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Fitch: Indonesia Has Spending Problem

Fitch: Indonesia Has Spending Problem

Reuters Workers construct a new toll road in Jakarta, Indonesia. JAKARTA – While much of the world struggles with painful austerity measures to stem spreading debt problems, Indonesia needs to splurge a little more, even if that means inflating its debt load.

That was one of the contrarian messages from a presentation Tuesday by Fitch Ratings, the international debt rater that lifted Indonesia’s credit rating above junk for the first time in 14 years last month.  If it wants to accelerate growth, Southeast Asia’s largest economy has to get more aggressive about spending on its infrastructure, said Philip McNicholas, director of Fitch’s sovereign ratings for the Asia-Pacific region. “If its budget deficit does blow out, we would not necessarily view that as unfavorable,” as long as the spending was on things that could put Indonesia on a “high-growth path,” he said. Few countries have experienced the devastation that can come from too much dependence on debt and foreign capital in the way Indonesia did in the 1990s, when the Asian financial crisis sent the country’s economy reeling.

That experience, and the painful rebuilding, has made Indonesia more cautious than most for much of the last decade. Its public debt to gross domestic product ratio (more than 100% for many countries today) came down sharply from around 90% in 2000 to 25% today. As a result, the country has the opposite spending problem now – it spends too little, say some economists. While its growth rate, which has averaged more than 6% in recent years, is stretching its outdated roads, ports and power plants, year after year it fails to meet its spending targets for new infrastructure. In the meantime, its roads are getting more crowded and companies are complaining of costly delays at ports and airports.

The number of cars on Indonesia’s roads has jumped from around 15 per kilometer at the turn of the century to more than 40 today, Fitch said. Including two-wheelers, the number of vehicles has tripled to 150 per kilometer. It isn’t often that a cautious rating agency tells a country to stop worrying about debt, but Indonesia needs to live a little, said Mr. McNicholas. “It’s a pretty rare situation outside of the higher-rated countries,” he said.

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Fitch: Indonesia Has Spending Problem

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BANGKOK FLOODS: PM Issues disaster warning for Bangkok

BANGKOK FLOODS: PM Issues disaster warning for Bangkok

Thailand’s Prime Minister today announced that Bangkok faced a looming disaster as she consolidated special powers for flood control and drainage.

The 2007 Disaster Prevention and Mitigation Act was put into place take responsibility for mana gement of the flooding, just short of declaring a state of emergency. Under her control, the priority for managing the floods is to speed up the drainage into the sea via the east of the capital.

The government is also set to coordinate its efforts with the Bangkok Metropolitan Administration (BMA) to operate all sluice gates in and around the capital, effectively taking full control of the waterways in the city.

The armed forces would also be responsible for maintaining and defending dykes and levees set up to stem the flow of floodwaters.

The military will play a key role in defending important points of infrastructure, including Bangkok’s airports – Don Muang and Suvarnabhumi around the Grand Palace and Siriraj Hospital, and the city’s tap water system.

The Ministry of Transport would be responsible for ensuring a smooth flow of traffic throughout the capital, and other agencies would also be involved in the setting up and plans shelters and arranging evacuations`

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BANGKOK FLOODS: PM Issues disaster warning for Bangkok

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HPCL resumes fuel supply to Kingfisher

HPCL resumes fuel supply to Kingfisher

New Delhi: State-owned oil marketer Hindustan Petroleum Corporation Ltd (HPCL) has resumed fuel supplies to Vijay Mallya-promoted Kingfisher Airlines.

Sources say Kingfisher owes HPCL approximately Rs 100-130 crore and a non-payment of due had resulted in the fuel stoppage. Nearly six Kingfisher flights (KFA) out of Delhi airport were delayed on the supply interruption. Kingfisher owes HPCL approximately Rs 100-130 crore and a non-payment of due had resulted in the fuel stoppage. CNN-IBN The airline had also stopped check-ins for the time being.

Sources say KFA and HPCL are working to resolve the issue.

This is not the first time HPCL has stopped fuel supply to KFA. Not long back, it had stopped fuel supply to the airline for a few hours after its dues touched Rs 650 crore.

