Thai economy sees stunted growth despite tourists' return

BANGKOK - Thailand's economy grew 2.5 percent in the second quarter as returning foreign tourists failed to offset high inflation and concerns over regional tensions, the country's main economic agency said Monday.

Southeast Asia's second-largest economy was hit hard during the pandemic, though visitor numbers are slowly improving with the relaxation of travel rules since May.

But the Ukraine war and now tension over Taiwan could put any economic recovery at risk, Thailand's National Economic and Social Development Council (NESDC) warned.

"We have to continue monitoring to see how long counteraction from China over Taiwan will last," NESDC Secretary General Danucha Pichayanan said.

"The relaxing of our Covid controls, the recovery of tourism are factors that support the growth."

The agency said that gross domestic product rose 2.5 percent in April-June compared to the same period a year ago -- well below the anticipated growth of three percent.

The NESDC also revised the expected full-year growth rate from 2.5-3.5 percent to 2.7-3.2 percent.

Economist Charl Kengchon, from the Kasikorn Research Centre, characterized the results as a "mixed bag", with the tourism boost failing to lift growth.

"I think that is because inflation hit a 14-year high in June, so it is a drag on spending both (in the) household sector and business," he said.

Inflation in the month of June hit 7.7 percent and was at 6.5 percent for the quarter, according to the NESDC.

The impact of the Russia-Ukraine war and Taiwan tensions were also a worry, Charl said, affecting supply chains.

"We expect Thailand exports to cool in tandem with the global economic growth next year, so we have to rely so much on tourism," he said.

Thailand welcomed roughly 40 million people annually pre-pandemic, and has set ambitious targets on arrivals for the coming year in the hope of coaxing life back into the damaged tourist sector.

Agence France-Presse

US eyes trade deal-lite as Southeast Asian leaders gather

WASHINGTON—The United States is preparing a scaled-back version of a trade pact as Southeast Asian nations gather in Washington, where President Joe Biden is seeking to show solid commitment in the face of a rising China.

Leaders from the Association of Southeast Asian Nations will meet Biden for dinner Thursday at the start of a two-day summit, part of a renewed US focus on Asia after months of intense effort on Ukraine.

Before Russia's invasion of Ukraine, the Biden administration had made clear that its top priority was competition with China due to its rapid technological advances and rising assertiveness both at home and abroad.

Kurt Campbell, the top White House official on Asia, said the United States would raise areas of cooperation with ASEAN leaders including fighting the Covid pandemic and disaster relief.

He also said he expected "substantial interest" by Southeast Asian nations in the Indo-Pacific Economic Framework, or IPEF, the latest acronym-branded US trade initiative, which was mentioned late last year by Secretary of State Antony Blinken in Indonesia.

"We're quite confident that we're going to be able to have a substantial launch with a very broad range of potential players," Campbell said at the US Institute of Peace.

Koji Tomita, Japan's ambassador to Washington, told a separate event that he expected IPEF to be unveiled formally a week later when Biden visits Tokyo and Seoul.

Former president Barack Obama had proposed the Trans-Pacific Partnership, billing it as a high-standards deal that would let the United States lead the emerging trade order in Asia.

His successor Donald Trump trashed the deal, calling free trade unfair to US workers. Biden, seeing the shifting US political mood, has made clear he is in no rush for trade deals -- and China is now seeking to enter the Trans-Pacific Partnership's successor.

NOT SEEKING 'NEW COLD WAR'

Experts briefed on IPEF said it would formally commit the United States to work with partners on key economic priorities including ensuring smooth supply chains, fighting corruption and promoting green energy.

Unlike traditional trade deals, it would not guarantee market access to the United States, the world's largest economy -- the usual sweetener to persuade nations to make concessions.

Campbell said Biden knew that any initiative needed to be "fundamentally based on the needs and desires of the people of Southeast Asia."

"He does not want to descend Southeast Asia or Asia into a new Cold War," he said.

"I think we recognize quite clearly that any initiative that is simply designed for competition is likely to have difficulty gaining altitude in Asia."

China for more than a decade has been ASEAN's largest trading partner, despite widespread territorial rifts between Beijing and members of the bloc, especially Vietnam and the Philippines.

Evan Feigenbaum, a former senior State Department official, told a recent congressional hearing that the United States has historically enjoyed its privileged place in Asia due to both its security and economic leadership, only one of which remains.

"Even though America's economic role is growing in absolute terms, it is receding in relative terms, which means that, to lead, we should be leaning harder on the other pillar of our economic leadership, which was to be a rule writer and standard setter," said Feigenbaum, now at the Carnegie Endowment for International Peace.

