http://www.arabnews.com/?page=6§ion=0&article=87400&d=30&m=9&y=2006&pix=business.jpg&category=Business
P.K. Abdul Ghafour & Tang Li, Arab News
JEDDAH/SINGAPORE, 30 September 2006 — The Saudi Arabian Monetary Agency’s (SAMA) foreign assets grew by 4.2 percent in August to reach a record SR744.96 billion ($198.66 billion), according to the agency’s monthly report.
The report said inflation rate in the Kingdom rose by 2.2 percent in July while the monetary flow in August grew by 2.4 percent to reach SR611 billion ($163.2 billion).
“The cost of living index increased by 101.7 points in July against 101.3 points in the previous month,” the monthly report said.
Meanwhile, a Public Information Notice released by the International Monetary Fund (IMF), described Saudi Arabia’s economic performance last year as, “Impressive.” It predicted a growth rate of 6 percent for this year.
Much of this was a result of increased oil production though the Kingdom’s sustained structural reforms and continued macroeconomic stability also played a big part in the economy’s performance.
Real GDP growth of 6.6 percent was described as “strong.” Of this total picture, the oil GDP grew at a rate of 5.9 percent while the non-oil GDP grew by 6.8 percent. The Kingdom’s inflation remained low at 0.7 percent, which was credited as being a reflection of an open and flexible labor market and open trade system.
Saudi authorities were also credited for continuing to respond constructively to alleviate the pressures created by the fast growing global demand for oil by increasing oil production, implementing an ambitious investment plan to expand the country’s sustainable gross production capacity to 12.5 million barrels per day by 2009, and expanding its refining capacity by 44 percent over the next five years.
High oil prices helped the external current account surplus increased by eight point six percentage points to reach 29.3 percent of GDP in 2005.
Oil prices at $60 a barrel are still “very healthy”, a top official of Saudi Arabia’s central bank said on Tuesday according to Reuters.
Oil prices have eased from a record $78.40 a barrel in July, providing relief to importing nations around the world. Prices fell to six-month lows under $60 a barrel on Monday, and were trading around $61.50 on Tuesday.
The central government overall surplus almost doubled to 18.4 percent of GDP, despite a sharp increase in expenditures. A part of the surplus was used to reduce central government debt by 25-percentage points to 39.6 percent of GDP. The Saudi Arabian Monetary Agency’s (SAMA) net foreign assets increased by $66 billion to $150.5 billion, an equivalent of around 16 months of imports of goods and services.
The banking sector performance strengthened in 2005, partially from income from stock market-related activity. SAMA introduced measures to limit bank credit exposure to the equity market and strengthened oversight rate. The Saudi riyal appreciated by 3.4 percent in real effective terms during the 12-month period through March 2006, reflecting the movement of the US dollar against other major currencies.
Prospects for the year 2006 were described as being “favorable”. Much of the optimism came from sustained high oil prices but it was also noted that structural reforms had improved the investment climate and helped pave the way for the Kingdom to join the World Trade Organization in December 2005.
The executive directors commended the Saudi authorities for maintaining sound macroeconomic policies and implementing structural reforms over the past several years. This was credited for invigorating the private sector. Efforts to use the large fiscal and current account surpluses from high oil prices to reduce public debt and build large external assets position to reduce the economy’s vulnerability to oil price fluctuations were praised.
The directors encouraged Saudi authorities to sustain the broad-based expansion of the non-oil economy to create jobs for the Kingdom’s growing labor force.
Saudi Arabia was also commended for being a steward of the oil market, by ensuring stability though increased oil production and investment in increasing its ability to expand and production and refining capacity. The directors also welcomed Saudi Arabia’s active participation in the Joint Oil Data Initiative as part of international efforts in providing accurate and up-to-date petroleum production and consumption data.
The directors recommended that Saudi Arabia formalize a medium-term fiscal framework and include all future allocations within the annual budgets. They welcomed the authorities’ request for Fund technical assistance in the areas of expenditure management and broadening of the non-oil revenue base.
