IV. International (5-01-09)

. Overseas aids and loans are just one way China is asserting itself in its new role as the world financial leader. While polishing China’s image, Premier Wen Jiao-bao and other top leaders have blamed the West for the global economic crisis. Chinese officials increasingly are challenging the primacy of the dollar, warning other countries about the danger of keeping reserves in just one or two countries, such as the dollar or the euro.

     . South Korea’s Ministry of Strategy & Finance sounded an alarm over China’s aids and loans. Developing countries that accept Chinese help may lower their guard & gravitate towards Chinese-style economic model.

     . In Jan, Beijing joined the Inter-American Development Bank (active in Latin America and the Caribbean) as a donor country. In its talks with the IMF, it will increase its contributions in exchange for more say in IMF policies. It is also leading the push by the Association of Southeast Asian Nations (ASEAN) for a regional fund that will compete with the Asian Development Bank.

. Giving in to what has long appeared inevitable, Japan lowered its growth forecast, projecting a 3.3% contraction for the fiscal year that began April 1. It is battling its worst recession since World War II.

     . The government estimated that its economy shrank 3.1% during the year that ended in March, rather than 0.8% it had previously forecast, while the IMF estimated 6.2% in 2009 rather the 2.6% it had forecast in Jan. The Bank of Japan will leave interest rates at their ultra-low levels and forgo other policy initiatives for now.

     . Battered by imploding exports, as overseas demand evaporated late last year and weak domestic demand persists, Japan is among the worst-performing developed economies. Though trade figures through March raised hopes last week, they have done so at levels about half where they were last year. Mitsubishi Motor and Sharp Corp, known for its LCD televisions lost $560 million and $3 billion respectively for the year.

. In a stride towards economic integration, Taiwanese and Chinese negotiators met to conclude agreements, paving the way for an expansion of direct flights between Taiwan and China.

     . The talks reflected Taiwan president Ma Jing-jeon’s policy of lowering tensions with Beijing by focusing on practical business issues. Taiwan hopes the accords will stimulate its export-oriented economy, which has been ravaged by the global financial crisis.

     . The implementation of the accords is likely to be slow as Taiwan and China work to remove almost 60 years of stiff restrictions. The talks are on their 3^rd round, and unlike the accord signed last year for daily charter fights and expanded tourism, some of the new agreements are complex & unlikely to bring immediate stimulus.

. Hong Kong stock prices climbed 2.78% higher as investors sought bargains after a 2-day sell-off on swine flu worries. The Hang Seng Index closed up 401.84 points.

     . The government plans to sell up HK$100 billion of bonds over the coming 5 to 10 years to promote the development of the city’s debt market. The government estimates the market may be able to digest HK$10 billion to $20 billion a year.

     . HK exports fell 21.1% year to year last month, government statistics showed, the latest sign of a severe drop in demand for goods made just across the border.

. The cost of doing business in the Philippines is one of the highest in SE Asia and very little protection is given to investors. The corruption is omnipresent and appalling. The World Bank pointed out that the procurement process needs reform if the country wants to compete for foreign investments.

     . The World Bank said in its 2009 World Development indicators that the health of a country was measured not only in macroeconomic terms but also by other factors that shape daily economic activity, such as laws, regulations and institutional arrangements.

     . The Doing Business indicators measure business regulation, gauge regulatory outcomes and measure the extent of legal protection of property, the flexibility of employment regulation and tax burden on businesses. The World Bank surveyed businesses to set indicators in starting a business, registering property, dealing with construction permits, employing workers, enforcing contracts, protecting investors and closing a business.

     . A convoy of electric vehicles bearing the candidates for this year’s Ms. PL Earth Beauty Pageant drove around Manila to encourage people to find ways for alternative sources of energy to solve pollution as PI joins the rest of the world marking Earth Day.

. PM Vejjajiva of Thailand lifted a state of emergency after a late-night debate on violent anti-government street protests with a stone-throwing attack on his motorcade when he announced the state of emergency 4/12.

     . He also ruled out holding the elections on the ground that they would trigger a new cycle of violence. He added that it would be impossible to hold “free, fair and democratic” elections before an independent commission had settled constitutional disagreements on the election rules and the banning of political parties.

     . He said he favors a number of constitutional amendments. He wants to establish an elected Senate and is

reaching out to Thaksin’s supporters, many of whom live in the impoverished NE by focusing its economic

stimulus package on helping the rural poor. The package totals about 5% of the GNP a year.