Labor advocacy group Trade Justice has already voiced alarm at IPEF, saying many Southeast Asian nations did not have adequate treatment of workers.

Trade diplomacy has long been at the forefront of US interactions with Southeast Asia, often seen as a victim of its own success given its perceived stability.

But the Washington summit also comes after a year of intense US pressure on Myanmar, once hailed as a model of democratic transition, following its military coup.

US officials say they will seek to show support for democratic forces in Myanmar and may represent the country with an empty chair during the summit.

Agence France-Presse

Vietnam Prime Minister asks major cities to prepare for lockdown to stop virus

HANOI - Vietnam's prime minister on Monday asked major cities to prepare for possible lockdowns to stop the spread of coronavirus as the number of confirmed cases in the Southeast Asian country reached nearly 200.

"Hanoi and Ho Chi Minh City have to review and update plans to battle the virus, and have to stand ready for city lockdown scenarios," Prime Minister Nguyen Xuan Phuc said in a statement.

"Vietnam has entered the pandemic's peak period, major cities have to speed up and take advantage of each hour and minute to carry out defined measures," Phuc said.

The Vietnamese government has ordered a halt on inbound flights, cut domestic flights, stopped public gatherings and temporarily shut down non-essential services until April 15 at the earliest.

It has also launched an aggressive quarantine and contact-tracing program to curb the spread of the virus after an influx of infections brought in by Vietnamese citizens escaping outbreaks elsewhere and by foreign visitors.

Vietnam has confirmed 194 infections but has had no reported deaths, according to the health ministry. More than 75,000 people are in quarantine. The country aims to keep the number of infections under 1,000.

source: news.abs-cbn.com

Nintendo supplier to shift game console production from China to Cambodia

TOKYO - Japanese electronic device maker MinebeaMitsumi Inc. will shift part of its video game console production operation to Cambodia from China, a company spokesman told NNA on Tuesday, with the outcome of the United States-China trade row remaining uncertain.

The move by MinebeaMitsumi, a supplier to video game giant Nintendo Co., comes after the United States canceled last week its planned punitive tariffs on video game consoles, among other products, shipped from China.

MinebeaMitsumi will introduce upgrades to its plant located in a special economic zone in the Cambodian capital of Phnom Penh, planning to have the assembly of video game consoles for export at full capacity from 2020.

Production has partially started already, the spokesman said, while declining to disclose the amount of investment or planned output capacity.

He said they plan to beef up production in Cambodia overall, where they currently make products such as ball bearings and LED backlights under its local arm, Minebea (Cambodia) Co., and expand the number of workers to 20,000 from 7,000 in the next few years.

Nintendo, which made up 16.4 percent of MinebeaMitsumi's sales in the fiscal year through March 2019, revealed in July its plan to shift part of its Switch console production from China to Vietnam.

It said the decision to move production of the popular video game console was made to avoid future uncertainty, after opposing the U.S. tariffs in a joint statement released in June. (NNA/Kyodo)

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Hyundai Motor to invest $1.5-B in Indonesia factory

SEOUL - South Korea's Hyundai Motor has signed a deal to build a $1.5 billion car plant in Indonesia, the company said, its first in Southeast Asia, where Japanese carmakers dominate the market.

The deal comes as Seoul looks to diversify its trade-dependent economy, the world's 11th largest, away from reliance on traditional partners China and the US.

Indonesia is the region's largest automobile market, and the $1.55 billion deal aims to "combat slowing demand in the global automotive market" and propel future growth, Hyundai said in a statement.

The plant, to be built in Bekasi, east of Jakarta, will start production in 2021, Hyundai said, ultimately aiming to produce 250,000 vehicles a year.

South Korea's President Moon Jae-in has been pushing a "New Southern Policy", seeking to bolster economic ties with Southeast Asia as the country aims to reduce over-reliance on Beijing and Washington, and Hyundai's announcement coincided with a South Korea-ASEAN summit in Busan.

Hyundai, the South's largest automaker, said it was building the factory in Indonesia to avoid import tariffs ranging from five to 80 percent in the ASEAN region.

At present it lags far behind its Japanese rivals in the region, with its sales reaching 122,883 vehicles versus Toyota's 854,032 and Renault–Nissan–Mitsubishi's 351,267 from January to September this year, according to research firm LMC Automotive.

South Korea's central bank last month cut its key interest rate to its lowest in two years in an effort to prop up slowing growth with the economy hit by a bitter trade spat with Japan.

Hyundai shares were up 1.22 percent in Wednesday afternoon trading in Seoul.

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US Defense Sec. Esper slams China in meeting with ASEAN counterparts

BANGKOK - US Defense Secretary Mark Esper rebuked China's behavior in the South China Sea in a meeting Sunday with his Southeast Asian counterparts.