— With input from agencies
woensdag, september 27, 2006
Abe Elected New Japanese Prime Minister
http://www.arabnews.com/?page=4§ion=0&article=87224&d=27&m=9&y=2006&pix=world.jpg&category=World
Tang Li, Arab News
TOKYO, 27 September 2006 — Japan yesterday elected Prime Minister Shinzo Abe to replace Junichiro Koizumi who stepped down from the premiership after five-years.
Abe was assured the premiership after winning the leadership of Japan’s ruling Liberal Democratic Party on Sept. 20 with a two-third majority. Under the Liberal Democratic Party’s rules, a party president serves a maximum of five years and given the party’s dominance of Japanese politics, the party president is usually the prime minister. Abe won a commanding 339 votes out of a possible 475 in the powerful lower house of the Parliament. In addition to this, Abe also won a commanding majority in the upper house.
Abe, who at the age of 52 is Japan’s youngest postwar prime minister, has been seen by many as Koizumi’s natural successor and his protégé. Many are expecting Abe to continue with Koizumi’s economic reforms, which have been credited for the revival of the world’s second largest, and Asia’s largest economy.
However, the greatest task for Abe will be in reviving the relationship with Japan’s giant neighbor China. In his first television address, Abe told the nation that he intended to “make Japan a country that abounds with dynamism, opportunity and kindness,” and he described China as “a very important country for Japan and China’s development is a plus also for Japan.” Abe vowed that he would “work to further develop relations between China and Japan.” Abe who played a key role in Koizumi’s foreign policy of maintaining a tight alliance with the US and revising Japan’s pacifist constitution, thus producing a more assertive foreign policy, will be challenged to improve relations with both China and South Korea. During the five years of Koizumi’s leadership, relations were often strained between Japan, China and South Korea due to Koizumi’s visits to the controversial Yasukuni Shrine which both China and South Korea have claimed glorifies Japan’s militaristic past. The Yasukuni Shrine houses what China and South Korea have called “Class A War Criminals.” However, Koizumi was unrepentant about his shrine visits and in his farewell address he called China and South Korea’s canceling of high level visits in protest of his shrine visits, “wrong.”
However, with China’s growing economy and Japan’s growing trade with China, Abe will have to act to ensure that diplomatic rows do not damage trade relations, which given the size of both economies, would have implications in the Asia-Pacific region and beyond.
Tang Li, Arab News
TOKYO, 27 September 2006 — Japan yesterday elected Prime Minister Shinzo Abe to replace Junichiro Koizumi who stepped down from the premiership after five-years.
Abe was assured the premiership after winning the leadership of Japan’s ruling Liberal Democratic Party on Sept. 20 with a two-third majority. Under the Liberal Democratic Party’s rules, a party president serves a maximum of five years and given the party’s dominance of Japanese politics, the party president is usually the prime minister. Abe won a commanding 339 votes out of a possible 475 in the powerful lower house of the Parliament. In addition to this, Abe also won a commanding majority in the upper house.
Abe, who at the age of 52 is Japan’s youngest postwar prime minister, has been seen by many as Koizumi’s natural successor and his protégé. Many are expecting Abe to continue with Koizumi’s economic reforms, which have been credited for the revival of the world’s second largest, and Asia’s largest economy.
However, the greatest task for Abe will be in reviving the relationship with Japan’s giant neighbor China. In his first television address, Abe told the nation that he intended to “make Japan a country that abounds with dynamism, opportunity and kindness,” and he described China as “a very important country for Japan and China’s development is a plus also for Japan.” Abe vowed that he would “work to further develop relations between China and Japan.” Abe who played a key role in Koizumi’s foreign policy of maintaining a tight alliance with the US and revising Japan’s pacifist constitution, thus producing a more assertive foreign policy, will be challenged to improve relations with both China and South Korea. During the five years of Koizumi’s leadership, relations were often strained between Japan, China and South Korea due to Koizumi’s visits to the controversial Yasukuni Shrine which both China and South Korea have claimed glorifies Japan’s militaristic past. The Yasukuni Shrine houses what China and South Korea have called “Class A War Criminals.” However, Koizumi was unrepentant about his shrine visits and in his farewell address he called China and South Korea’s canceling of high level visits in protest of his shrine visits, “wrong.”
