (iv)

collaboration on disaster management; (v)

Master Plan on ASEAN Connectivity; (vi)

coordination mechanism and Secretariat-to-

Secretariat dialogue

Asean Secretariat (28 September 2011)

26 0309 10‘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.

03

05

Indonesian Foreign Minister Marty

Natalegawa urged ASEAN to concentrate

on implementing existing resolutions

already passed by the member states

rather than pass new ones. During a roundtable meeting at the

Council on Foreign Relations (CFR) in New

York, Marty said a number of resolutions

still needs to be implemented

Indonesia had set three priority goals

towards making ASEAN a community:

(i) be effective in resolving our internal

differences; (ii) build transparent

architecture renouncing the use of force;

(iii) integrate and unite on international

issues by speaking with one clear voice

The forthcoming East Asia Forum, with

ASEAN as its centrepiece, is a major

platform to demonstrate ASEAN’s voice

Bernama (28 September 2011)

ASEAN

URGED TO

APPLY EXISTING

RESOLUTIONS

INSTEAD OF

CREATING NEW ONES

ASEAN

ASEAN

ASEAN celebrated World Tourism Day

on 27 September 2011; meanwhile its

tourism sector has enjoyed double-

digit growth in recent years and

integrative involvement from both the

public and private sectors. ASEAN hosts holiday destinations such as

Bali, Phuket, Langkawi, Borobudur, Prambanan,

Angkor Wat, and the Petronas Twin Towers

“As part of the ASEAN Tourism Strategic

Plan 2011-2015, member countries are now

ASEAN

TOURIST

INDUSTRY IS

BOOMING WITH

INTRA-ASEAN

TRAVELERS

Global financial uncertainties may

scare investors and cause capital

outflows from developing countries,

including Thailand, which need

capital to boost domestic economies,

said Thai Finance Minister Thirachai

Phuvanatnaranubala at the annual

IMF and World Bank meeting on 22-

24 September 2011. The major concern at the meeting was the

Thailand

state of the US and European economies,

struggling with huge public, bank, and

household debt undermining investor

confidence worldwide

The uncertainties are expected to be

short-term, if world leaders can implement

effective solutions

Export-oriented economies have been

advised to boost domestic consumption

and investment to counter an expected

slowdown in exports

The Nation (26 September 2011)

THAILAND FEARS

INVESTMENT DROUGHT04

jointly promoting the whole region to

attract tourists from non-ASEAN countries”

(Pushpanathan Sundram, Deputy Cecretary-

General, ASEAN Economic Community)

Private efforts to promote intra-ASEAN

tourism include budget carrier Air Asia

X’s recruitment of cabin crew from all

ASEAN countries and the regional tourism

campaign “Southeast Asia: Feel the

Warmth” by the ASEAN Tourism Forum

The Jakarta Post (27 September 2011)

26 0309 10‘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.

06ASEAN members have called on

Indonesia to ratify the Transboundary

Haze Pollution agreement, to allow

other ASEAN countries to assist

Indonesia in combating the annual

haze caused by its forest fires. The discussion took place at the Subregional

Ministerial Steering Committee’s 12th

meeting on Transboundary Haze Pollution

in Bangkok on 23 September 2011

Supat Wangwongwattana (Director

General, Pollution Control Department)

acknowledges that Indonesia has

postponed the ratification of the

agreement several times, despite pleas

ASEAN URGES INDONESIA TO

SIGN POLLUTION PACT

Indonesia

from ASEAN governments

Every year, during the months of August

and September, four provinces in the South

of Thailand are covered in smoke from

Indonesian forest fires, causing respiratory

problems among residents

Arief Yuwono from the Indonesian

Environment Ministry’s Degradation Control

and Climate Change told the meeting that

his government has implemented measures

to control haze pollution which include prevention

and control of forest fires, a zero-burning

campaign, and enforcement of new laws on

plantation, environment and forestry

The Nation, Thailand (24 September 2011)

