May 22, 2015

Cambodia - Delayed underwater cable project resurfaces

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Internet provider Ezecom said it would help build the Kingdom’s first undersea communications cable, a long-delayed project that was originally announced in 2013 and slated for completion at the end of last year.

The construction of the Malaysia-Cambodia-Thailand cable will “bring faster, more affordable broadband to the people of Cambodia and connect the country to the rest of the world like never before”, a company statement released yesterday reads.

The contract is to be signed through Ezecom-owned group Telcotech with Telkom Malaysia and Thailand’s Symphony Communication on Monday.

Ezecom CEO Paul Blanche-Horgan said that the delay in constructing the cable was due to negotiations with other companies, along with obtaining permission to build landing stations to accommodate the cable.

“It just takes time,” he said.

According to Blanche-Horgan, once the contract is signed on Monday, the cable will be finished in about 16 months.

“They’ll start making the cable and start building quite soon.”

Blanche-Horgan said it wasn’t only Ezecom customers set to benefit from the fast connection, as the firm plans to sell the high-speed internet wholesale to the Cambodian market.

In June of 2013, a memorandum of understanding was signed between Ezecom and Telkom Malaysia to build the undersea cable. A Thai partner was slated to be found by end 2013.

At the time, the deal was cited as being worth $80 million. However, Blanche-Horgan declined to say if that number had changed.

The planned 1,425-kilometre line will connect Cambodia to Malaysia, passing through Thailand on the way. Once in Malaysia, it will hook up to the Asia-American Gateway (AAG), a 20,000-kilometre cable connecting Southeast Asia to the United States.

Ezecom’s acquisition of Telcotech in 2011 enabled it to link up to the AAG, as Telcotech was AAG’s only Cambodian member.

High-speed internet is lacking in Cambodia, as it is not directly connected to the AAG and must rely on Thailand or Vietnam for its connectivity.

According to a recent survey from Seattle-based firm Ookla, Cambodia had the third-slowest internet in Southeast Asia.

Cambodia ranked above Laos and Myanmar, but was still 110th worldwide with an average download speed of 9 megabits per second.

Neighbours Thailand and Vietnam had speeds of 19.9 and 17.6 megabits per second, respectively.

The survey reported that Ezecom’s average speed ranked eighth out of the 20 largest internet service providers in Cambodia, with an average download speed of 7.17 megabits per second, below the national average.

Blanche-Horgan disputed the finding.

“I don’t know where these people get a hold of those figures,” he said. “We’ve got customers that are using 5 gigabytes.”

But Ezecom’s plan to link Cambodia to a major international cable is not alone.

A rival project was announced in June of 2014 by Japanese firm NTT, which said it would link Cambodia to the Japan-based Asia Submarine-cable Express (ASE) network. NTT said the ASE would be the first cable to connect directly with Cambodia, although it did not give a completion date to its project.

NTT could not be reached for comment yesterday.

Contact author: Charles Rollet


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May 21, 2015

Myanmar - Medics upgrade to meet Asean standards

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Medical universities are upgrading their curriculum to ensure their graduates are capable of performing services throughout the Asean region.

Starting in April, the universities have fallen under the supervision of the Education Ministry. They are granted the power to write their own charters to ensure independent management.

Professor Chit Soe, dean of the University of Medicine 2, Yangon, said: "Medical universities can now focus on their progress, upgrades and the international recognition of graduates. The universities welcome up to 300 enrolments a year. We can focus more on quality rather than quantity, to produce better-qualified doctors in the long-run."

The universities are planning to upgrade the theory and practice of their studies to keep pace with the learning and teaching methods throughout Asean. They will also upgrade post-graduate diploma courses.

After becoming a member of Asean University Network, Myanmar graduates will have the opportunity to work in other member states.


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ASEAN - EU aims to scale up partnership with ASEAN

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The High Representative of the European Union for Foreign Affairs and Security Policy and the European Commission adopted on Tuesday a joint communication entitled “The EU and ASEAN: A partnership with a strategic purpose” to scale up the European block’s partnership with ASEAN.

The joint communication puts forward concrete ideas for taking EU-ASEAN relations to the next level by providing a more coherent framework for sectoral cooperation and by ensuring a sharper political focus.

"The partnership between the EU and ASEAN is crucial and we are determined to build on it and strengthen our political and economic cooperation. From trade to security, from climate change to the rule of law, we have a deep cooperation and as the EU we are supporting ASEAN integration,” said Federica Mogherini, the high representative of the EU for foreign affairs and vice president of the European Commission, in a release on Wednesday.