Of this, Rs 170 crore was not covered by any guarantee. GMR, which operates the Delhi and Hyderabad airports, also threatened the airline that it would put it on a cash-and-carry system after dues touched Rs 90 crore (Rs 68 crore for Delhi and Rs 22 crore for Hyderabad). Kingfisher Airlines, the only listed airline to end 2010-11 with a loss of Rs 1,027 crore, recently announced it would discontinue its low-cost wing, Kingfisher Red. (Follow IBNLive.com on Facebook , on Twitter , on YouTube , and on Google+ for updates that you can share with your friends.) Thank you.

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HPCL resumes fuel supply to Kingfisher

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Thai Royalists Urge People Not to Vote in July Election

In Thailand, the political campaign season is fully under way ahead of next month’s closely contested national elections. While much of the attention is on the standoff between the ruling Democrat Party and the opposition Pheu Thai party, there are scores of lesser-known parties vying to be heard.

But one political movement that has played a major role in politics in recent years is now urging people not to vote at all.

Hundreds of members of the People’s Alliance for Democracy, known as the Yellow Shirts, marched Friday through Bangkok’s financial district for their unique campaign encouraging Thai people not to vote in the July nationwide election.

The PAD supporters say politicians running for a July 3 election are power hungry and corrupt and should not be allowed to govern.

The protesters rode in the back of pick-up trucks holding mock campaign signs and flyers depicting politicians as animals.

“Vote no!…Tiger! Dog! Buffalo! Uhh! Vote no.”

(Photo VOA – Daniel Schearf)

The bright yellow signs feature animals dressed in business suits and they are posted across the city. Authorities are threatening to take down the irreverent posters because they say they do not support any candidates or parties.

While campaign events for the ruling Democrat Party and the opposition Pheu Thai party draw huge crowds at rallies across the country, it is not clear how much public support there is for the no vote campaign.

Krich Thepbamrung is a Yellow Shirt supporter who says if enough people refuse to vote then authorities will be forced to address systemic corruption.

“Yes, we want to choose the leader but it means everything must change first,” he says. “[We] must change the politics system first. [It does] not mean from democrat [democracy] to be communist to be other thing – no. We also, we like democracy. We want a democracy. But, it’s not mean democracy by vote one time then they hold the power, corruption and corruption. There is a history from so long times ago until today.” 

The PAD has been an influential party in Thailand’s politics ever since it spurred public protests against former Prime Minister Thaksin Shinawatra.

The Yellow Shirts accused Mr. Thaksin of being authoritarian, corrupt, and disloyal to the monarchy. He denied the charges but was ousted by the military in a 2006 coup and later fled into exile to avoid jail for corruption.

The PAD returned to the streets after political allies of the former prime minister won a plurality of seats in parliament in 2007. Yellow Shirt protests against the government in 2008 eventually led to the one-week occupation of Bangkok’s main airports.

Political deal-making later brought the Yellow Shirt supported politician Abhisit Vejjajiva to power as prime minister.

But since then, the movement has split into several groups that wield less influence.

Besides the faction calling for voting no in the upcoming election, an extremist faction is calling for a suspension of democracy. Another political faction called the New Politics Party is running candidates in the upcoming election.

Even Prime Minister Abhisit Vejjajiva, whose party rose to power partly because of the Yellow Shirt protests, is no longer supported by many in the group. Early this year the PAD turned against Mr. Abhisit for not being tough enough on neighbor Cambodia over a border dispute.

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Thai Royalists Urge People Not to Vote in July Election

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Invasion of the Chinese Body Scanners?

Invasion of the Chinese Body Scanners?

Scott Olson/Getty Images
A sign informs travelers about Millimeter Wave Detection technology used in full body scanners at Midway Airport Dec. 15, 2010 in Chicago, Illinois. China has developed its own scanner that claims to do a better job of protecting privacy.

On a quest to boost innovation and make China a global technological power, Beijing for years has trumpeted homegrown technologies in everything from mobile communications to trains to microprocessors.

The latest project getting pumped? A locally-developed body scanner.