However, with China’s growing economy and Japan’s growing trade with China, Abe will have to act to ensure that diplomatic rows do not damage trade relations, which given the size of both economies, would have implications in the Asia-Pacific region and beyond.
maandag, september 25, 2006
Clash of Cultures at World Bank Meetings Continues
http://www.arabnews.com/?page=4§ion=0&article=86584&d=15&m=9&y=2006&pix=world.jpg&category=World
Tang Li, Arab News
SINGAPORE, 15 September 2006 — It is perhaps one of the most ironic moments in the past two-years, Paul Wolfowitz, World Bank president and one of the key architects of the current Bush administration’s successful policies in the Middle East, chose to take on the mantle of “Champion of the Oppressed,” at the IMF-World Bank meetings being held in Singapore.
Wolfowitz told the Singapore media that the decision of the Singapore government not to allow certain individuals to participate in the meetings “is a breach of the Memorandum of Understanding signed some three years ago.”
On Thursday, Wolfowitz and IMF Managing Director Rodrigo de Rato made a surprise appearance at an introductory briefing for civil society organizations. Both men reinforced the need for such civil groups to be part of the IMF/World Bank meetings. They argued that it was civil society organizations which communicate how beneficiaries of the IMF and World Bank’s assistance perceive that help.
Wolfowitz said of Singapore’s decision to ban outdoor protest and the decision to bar 28 members of civil society organizations from entering Singapore of grounds of national security: “I certainly hope their opinions are not the reason they’re being excluded and if their opinions are critical of our institutions, it’s all the more critical for us to hear them ... If this is censorship based on alleged views of people, then it’s an even more serious problem.”
Both men said they hoped the accreditation issue could be solved in a satisfactory way to allow as many civil groups as possible to participate and de Rato proposed that those who are not able to enter Suntec Singapore — the venue of the meetings — could find an alternative way to take part: a web connection to the Town Hall meeting today.
De Rato said: “We will make all our efforts so that they can participate in the dialogue and make their opinions known tomorrow afternoon.”
However, while Singapore government stood its ground on its decision to ban outdoor protest, protesters wasted no time in taking advantage of the space they were allocated for indoor protest.
The first protest in the designated are was lead by Sandy Krawitz from the Action Aid International and other civil society groups declared that they were set to stage their protests today, a day ahead of their original plans.
Sandy Krawitz said her group would also stage a silent protest today and would likely focus on Singapore’s tough restrictions on demonstrations by civil groups. As part of their protest, they would wear T-shirts and gags that would say, “No Voice.”
In response to Wolfowitz’s remarks, the Organizing Committee of Singapore 2006 told the media that it took the role of host nation seriously and had not gone back on its word.
The Memorandum of Understanding that Wolfowitz mentioned had called upon the host nation to take full responsibility for the safety of all the delegates and the committee had highlighted the 27 out of 500 delegates that it had banned on law and order concerns.
In spite of Wolfowitz’s efforts to pressure the Singapore government, the Singaporean population are by and large supportive of the government’s position on the ban.
In a letter to the forum of Singapore’s national newspaper, The Straits Time, one reader remarked, “Singapore owes no apology to anyone for blocking known troublemakers or for our obsession with security.”
Another writer argued that, “For Singapore as a brand, its ‘strict, no-nonsense reputation’ could actually be positive,” and “if in articles about the IMF/World Bank meetings the brand Singapore comes across as a place that is safe and where work and play are not endangered by violent demonstrations (but where activists are instead given a designated air-conditioned space), then this would be an attractive part of the brand positioning that we need to attract the target groups we want.”