“Deepening and broadening our relation with ASEAN is key for the EU’s Asia strategy,” she said.

Concrete proposals and commitments contained in the joint communication include taking trade relations with ASEAN to a different level and working toward an ambitious region-to-region free trade agreement (FTA) building on bilateral agreements between the EU and ASEAN member states.

The joint communication is also aimed at stepping up cooperation on connectivity by exchanging lessons learned and by mobilizing the financial means and expertise to support ASEAN efforts, including on the single market and through negotiating a civil aviation agreement.

Strengthening collaboration on climate change and initiating a new, dedicated EU-ASEAN policy dialogue on the environment and sustainable development are also points highlighted in the joint communication.

“It also aims to more than double EU financial support for ASEAN integration [to 170 million] which comes on top of the € 2 billion for ASEAN member states,” the EU said.

“It also aims to implement an extensive ‘package’ of new initiatives in the area of non-traditional security, such as maritime security, disaster management and crisis response, transnational crime, training courses on preventive diplomacy, crisis management, mediation, the rule of law and election observation,” it said.

The EU-ASEAN Ministerial Meeting in Brussels on July 23, 2014, welcomed the stepping up of EU-ASEAN relations and expressed the wish to upgrade them to a strategic partnership. (


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ASEAN - Hacking Asean: China's unpeaceful rise

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Manila - The report by a computer security firm asserting that Chinese hackers have "infiltrated" government websites in the Philippines and her Asean neighbours is disturbing.

Coming amid China's extensive reclamation projects in disputed territory in the South China Sea, the news only adds to growing regional concerns about Beijing's rise to superpower status.

The security bulletin from Kaspersky Lab identified a shadowy cyber-espionage group called Naikon as the source of "at least five years of high volume, high profile, geopolitical attack activity" - a concerted effort that has had a "high success rate in infiltrating national organisations in Asean countries", plus Nepal and China itself.

"In the spring of 2014, we noticed an increase in the volume of attack activity by the Naikon. The attackers appeared to be Chinese-speaking and targeted mainly top-level government agencies and civil and military organisations in countries such as the Philippines, Malaysia, Cambodia, Indonesia, Vietnam, Myanmar, Singapore, Nepal, Thailand, Laos and China," the Kaspersky bulletin read. (The small, oil-rich state of Brunei is the only member of the Association of Southeast Asian Nations not included in the hacking.)

To be sure, China is hardly the only country involved in cyber-espionage. The revelations of whistle-blower Edward Snowden showed that the United States was actively monitoring even its own citizens' telephone traffic. Last year, Germany objected to American cyber-surveillance after it was disclosed that German Chancellor Angela Merkel's communications had been spied upon; this month, it was reported that Germany had its own cyber-espionage campaign - prompting other capitals to accuse Berlin of geopolitical hypocrisy.

It is only reasonable to conclude that governments with the capacity to hack into other governments' computer systems are doing so. But the nature of the Naikon hacking is truly a matter of serious concern. Kaspersky Lab is not the only computer security firm that thinks Naikon and other "geopolitical intelligence-gathering" efforts are backed by the Chinese government itself. In particular, a country Kaspersky Lab studied but did not identify suffered widespread infiltration: Not just military units or legal departments were hacked, but even the offices of the Cabinet secretary and the president.

Would we be surprised if that country turned out to be the Philippines? While overall relations between Manila and Beijing continue to be robust, the dispute over competing maritime and territorial claims has reached a new level of intensity. Beijing has not yet dispatched an oil rig to Philippine waters, in the way it recklessly stoked tensions with Vietnam, but against the Philippines the emerging superpower must contend with a strong legal case filed before a UN arbitral tribunal.

It is possible that China's aggressive land reclamation strategy was prompted by the Philippine case at the UN, at least in part, but the true cause of rising tensions is Beijing's increasingly aggressive expansionism under new leader Xi Jinping. In the months leading up to Xi's designation as new head of the Chinese Communist Party and the next president of China, the expansionist rhetoric was seen in the region as mere domestic posturing that would revert, after Xi had consolidated power, back to the old, effective policy of a "peaceful rise". That policy placed a premium on earning the goodwill of China's neighbours, by assuring them that Beijing's inevitable rise to superpower status was a welcome, not an intimidating, development.