Esper, speaking at the ASEAN-US ministerial meeting of the annual ASEAN Defense Ministers' Meeting-Plus, also cast doubts on Beijing's sincerity in forging a "meaningful" Code of Conduct with the 10-member Association of Southeast Asian Nations.

"China's activities there are a threat not only to other claimants and to many Southeast Asian nations, but to all trading nations who value freedom of the seas, and the peaceful settlement of disputes," Esper said at the meeting.

"(China's) maritime claims in the South China Sea, exemplified by the illegitimate nine-dash line, are both unlawful and unreasonable, and counter to the July 2016 ruling of the UNCLOS Permanent Court of Arbitration at The Hague," he said.

The nine-dash line refers to a demarcation used by China for its claim in the South China Sea, where ASEAN members Brunei, Malaysia, the Philippines, and Vietnam also have claims. UNCLOS stands for the United Nations Convention on the Law of the Sea.

In a bid to clarify its maritime entitlements in the South China Sea amid China's aggressive assertion of its claims over almost the entire body of water, the Philippines sought arbitration in 2013 with the international tribunal and eventually won the case in 2016.

Rejecting the arbitration process and the ruling, China reclaimed disputed features in the South China Sea and fortified them with military installations, and has been driving away foreign fishermen, coast guards and militaries.

Esper said China has "stepped up its use of what it calls 'maritime militia vessels'" to ward off Filipino, Indonesian, Malaysian and Vietnamese sailors, and fishermen, as well as employing its coast guard to prevent Vietnam from "drilling oil and natural gas off its own shores."

"Through repeated provocative actions to assert the nine-dash line, Beijing is inhibiting ASEAN members from accessing over $2.5 trillion in recoverable energy reserves, while contributing to instability and increasing the risk of conflict," Esper said.

"This behavior contrasts sharply with the rules-based order we have all worked together to build for more than 70 years," he added.

Esper said Beijing's "actions in the South China Sea present a maritime challenge that requires a multilateral solution."

"I encourage you to use your sovereign spaces, as well as international ones, or risk losing them," he told his ASEAN counterparts, stressing, "multilateral approaches are key" and reaffirming Washington's intention to continue flying, sailing and operating "where international law allows."

"Together, we must stand for lawful uses of air and maritime spaces to push back against coercion and intimidation," he said.

Expressing skepticism over Beijing's "sincerity to negotiate a meaningful Code of Conduct that reinforces international law," Esper urged ASEAN not to allow the proposed set of guidelines "to be manipulated by the PRC to legitimize its egregious behavior and unlawful maritime claims, or to evade the commitments" it has signed up to.

He warned that "if this were to happen, the Code of Conduct would be counterproductive and harmful to all who value the freedoms enshrined in the UN Convention on the Law of the Sea." The United States is not a signatory to the 1982 accord.

ASEAN and China last year agreed on the text, which will form the basis of future COC negotiations. Aimed at managing tensions in the South China Sea, the envisioned Code of Conduct is hoped to be fully negotiated by 2021.

China has initially proposed in the COC that nonparty militaries who wish to hold exercises with ASEAN and China must have their approval, in an apparent swipe at the United States.

Esper underscored his country's freedom of navigation operations in the South China Sea, which he said has been most frequent this year compared to any in the past 25 years, as "particularly important in responding to steps Beijing has taken to militarize outposts" there.

"America's sustained military presence in the region is an enduring source of stability," he said, eliciting approval from Singaporean Defense Minister Ng Eng Hen, who spoke on behalf of all ASEAN ministers.

"I encourage all of us to work together to push back on this unacceptable behavior, to ensure we do not cede space or abdicate our rights," Esper said.

"For our part, the United States raises its concerns about Chinese behavior directly with the Chinese government. And we hope our words and actions provide you space to do the same."

The rivalry of the United States and China, the world's current leading powers, has extended to the influence they have over ASEAN, with each country holding a maritime exercise once with the bloc over the last two years.

At the ASEAN-China defense ministerial meeting earlier in the day, the South China Sea issue was also raised.

The two sides agreed in principle to conduct a second joint maritime exercise following their inaugural drills in 2018, Malaysian Defense Minister Mohamad Sabu told reporters afterward.

Mohamad said ASEAN again requested that the COC be respected and that Chinese Defense Minister Gen. Wei Fenghe responded that China is willing to work with ASEAN in addressing the sea dispute.

The two-day ADMM-Plus opened Sunday in Bangkok, as Thailand is this year's chair of ASEAN, which also includes Cambodia, Indonesia, Laos, Myanmar, and Singapore.