07

Thailand

THAILAND’S

AUTO

INDUSTRY TO

BE CENTRE OF

THE ASEAN

MARKET

Thailand’s manufacturing

capabilities and industrial

infrastructure has attracted

strategic R&D and

manufacturing investments from

GM, Nissan, and American Axle

and Manufacturing (AAM). These companies seek to use

Thailand’s strategic position in the

auto industry as a gateway to the

ASEAN Economic Community

GM opened a US$200 million diesel

engine plant to produce engines for

the Chevrolet Colorado in Rayong,

Thailand on 9 September 2011, and

expects to buy US$94 million worth

of local components, bringing its

total investment in Thailand to US$1.3

billion since 1998

In July 2011, Nissan established its

new regional strategic headquarters

in Thailand to carry out its six-year

development plan for the ASEAN

region, set to triple unit sales to

500,000 units in 2016

Nissan plans to partner with the

Japanese Automatic Transmission

Company on a US$250 million

manufacturing plant to produce

continuously-variable transmission

(CVT) units in Thailand

AAM opened a new 138,000 sq ft

facility in Rayong to expand its Asian

presence for driveline and drivetrain

systems in the automotive industry

AMM is leveraging Thailand’s

position as the second largest pickup

truck market in the world that will

provide the necessary infrastructure

for clients in the ASEAN region

Thailand Business News(28 September 2011)

ASEAN’S TRANS BOUNDARY POLLUTION AGREEMENTS

26 0309 10‘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.

08

Myanmar is steadily dismantling its

rigid trade policies to attract foreign

investment in its effort to shape

its economy and compete with its

ASEAN neighbours. Myanmar’s Federation of Chambers of

Commerce and Industry, president Win

Aung, has said that major reforms are in

the pipeline

According to Aung, the liberalisation of

trade policies has begun in earnest, with

laws for FDIs and land lease to be made

very flexible

Aung welcomes foreign private

companies to form partnerships with local

firms in Myanmar

Bernama (28 September 2011)

MYANMAR

REFORMS,

INVITES FOREIGN

INVESTORS

Myanmar

1 0Thai experts do not expect

dramatic changes in ASEAN from

the implementation of the ASEAN

Economic Community (AEC) in 2015,

due to legal difficulties.

2015 AEC NOT TO MAKE MUCH

CHANGE IN REGION: EXPERTS

Thailand, ASEAN

Dr. Veerathai Santiprabhob (Former

Economist at the International Monetary

Fund) says in order for Thailand to

integrate into AEC, it needs to draft many

new laws as present ones are not compliant

Laws and regulations which require

revision must get parliamentary approval–

Dr. Kitti Prasertsuk (Lecturer, Political

Science Faculty, Thammasat University)

says these delays are a major impediment

of the AEC

Arin Jira (Deputy-Secretary General of the

Federation of Thai Industries) said ASEAN

lacks sovereign power to implement its

agreements, hence national interest could

prevail over collective ones

Dr. Kitti urged the government to

concentrate on public relations to equip

the private sector with knowledge and

understanding on the benefits of the AEC, to

maximise its opportunities and manage risks

Xinhua (27 September 2011)

09ASEAN’s military intelligence

officials agreed to widen cooperation

in fighting Islamic militancy through

sharing and exchanging experiences

ASEAN AGREES DATA-SHARING

TO FIGHT ISLAMIST MILITANTS

ASEAN

and information, at a recent military

intelligence exchange in Manila. Officials agreed to design and adopt

common standards to manage threats from

al Qaeda-linked Islamic militants active in

the region

Major-General Francisco Cruz (Head

of Intelligence, Philippines Military) said

ASEAN is building a regional database to

help its members identify and track down

known militants from Indonesia, Malaysia,

Thailand, Singapore and the Philippines

In recent weeks, Islamic militants sought

to ignite sectarian violence in Indonesia

after bombs exploded in a Catholic church

and Muslim rebels in the Philippines

stepped up attacks on military targets in

southern areas

The Economic Times (28 September 2011)