Now it seems that China has abandoned that policy. By most accounts, internal domestic pressure is likely the determining factor; a roaring capitalist economy run by a communist government has turned to nationalism, one fed by the waters of China's so-called century of humiliation, as organising principle of both party and state. This is not to say that the search for new sources of oil, gas and minerals to feed the Chinese economy's ravenous appetite is not part of the equation. But under Xi, nationalism has been used to justify China's incursions in both cyberspace and the South China Sea.


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Vietnam - New insurance rules baffle many

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Some 1.2 million people have opted out of medical insurance due to complex new regulations in the adjusted Medical Insurance Law, an official has admitted, and this means the Government will miss its target of 75 per cent of the population having medical insurance by the end of this year.

"The Medical Insurance Law stipulates, starting this year, that everyone must buy medical insurance but only together with their family and not individually," Vu Xuan Bang, deputy head of the Viet Nam Social Insurance's Medical Insurance Policy Implementation Division, was quoted as saying by Thoi bao Kinh te Viet Nam (Viet Nam Economic Times) newspaper.

"So many people quit."

The rule making buying insurance for the entire family mandatory is troublesome in many ways. For instance, if a member has insurance at work or does not live with the family, it must be proved with documents, which are sometimes not easy to obtain.

"The adjusted Medical Insurance Law has many provisions that are difficult to implement," Le Van Kham, deputy head of the Ministry of Health's Medical Insurance Department, admitted.

The Ministry had sent seven task forces to check implementation of the law in 10 localities and found there was a lot of trouble, he said.

"Viet Nam Social Insurance and the Ministry of Health will work with related authorities to provide clear and easy-to-follow guidelines for buying medical insurance."

The stipulation that insurance has to be bought by the entire family is aimed at making the system sustainable by eradicating a situation where only sickly people sign up.

But to its credit, the law offers a 30 per cent premium discount for the second member, 40 per cent for the third, 50 per cent for the fourth and 60 per cent from the fifth onwards.

A five-member family thus pays only around VND2 million (US$100) for a year.

But the attrition means from 64.5 million policy holders at the end of last year – accounting for 72 per cent of the population – the number had come down to 63.3 million in April.


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Malaysia - The bleak and bright side of M'sian education

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It's probably the best definition of insanity: doing the same thing over and over again and expecting different results.

The famous quote is often wrongly attributed to Albert Einstein but whoever said that, it makes sense, especially in the context of the Malaysian education system.

It’s madness to continue spending billions on education without seeing any improvements in quality.

The education ministry has been allocated 56 billion ringgit (US$15.5 billion) this year, 1.4 billion ringgit more than what it received last year.

Our expenditure on basic education is more than double that of other Asean countries and also South Korea and Japan.

Yet Malaysia remains stuck at the bottom third of the global schools league, as confirmed by the results from recent assessments such as the Programme for International Student Assessment (PISA) and the Trends in International Mathematics and Science Study (TIMSS).

The Organisation for Economic Co-operation and Development’s 2012 study, based on test scores in mathematics and science among 15-year-olds in 76 countries, shows that Malaysia is languishing at 52nd, way below top-ranked Singapore, Hong Kong, South Korea, Japan and Taiwan.

Our students were out-performed by Vietnam (12), Thailand (47), Kazakhstan and Iran (51). In Asean, Malaysia only ranked higher than Indonesia (69).

In March, deputy prime minister and education minister Muhyiddin Yassin said he was shocked by Malaysia’s poor results in international education assessments and admitted that the standards were not good enough.

He said the Malaysia Education Blueprint 2013-2025 (Preschool to Secondary) and the Malaysia Education Blueprint 2015-2025 (Higher Education) were designed to improve the system, stressing that time was needed to see the changes.

The truth is, we don’t have the luxury of time and patience is wearing thin.

We inherited a solid education system after independence, just as Singapore did. But over the past three decades, successive ministers of education have made a mess of tinkering with the system, mostly for political motives.

Earlier this month, Johor Ruler Sultan Ibrahim Ibni Almarhum Sultan Iskandar suggested that Malaysia emulate Singapore’s education system with English as the sole medium of instruction.

Urging the people to be open-minded about the proposal, he said Singapore’s single-stream education system had not only helped to foster unity in the republic but also created a prosperous society.

It is still not too late to bring back the era of racial harmony and unity experienced by people of my generation, who are products of English schools during the 60s and 70s.

As the Johor Sultan has pointed out, there would always be a gap between the races in the country if our education system continues to be based on race and language, not to mention the increasing influence of religion.

