Combat-ready’ North Korea threatens US mainland

(North Korean leader Kim Jong-un (centre) talks with generals as soldiers of the Korean People’s Army (KPA) take part in the landing and anti-landing drills of KPA Large Combined Units 324 and 287 and KPA Navy Combined Unit 597, in the eastern sector of the front and the east coastal area.)

North Korea’s military has put rocket units on a war footing with a fresh threat to strike US targets as well as South Korea, as Washington said it was ready to respond to “any contingency”.

The move came as South Korea yesterday marked the third anniversary of the sinking of its naval vessel “Cheonan” by what Seoul insists was a North Korean submarine.

“All artillery troops including strategic rocket units and long-range artillery units are to be placed under class-A combat readiness,” the Korean People’s Army (KPA) supreme command said in a statement.

The units should be prepared to attack “all US military bases in the Asia-Pacific region, including the US mainland, Hawaii and Guam” and South Korea, said the statement carried by the Korean Central News Agency.

The Pentagon in response urged Pyongyang to “stop threatening peace”, saying the KPA announcement “doesn’t help anyone”.

“We are concerned by any threat raised by the North Koreans. We take everything they say and everything they do very seriously,” said Pentagon spokesman George Little, adding US forces were “ready to respond to any contingency”.

“North Korea will achieve nothing by threats or provocations which will only further isolate North Korea and undermine international efforts to achieve peace and stability in northeast Asia,” the spokesman said.

Despite a successful long-range rocket launch in December, most experts believe North Korea is years from developing a genuine inter-continental ballistic missile that could strike the mainland US.

Hawaii and Guam would also be outside the range of its medium-range missiles, which would be capable, however, of striking US bases in South Korea and Japan.

North Korean leader Kim Jong-un has spent the past few weeks touring frontline military units, monitoring live fire artillery drills and making inflammatory speeches about wiping out the enemy.

The Pentagon spokesman rejected what he called the North’s “bellicose rhetoric,” saying it followed a “well-known pattern designed to raise tensions and intimidate others”.

Sabre-rattling and displays of brinkmanship are nothing new in the region, but there are concerns that the current situation is so volatile that one accidental step could escalate into serious conflict.

“We are closely monitoring the situation. So far there has been no particular North Korean troop movement,” a South Korean defence ministry spokesman said.

Addressing a ceremony for the 46 sailors who died in the 2010 “Cheonan” incident, South Korean President Park Geun-hye warned Pyongyang that its only “path to survival” lay in abandoning its nuclear and missile programmes.

The North has always denied sinking the Cheonan, but a few months later it launched an artillery attack on a South Korean border island, killing four people.

North Korea’s patron and sole major ally China was quick to urge calm from all sides yesterday.

“We hope that relevant parties will exercise restraint so as to ease the tension,” foreign ministry spokesman Hong Lei said. Military tensions on the Korean peninsula have been at an elevated level for months, following December’s rocket launch and the North’s third nuclear test which it carried out last month.

Both events triggered UN sanctions that infuriated the North, which has spent the past month issuing increasingly threatening statements about unleashing an “all-out war” backed by nuclear weapons.

It was particularly incensed that nuclear-capable US B-52 bombers flying out of Andersen Air base on Guam took part in recent joint South Korea-US military exercises.

“We will demonstrate the firm resolution of our people and military to protect our sovereignty and dignity through real military action,” the KPA statement warned.

North Korea’s Foreign Ministry warned in a statement early Wednesday that the “prevailing grave situation goes to prove that the US is seeking a nuclear war against the DPRK”.

The ministry said it “openly informs the UN Security Council that the Korean Peninsula is now in a touch-and-go situation due to the nuclear war provocation moves of the US and South Korean puppets”.

The latest threats come days after the South Korean and US militaries signed a new pact, envisaging a joint military response to even low-level provocation by North Korea.

While existing agreements provide for US engagement in the event of a full-scale conflict, the new protocol addresses the response to a limited provocation such as an isolated incident of cross-border shelling.

http://www.gulf-times.com/korea/247/details/346971/%E2%80%98combat-ready%E2%80%99-north-korea-threatens-us-mainland

China’snew premier sets reform bar lower

Li Keqiang, China’s new premier, made clear at his first official news conference that he is committed to the cause of reform. He mentioned the word 28 times as he laid out his vision of smaller government, a tougher stance on corruption and a fairer distribution of wealth.

That Mr Li is a reformer is hardly remarkable. In the 35 years since Deng Xiaoping launched China’s “reform and opening up” strategy and left Maoism behind, Chinese leaders have pushed for economic, social and even political reforms.

The key question is not whether a Chinese leader is a reformer – but rather what kind of reformer he or she is.

The contrast between Mr Li’s programme and that of Wen Jiabao, his predecessor, is illuminating. Mr Li’s agenda, which he outlined at the end of China’s annual parliament on Sunday, is more limited and more singular in its focus on economics. It also appears to be more concrete and therefore more achievable.