At an informal retreat of the ASEAN defense ministers following their meeting with Wei, some voiced concerns over the South China Sea row, but overall there was optimism about the progress of the COC negotiations.

The ADMM-Plus meeting also involves the defense chiefs from the ASEAN's eight regional partners -- Australia, China, India, Japan, New Zealand, South Korea, Russia, and the United States.

(Chananthorn Kamjan contributed reporting.)

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US scales back attendance at East Asia Summit

WASHINGTON — President Donald Trump's new national security adviser will represent the United States at the East Asia Summit, the White House said Tuesday, the lowest-level official to lead the Washington delegation since it was first invited to the regional forum.

With Trump embroiled in an impeachment inquiry, the muted presence at the Nov. 3-4 summit in Bangkok is sure to renew charges that the United States is not focused on Asia at a time that China's clout is growing.

The White House said that Robert O'Brien, who took over the position in September from the hawkish John Bolton, would lead a US delegation that will include Commerce Secretary Wilbur Ross, who will also travel separately to Indonesia and Vietnam.

Despite Trump's non-attendance, he is expected to go the following week to a separate summit of the Pacific Rim-wide APEC bloc in Santiago, Chile.

The East Asia Summit concept was promoted for years by Malaysia's veteran Prime Minister Mahathir Mohamad, an outspoken proponent of the continent's future who envisioned an eventual bloc akin to the European Union.

But the United States was controversially excluded from the inaugural summit in Kuala Lumpur in 2005, drawing widespread commentary in Asia that Washington was too preoccupied with the Middle East.

After President Barack Obama vowed to pivot US attention toward Asia, the United States -- as well as Russia -- were invited as full participants in the summits starting in 2011.

Obama attended each year except 2013, when he was fighting congressional Republicans over a government shutdown and sent secretary of state John Kerry instead.

Trump flew to the Philippines for his first East Asia Summit in 2017 but, with the session running late, he left early and ended a 12-day trip to Asia, with then secretary of state Rex Tillerson taking his place.

Last year, Vice President Mike Pence attended the summit in Singapore, where he described China's militarization of the dispute-rife South China Sea as "illegal and dangerous" and vowed to stand by US allies in the region.

Trump has said that he plans to meet Chinese President Xi Jinping to seek headway in a trade war at the November 16-17 APEC summit in Chile, to which Russian President Vladimir Putin has also confirmed his attendance.

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This red burger is juicy and spicy and contributes to the fight against HIV and AIDS

And you may only get a taste of it when you’re above the clouds. AirAsia changes its menu every quarter, so people can have something to look forward to the next time they fly. This season’s star is the INSPI(RED) Burger. 10% of sales from each burger will go directly to HIV/AIDS programs in ASEAN.

Gone are the days when airline food is equivalent to tasteless and unappetizing dishes. These days, every airline company is outdoing each other in making an impressive menu for its passengers, from the luxury airlines to low-cost ones like Malaysian airline, AirAsia. The latest addition to its in-flight menu is the INSPI(RED) Burger.

In an effort to improve the dining experience of their passengers, AirAsia partnered with one of the most popular Thai chefs in the United States, Chef Hong Thaimee. Chef Hong’s role in the partnership was to create a dish that would resonate with the airline’s diverse guests.

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“We’re a regional carrier, so we want to give our customers a flavor of the Asian experience,” Gilbert Simpao, chief commercial officer for AirAsia Philippines, tells ANCX, during the launch of INSPI(RED) Burger, at the Amorita Resorts in Panglao, Bohol. “AirAsia contacted Chef Hong because she’s a very famous and successful chef. We gave her leeway, so she could use her background, experience, and passion to create something wonderful.”

The result is a juicy, tangy, homemade burger, with a chicken patty steeped in fish sauce, kaffir lime leaves, and lemongrass. The patty is flanked by two beetroot-flavored, red brioche buns. The shredded purple cabbage and seedless tomatoes add flavor to the burger. Its best ingredient, though, is the Nam Prink Noom Mayo, a green chili mayonnaise, which Chef Hong borrowed from her grandmother.

Born in Chaingmai, Thailand, Chef Hong moved to New York City 12 years ago to jumpstart her career as a chef, after gaining success as a model and business executive in Bangkok City, Thailand. In The Big Apple, she gained work experience by taking jobs at several restaurants, before she decided to open her own place, called Ngam, which served modern Thai food. Through traveling the world and being exposed to different people, Chef Hong became a humanitarian activist, inspirational speaker, and author.

When she sealed her partnership with AirAsia, she asked the almost-two-decade-old airline if they wanted to support her advocacy of supporting people with Human Immunodeficiency Virus (HIV) and Acquired Immunodeficiency Syndrome (AIDS). She also wanted to raise awareness of the disease. The airline company happily agreed.