But in spite of the weaknesses in the system, it is heartening to see committed parent-teacher associations and non-governmental organisations pushing fervently to get situations improved.

Last Saturday, I was at Sunway University where groups of eager teenagers were taking part in a Young Inventor Challenge, organised by the Association of Science, Technology and Innovation (ASTI), an NGO of volunteers who have been mentoring and encouraging students to excel in science.

ASTI is led by the unassuming Dr Mohamed Yunus Mohamed Yasin, who is credited with bringing about change in the attitude towards science and maths in Tamil schools across the country.

I wouldn’t have known about the quiet science revolution if not for blogger Syed Akbar Ali’s recent post about what Dr Yunus and his group of dedicated friends have been doing over the past 12 years.

As a result of participating in ASTI’s Science Fair for Young Children, Tamil schools are scoring top grades for science and maths in the UPSR.

Last year, SRJK (Tamil) Taman Tun Aminah, Johor Baru, emerged as the top school for the UPSR with 43 pupils scoring straight 7As while others scored 7Bs.

They are making headlines abroad too. In March, three students of SJK(T) Ramakrishna, Penang, beat 300 contestants from all over the world to win first prize at the 35th Beijing Youth Science Creation Competition.

Durgashini Srijayan, Kumurthashri Ponniah and Sugheson Ganeson won the gold medal under the Excellent Youth Science Creation category of the contest for their invention of an eco-friendly thermo container.

In October last year, SJK (T) Kulim’s R. Prevena, V Susheetha and former student R. Rasyikash won the Double Gold Award at the British Invention Show in London for their energy-saving drinks-dispensing machine.

Building on the successes of the science fairs, ASTI started the Young Inventors Challenge, which is open to all secondary schools, three years ago.

From the initial 19, the number of schools has since increased to almost 200, including a team from Singapore.

ASTI also organises Creative and Critical Thinking Camps designed for primary schools up to tertiary level, and the ASTI Innovation Community Award to recognise the contributions of individuals or groups using science and technology for beneficial projects.

It also works with Germany’s Goethe Institute in organising the annual Science Film Fest to produce documentaries and teaching films about science.

And it has been doing all these with an annual budget of 800,000 ringgit, raised largely from well-wishers, including its 400 volunteers.

Dr Yunus’ philosophy is simple: “Stop complaining, get involved. As patriots, we can help the country do well too.”

M. Veera Pandiyan

The Star

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The Philippines - Safety and culture

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A fire in a factory in Valenzuela in Metro Manila that killed 72 workers has been blamed mainly on management not following safety regulations, including the lack of fire exits and fire extinguishers and the unsafe storage of chemicals.

According to a welder hired to repair a door, he had asked a factory secretary if there were combustible materials near the place where he was about to work. He was told there was none but when he began his welding, the sparks apparently ignited a chemical in sacks.

While investigations are ongoing, we should go a step further and look at the larger problem of safety awareness in the country. Accidents happen all the time without our even understanding how they are linked to our carelessness… or ignorance.

For example, the chemical in those sacks was azodicarbonamide, which is used as a blowing agent to expand rubber. Besides its flammable nature, the chemical has been identified as a possible cause of asthma. In Britain, it requires a label “May cause sensitisation by inhalation.” It is also banned in a number of countries from being used in the manufacture of plastic articles that might come in direct contact with food.

Beyond our low scientific literacy, there’s also an underlying cultural aspect to our lack of safety precautions. We need to build a culture of safety where we are constantly aware of possible risks, and do things to minimise those risks.

Instead, our default thinking is “OK lang” or “OK na,” (it's fine) accepting risks as inevitable, and taking precautions only if the danger is visible and imminent.

As for culture in terms of practices, it is amazing how many of our housekeeping “traditions” at home and in offices constantly make us risk life and limb.

Falls

Let’s look at the “doing” aspect by studying the problem of falls among the elderly, which happen very often and can be extremely debilitating, even fatal.

Check your homes and offices and you’ll probably find all kinds of hazards that can cause falls. There are stairs that are just too steep, or steps that are too narrow. There’s the bathroom with floors that are always wet.

Here’s the cultural part. In the Philippines we have the habit of cleaning a bathroom by dousing the floor, sink and commode with water and then letting these dry on their own rather than using a mop.

Instead of mops we seem to prefer rag rugs, the types sold by sidewalk and street vendors. You’ll see this at the entrances to the house and the bathroom, and in front of the kitchen sink.

