ASEAN pledges to fight terrorism - Update - Association of South-East Asian Nations

Business Asia, August, 2002

The 10 member countries of the Association of South-East Asian Nations (ASEAN) said they will undertake a joint effort to counter terrorism in the region, Agence France-Presse and Reuters said.

"We recognise that terrorism is a global threat that ... must be tackled by the international community," ASEAN foreign ministers said in a statement after a two-day meeting in Brunei in July. "We recognise the need to address threats and challenges posed by issues such as separatism and terrorism," AFP quoted the statement as saying. South-East Asian nations joined the US-led international war against terrorism that began after the 11 September attacks. Singapore, Malaysia and Indonesia arrested people suspected of being linked to the al-Qaeda terrorist network. US troops have been helping the military in the Philippines in its fight against Abu Sayyaf, a Muslim extremist group linked to al-Qaeda. The accord with the US will pledge greater cooperation in counter-terrorism measures. It will stop short of providing for US troops to be deployed in the region.

China

Bank of China, the nation's biggest foreign-currency lender, will lose its monopoly to sell US dollars and other overseas currencies to more than 12 million Chinese every year, a government regulator said on its website. Starting 1 August, Chinese citizens will be able to buy foreign currencies from Industrial and Commercial Bank of China, HSBC Holdings Plc and other qualified local and foreign lenders, according to a statement by China's foreign-currency regulator.

Hong Kong

Hong Kong Exchanges and Clearing Ltd, which runs the city's stock markets, said it's giving the public two extra months to consider its proposals aimed at ridding the exchange of penny stocks. Individuals and organisations have until 31 October to submit their comments, the exchange said in a statement. They previously had until 31 August. The exchange is proposing delisting companies that have posted net losses for three years and have either a market capitalisation of less than HK$50 million ($11.9 million) or deficits in their reserve accounts. Companies with market values of less than HK$30 million or with stocks trading for less than 50 cents will also be delisted under the new rules.

India

A.P.J. Abdul Kalam, the 71-year-old architect of India's missile program who played a key role in the 1998 nuclear tests, was sworn in as the country's 11th president last month. Kalam assumes charge as India has its biggest troop buildup in 30 years along its border with Pakistan, a Muslim nation. Analysts say the appointment is a signal that Hindu-majority India, home to the second-largest Muslim population in the world after Indonesia, is committed to the ideals of secularism enshrined in its constitution.

Indonesia

Indonesia's inflation may slow to less than 10 per cent by the end of the year, which along with a stable rupiah will let interest rates fall further, the International Monetary Fund's country representative David Nellor said. "It looks possible to achieve a single-digit inflation rate by the end of the year," Nellor told reporters before a meeting at the Finance Ministry. The rupiah exchange rate, he said, is "relatively stable," and this will "enable the interest rate to come down".

Japan

Japanese Prime Minister Junichiro Koizumi survived a no-confidence vote brought by opposition parties in late July, which said he's, failed to revive the economy since winning power 16 months ago. Koizumi's Liberal Democratic Party and its coalition partners New Komeito and the New Conservative Party defeated the motion 280 votes to 185 in the lower house of parliament. The four opposition parties said Koizumi has been too slow to force banks to write off non-performing loans, hasn't done enough to curb government debt and presided over a slide in stock prices.

Malaysia

Malaysia's Government will tighten its grip on national carrier Malaysian Airline System Bhd in a bid to end five years of losses for Asia's 10th-biggest carrier. Under the asset reorganisation plan, a state-owned unit will buy Malaysian Airline's assets, giving the Government 69 per cent of the carrier.

Philippines

Australia agreed to consider increasing the number of areas in the Philippines from which mangoes may be shipped to Australia, BusinessWorld said, citing an Australian government press statement. Australia has since 2000 allowed the entry of mangoes grown on the central Philippine island of Guimaras. The western island of Palawan won't be included in the review, the report said, without providing a reason. The Philippines has been asking Australia to open its fruit market since 1993.

Singapore

Japanese investments in Singapore's manufacturing sector slowed to S$1.3 billion ($1.37 billion) in 2001, from about S$1.5 billion a year earlier, the Business Times said, citing figures from the Economic Development Board. There are currently 760 Japanese companies registered at the Singapore-based Japanese Chamber of Commerce and Industry, from about 800 last year. Most of its members are companies with at least 31 percent Japanese ownership, the report said. Foreign companies in Singapore have been cutting staff and relocating to other countries such as China, after the city-state last year suffered its worst recession in nearly four decades.