Tang Li, Arab News
SINGAPORE, 15 September 2006 — It is perhaps one of the most ironic moments in the past two-years, Paul Wolfowitz, World Bank president and one of the key architects of the current Bush administration’s successful policies in the Middle East, chose to take on the mantle of “Champion of the Oppressed,” at the IMF-World Bank meetings being held in Singapore.
Wolfowitz told the Singapore media that the decision of the Singapore government not to allow certain individuals to participate in the meetings “is a breach of the Memorandum of Understanding signed some three years ago.”
On Thursday, Wolfowitz and IMF Managing Director Rodrigo de Rato made a surprise appearance at an introductory briefing for civil society organizations. Both men reinforced the need for such civil groups to be part of the IMF/World Bank meetings. They argued that it was civil society organizations which communicate how beneficiaries of the IMF and World Bank’s assistance perceive that help.
Wolfowitz said of Singapore’s decision to ban outdoor protest and the decision to bar 28 members of civil society organizations from entering Singapore of grounds of national security: “I certainly hope their opinions are not the reason they’re being excluded and if their opinions are critical of our institutions, it’s all the more critical for us to hear them ... If this is censorship based on alleged views of people, then it’s an even more serious problem.”
Both men said they hoped the accreditation issue could be solved in a satisfactory way to allow as many civil groups as possible to participate and de Rato proposed that those who are not able to enter Suntec Singapore — the venue of the meetings — could find an alternative way to take part: a web connection to the Town Hall meeting today.
De Rato said: “We will make all our efforts so that they can participate in the dialogue and make their opinions known tomorrow afternoon.”
However, while Singapore government stood its ground on its decision to ban outdoor protest, protesters wasted no time in taking advantage of the space they were allocated for indoor protest.
The first protest in the designated are was lead by Sandy Krawitz from the Action Aid International and other civil society groups declared that they were set to stage their protests today, a day ahead of their original plans.
Sandy Krawitz said her group would also stage a silent protest today and would likely focus on Singapore’s tough restrictions on demonstrations by civil groups. As part of their protest, they would wear T-shirts and gags that would say, “No Voice.”
In response to Wolfowitz’s remarks, the Organizing Committee of Singapore 2006 told the media that it took the role of host nation seriously and had not gone back on its word.
The Memorandum of Understanding that Wolfowitz mentioned had called upon the host nation to take full responsibility for the safety of all the delegates and the committee had highlighted the 27 out of 500 delegates that it had banned on law and order concerns.
In spite of Wolfowitz’s efforts to pressure the Singapore government, the Singaporean population are by and large supportive of the government’s position on the ban.
In a letter to the forum of Singapore’s national newspaper, The Straits Time, one reader remarked, “Singapore owes no apology to anyone for blocking known troublemakers or for our obsession with security.”
Another writer argued that, “For Singapore as a brand, its ‘strict, no-nonsense reputation’ could actually be positive,” and “if in articles about the IMF/World Bank meetings the brand Singapore comes across as a place that is safe and where work and play are not endangered by violent demonstrations (but where activists are instead given a designated air-conditioned space), then this would be an attractive part of the brand positioning that we need to attract the target groups we want.”
Setting the Stage for a Better Legacy of September 11
http://www.arabnews.com/?page=7§ion=0&article=78834&d=6&m=9&y=2006&pix=opinion.jpg&category=Opinion
Tang Li, Arab News
As the world prepares to commemorate the Sept. 11 attacks in the US, I’m reminded of a conversation I had with a young Muslim several days ago. The young man in question had asked me, upon learning that I had worked with Saudi institutions, if “I was scared of being converted to Islam?”