“Unlike those produced in the U.S., this scanner can detect prohibited objects while also guarding people’s privacy,” the state-run Xinhua News Agency reported late Thursday, citing an executive at the product’s manufacturer.

The scanner can automatically delete personal information when it completes its task, the report said, citing Jia Zhong, general manager of Tianjin Chongfang Science &Technology Company.

Full-body scanners deployed in airports have proven a lightning rod with certain sections of the traveling public in the U.S. since the machines can see through people’s clothes. The devices have also come under fire over concerns about radiation exposure.

The Chinese scanner has also solved the radiation issue, according to Xinhua. The X-ray radiation the device emits is “negligible,” the news agency said, equal to one-thirty-sixth of the radiation a airline passenger is exposed to when flying from Beijing to Shanghai.

The Chinese body scanner “uses an anti-scattering X-ray mechanism to detect nonmetal objects such as ceramic knives, explosives, drugs, plastic weapons and liquid bombs,” Xinhua said.

The report didn’t say whether China’s government is explicitly backing the project, but it said the body scanner has “independent intellectual property rights” and its maker plans to deploy 1,000 units each year in a variety of venues including airports, railway stations and customs crossings. Xinhua said a group made mostly of experts from Beijing’s elite Tsinghua University developed the body scanner, which was exhibited at a seminar in southern China’s Guangdong province this week.

This isn’t the first time Chinese scanners have made headlines. In 2009, Chinese censors blocked online search results and websites mentioning Namibia after anti-corruption officials in the African country began scrutinizing Nuctech Co., a Chinese company linked to the son of Chinese President Hu Jintao that had sold cargo scanners to its customs agency. Hu’s son Hu Haifeng wasn’t a suspect, but he was questioned as a witness.

The Chinese public’s relatively resigned attitude towards government monitoring may help the new body scanners avoid the public-relations disaster that accompanied the unveiling of their U.S. counterparts. There’s no guarantee, however, that new technology will experience commercial success, even with the benefit of government support.

For instance, China has extensively promoted a locally-developed standard for third-generation mobile communication, called TD-SCDMA, for use by network operators and mobile phone makers overseas.

But state-run China Mobile remains the only carrier in the world to operate a major network using it. Similarly, government-backed researchers in China have struggled for years to promote self-developed computer chips, known by the name Godson or Loongson, while a Chinese security protocol for wireless networks, called WAPI, has likewise failed to gain major traction.

Can a China-developed body scanner break the mold? Mr. Jia seems to hope so: “It has a competitive export price,” he said in the Xinhua report.

– Owen Fletcher. Follow him on Twitter @owenfletcher

Reforms started in the late 1970s with the phasing out of collectivized agriculture, and expanded to include the gradual liberalization of prices, fiscal decentralization, increased autonomy for state enterprises, the foundation of a diversified banking system, the development of stock markets, the rapid growth of the non-state sector, and the opening to foreign trade and investment.

In 2006, China announced that by 2010 it would decrease energy intensity 20% from 2005 levels.

The People’s Republic of China is the world’s second largest economy after the United States by both nominal GDP ($5 trillion in 2009) and by purchasing power parity ($8.77 trillion in 2009).

Nevertheless, key bottlenecks continue to constrain growth.

The two most important sectors of the economy have traditionally been agriculture and industry, which together employ more than 70 percent of the labor force and produce more than 60 percent of GDP.

A report by UBS in 2009 concluded that China has experienced total factor productivity growth of 4 per cent per year since 1990, one of the fastest improvements in world economic history.

Over the years, large subsidies were built into the price structure, and these subsidies grew substantially in the late 1970s and 1980s.

Globally, foreign investment decreased by almost 40 percent last year amid the financial downturn and is expected to show only marginal growth this year.

China’s ODI growth witnessed strong momentum this year.

China is expected to have 200 million cars on the road by 2020, increasing pressure on energy security and the environment, government officials said yesterday.

Although China is still a developing country with a relatively low per capita income, it has experienced tremendous economic growth since the late 1970s.

Despite initial gains in farmers’ incomes in the early 1980s, taxes and fees have increasingly made farming an unprofitable occupation, and because the state owns all land farmers have at times been easily evicted when croplands are sought by developers.