. Muslim Filipino rebels have helped Indonesian terror suspects evade capture by giving them refuge and access to weapons and food in Southern PI (Mindanao). One terror suspect is Umar Patek who fled to PI in 2003, forged links with 5 rebel groups to gain safe haven for Jemaah Islamiyah, a radical Indonesian group.

     . State companies will increase capital expenditure by 24% this year from a year earlier to help support the country’s economic growth which has been slowed down by the impact of the global economic crisis.

     . State power firm PT PN will propose to swap its dollar-denominated loans from Chinese banks to yuan to help reduce foreign exchange costs.

. Malaysia’s new British-educated PM (Najib Rayak) took office 4/3, inheriting myriad challenges, including a flagging economy, a racially divided society and a moribund ruling party. Southeast Asia’s 3^rd largest economy has been hit by a slew of depressing economic data in recent months.

     . In a simple ceremony at the National Palace, Najib swore “to pour my full loyalty into Malaysia and preserve, protect and defend the Constitution.” He wore traditional Malay dress—black tunic loose trousers with a knee-length gold embroidered cloth tied around the waist—and was accompanied by his wife (Rosmah).

     . The son of Malaysia’s previous PM, Najib faces a belligerent opposition, which accuses him of corruption in a deal to buy French submarines when he was defense minister. He was also alleged to have killed a Mongolian woman who was the estranged lover of a close friend.

. Vietnam is seeking a ban on dancing in its universally popular karaoke parlors in an attempt to reduce illegal drug use and prostitution, the government and state media reported.

     . It was not clear how a prohibition against dancing would lead to reduced drug use or prostitution. But ecstasy is often used to full all-night dance parties. Violators could face an unspecified fine.

     . The proposed regulations would also extend the hours of karaoke parlors and dance clubs from midnight until 2:00am, but only those located in luxury hotels. Who is going to monitor this rule and what constitutes dancing?

. Over 1500 farmers in the state of Chattisgarh in India committed suicide after being driven to death by crop failure. The water level has gone below 250 feet. It used to be 40 feet a few years ago.

     . The Indian army and navy have been placed on high alert along the country’s southern coast to prevent any infiltration bid by Tamil Tiger cadres fleeing the military offensive against them, said a top commander.

     . A day after the Supreme Court ordered a probe against his role in the 2002 post-Godhra riots, Chief Minister Narendra Modi, in his first public response to the order, accused the Congress of hatching a conspiracy to put him behind bars.

     . Pakistan has now realized that its main enemy is not India, its neighbor in the East but the tribal areas on the Western border.

. More than a year after democratic elections swept secular, pro-democracy parties into power nationally and in the NW, Pres. Azik Darlai of Pakistan and his allies have endorsed a peace deal that allows the Taliban to impose the Sharia Law or strict Islamic law in the Swat Valley in exchange for laying down their weapons.

     . Pakistani news media reported the Taliban have forcibly overrun Buner while many Shiite judges and officials have abandoned their posts. The black-turbaned fighters have occupied a popular shrine and turned it into a radio station for extremist broadcasts. Public markets are reported to be deserted except for Taliban troops shown on TV news channels wearing masks and wielding assault rifles.

     . Political leaders continued to express support to the peace agreement which they sponsored in a desperate effort to bring peace to the Swat Valley after months of brutal intimidation. If the agreement fails, it will provide the domestic political cover needed for army forces to take on the insurgents with no holds barred.

. UN Secretary General Ban Ki-mon sent a humanitarian team to Sri Lanka’s war zone when an estimated 50k civilians are still trapped as government troops pushed to end a 25-year war with Tamil Tiger rebels. India’s envoys met with the Sri Lankan president after New Delhi demanded a truce to spare more innocent lives from being lost.

     . The French and British foreign ministers called a truce in the Sri Lanka civil war saying that safeguarding civilians was as crucial as defeating the rebels in bringing peace to this troubled nation. The UN says 6500 civilians already have been killed in recent fighting of the past 3 months.

     . A tense situation occurred in Badulla city due to a fierce clash between supporters of 2 government ministers—Armugan Thondaman, leader of the Ceylon Workers Congress, and Suresh Wadiwal, a United National Party parliamentarian who crossed over to the government with 16 other members.

" Supporting Asian and Minority Businesses"