That comment struck me. In the two-years that I have worked with Saudi institutions, I’ve met a range of people from Saudi Arabia and at no time has my status as non-Muslim been an issue. How did this young man get the idea that I should be fearful that I would be forced to convert to Islam?
This clearly illustrates the gulf in understanding between different civilizations. The Sept. 11 attacks have made this gulf deeper and this is particularly true when it comes to the Arab world and Saudi Arabia. Why is this so?
I believe the blame for this should lie with the fact that Saudi Arabia and other Arab societies appear closed to the outside world. The only information that I had about Saudi Arabia and Arab society came from my own reading. I like to think that I’m confident enough to name the Saudi kings after Abdulaziz Al-Saud, talk about the discovery of oil in Saudi Arabia and hold a superficial conversation about Islam. However, did I know what the average Saudi citizen thought of these things? I didn’t, simply because I never got the chance to meet any Saudis nor had I been to Saudi Arabia.
I’m glad that this situation is changing. I’m glad that Saudi Arabia and the Arab world want to engage the outside world. Thanks to this effort, I’ve had the chance to meet with Saudi people and have had the opportunity to think of Saudis and Arabs in general as people — husbands, wives, mothers and children instead of caricatures of a Hollywood producer’s imagination.
The first time I dealt with Saudi Arabia was two years ago when Saudi Aramco held an exhibition in Singapore. I was engaged as a public relations consultant and had to work with members of the Aramco communications department. It was here when I started to see Saudis for what they are — people who were not too dissimilar to me.
Earlier this year, I had the honor of working with the Saudi Embassy in Singapore in the organization of Crown Prince Sultan’s trip to Singapore. I was the only non-Muslim in the group and yet, I was given a fairly prominent position in the organization of the royal visit. Here, I met with members of the Saudi media. I won’t hide the fact that at times things were tense — I don’t speak Arabic and many in the delegation spoke limited English, so communication was challenging.
But when it was time for the media delegation to move onto Pakistan, it was an incredibly sad moment. I was saying goodbye to people who had become close. Every time I was told, “Inshallah, we will meet again,” I wanted the Almighty to be willing for a reunion.
I’m not ignorant to the fact that Saudi society, like other societies I’ve lived in, has its issues. I’m also not ignorant to the fact that a good portion of the Sept. 11 hijackers were Saudi citizens and the price of oil, Saudi Arabia’s most lucrative export has been at an all time high for the past three years.
But there is more to Saudi society and I’m glad that companies like Saudi Aramco are working hard to promote that fact. I hope that Singaporeans and other Asians will get the chance to know Saudi people as people during the National Day when Saudi Aramco’s cultural event known as “Saudi Aramco: Tradition, Innovation and Inspiration” is held later this month.
President Bush’s policies since Sept. 11 have made the world a more divisive place and even if the president were more enlightened, people would still draw comfort in having stereotypes of each other. In Singapore, our main ethnic groups indulge in popular stereotyping. Malays laugh at the apparent “materialism,” of the Chinese while the Chinese laugh at the apparent lack of “economic success,” of the Malays. However, our cultures have been so used to intermingling that our people have internalized various festivals from each other’s cultures. Chinese will visit their Muslim friends during Ramadan while Muslims will visit their Chinese friends on Chinese New Year.
There will always be stereotypes of Saudi Arabia and Arabs in general. However, as long as the Arab world engages the world outside, we will adopt many things from Arab culture as our own, thus ensuring the ongoing “Dialogue of Civilizations.”
The increase in the efforts to create that dialogue in spite of the efforts of the Sept. 11 hijackers and President Bush’s policies will, “Inshallah,” be the legacy of Sept. 11 2001.
— Tang Li is a public relations consultant based in Singapore. He can be reached at: li@tang-asia.com.
Tang Li, Arab News
As the world prepares to commemorate the Sept. 11 attacks in the US, I’m reminded of a conversation I had with a young Muslim several days ago. The young man in question had asked me, upon learning that I had worked with Saudi institutions, if “I was scared of being converted to Islam?”