Just last week while waiting for a take-out order in a restaurant, I noticed both a rug and rags placed right at the entrance. For about 10 minutes I watched with amazement, and a bit of horror, at an awkward choreography. Most customers who walked in would wipe their shoes on the rug, which would move whenever the wiping happened. Then the customers would spot the rags. Some avoided the rags while others used a foot to move these aside, irritation at the inconvenience showing on their faces. Meanwhile, food servers would pass by, each time using their feet to move the rags back to the centre, some of them moving the rags forward and backward to clean the floor.

I finally had to tell the manager that they were inviting accidents, that sooner or later, someone would slip on those rags.

It can happen as well in your homes. If you insist on having some kind of rug, use rubber ones. Add railings around the house, especially in bathrooms and stairways, for people to hold on to.

Just to scare you into action, if Lolo or Lola slips on one of those rugs and gets a hip fracture, the surgery will set you back by at least 100,000 pesos (US$2,200). And that’s the least of your problems because hip fractures often result in complications that can be fatal.

Storage

A second example of culture and safety is the way we store chemicals. The Valenzuela fire is an extreme example of what can happen but again, look at your homes or offices and you’ll find other invitations to disaster.

Many households still keep kerosene to use in lamps. And where’s the kerosene to be found? In kitchens. And what does kerosene look like? Cooking oil.

Then there are the insecticides. Where do you keep them? In the bedroom. Check what you keep next to the sprays.

We invite poisoning when we put poisonous substances next to food, but it happens all the time. Just ask the emergency wards of hospitals, and the poisoning control centre at the Philippine General Hospital.

All this is cultural in the sense that we’ve grown used to just putting chemicals anywhere. In part this is because the government does not have strong labeling rules. Remember the poisoning of the owner and a customer in a milk tea shop? The poison has been identified as oxalic acid, which is also used as a cleaner. You can buy little plastic bags of the substance, which looks like sugar, on the sidewalk.

A skull-and-crossbones sign and “Lason” (Poison) in large lettering should be required on the bags to remind people to take precautions.

Now even if we do have those labels, I suspect we will still be cavalier about it all, and this is where the attitudinal part of culture comes in. Because we are so surrounded by risks, we tend to shrug them off.

Food poisoning

An example is the way we invite food poisoning and diarrheal diseases, especially during summer. Food spoils much more quickly during the very hot months. And while food spoils quickly in the heat, we shouldn’t forget that it doesn’t stay safe forever in the fridge. If your food has been out in the heat for some time, putting it in the fridge is not going to kill the harmful bacteria. Spoiled is spoiled.

Schools and the streets in front of them are frequent sites for food poisoning, and that’s not just from foods that spoil in the heat but also drinks that use unsafe water and ice. For both food and drinks, there’s the constant threat of contamination from vendors’ and food handlers’ hands. There are food safety laws requiring them to use gloves and hair nets, but the laws are observed more in the breach.

We underestimate the harm that can occur. Diarrhoeas can kill, especially when they affect the very young and the elderly. Among the poor, diarrhoeas are so chronic that they cause malnutrition, both underweight and stunting.

We need to make safety consciousness part of our homes and our schools. I have just returned from a visit to the National University of Singapore, where buffet and snack tables always carried a sign that gave the time the food was prepared and when it has to be consumed (four hours after preparation).

Start the children young with a culture of safety. Get them involved in rearranging furniture that the youngest child might bump into. Or get them to draw skulls and crossbones on gummed labels, which you can then put on insecticides and other poisonous substances. (Adults should be the one to put those labels.)

It won’t be easy. Even hospitals have to issue frequent reminders to physicians and nurses about proper hand-washing. But we have to keep pushing for this culture of safety. Add the lack of concern on the part of some employers—“these are just workers”—to their lack of a safety culture, and we have a formula for more disasters.

Michael L. Tan

Philippine Daily Inquirer

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Indonesia - Rupiah woes: Clock ticking for unhedged Indonesian companies

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GRAPHIC: Rising forward premium: link.reuters.com/pes74w

BENGALURU, May 20 (Reuters) - The cost of hedging against a falling rupiah has soared to six-year highs, a growing headache for Indonesian companies that have yet to cover themselves for more expensive offshore debts and imports.

The rupiah is trading at its lowest level against the dollar since the 1997-98 Asian financial crisis. It is the worst performer among Asian currencies this year, hurt by the strength of the dollar and a surprise central bank interest rate cut in February. The rupiah's 6 percent slump against the U.S. currency this year has widened the premium of 12-month forward rates to spot rates. The premium has risen to more than 1,000 rupiah since April.