Coincidentally, in 2018, AirAsia already started a partnership with RED, a licensed brand that collaborates with the private sectors to support and fund initiatives that are related to HIV and AIDS awareness and eradication.

Simpao says, “Everything kind of goes full-circle. The organization RED is a partner. AirAsia’s color is red. And our new burger by our partner chef is red. We do hope this makes an impact and a significant contribution to our fight against HIV and AIDS.”  

For this initiative, 10% of the sales from each INSPI(RED) burger will go directly to the HIV/AIDS programs in the Association of Southeast Asian Nations (ASEAN).

One of AirAsia’s goals is to bring Filipino cuisine to a wider audience. For their new menu, they’ve put a twist to the classic adobo by serving it with java rice and bananas on the side.

The best-sellers include the famous beef tapa with scrambled eggs, chicken teriyaki, nasi lemak, and chicken rice. Recently, they launched the Manila-Osaka flight and coming up with more Japanese dishes is part of the agenda.

“We don’t want to settle,” Simpao says when asked what’s behind the menu upgrade. “Airlines is a very tough business. Any edge we can have over our competition—or course, low fares are important—but a great in-flight experience can also give us the edge. One part of the experience is having good meals onboard. The meals are not bundled into the price of the fare. If we want the passengers to pay extra, we have to make sure that we give them food that is worth their hard-earned money.”

source: news.abs-cbn.com

Britain looks to ASEAN for post-Brexit trading opportunities

LONDON -- British foreign minister Dominic Raab will travel to Thailand on Wednesday to attend a meeting of 10 South East Asian countries, searching for new trading opportunities and stronger diplomatic ties ahead of Britain's exit from the European Union.

Raab, appointed last week as part of new Prime Minister Boris Johnson's pro-Brexit cabinet, will use his first international trip in his post to attend a meeting of Association of Southeast Asian Nations (ASEAN) foreign ministers in Bangkok.

"For too long, our trade focus has been on Europe. We need to expand our horizons, and raise our game. That means grasping the enormous global opportunities for the UK," he said in a statement ahead of the trip.

"This region is already worth 36 billion pounds ($43.80 billion) per year in trade with the UK - and there are opportunities for us to boost that trade to benefit UK businesses and consumers."

Under Johnson, Britain is due to leave the EU on Oct. 31 regardless of whether it has a transition deal to preserve trading arrangements with the bloc. Critics say that would badly disrupt the flow of goods with the EU -- its largest trading partner.

Advocates of Brexit have long argued that one of the biggest benefits of leaving the EU will be an ability to strike new bilateral trade deals rather than relying on EU-level agreements.

The ASEAN countries are Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. 

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China promotes use of yuan among Southeast Asian nations

SHANGHAI—China published a five-year blueprint on Friday seeking economic and financial integration between southern Guangxi province and Southeast Asia, representing Beijing’s latest effort to promote international use of the yuan currency.

China’s state council, or cabinet, has agreed to build Guangxi, which borders Vietnam, into a financial gateway between the Association of Southeast Asian Nations (ASEAN) and China, the world’s second biggest economy, the People’s Bank of China (PBOC) said in a statement on its website.

As a key objective of the plan, China will promote the use of the yuan among ASEAN countries, with plans to facilitate cross-border trade settlement, currency transactions, investment and financing in the Chinese currency.

More specifically, China will encourage the use of yuan in its commodities trade with ASEAN, support yuan-denominated lending to projects in the region, seek to build offshore yuan markets and promote cross-border financial investments.

The plan, which spans five years until the end of 2023, was jointly published by 13 Chinese government agencies including the central bank, the foreign exchange regulator, the securities watchdog and the ministry of finance.

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US-Philippine ties: A history of 'best friends' fighting

MANILA - A meeting between US President Donald Trump and Philippine leader Rodrigo Duterte in Manila on Monday follows a stormy 16 months in their nations' decades-long alliance.

Here are 5 things to know about relations between the United States and one of its oldest allies in Asia.

FORMER COLONY

The Philippines went from centuries of Spanish rule to becoming a US colony in 1898 under the Treaty of Paris that was signed to end the Spanish-American war.

The colonial period began with a 3-year resistance, which claimed the lives of more than 20,000 Filipino nationalists and 4,200 American troops, according to US government historical records.

In 1941, Japanese forces invaded the Philippines and began more than three years of brutal occupation. The Americans later returned to liberate the nation and it gained independence in 1946, marking the start of a 71-year alliance.