That comment struck me. In the two-years that I have worked with Saudi institutions, I’ve met a range of people from Saudi Arabia and at no time has my status as non-Muslim been an issue. How did this young man get the idea that I should be fearful that I would be forced to convert to Islam?
This clearly illustrates the gulf in understanding between different civilizations. The Sept. 11 attacks have made this gulf deeper and this is particularly true when it comes to the Arab world and Saudi Arabia. Why is this so?
I believe the blame for this should lie with the fact that Saudi Arabia and other Arab societies appear closed to the outside world. The only information that I had about Saudi Arabia and Arab society came from my own reading. I like to think that I’m confident enough to name the Saudi kings after Abdulaziz Al-Saud, talk about the discovery of oil in Saudi Arabia and hold a superficial conversation about Islam. However, did I know what the average Saudi citizen thought of these things? I didn’t, simply because I never got the chance to meet any Saudis nor had I been to Saudi Arabia.
I’m glad that this situation is changing. I’m glad that Saudi Arabia and the Arab world want to engage the outside world. Thanks to this effort, I’ve had the chance to meet with Saudi people and have had the opportunity to think of Saudis and Arabs in general as people — husbands, wives, mothers and children instead of caricatures of a Hollywood producer’s imagination.
The first time I dealt with Saudi Arabia was two years ago when Saudi Aramco held an exhibition in Singapore. I was engaged as a public relations consultant and had to work with members of the Aramco communications department. It was here when I started to see Saudis for what they are — people who were not too dissimilar to me.
Earlier this year, I had the honor of working with the Saudi Embassy in Singapore in the organization of Crown Prince Sultan’s trip to Singapore. I was the only non-Muslim in the group and yet, I was given a fairly prominent position in the organization of the royal visit. Here, I met with members of the Saudi media. I won’t hide the fact that at times things were tense — I don’t speak Arabic and many in the delegation spoke limited English, so communication was challenging.
But when it was time for the media delegation to move onto Pakistan, it was an incredibly sad moment. I was saying goodbye to people who had become close. Every time I was told, “Inshallah, we will meet again,” I wanted the Almighty to be willing for a reunion.
I’m not ignorant to the fact that Saudi society, like other societies I’ve lived in, has its issues. I’m also not ignorant to the fact that a good portion of the Sept. 11 hijackers were Saudi citizens and the price of oil, Saudi Arabia’s most lucrative export has been at an all time high for the past three years.
But there is more to Saudi society and I’m glad that companies like Saudi Aramco are working hard to promote that fact. I hope that Singaporeans and other Asians will get the chance to know Saudi people as people during the National Day when Saudi Aramco’s cultural event known as “Saudi Aramco: Tradition, Innovation and Inspiration” is held later this month.
President Bush’s policies since Sept. 11 have made the world a more divisive place and even if the president were more enlightened, people would still draw comfort in having stereotypes of each other. In Singapore, our main ethnic groups indulge in popular stereotyping. Malays laugh at the apparent “materialism,” of the Chinese while the Chinese laugh at the apparent lack of “economic success,” of the Malays. However, our cultures have been so used to intermingling that our people have internalized various festivals from each other’s cultures. Chinese will visit their Muslim friends during Ramadan while Muslims will visit their Chinese friends on Chinese New Year.
There will always be stereotypes of Saudi Arabia and Arabs in general. However, as long as the Arab world engages the world outside, we will adopt many things from Arab culture as our own, thus ensuring the ongoing “Dialogue of Civilizations.”
The increase in the efforts to create that dialogue in spite of the efforts of the Sept. 11 hijackers and President Bush’s policies will, “Inshallah,” be the legacy of Sept. 11 2001.
— Tang Li is a public relations consultant based in Singapore. He can be reached at: li@tang-asia.com.