The 8 percent premium to spot rates looks set to persist - if not increase - with the rupiah poised to give up more ground in the spot market. The higher hedging costs will affect foreigners with portfolio investments in Indonesia, raising the possibility of a flight of capital. The rupiah's depreciation has also pushed up import prices of raw materials such as metals, chemicals and plastics at a time when exporters are seeing a drop in orders due to weak demand. A recent Reuters poll shows the dollar is expected to strengthen to around 13,600 rupiah by the first quarter of 2016 from 13,200 currently.

The increasing currency headwinds have not gone unnoticed by the central bank, Bank Indonesia, mindful of the 1997-98 crisis when the plunging rupiah bankrupted businesses with huge offshore borrowings. "It is probably not going to be as intense as the case then," said Singapore-based Vishnu Varathan, senior economist at Mizuho. "Some of the currency and maturity mismatches during the Asian financial crisis were far worse. We look at coverage ratios in terms of debt or forex reserves. There has been some deterioration over the last few years, but overall Indonesia is on a firmer footing now than it was then."

Bank Indonesia last year introduced rules requiring companies to hedge at least 20 percent of their short-term net foreign liabilities in 2015 and at least 25 percent after that. As of the end of December, short-term gross external debt held by the non-bank sector totalled $23.9 billion, near the record $24.1 billion in September 2013. It is not known how many companies are taking or have taken steps to reach Bank Indonesia's ideals.

By Patturaja Murugaboopathy

(Editing by Ryan Woo)


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Malaysia - Malaysia, Indonesia to let "boat people" come ashore temporarily

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May 20 (Reuters) - Malaysia and Indonesia said on Wednesday they would offer shelter to 7,000 "boat people" adrift at sea in rickety boats but made clear their assistance was temporary and they would take no more.

More than 3,000 migrants have landed so far this month in Malaysia and Indonesia. Together with Thailand, they have pushed away many boats that approached their shores despite appeals from the United Nations to take them in.

In a joint statement in Kuala Lumpur, Malaysia and Indonesia emphasised that the international community also had a responsibility to help them deal with the crisis.

The migrants are mostly Rohingya Muslims from Myanmar and Bangladeshis - men, women and children who fled persecution and poverty at home or were abducted by traffickers, and now face sickness and starvation at sea.

"What we have clearly stated is that we will take in only those people in the high sea," Malaysian Foreign Minister Anifah Aman said. "But under no circumstances would we be expected to take each one of them if there is an influx of others."

Both countries said they would offer "resettlement and repatriation", a process that would be "done in a year by the international community".

The United Nations, which has been calling on governments in the region to rescue those drifting at sea, welcomed the move and urged that people be brought to shore without delay.

The United States was prepared to provide financial and resettlement aid to help deal with the crisis, Acting State Department Spokeswoman Marie Harf told a briefing in Washington.

Washington was also prepared to take a leading role in any multi-country effort organised by the United Nations High Commissioner for Refugees (UNHCR) to resettle the most vulnerable migrants, she said.

THAILAND OPTS OUT

Aman said temporary shelters would be set up, but not in Thailand, a favoured transit point for migrants hoping to work illegally in Malaysia.

Thai authorities have said they will allow the sick to come to shore for medical attention, but have stopped short of saying whether they would allow other migrants to disembark.

Still, Thailand said on Wednesday that it would not force boats back out to sea.

"Thailand attaches great importance to humanitarian assistance and will not push back migrants stranded in the Thai territorial water," the Ministry of Foreign Affairs said in a statement.

Thailand has called a regional conference on the issue in Bangkok for May 29.

"We maintain our stance that we are a transit country," Thai Prime Minister Prayuth Chan-Ocha told reporters in Bangkok.

Phil Robertson of Human Rights Watch welcomed the joint statement, which he said "should mark the end of the region's push back policies against Rohingya and Bangladeshi boat people", but added it was disturbing that "Thailand was missing in action".

Hours before the ministers met, hundreds of Rohingya and Bangladeshi migrants landed in Indonesia's Aceh province.

"We have to find ways to resettle them as soon as possible without creating a new moral hazard," Dewi Fortuna Anwar, political adviser to Indonesia's vice president, told reporters in Jakarta.

"If migrants start thinking of Indonesia as a transit point or as having a higher chance of getting resettled, that would create another problem that we have to prevent."