TREATY ALLIES

The Philippines and the United States signed a mutual defense treaty in 1951 pledging to help each other if they were attacked by an external enemy.

The nation is one of only 2 American defense treaty allies in Southeast Asia, along with Thailand.

US-BACKED DICTATOR

Ferdinand Marcos ruled the Philippines for 20 years with US backing despite allegedly overseeing widespread rights abuses and embezzling up to $10 billion from state coffers.

The United States backed Marcos, who went from democratic hopeful to dictator, as he guaranteed strategic US bases in the Philippines and was seen as a bulwark against communism.

In 1986, a famous "People Power" uprising toppled Marcos, sending him and his family into exile in Hawaii.

SHUTTING BASES

Nearly a century of major US military presence ended in 1992 when the Philippines closed 2 of America's biggest Asian bases. The Filipino Senate rejected a treaty extension following rising popular sentiment against the United States.

However the Philippines' maritime dispute with China over the South China Sea, and US concerns over Islamic militancy in the restive south, brought the nation back into an American embrace.

 
The allies signed a Visiting Forces Agreement in 1998 and a 2014 accord that led to increased defence cooperation, including more annual joint military exercises.

DUTERTE TIRADES

Duterte's election last year brought a sudden reversal of the policy of his predecessor, Benigno Aquino.

The outspoken leader launched a war on drugs that was condemned by the administration of then-US President Barack Obama.

Duterte responded by announcing his "separation" from the United States and pursuing closer ties with China and Russia.

   
But Duterte has recently said the nations are "best of friends" again after receiving praise from Trump about the drug war.

source: news.abs-cbn.com

China looks to connect with ASEAN financial markets: PSE official

China is looking at capital market integration and exploring how it can connect with ASEAN financial markets as part of its Belt and Road initiative, an official of the Philippine Stock Exchange said Friday.

PSE chief operations officer Roel Refran also said the ASEAN Trading Link initiative needs to be further studied as the Philippines is not yet "as deep in product offerings".

source: news.abs-cbn.com

China, Japan, S. Korea to jointly combat financial instability

TOKYO - East Asia's three biggest economies vowed Friday to work together to help prevent market instability as tensions run high over Pyongyang's weapons programs.

North Korea's efforts to develop an arsenal of nuclear-armed missiles have fueled concerns among its Asian neighbors and led to threats of military action from Washington, as well as calls for China to rein in its reclusive ally.

Financial markets have been rattled by the events which have hit investor sentiment, and on Friday finance ministers and central bank governors from China, Japan and South Korea affirmed their cooperation in the face of future uncertainty.

"We will continue high degree of communication and coordination among China, Japan and Korea to cope with possible financial instability in the context of increased uncertainty of global economy and geopolitical tensions," a joint statement said.

The three-way talks were held on the sidelines of the Asian Development Bank's annual meeting in Yokohama, southwest of Tokyo.

Financial ministers and central bank governors of the 10-strong Association of Southeast Asian Nations (ASEAN) were also attending the ADB gathering, which began on Thursday.

In a separate meeting with ASEAN countries, Japan on Friday proposed to create a new currency swap arrangement worth 4 trillion yen ($36 billion) in case the region faces a financial crisis.

A swap is a useful device in times of economic stress, when normal foreign exchange markets can seize up.

"The yen is a stable currency and can work effectively for the stability of financial markets," Japanese Finance Minister Taro Aso told reporters, according to public broadcaster NHK.

Participants responded positively to the proposal, NHK said.

Since the onset of the Asian currency crisis in the late 1990s, Japan has spearheaded efforts to build a multilateral currency swap agreement.

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ASEAN silent on China defeat, militarization but mentions UNCLOS

MANILA - The Association of Southeast Asian Nations (ASEAN) on Saturday skipped mention of China's arbitration loss and its militarization and land reclamation in the disputed South China Sea.

The ASEAN Chairman's statement however "reaffirmed the shared commitment to maintaining and promoting peace, security and stability in the region... in accordance with the universally recognized principles of international law, including the 1982 United Nations Convention on the Law of the Sea (UNCLOS)."

The joint statement, which was issued early Sunday, was silent on China's defeat before the Hague-based arbitration court, which invalidated the basis of Beijing's sweeping claims over the South China Sea.

It also avoided any mention of Beijing's island-building activities in the disputed waters, or of Chinese militarization of these islands.

Several ASEAN leaders had reportedly called for the joint statement to mention the need to avoid "land reclamation and militarization that may further complicate the situation."

ASEAN member-states Brunei, Malaysia, the Philippines and Vietnam have claims that overlap those of China in the South China Sea.

The Philippines was earlier urged to take advantage of its chairmanship of ASEAN and use its arbitral victory as reference during discussions on a maritime code of conduct.