In terms of cash crops, China ranks first in cotton and tobacco and is an important producer of oilseeds, silk, tea, ramie, jute, hemp, sugarcane, and sugar beets.

Hogs and poultry are widely raised in China, furnishing important export staples, such as hog bristles and egg products.

Oil fields discovered in the 1960s and after made China a net exporter, and by the early 1990s, China was the world’s fifth-ranked oil producer.

China’s leading export minerals are tungsten, antimony, tin, magnesium, molybdenum, mercury, manganese, barite, and salt.

In addition, implementation of some reforms was stalled by fears of social dislocation and by political opposition, but by 2007 economic changes had become so great that the Communist party added legal protection for private property rights (while preserving state ownership of all land) and passed a labor law designed to improve the protection of workers’ rights (the law was passed amid a series of police raids that freed workers engaged in forced labor).

Shanghai and Guangzhou are the traditionally great textile centers, but many new mills have been built, concentrated mostly in the cotton-growing provinces of N China and along the Chang (Yangtze) River.

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Invasion of the Chinese Body Scanners?

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Suvarnabhumi Airport to sign agreement with American airport

Suvarnabhumi Airport to sign agreement with American airport

Thailand’s Suvarnabhumi Airport is preparing to sign an agreement with an American airport, Serirat Prasutanond, president of Airports of Thailand AoT said. Thailand Business News

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Suvarnabhumi Airport to sign agreement with American airport

Financial markets have so far been accommodative of the government’s borrowing plans. The expansion of expenditures stemming from the stimulus packages combined with a decline in revenues due to the economic crisis has led to an increase in the fiscal deficit and, consequently, government debt ratios, which have reached 45 percent of GDP in September. Because Thailand entered the crisis with a relatively strong fiscal position, the cyclical increase in debt levels is not by itself a concern as long as Thailand’s historical fiscal performance is maintained in the future.

Long – established and newly emerging industries

With steady economic development and strong support industries, the country’s industrial production has grown and diversified rapidly both in long –established and newly emerging industries.
The government has emphasized attracting investment in six sectors that have been determined to be key to the country’s developmental objectives. These six target industries include: agriculture and agro-industry, alternative energy, automotive, electronics and ICT, fashion, and value-added services including entertainment, healthcare and tourism.

Thai Friendly and rich culture

Thailand has gained a well-deserved reputation throughout the world for its gracious hospitality. The friendliness of its people and the diverse nature of Thai culture make visitors feel safe and at home in Thailand.

Education and healthcare services in Thailand

The education standards in Thailand are accepted by many international examining bodies, and a great number of international schools and colleges offer world-class education, while its universities are outstanding.
In terms of healthcare, the country has developed an excellent reputation globally, due to its internationally-certified doctors and medical staff, and modern facilities and equipment. It is so good that one of the fastest-rising tourism sectors is medical tourism, with international patients visiting Thailand to take advantage of Thailand’s world-class and extremely affordable health care system.

The words of the Thai Royal Anthem, performed at most official ceremonies and before the start of every movie, may strike a Western ear as somewhat archaic.

After all, the system of absolute monarchy ended in 1932, following a revolution staged by a small group of disaffected civil servants and military men. Since then, Thai kings have ruled under a constitution; their powers theoretically no greater than those of European monarchs. Yet, since he was officially crowned in 1946, His Majesty King Bhumibol Adulyadej has assumed the role of constitutional monarch and has worked tirelessly on behalf of his people, gaining a measure of personal devotion that is probably more intense than that felt for any of his all-powerful ancestors. It has been said that Their Majesties King Bhumibol and Queen Sirikit are the hardest working royal couple in the world with a work load once estimated to be equal to at least one function every day of the year. Of the several institutions that form the foundation of modern Thai life, the one His Majesty represents is not only the most visible but also the most revered.