In his final years as premier, Mr Wen spoke of the urgency of transforming the Chinese political system. Although he never described in detail what changes were needed, his calls for fundamental reform to the leadership structure were seen as a thinly-veiled push for more democratic ways of selecting officials.

Mr Li made no direct mention of political overhaul. Instead, he emphasised one of his favourite themes: that China’s economy can reap a growth “dividend” from enacting deeper market reforms.

“There is great space for further unleashing productivity through reform and there is great potential to make sure the benefits of reforms will reach the entire population,” he said.

On the surface it was a more conservative message than Mr Wen’s appeal at the close of China’s annual parliament exactly one year ago. Without political structural reforms, Mr Wen said at the time, China’s recent economic gains might slip away.

Mr Wen never succeeded in bringing about political change. Some of his more strident speeches about the need for a new politics were even censored by state media.

If Mr Li is setting the bar lower, he is also being more realistic, says Yang Dali, faculty director of the University of Chicago Center in Beijing.

“There is a recognition that you want to reform but reform can be a very dangerous moment and so you want to lower expectations about political reform,” Mr Yang says. “Mr Li’s focus is very much within the parameters of the economy and society.”

Mr Li made a series of reform proposals that came with measurable benchmarks for assessing his success.

In the legal arena, while making a vague commitment that the law must rank above all people, he made a specific pledge to announce a reform programme for the country’s controversial labour camp detention system by the end of this year.

Addressing complaints that the government has become too powerful, he vowed to cut by one-third the number of things that require cabinet approval. He also promised to lower the civil service payroll and said that official budgets for travel and vehicles would be cut.

China’s political system is designed to preserve the continuity of Communist party rule, so it is unsurprising that there will also be many similarities between Mr Li’s premiership and that of Mr Wen.

Under Mr Wen, China made big strides in building up its social security system, extending basic pensions, welfare payments and medical insurance to the majority of the country’s citizens. Expanding these social programmes is the core of Mr Li’s plan for narrowing the gaping wealth gap.

Mr Li at one point referred to Mr Wen directly, expressing gratitude to him for laying a strong foundation for his administration.

More telling, though, was his indirect reference to Mr Wen’s legacy of promising significant political changes and failing to deliver.

“We will follow talk with action. What we say we will do, we will do,” Mr Li said.

Read more at :

http://www.ft.com/cms/s/0/e2adc116-8ee8-11e2-be3a-00144feabdc0.html#ixzz2NrwgEYXl

Welspun Energy commissions Asia's largest solar project in Rajasthan

Welspun Energy has commissioned Asia's largest solar power project in Rajasthan ahead of schedule. India's biggest developer of solar projects commissioned 50-megawatt solar power plant at Jodhpur district.

This is the largest solar project to be developed by Welspun Energy till date and is also the largest PV power plant in India.

The entire 50 MW solar project, located near Phalodi, Jodhpur District was developed in three phases of 15 MW, 15 MW and 20 MW. The PV project will generate total electricity of 90 million kWh or units annually and supply clean energy to power 25 million families.

With the commissioning of this project, an estimated 83,220 million tonnes of carbon dioxide emissions will be mitigated each year.

"Welspun Energy is committed to supplying clean energy to power India's growth. This 50 MW solar project is an achievement for us," said Vineet Mittal, co-founder & Managing Director Welspun Energy Ltd.

The "utility-scale solar project" was commissioned "in an astounding five months; well ahead of schedule, creating a new benchmark for the industry," a statement from the company said.

The company had won the 50 MW solar project through a competitive bid under Batch-2, Phase-1 of the Jawaharlal Nehru National Solar Mission. Welspun was the only company to have been awarded a maximum capacity of 50 MW under this scheme, making this the largest project in India.

"Completion of this project before schedule and at a lower than budgeted cost demonstrate Welspun Energy's expertise in solar project development," Mittal said.

Welspun Energy has become the largest solar power developer in India with over 300 MW solar and wind projects on the ground. The New Delhi-based firm is setting up 750 MW of solar power and 1 gigawatt of wind power plants across India.

The company is part of the $3.5 billion Welspun Group, which has interests in power generation, infrastructure, exploration and production of oil and natural gas, steel pipes and textiles.

With inputs from PTI

INFOGRAPHIC: Top power players in the Philippines

MANILA, Philippines - The cost of generating electricity from different energy sources is the single biggest item in most of Philippine consumers’ electricity bill, at 50% to 60%. This has propelled the cost of electricity in the country to over P8 kilowatts per hour, one of the most expensive rates in Asia.

This infograph shows the key private sector players generating the electricity that retailers sell to end-users, such as households, offices and factories.