But 2 ASEAN diplomatic sources earlier on Saturday told Reuters that Chinese embassy representatives in Manila had lobbied the Philippines to keep tacit references to Beijing's island-building and arming of artificial islands out of the statement.

At least 4 drafts on the issue were readied by other ASEAN delegates in case the Philippines opened discussions on the matter, a senior diplomat familiar with the deliberations told ABS-CBN News.

But President Rodrigo Duterte insisted the arbitral ruling was a"non-issue" during the ASEAN meetings this year, a position that apparently prevailed over his peers and frustrated some of them.

The ASEAN joint statement is usually released within just minutes of the conclusion of the summit.

But for the first time in its history, the ASEAN Summit wrapped up without issuing the chairman's statement on the same day as the conclusion of the meetings.

The ASEAN joint statement meanwhile called for the "full and effective implementation" of the Declaration on the Conduct of Parties in the South China Sea "in its entirety."

It also cited "the progress to complete" a framework document by June this year, a target that would "facilitate the early adoption of the code of conduct."

The statement also said ASEAN leaders "took note of the improving cooperation between ASEAN and China."

-- with a report from Christian Esguerra, ABS-CBN News

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Tech start-ups need help in ASEAN says Silicon Valley accelerator

MANILA - Traditional funding institutions in the Philippines and ASEAN need to better understand technology start-ups, according to a businessman who helps small technology companies secure funding and grow.

Jojo Flores, co-founder and vice president of Plug and Play Technology Center based in Silicon Valley, said tech start-ups can potentially be as big as the Business Process Outsourcing industry but traditional funders don't understand start-ups' disruptive business models.

Flores said start-ups can potentially make a major disruption in 'blockchain technology,' which is used in Bitcoins. He said that blockchains can bring down the cost of sending remittances.

"The normal global financial cost for remittances for example ranges from 5 to 7 percent, and I think that it's about time that this disruption in terms of bringing down that cost can be addressed through blockchain technology," Flores said.

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ASEAN can be bigger than European Union - WEF

MANILA - The World Economic Forum's (WEF) managing director sees bright prospects for the ASEAN integration in 2015 as long as economic and security issues are managed.

Speaking to ANC on Thursday, Espen Eide said he sees an integrated ASEAN as potentially bigger than the European Union in economic output.

He, however, said it won't be without threats and losers.

"I do believe that the ASEAN prospects are good that there's a lot of will and dynamism. But I think it's also important to understand that it will take some effort to actually get to this economic community. There will be winners and losers, and there should be a shared understanding of the overall benefits of integrating. There's still a long way to go," he said.

"I think it's important that ASEAN become not just a community of political leaders but also of citizens and industries... Countries become more effective and more competitive by working together, by reducing barriers. But there will also be people who will lose in the short run," he added.

Eide, who is also Norway's former foreign and defense minister, does not think maritime disputes should impede countries in the region from getting the full benefits of ASEAN integration.

"It should actually strengthen regional integration, and I think one of the positive initiatives that the ASEAN has taken with China is the attempt to develop a code of conduct for behavior in maritime areas," he said.

On Wednesday, Vietnam and the Philippines forged a strategic partnership and jointly asked China to stop what they believe are its illegal activities in the South China Sea or West Philippine Sea.

source: www.abs-cbnnews.com

PH to lead in BPO race among Asean members

MANILA - The Philippines is seen leading the race in the business-process outsourcing (BPO) industry when the regional markets integrate next year as targeted by the 10-member Association of Southeast Asian Nations (Asean), according to a top BPO executive.

“It certainly depends on services. But if you look at the combination of both cost and quality, and then beyond that the scalability, there is no better offer than in the Philippines,” Teleperformance President for Asia Pacific David Rizzo told the BusinessMirror.

While the value proposition of the country remains the world-class English-language services and the quality and scale it provides, Rizzo said it is also becoming the preferred destination for some other language requirements in the region.

He cited, for instance, that many companies that are looking to outsource their services within Asean would prefer to do so in a single location like the Philippines rather than having them spread out across multiple geographies.

“So we’re seeing [BPO services requiring other] languages done from the Philippines that include everything from Japanese to Korean, Mandarin, Cantonese and some of the smaller Southeast Asian language requirements, such as Thai, Vietnamese, Bahasa Indonesia and Malaysia,” he said.

Although they are typically less required in comparison to the English language, he said, they continue to grow, based on his experience leading Teleperformance in the Aspac region.

From a regional perspective, he added, there are already “integration opportunities,” given that the industry also necessitates other Asean dialects.

Growth-wise, Rizzo sees it even greater in some of the non-customer facing channels where voice or language capability is less needed.