She said the main responsibility lay with Myanmar, which the United Nations said last week must stop discrimination against Rohingya Muslims to end a pattern of migration from the corner of the Bay of Bengal into the Andaman Sea and Malacca Strait.

"ROOT CAUSES"

The United States echoed these calls, with a senior U.S. official pointing to conditions in Rakhine state as driving Rohingyas to flee.

"Ultimately (Myanmar) must take steps to address the root causes that drove these people (to sea) and we need long term sustainable solutions, development, protection of basic human rights if we're really going to answer the problem," Deputy Secretary of State Antony Blinken told a conference in Jakarta.

Blinken is due to visit Myanmar on Thursday to discuss the unfolding crisis.

Most of Myanmar's 1.1 million Rohingya Muslims are stateless and live in apartheid-like conditions. Almost 140,000 were displaced in clashes with ethnic Rakhine Buddhists in 2012.

Myanmar terms the Rohingya "Bengalis", a name most Rohingya reject because it implies they are immigrants from neighbouring Bangladesh despite having lived in Myanmar for generations.

Myanmar's foreign ministry said in a statement published by state media on Wednesday that the government was making serious efforts to prevent people smuggling and illegal migration.

This included patrols by the navy and air force in Myanmar's territorial waters, it said.


(Additional reporting by Anuradha Raghu in KUALA LUMPUR, Kanupriya Kapoor in JAKARTA, Amy Sawitta Lefevre in BANGKOK and Lisa Lambert in WASHINGTON; Writing by John Chalmers; Editing by Alex RichardsonRalph Boulton and Dean Yates)


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May 20, 2015

Malaysia - Malaysia faces headwinds in final lap to developed nation status

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* PM to unveil next five-year plan on Thursday

* Govt under pressure over cost of living, corruption allegations

* Analysts expect new populist measures

* Fall in energy prices seen hurting growth in coming months

KUALA LUMPUR, May 20 (Reuters) - Malaysian Prime Minister Najib Razak will outline on Thursday a five-year development plan leading up to 2020, the date the country has set for achieving developed economy status, but that goal may prove elusive as political pressures crowd out reform.

Najib's government faces its harshest test since coming to power in 2009, as Malaysia braces for a downgrade of its credit rating by Fitch and a once-stable political environment is shaken by allegations of state corruption and mismanagement.

When the prime minister reveals his plans to complete the final step towards Malaysia's vision of being a high-income nation by the end of the decade, he may have to forgo some long-term growth targets to tackle pressing short-term concerns.

"There would be more popular measures introduced in this plan than the long-term transformative measures that would get us to the 2020 target," said Oh Ei Sun, senior fellow at S. Rajaratnam School of International Studies.

"This is because the immediate political survival is more important for Najib, and for that he needs to improve his public image. Besides, Najib would have retired by 2020 so his bigger concern is the current political issues."

Public discontent spilled onto the streets this month with more than 10,000 people demonstrating against rising costs and a new goods and services tax (GST), the largest protests seen by the country in years.

Attacks by influential former Prime Minister Mahathir Mohamad over alleged corruption in debt-ridden state investment fund 1MDB, and calls for him to step down, have also weakened Najib's position.

Analysts expect him to try to turn around some of that sentiment by announcing more short-term measures to improve living standards.

SUBSIDY CUTS

In the last five-year plan in 2010, Najib set out plans to cut subsidies and accelerate investment into the country.

Since then, Malaysia has abolished fuel subsidies that had weighed on the government's budget deficit and also introduced the GST that should help offset some of the revenue lost from the fall in global prices for its oil and natural gas exports.

But Najib has also introduced measures to further boost the economic participation of the ethnic Malay majority, entrenching race-based policies seen as shoring up support among the politically-dominant Malays.

More incentives are expected in this five-year plan for the Bumiputeras, or "sons of the soil", who are the core constituency of Najib's United Malays National Organisation that has been the dominant force in the country's ruling coalitions since independence in 1957.

Ethnic Malays have benefited from wide-ranging affirmative action privileges since the early 1970s, a policy that critics say has stunted the country's competitiveness and led to a huge "brain drain" of ethnic Chinese emigrants.

Najib said last week that priorities of the people, especially with regard to the cost of living, security, transport and rural infrastructure, would be the focus of the 11th Malaysia Plan.

There would be a special focus on education, especially on technical and vocational training, he added.