Diversified conglomerate San Miguel Corp. is the biggest producer, accounting for 22% of the total sold to the grid, based on their aggregate share of power produced in plants they own or partly own ("attributable capacity" in industry jargon). Even if the group's unit, SMC Global Power, sold the 620-megawatt (MW) Limay Combined Cycle plant in 2011, its 2,545 megawatt (MW) attributable capacity has eclipsed prominent business clan, Aboitiz, which comes second at 20% (2,350MW), and the Lopez group third with 18% (2,150 MW).

However, in terms of capacity of all existing power plants -- old, depreciated, or still fully efficient -- the Aboitiz group still rules. Aboitiz remains the biggest power producer based on "installed" capacity of 3,426 MW, accounting for 21% of total power sold to the grid. Aboitiz Power also runs several independent power players (IPP) that sell to state-run National Power Corporation (Napocor).

The Lopezes, long identified with the power industry, has the greenest portfolio with its plants sourcing energy mostly from geothermal and natural gas. Lopez-led Energy Development Corp., is the largest producer of geothermal energy in the Philippines and the largest IPP in Visayas with 43.3% share.

Over the past decade, the Philippine government actively privatized current power plants and enticed investors to build additional ones to address lack of capacity, insufficient reserve margins, and the resulting spikes in spot prices.

New players have emerged, including Global Power Corp. of Metrobank’s George Ty that have power plants in Visayas accounting for 12.3% of total. Other smaller new entrants in this capital-intensive industry include the Consunjis via SEM-CALACA Power Corp. (3.7%) and Millenium Holdings (3.8%), which now controls the Limay plant. Some major Philippine business groups are joining the fray, including the Ayala and Sy groups, which have sealed partnerships.

Several prominent foreign players include American firm AES that won the bid for Masinloc power plant in Zambales (3.9% of total), Thai firm EGCO International Co. Ltd. (3.2%), and Singapore’s Salcon Power Corp (SPC) (3.8%). Korean firm KEPCO has several partnerships with existing players, while Japanese firm Team Energy has IPPs with over 2,000MW capacity.

Government-owned plants in Mindanao, Palawan, Batanes and other island regions, which are off the grid, remain dependent on power generated by the plants owned and IPPs commissioned by Napocor. In effect, the state, which used to monopolize power generation, now accounts for only 8% (1,356MW) nationwide and the IPPs 18% (2,893MW).

Coal remains the country’s main energy source (30.4% of total), followed by hydro (21.6%), diesel (18.5%), natural gas (17.7%) and geothermal (11%). Visayas relies more on geothermal plants (41%) while over half of Mindanao power supply is derived from hydro plants.

These 2011 data were sourced primarily from the Energy Regulatory Commission, Department of Energy and the featured business groups’ corporate websites. - Rappler.com
http://www.rappler.com/rich-media/14729-infographic-top-power-players-in-the-philippines

THE WORLD BANK – SUCCESSES IN SOUTH ASIA

Using a combination of animated data graphics, infographics and photos, this video explanation from Änders Rostad explains about successes in south Asia in terms of economic growth, poverty, disaster management, social welfare, education, and other areas. Very nice illustrations, editing and transitions.

Watch the video through following link

http://www.videoinfographics.com/the-world-bank-successes-in-south-asia/

DPRK Capabilities ....The Places That North Korea Can Theoretically Nuke

With North Korea on the supposed verge of kind of maybe possibly doing something militarily, it would be prudent to give this infographic a gander.

The only thing missing is their most recent rocket the Unha-2, which was regarded as somewhat of a success, but still falls well short of delivering a payload to the U.S.

The U.S. State Department recently responded with summary dismissal of North Korea's threats to nuke the "American homeland" — a move which prompted concern among America's ally South Korea, who is easily within range of such an attack.




http://www.businessinsider.com/infographic-north-korean-rockets-2013-3

Indian government leaves villages call waiting

In the six months to October 2012, the number of telephones per 100 people--or "teledensity"--for Indians living in cities was 159 percent. In contrast, this figure in rural areas was 40 percent.

In other words, while metro Indians have one and a half phones each, their rural counterparts barely access half a phone between them, according to latest figures released by the Department of Telecom in the government's Economic Survey 2012. The report did not include the percentage of mobile devices versus landlines.

The country's teledensity is a closely watched government metric. While the Indian government trumpeted the overall teledensity figure of 76.75 percent, year-on-year growth slowed to just over 10 percent. This is a far cry from the almost 50 percent growth between 2010 and 2011.

However, the number of phones in villages nearly doubled over the past two years. In 2011, there were over 640,000 villages in India, according to the latest census data.

Last year, the government released the National Telecom Policy (NTP) 2012, which aimed to boost adoption of telephone, mobile, and broadband services to "maximize public good". Its goals included increasing rural teledensity to 70 percent by 2017, and 100 percent by 2020.

It appears there is still work to be done to bring villages into the mobile era. In November 2012, the government installed 581,572 public telephones in villages, providing almost 97.97 percent coverage. It erected 7,310 mobile towers, as part of the Universal Service Obligation Fund, and service providers commissioned another 15,971 base transceiver stations at the towers to provision mobile services.