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Property For Sale In Thailand

Property For Sale In Thailand

Property in Thailand One of the most picturesque countries of Asia, Thailand is a top-notch global tourist hotspot. Be it the coastal lifestyle or the mainland Thai locales, the entire country is full of amazing spots that allure you no end. Thailand’s major USP is tourism and the government knows this fact and has always promoted it on a global scale. The response from tourists flocking to the country has been overwhelming and they seem to return to Thailand in abundance year after year. Political uncertainty notwithstanding, tourists tend to flock to the country on a year round basis. Though the country is not quite open to full foreign ownership of Thai property, there is no dearth of investors’ interest in the Thailand real estate. The charm that is Thailand The special Thai charm assumes much greater significance for the development of the entire Southeast Asia. The miles and miles of pristine sandy beaches, including the world famous Pattaya Beach, dotted with exquisite palms have a unique magical effect on the visitor, which makes it a favourite honeymoon destination for couples tying the knot!. Phuket and Koh Samui occupy the pride of place on the coastal regions Thailand. Thai spa’s are world famous for their soothing, calming, and relaxing effects on a tired body. This makes the country one of the best getaway spots in the world to relax the tired mind, body, and soul. The Buddhist monasteries make for a profound experience and worth visiting at least once during your stay. Being the major Thai religion, Buddhism is all-pervasive in the lifestyle of people here. And it’s an open secret how much the Westerners are attracted towards Buddhism and the Buddhists. Though not an absolute monarchy, yet Thailand has the longest reigning monarchy of the world since 1946. And this has been a constant cause of several coups in the country in the recent years. The country has also seen some of the worst natural disasters in recent times, like Tsunami, SARS, and Bird Flu. But all this has virtually zero effect on the minds of visitors in Thailand. The capital Bangkok is just like any other advanced European city, with casinos, nightclubs, pubs, bars, cafes, restaurants, theatres, cocktail lounges, and massage parlours easily accessible. Thailand is also a haven for the shopping freaks with quality leather and electronic equipments available at much cheaper prices than Europe and the USA. The regular flights to and from Thailands Airports connecting major European, American, Australian and Asian cities have spelled boom time for Thai tourism and economy. Property Investment in Thailand Unfortunately, Thai government is not so open when it comes to inviting global real estate players for developmental purposes. There is a bar on property investments by foreigners in the Thai real estate. As an individual, you cannot own any land, and even as a company, only the Thai partner is allowed to own land and that too with considerable amount of restrictions. The government is particularly strict in this regard post-2006 coup. The freehold land might not be available for direct purchase by a foreign national, but you certainly can lease the property on a 30-years lease period. The foreign purchasers of condominiums may buy the freehold so long as total foreign ownership does not exceed 49% of the whole structure. Investment in Thailands real estate should never be completed without soliciting the help of local expert adept in property transactions. This is because the Thai real estate industry is largely unregulated and you’ll hardly find any regulations governing real estate transaction in the country. While a lawyer is not a necessity in completing the contract, if the documents are in Thai, it’s better to hire either a good translator or a real estate expert. The best property to invest in Thailand is the holiday resorts and other vacation property at prime tourist centres. A beautiful Thai villa can be yours for just 121K at ChiangMai, while a resort property is available for upwards of 50K. Condominiums in Pattaya are available at 30K onwards, while villas for sale in Phuket are heavily priced at a minimum of 480K. These properties will ensure you get a commanding rental income throughout the year, and you can also enjoy an annual stay for a couple of weeks (or more!) in these accommodation sites. It’s better to research the country for an appropriate and legally acquirable property because tourism potential notwithstanding, there can be lots of crooks and goons on the prowl waiting for the gullible foreign investors. Make adequate inquiries and research about the individuals and property you are dealing with. The lax political and administrative will has resulted into several criminal elements making Thailand their den. However, if you approach the real estate transaction with due diligence, chances are you’d be able to strike a good and legitimate deal. Author:

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Thailand Infrastructure investments came to the fore in 2009

Thailand Infrastructure investments came to the fore in 2009

Infrastructure investments came to the fore in 2009 because Thailand’s THB1.9trn (US$57bn) four-year stimulus plan is heavily geared towards infrastructure. The government is keen to promote private-sector funds in the infrastructure sector, to complement its own allocations. Continue Reading

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