But for those industries where it’s more secondary in nature, he said the country’s capability is “quite strong,” so it “better positions itself for growth in the future and long-term sustainability of what it has today.”

source: www.abs-cbnnews.com

Doing business? Not more fun in the PH - Angara

MANILA – It may be fun to be a tourist in the Philippines but the same cannot be said for people who want to do business in the country, Sen. Edgardo Angara said Thursday.

Angara, who chaired the 5th Global Organization of Parliamentarians against Corruption in Manila, said the Philippines may be leading the ASEAN in the number of laws against corruption but it is not the gold standard in corruption-free governance in the region.

"We have more than enough laws. There was a study of all the ASEAN countries to find out who has the most anti-corruption laws and regulations. We topped it but we cannot honestly say we are also the top-notcher in cleanliness," he told ANC’s Headstart.

The lawmaker said that in a recent development forum in Davao City, it was learned that it takes 133 signatures before a renewable energy project could be started in the Philippines.

"Imagine the delay that it will entail and the facilitation money. Imagine the number of drawers opened if there are 133 signatures needed to start your business. That's 133 drawers," he said.

The senator also noted it takes 33 signatures - from the barangay chairman to city hall - to build a house in a private subdivision.

“It may sound petty but imagine the cost, if you compare the cost of doing business and the aggravation. Worse, you are telling outsiders that it is difficult to do business in Manila. It may be fun to be a tourist but it is very difficult to be a businessman or entrepreneur,” he said.

Angara said the Philippines needs to only look at the examples set by Denmark and Singapore to see that corruption can be curbed drastically.

He said Singapore started its anti-corruption drive by raising the salaries of the 3 most critical sectors that regularly impact the daily lives of people. The 3 are judges and prosecutors, police officers and teachers.

"Kapag corrupt na tapos unjust pa ang system, that's an explosive situation for unrest. Once they had done that, they slowly raised the incentive and reward system for the rest of the bureaucracy. You get an incentive to do your job cleanly and not having to indulge in petty graft," he said.

What can PNoy do?

Angara said President Aquino can help businessmen by issuing an executive order that will audit the regulatory powers of all government bureaus, agencies and departments.

He said the regulatory audit should have a check list of all the signatures and permits needed in doing business.

"Make a list now of all the regulations that you are implementing and tell me is Rule 1 necessary? If not, cross out. Is this duplicative? Is this antiquated and old? Siguro from 133 signatures baka ma-reduce to 10. From 33 signatures for housing baka 4 na lang matira," he said.

He also noted Transparency International chairwoman Huguette Labelle’s warning that corruption can come from politicians who are beholden to vested interests. He said this usually happens from campaign contributors who invest heavily on candidates during election season.

"When there is no institutionalized party system and regulation of campaign finance and full disclosure on who spent for what, you can buy a politician through election," he said.

Angara said the government should require an accounting of political campaign contributions including who gave the contributions.

He also backed calls for state-subsidized political parties instead of parties dominated by one person or financed by vested interests. He said political parties in Malaysia and Singapore are subsidized “precisely to make them less dependent on donations of vested interests.”

Angara said the international community is now paying more attention on corruption because of its effect on a country.

"The international community now has reached a consensus that corruption is a plague on our houses, that we must fight it like a famine or a plague. Why is it a plague? Because corruption unwittingly robs more the poor, the women and the children, the vulnerable... What you take away from taxes or withhold from paying in taxes, what you steal from infrastructure are common goods that benefit the poor rather than the rich," he said.

source: abs-cbnnews.com

Three Pinoy high school students to compete in ASEAN quiz

Three Filipino high school students will represent the Philippines in the Association of Southeast Asian Nations (ASEAN) Quiz Regional Competition in Cambodia, the Department of Foreign Affairs (DFA) said on Friday.

In a statement, the DFA said the three participants -- from Luzon, Visayas, and Mindanao -- topped the national leg of the quiz contest on January 25 at the People’s Television Network (PTV-4) in Quezon City.

Franchesca Anne Inacay, a third year high school student at St. Albert the Great School of Dagupan City (Ilocos Region), emerged as the first prize winner of the competition.

Following her were Krystianne Paul de Pedro of Koronadal National Comprehensive High School (South Cotabato) and Ma. Angela Krizelle Rubin of San Joaquin National High School (Calbayog City, Samar).

The DFA said the three winners will compete in the regional leg this August, together with “representatives from the nine other ASEAN Member States.”

The ASEAN Cultural Fund will shoulder the team’s round-trip airfare and board and lodging, the DFA added. - RJMD, VVP, GMA News

source:gmanetwork.com