"In addition to doing the more populist policies, I think he will ramp up the Bumiputera policies," said Professor James Chin, director at the Asia Institute Tasmania.

OIL PRICE HEADWINDS

Achieving the 2020 target would make Malaysia the second high-income nation in Southeast Asia after neighbouring Singapore.

Malaysia's economy grew a stronger-than-expected 6 percent in 2014, and a respectable 5.6 percent in the first quarter, but economists expect the net energy exporter to feel the full impact of weaker global oil and gas prices in the coming months.

Ratings agency Fitch said in January it would review Malaysia's rating in the first half and may downgrade it, citing the revision of its fiscal deficit target to 3.2 percent of GDP as evidence that "dependence on commodities remains a key credit weakness for Malaysia".

Delivering major infrastructure projects, diversifying industry and increasing investment are seen as priorities for the next plan.

But while the finish line is in sight, the final lap is not going to be easy, Weiwen Ng, economist for ASEAN and Pacific at ANZ Research said in a note.

"Malaysia might well be taking the staircase, rather than the elevator as it nears the top," said Weiwen.

"The risk is that budget allocation for development expenditure (and hence infrastructure) might be slashed, especially if the government were to come in to bail out 1MDB."

Investment so far this year has been subdued, with issuance of public debt securities and business loans below average.

Income (GNI) per capita has gradually increased, rising 2 percent on average in the previous three years to $10,246 in 2014, said Diana Del Rosario, an economist at Deutsche Bank in Singapore.

"But at least a 6 percent annual rate is still needed to meet the $15,000 mark by 2020," she said.

By Praveen Menon

(Additional reporting by Trinna Leong; Editing by Alex Richardson)


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Saigon Business Corporation Pte Ltd (SBC) is incorporated in Singapore since 1994. 

Indonesia - Indonesia c.bank holds key rate despite slumping growth

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* Benchmark rate left at 7.50 pct, its level since Feb

* C.bank has faced political pressure to lower rates

* Loan policies will be changed to spur lending - c.bank

JAKARTA, May 19 (Reuters) - Indonesia's central bank held its key policy rate unchanged on Tuesday, as expected, shrugging off political pressure for a cut to help lift economic growth that has slumped to its slowest pace since 2009.

Instead of cutting rates - which it is loath to do as it battles inflation and wants to help the rupiah - Bank Indonesia (BI) said it will ease some restrictions to encourage banks to boost loans.

"To nurture the growth momentum, BI will loosen the reserve requirement policy for loan-to-deposit ratio, loan-to-value for mortgages and downpayment for car and motorcycle loans," it said.

No details were given, but BI has hinted since last year that it will relax some rules. Governor Agus Martowardojo said amended regulations should be issued by early June.

"It's hard to move, from the monetary side, but we have macroprudential (measures), we ease up on the brakes... BI still has room to manoeuvre", said Deputy Governor Perry Warjiyo.

Tuesday's policy meeting came two weeks after the government reported an annual growth rate of 4.71 percent in the first quarter, the lowest since the global financial crisis.

Before and after the growth announcement, Vice President Jusuf Kalla called for BI to lower interest rates.

A BALANCING ACT

Aldian Taloputra, economist with Mandiri Sekuritas, said BI is "trying to balance managing the risks in currency while supporting growth. That's why the central bank chose to loosen its macroprudential policies instead of cutting rates."

The benchmark rate has been 7.50 percent since February, when it was cut 25 basis points.

On Tuesday, the central bank also held its overnight deposit and lending facility rates at 5.5 percent and 8.0 percent.

BI targets year-on-year loan growth at 15-17 percent for this year. In March, loans grew 11.3 percent from a year ago, down from the previous month's 12.2 percent pace.

Annual headline inflation in April rose to 6.79 percent from March's 6.38 percent. Martowardojo has said annual inflation should be 4.2 percent at year-end, still within BI's target range of 3-5 percent.

Traditionally, the pace of price-rises increases during the Islamic fasting month of Ramadan, which this year begins in mid-June.

The rupiah rose as much as 0.2 to 13,100 per dollar, compared to Monday's close of 13,132. Before the central bank decision, the rupiah stood at 13,180. The rupiah has lost 5.6 percent against the dollar this year, making it the worst-performing Asian currency.

By Hidayat Setiaji and Gayatri Suroyo

(Additional reporting by Nilufar Rizki, Fransiska Nangoy and Randy Fabi and Jongwoo Cheon in Singapore; Editing by Richard Borsuk)


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