The government, with state-owned telco BSNL, has built 10,076 broadband kiosks, and connected 391,245 people, families and businesses to wire-line broadband services by leveraging existing rural exchanges and copper lines.

It also committed approximately US$4 billion to build a national fiber optic network which will connect 250,000 local village governments, known as "panchayats", and provide high-speed broadband connection.

http://www.zdnet.com/in/indian-government-leaves-villages-call-waiting-7000011945/

Indian Budget 2013 Impact: Behind the numbers and the stories they tell

Much of the budget debate is around the big numbers such as fiscal deficit, disinvestment, spending and revenue growth. ET takes a look at some of the lesser numbers and stories they tell.


1. Higher Grants to Neighbours:

What Does it Mean:

India is looking to counter China's rising influence on some of these countries.

 

2. Big Companies Pay the Lowest Effective Tax

What Does it Mean:

Big companies are in the best position to benefit from incentives and exemptions.

 

3. Declining Foreign Grants

What Does it Mean:

As India's economic clout rises, developed countries finding it difficult to justify financial help to India

 

4. Reckless Borrowing Begins to Bite

What Does it Mean:

Rising debt servicing costs will push India into more borrowing and debt trap if subsidies and social spending is allowed to balloon


 

5. Tax on Services Will Cross Excise Revenues Soon
What Does it Mean:

Services have over 60 per cent share in GDP as opposed to around 15 per cent for manufacturing. Rise is in keeping with this structure

6. RBI Asked to Help Out the Government

What Does it Mean:

If these revenues are much less than budgeted then government will again be forced to cut spending like this year.

$1 trillion likely liabilities of the central government in the current year. Total liabilities are pegged at Rs 56.5 lakh crore

Rs 42,149 crore set aside for acquiring higher IMF quota whenever increase comes through. There is no cash outgo on the account.

Rs 2,021 crore budgeted from info and publicity against Rs 447 crore expected in FY13

Rs 238 crore set aside for general election in current year

http://economictimes.indiatimes.com/news/economy/policy/budget-2013-impact-behind-the-numbers-and-the-stories-they-tell/articleshow/18784927.cms?curpg=2

The impact of Asean Economic Community (AEC) to Thailand's no frills sector

The approach of the Asean Economic Community (AEC) in a couple of years is meaningful for the aviation industry in Thailand, especially low-cost carriers, which are flocking here to cash in on the business opportunities from the anticipated tourism boom, resulting in greater competition.

Given the country's strategic location as a connectivity base, Thailand is becoming a battleground for aviation players. At present, there are about 24 low-cost carriers flying regionally, including four based in Thailand - Thai AirAsia, Nok Air, Orient Thai, and Solar Air. Some others operate a few flights to Bangkok, such as Tiger Airways and Jetstar Asia Airways from Singapore, Mandala Airlines and Lion Air from Indonesia, and South East Asia Airlines (SEAir) and Cebu Pacific Air from the Philippines. In the early stages, they launched service in their homelands, but lately have started spreading their wings regionally.

"Not only low-cost but more full-serviced carriers will be flying in here when the AEC opens," Udom Tantiprasongchai, chairman of the advisory board of Orient Thai, told The Nation. "Thailand is very lucky to have a good geographical position as a regional centre for the aviation industry. Unfortunately, Thai operators will be forced to face stiffer competition and will find it even harder to stay [in business]."

From now on, Udom said, the market would be more dynamic. Operators will find it more and more difficult to stay on, especially those that lack funding and strategic thinking to cope with the fast-changing business environment.

AirAsia will play a leading role in the Thai market. The recent visit to Bangkok by Tony Fernandes, the airline's founder and chief executive, to meet with Prime Minister Yingluck Shinawatra underscored this. He sought her support for the airline's rising role in the Thai market by using the country as a hub. An analyst who declined to be named said political connections were one of the keys to doing business regionally if companies wanted to secure a foothold in each country.

AirAsia, founded in 2001, has become Asia's biggest low-cost carrier. It has established a business foundation throughout the region, with 118 aircraft in its fleet at present and a further 357 on order. The analyst said it was apparent that the carrier would have a big influence on the regional skies, including Thailand. It could outperform Thai Airways International, the national carrier, within five years. Udom said: "The success of AirAsia today is [based on the fact] that it has deep pockets and [is led by] the visionary Fernandes. He is smart at doing business."

Executives in the industry say AirAsia also prospers because of its business flexibility. It makes decisions quickly, especially when it recognises that part of its business is failing. It keeps its overall operation strong by cutting off poorly performing services.

In contrast, THAI as a state enterprise is bureaucratic, takes a long time to find solutions to problems or launch new routes. Sometimes, by the time it acts, it is too late. There is no doubt THAI has gradually seen its market share snatched away by low-cost carriers, especially in the regional market.