From the Business Editor
Date: Sat, 23 Sep 2006 22:30:20 +0300 [09/23/2006 02:30:20 PM CDT]
From: "business@arabnews.com"
To: li@tang-asia.com
Subject: Thanks
Headers: Show All Headers
Dear Mr. Li
Thank you very much. We celebrated the National Day in office.
You stories about IMF/World Bank meetings were excellent. We gave good coverage in Arab
News. You can send any other economic stories to us an y time.
Bye
Khalil Hanware
From: "business@arabnews.com"
To: li@tang-asia.com
Subject: Thanks
Headers: Show All Headers
Dear Mr. Li
Thank you very much. We celebrated the National Day in office.
You stories about IMF/World Bank meetings were excellent. We gave good coverage in Arab
News. You can send any other economic stories to us an y time.
Bye
Khalil Hanware
woensdag, september 20, 2006
Protectionism Threatens Global Growth: IMF Chief
http://www.arabnews.com/?page=6§ion=0&article=86867&d=20&m=9&y=2006
Tang Li, Arab News
SINGAPORE, 20 September 2006 — A few days after British Chancellor of the Exchequer Gordon Brown called on the world to combat growing protectionist sentiments, the International Monetary Fund’s (IMF) Managing Director Rodrigo de Rato warned the world against abandoning the Doha round of trade talks and the general freeing up of trade.
De Rato, who was addressing the board of governors of the IMF at the joint annual discussion, said that the world was, “enjoying a period of rapid global growth and low inflation that has not been seen since the 1960s.”
De Rato told the board of governors that while the United States, the world’s largest economy, was expected to slow in the following years, this would be offset by expansion in the Euro Zone and Japan and that the growing economies of China and India would help to drive the global economy.
However, De Rato warned that the board of governors of the risk of high oil prices leading to higher inflationary pressures and the risk of global trade imbalances leading unwinding in a disorderly fashion.
He also mentioned that, “there is a growing risk that protectionist sentiment will overwhelm good sense.”
He warned that if the growing protectionist sentiments overwhelmed good sense, risk of the other dangers mentioned taking place would increase.
With regards to the sustained high prices of oil, De Rato praised the members of the oil producing Gulf Cooperation Council (GCC) for having increased planned investment to expand oil and gas output and refining capacity and he also praised Indonesia and Egypt for reducing fuel subsidies.
De Rato also mentioned that global trade imbalances were unsustainable, particularly amongst the world’s largest trading economies. He encouraged the United States to use its sustained economic growth to make sustainable reductions in its structural fiscal deficit. He also urged China to increase its currency flexibility and strengthen its domestic financial sector.
However, De Rato argued that the greatest threat to global prosperity was in the stalling of trade talks.
“Much of the recent strength of the global economy has been due to gains from free trade in goods and services,” he said. “Market-driven specialization, supported by the global deployment of investment, has boosted productivity, raised living standards around the world, and lifted millions of people out of poverty.” He used the Asian continent as an example of how the opening up of trade between nations had helped to reduce poverty.” He called the suspension of the Doha Round of trade talks “deeply disappointing and damaging.”
“It delays an agreement that would raise prosperity and support growth around the world,” he added.
De Rato told the board of governors that getting the Doha Round of trade talks back on track would send the world economy forward to greater growth and broader opportunities, but that failure would lead “backwards to narrow nationalism.”
“We should not fool ourselves that there is a comfortable middle ground,” he said.
Tang Li, Arab News
SINGAPORE, 20 September 2006 — A few days after British Chancellor of the Exchequer Gordon Brown called on the world to combat growing protectionist sentiments, the International Monetary Fund’s (IMF) Managing Director Rodrigo de Rato warned the world against abandoning the Doha round of trade talks and the general freeing up of trade.
De Rato, who was addressing the board of governors of the IMF at the joint annual discussion, said that the world was, “enjoying a period of rapid global growth and low inflation that has not been seen since the 1960s.”