The trend is clear that passengers are looking for affordable flights. They do not mind flying two or three hours with a low-cost carrier even if no food or drinks are served on board.

Fernandes told the media last year in Jakarta that he intended the AirAsia brand to be as well known as Coca-Cola. Its rapid expansion may help fulfil his ambition, and THAI may feel the pinch. Although THAI has a 49-per-cent stake in low-cost carrier Nok Air, that may not be enough to protect its market share from AirAsia's expansion.

This reality is underscored by the size of AirAsia's fleet. Nok Air has 16 aircraft, while Thai AirAsia will have 34 by the end of this year. Yet both were formed around the same time, nine years ago. Also, Thai AirAsia operates 174 daily flights from Don Mueang International Airport, against just 84 by Nok Air. By 2015, Thai AirAsia plans to have 46 aircraft. Although Nok Air also plans to acquire new planes, they are to replace old ones, leaving the total number unchanged. Beyond AirAsia, analysts argue that Tiger Airways, partly owned by Singapore Airlines, is in a strong position. Currently, it holds stakes in Mandala Airlines and SEAir, which will strengthen its route coverage in the region. Previously, Tiger planned to set up a low-cost carrier in cooperation with THAI, but the idea fell through when it failed to win approval from the Thai government.

Meanwhile, Thai AirAsia has adopted more aggressive marketing from season to season, especially low-priced strategy. It has lured a growing number of people to use the service.

Pinyot Pibulsonggram, Nok Air's vice president for sales and marketing, acknowledged that AirAsia was playing a bigger role here, but believed its pricing strategy had not forced Nok Air into a corner. The airline has room for growth by positioning itself as a ''premium low cost" carrier, offering some drinks and snacks for passengers. "Price is the first thing that passengers take a look at, but it is not the final reason they make a decision to buy," he said.

People have welcomed the arrival of more low-cost carriers, although they are foreign. They enjoy the broader travel options. The more low-cost carriers there are, the cheaper the tickets will be. Service charges such as for baggage will also be eased, forced by competition.

So the battle for the skies is getting fiercer. Weak operators will be forced out of business.

Thailand mobile service sector is hot ?

Players in the telecommunication industry are actively pursuing partnerships and pushing for mass mobile-phone-number portability, while the two state telecom agencies are continuing their attempts to keep control of their spectra.

All this activity has been sparked by the planned launch of third-generation wireless broadband on the 2.1-gigahertz spectrum and the approaching end of cellular concessions.

POSSIBLE 4G PARTNERSHIP

Newly appointed TOT president Yongyuth Wattanasin recently remarked that one option to secure a bright future for the agency was to seek a business partnership with Advanced Info Service (AIS), its concession holder. TOT is keen to talk with the largest cellular operator on possible joint development of 3G and 4G service on their adjacent bands of the 2.1GHz spectrum.

"We're waiting for AIS to talk with us on this possible collaboration," he said.

The band of AIS subsidiary Advanced Wireless Network (AWN) is adjacent to that of TOT. Each holds 15 megahertz of the 2.1GHz spectrum. TOT began providing 3G-2.1GHz service on its own spectrum many years ago, while AWN is expected to launch its 3G service on the same spectrum next month. TOT is testing the 4G service on 100 base stations along the main Skytrain route.

A TOT source said the agency was even interested in joining with AIS to take care of the latter's customers who may fail to switch to other networks after the concession expires in March 2015. TOT estimates that AIS might not be able to shift all of its more than 35.7 million subscribers to AWN's network in 2015, and about 10 million subscribers will be left in the AIS network at that time.

TOT might ask AIS to lease its network to service these 10 million customers on a revenue-sharing basis, the source added.

PUSH FOR MASS NUMBER PORTABILITY

AIS and True Corp have urged the National Broadcasting and Telecommunications Commission (NBTC) to fast-track portability of mobile-phone numbers between the two under a mutual agreement. The portability scheme allows users to switch providers while keeping their existing phone numbers. Both AIS and True want to speed up this process to give their premium data subscribers access to their subsidiaries' 3G-2.1GHz networks.

Currently the combined portability capacity of the five telecom operators - AIS, Total Access Communication (DTAC), TrueMove, TOT and CAT - is 40,000 phone numbers per day.

However, TOT and CAT will be unhappy if mass number portability results in a rapid loss of concession revenue. To increase the portability capacity, all telecoms would also have to invest more to expand their existing number-transfer systems, and TOT and CAT do not see how they would get any benefit from this.

Information and Communication Technology Minister Anudith Nakornthap said he also did not see how TOT and CAT would benefit from additional investment to expand their number-portability capacity.

But the cellular operators are eager to move their high-spending customers from the state concessions to the 3G networks of their subsidiaries, which hold NBTC licences, to reduce their costs from regulatory fees. Concession fees cost them an average of 25 per cent of gross annual revenue, while the NBTC's licences cost around 6.75 per cent of gross annual revenue.

BATTLE TO KEEP CUSTOMERS, SPECTRA

CAT estimates that there will be about 10 million customers left in TrueMove's network when the company's concession ends this September 15. CAT cites this case to justify its request to the NBTC to allow the agency to keep its 1,800MHz spectrum to serve these 10 million subscribers.

An NBTC source said the private cellular operators seemed to want to keep servicing the subscribers left in their networks by themselves, instead of having other parties doing so, if some customers fail to switch to other networks before the concessions end. The NBTC is studying the legal aspects of the situation.

But CAT chief executive officer Kitisak Sriprasert said that according to their concession contracts, the private cellular operators had to transfer network assets and customers to the concession owners once their contracts expire. He added that if CAT's concession holders cited this legal aspect to keep leftover customers with them, CAT might have to bring this case to the court to sort out the matter.

Can Thailand move up the value chain ?

In economic development, there are three stages of growths: resource-driven growth, efficiency-driven growth and innovation-driven growth. Most people would agree that Thailand moved out of resource-driven growth a long while ago, given the depletion of our natural resources. Most economists would say that Thailand is now at the second stage of development, under efficiency-driven growth. However, with the Thai government's January 22 announcement of a "Country Development Strategy" in promoting growth and competitiveness, the stated goal for Thailand is to "move up the value chain".


Ultimately, the aim is to get Thailand out of the so-called "middle income trap". The World Bank defines middle-income countries as those with GDP per capita between US$1,000 to $12,000 per year. Thailand is now at about $5,300, and there is still a long way to go as far as statistics are concerned.

The only way we can move Thailand toward a high-income economy is to realise the third stage of development - innovation-led growth. In the future, the Thai economy must grow through "ideas" rather than an "I can do" mentality. We can look at the most concrete examples now. The most value-added (or profit) is now with the companies that generate "ideas", while companies that "do" the actual work (i.e. assembly) get a miniscule profit share. Take Apple products, for example. Apple in 2012 recorded revenue of over $156 billion, with net profit over $41.7 billion (a wide 26-per cent profit margin), while Foxconn, the company that manufactures Apple products showed revenue of $131 billion, with net profit of $2.7 billion (a slim 2-per cent profit margin). So we can see that value creation benefits mostly those with ideas and innovation - the hallmark of a creative economy.

The first definition of a "creative economy" was developed by British writer John Howkins in 2001. According to Howkins' definition, the various activities that comprise a creative economy have one thing in common: they are the result of individuals using their imagination and exploring (or protecting themselves from others doing so) related economic value. We should recognise that a creative economy is more than just Internet and information technology companies - its coverage is wide-ranging, including, among other things, the cultural sector, tourism, arts and media - basically anything that you can apply your ideas to to add value in the production and distribution processes.

In achieving a creative economy for Thailand, we need the right mix of public policies and strategic choices, in order to harness our economic potential for creativity. The starting point is to enhance creative capacities and to identify creative sectors in Thailand. Government policies should aim towards building the creative entrepreneurial capacities of Thai people, offer modern and affordable access to modern technologies, and promote the trade potential of creative products in both the domestic and international markets. The one-tambon-one-product (OTOP) policy is a right step towards promoting high quality, locally made goods in wider marketplaces.

If the government can successfully promote a creative economy, there will be positive spillover effects, higher levels of income and employment generation in Thailand. One major challenge for shaping creative economy policies for Thailand is related to intellectual property rights: how to measure the value of intellectual property, how to redistribute profits and how to regulate these activities. The evolution of multimedia created an open market for the distribution and sharing of digitised creative content. Now, the debate about the protection or sharing of intellectual property rights became highly complex, involving governments, artists, creators and business people. How should we strike a balance between letting creative people benefit from their own work, giving incentives to them to make further inventions, while allowing society at large to benefit from their inventions and promoting healthy market competition?

Furthermore, we have to recognise that a creative economy should have a social dimension. It functions through interconnected networks of production, marketing and distribution, spanning the entire value chain. Today it is strongly influenced by the growing role of Internet connectivity and social networks. These new tools, such as blogs and forums, facilitate connectivity and collaboration among creative people, products and places.

Pragmatic policy-making requires a better understanding of who the stakeholders are in the creative economy, how they relate to one another and how the creative sector relates to other sectors of the economy. Thailand will need to bridge its own "digital divide" - only 25 per cent of the Thai population has access to the Internet - and enable people across society and the professions to communicate and share ideas.

Last, policies for a creative economy have to respond not only to economic needs but also to special demands from local communities with regard to education, cultural identity, social inequalities and environmental concerns. Major urban centres in Thailand like Bangkok, Chiang Mai and Phuket should foster the concept of "creative cities", to formulate urban development strategies for reinvigorating growth with a focus on culture and creative activities.

Looking ahead, I applaud the government in its efforts and goals to move Thailand out of the middle-income trap, as announced recently by the prime minister. Thais in different parts of the country should work together in formulating a feasible strategy to foster our creative economy, based on our own strengths, weaknesses and realities. We need to draw upon our strengths in food production and medical tourism, for example, and find ways to add value to our products and services. The time for action is now; the world and its creative economy will certainly not wait for us.
Dr Chodechai Suwanaporn is executive vice president, economics and energy policy, PTT Public Company Limited. Chodechai.energyfact@gmail.com.

http://www.nationmultimedia.com/opinion/A-creative-economy-for-Thailand-a-dream-or-reality-30200770.html

Why South East Asia is important to Japan ...

Japanese Prime Minister Shinzo Abe's whirlwind tour last week of three Asean capitals - his first overseas trip since taking office - underscores the renewed importance of Southeast Asia to Japan.

Japan needs Southeast Asian nations, not just to boost its own flagging economy, but also as strategic partners in dealing with a rising China.

Given Abe's priority of revitalising the economy, it is important that Japan is able to tap into Asean's dynamic economic growth, which has intensified demand for Japanese exports and also created a huge demand for better infrastructure.

To that end, the Japanese leader was seen pushing high-speed rail systems in Bangkok. Japan also remains keen to sell nuclear power plants to Vietnam despite the fact that the Fukushima nuclear disaster remains unresolved.

But perhaps the most important message that Abe brought with him was that Japan is anxious to deepen its alliance with Asean nations, not least in coping with the challenge of an increasingly belligerent China in maritime territorial disputes.

In the South China Sea, China lays claim to island clusters that are also claimed by several Asean states. Farther north in the East China Sea, it is involved in a long-simmering feud with Japan over the ownership of the Senkaku Islands, which the Chinese call Diaoyu.

At a press conference in Jakarta, Abe acknowledged that China's rise is "without question" a plus for Japan economically. But he was quick to add that it was "important for China to act responsibly in the international community".

As the influential Nikkei business daily pointed out, the biggest common concern binding Japan and the Asean countries is how to engage a rising China. But it may be difficult to rally the Asean nations together against Beijing, given that some members are likely to flinch at the thought of rankling China, which has become closely linked economically with the region.

It was unfortunate that Abe's Asean swing was overshadowed by the hostage crisis in Algeria. News that some Japanese were among the hostages reportedly reached the government about 10 minutes after Abe touched down in Hanoi, his first port of call, last Wednesday. On Friday, the unfolding crisis cut short his visit to Jakarta, his last destination. In the Japanese media, news of the hostage crisis almost squeezed out reports of Abe's Asean visit.

Despite having to cancel a key policy speech in Jakarta, Abe managed to use a press conference to spell out the five principles underlying Japanese diplomacy in Asean contained in that address. These include protecting freedom of expression and other universal values, and the promotion of economic as well as cultural ties with Asean nations.

But perhaps the most important principle that Abe cited is the use of the rule of law to resolve maritime disputes, a veiled reference to China's inclination to resort to the use of military muscle.

But as some Japanese newspapers pointed out, it may not be in the interest of the region for Japan and Asean to be seen as trying to contain China. Rather, efforts should be made to persuade China that international law is the best means of preserving regional peace.

Kwan Weng Kin
The Straits Times
Asia News Network
Singapore January 22, 2013 1:00 am

What is Asia-Pacific Economic Coorporation

Asia-Pacific Economic Cooperation, or APEC, is the premier forum for facilitating economic growth, cooperation, trade and investment in the Asia-Pacific region.


APEC is an intergovernmental grouping that operates on the basis of non-binding commitments, open dialogue and equal respect for the views of all participants. Unlike the WTO or other multilateral trade bodies, APEC has no treaty obligations required of its participants. Decisions made within APEC are reached by consensus and commitments are undertaken on a voluntary basis.


APEC has 21 members - referred to as "member economies" - which account for approximately 40 percent of the world's population, approximately 55 percent of world GDP and about 44 percent of world trade.


APEC's 21 Member Economies are Australia; Brunei Darussalam; Canada; Chile; People's Republic of China; Hong Kong, China; Indonesia; Japan; Republic of Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; The Republic of the Philippines; The Russian Federation; Singapore; Chinese Taipei; Thailand; United States of America; Viet Nam.


Purpose and Goals

APEC was established in 1989 to further enhance economic growth and prosperity for the region and to strengthen the Asia-Pacific community.

Since its inception, APEC has worked to reduce tariffs and other trade barriers across the Asia-Pacific region, creating efficient domestic economies and dramatically increasing exports. Key to achieving APEC's vision are what are referred to as the 'Bogor Goals' of free and open trade and investment in the Asia-Pacific by 2010 for industrialised economies and 2020 for developing economies. These goals were adopted by Leaders at their 1994 meeting in Bogor, Indonesia.

Learn more about the Bogor Goals in the 1994 Leaders' Declaration.

Free and open trade and investment helps economies to grow, creates jobs and provides greater opportunities for international trade and investment. In contrast, protectionism keeps prices high and fosters inefficiencies in certain industries. Free and open trade helps to lower the costs of production and thus reduces the prices of goods and services - a direct benefit to all.

APEC also works to create an environment for the safe and efficient movement of goods, services and people across borders in the region through policy alignment and economic and technical cooperation.
For further information, please visit here: apec.org

Around 2.6 million Chinese people visited Taiwan last year

Around 2.6 million Chinese people visited Taiwan last year, including just over 220,000 travelers on self-guided tours, according to figures from the Tourism Bureau (交通部觀光局).


While tourism officials must be pleased about the healthy growth of tourism in Taiwan, any further influx of visitors might not be so healthy for the country's main attractions — Sun Moon Lake (日月潭), Alishan National Scenic Area (阿里山國家風景區), Taroko National Park (太魯閣國家公園管理處) and the National Palace Museum (國立故宮博物院).

There have been complaints about visitors chatting loudly and eating snacks inside the country's top museum, where you now have to line up for some time in order to get in. The landmark Taipei 101 and many other scenic spots are also overcrowded with only a few travel agents, hotels, tour bus companies and restaurants benefiting from the brisk business.

If Taiwan wants to further increase its quota for mainland tourists traveling in groups to 5,000 from 4,000 a day and double the daily intake of individual tourists to 2,000 this year, Tourism authorities must address first the rampant price competition between tour operators that is bringing the quality of prepaid tour packages into a vicious downward circle. On the mid- and long-term, this endless pursuit of mass tourism is poised to bring profitless volume.

Even though the government set the minimum amount local travel agencies charge Chinese agencies per visitor at US$60 per day, some agents have already lowered that amount to about US$24, and in some cases they gave up on charging anything. As a result, Taiwanese tour operators have turned to other ways to make money such as squeezing in as many stops as possible into Chinese tour groups' itineraries.

By forcing Chinese visitors to spend their money at designated stores that provide hefty commissions, travel agencies have been focusing mainly on shopping trips to make a profit. That's wrong.

To the contrary, Taiwan should focus on attracting high-value visitors and developing a more profitable tourism industry, rather than just pursuing growth in visitor numbers. Building unique and outstanding tourism products and services is also the key to competitiveness as most Asian countries are preparing for launch of the ASEAN Free Trade Area (AFTA, 東盟自由貿易區) in 2015.

A viable alternative for Taiwan rests in environmentally sustainable and culturally responsible tourism products. Our country features one of the most desired landscapes in the world, with unique native flora and fauna and an indigenous culture that resonates with visitors from around the globe. Instead of apologizing for the cost involved in high-end travel, Taiwan should use South Africa as an example and focus on its unrivalled experiences for which people will be willing to pay.

One of the biggest myths about the luxury market in Asia is that Chinese people are always on the lookout for a cheap deal. Contemporary Chinese travelers now look for more than an off-the-rack package tour. They want to experience the unique quality of a town and its people. They're equally willing to spend big bucks on traveling around the world and are more discerning when choosing their travel destination. In other words, Chinese tourists, like any other high-end travelers, want to ensure they're getting an exceptional holiday at the right price, but they also want value-added services such as tailor-made itineraries, personal consultants and someone to call in an emergency.

While we further expand the Free Independent Traveler (FIT) program, Tourism authorities must still consider reducing the number of tour groups entering the country. Otherwise, we might eventually fail to upgrade Taiwan's tourism sector.

Taiwan raised growth rate

TAIPEI • Taiwan raised its growth forecast for the year after the economy grew more than initially estimated last quarter, as exports and consumption recovered.

Gross domestic product (GDP) rose 3.72% in the three months through December from a year earlier, the statistics bureau said in a statement in Taipei last Friday.

That compares to a preliminary estimate of 3.42% and a median of 3.4% in a Bloomberg survey of 11 economists. The bureau raised its 2013 GDP forecast to 3.59% from 3.53%.

Taiwan President Ma Yingjeou this month reshuffled his Cabinet as he seeks to bolster his approval rating and strengthen the economy. Closer trade and investment ties with China have boosted growth prospects for the island, which joined Singapore last Friday in reporting faster-than-estimated expansion in a sign the region is recovering from a global slowdown.

The benchmark Taiex stock index closed 0.1% lower last Friday before the report. The Taiwan dol lar rose to NT$29.66 (RM3.10) against its US counterpart, according to Taipei Forex Inc. It is the worst performer this year after the Japanese yen among 11 widely-traded Asian currencies tracked by Bloomberg.

Ma earlier this month promoted Vice Premier Jiang Yi-Huah to Premier and re-appointed central bank governor Perng Fai-nan to a fourth five-year term, suggesting continued stability for the island’s currency and protection for its exporters.