De Rato told the board of governors that while the United States, the world’s largest economy, was expected to slow in the following years, this would be offset by expansion in the Euro Zone and Japan and that the growing economies of China and India would help to drive the global economy.
However, De Rato warned that the board of governors of the risk of high oil prices leading to higher inflationary pressures and the risk of global trade imbalances leading unwinding in a disorderly fashion.
He also mentioned that, “there is a growing risk that protectionist sentiment will overwhelm good sense.”
He warned that if the growing protectionist sentiments overwhelmed good sense, risk of the other dangers mentioned taking place would increase.
With regards to the sustained high prices of oil, De Rato praised the members of the oil producing Gulf Cooperation Council (GCC) for having increased planned investment to expand oil and gas output and refining capacity and he also praised Indonesia and Egypt for reducing fuel subsidies.
De Rato also mentioned that global trade imbalances were unsustainable, particularly amongst the world’s largest trading economies. He encouraged the United States to use its sustained economic growth to make sustainable reductions in its structural fiscal deficit. He also urged China to increase its currency flexibility and strengthen its domestic financial sector.
However, De Rato argued that the greatest threat to global prosperity was in the stalling of trade talks.
“Much of the recent strength of the global economy has been due to gains from free trade in goods and services,” he said. “Market-driven specialization, supported by the global deployment of investment, has boosted productivity, raised living standards around the world, and lifted millions of people out of poverty.” He used the Asian continent as an example of how the opening up of trade between nations had helped to reduce poverty.” He called the suspension of the Doha Round of trade talks “deeply disappointing and damaging.”
“It delays an agreement that would raise prosperity and support growth around the world,” he added.
De Rato told the board of governors that getting the Doha Round of trade talks back on track would send the world economy forward to greater growth and broader opportunities, but that failure would lead “backwards to narrow nationalism.”
“We should not fool ourselves that there is a comfortable middle ground,” he said.
Thai Army Seizes Power
http://www.arabnews.com/?page=4§ion=0&article=86860&d=20&m=9&y=2006
Tang Li, Arab News
SINGAPORE, 20 September 2006 — For the first time since democracy and civilian rule was restored to Thailand in 1992, troops backed by tanks took control of the premier’s office in Bangkok yesterday. Witnesses outside Government House in central Bangkok said forces loyal to military commander Lt. Gen. Sonthi Boonyaratglin had taken control of the building in a bloodless coup.
Gen. Sonthi met late yesterday with the king after declaring that he had staged a coup against Prime Minister Thaksin Shinawatra.
Gen. Sonthi and the leaders of the navy and the air force met for more than two hours with the highly influential King Bhumibol Adulyadej at his palace immediately after announcing the coup, a palace official said.
After the meeting, Gen. Sonthi and the other military leaders went to the military headquarters without making any comment.
An announcement flashed on all public television channels said police and military forces loyal to King Bhumibol Adulyadej had taken control of Bangkok “to maintain law and order”. Listeners were told that the troops belonged to the “Council of Political Reform.”
An announcement on national television, signed by Gen. Sondhi, said martial law had been declared across Thailand and the Constitution revoked. He ordered all troops to report to their duty stations and not leave without permission from their commanders.
Earlier, Sondhi’s troops circled Thaksin’s offices with tanks, seizing control of television stations and declaring a provisional authority loyal to the king.
The announcement declared that a “Council of Administrative Reform” with the king as head of state had seized power in Bangkok and nearby provinces without any resistance.
“The armed forces commander and the national police commander have successfully taken over Bangkok and the surrounding area in order to maintain peace and order. There has been no struggle,” the announcement said. “We ask for the cooperation of the public and ask your pardon for the inconvenience.”
The coup was the first military intervention in the Thai political scene since 1992 when an attempt by Prime Minister Suchinda Kraprayoon, a military general, to retain power was countered by mass street demonstrations and Suchinda’s ouster.
After the incident, the military vowed to remain in the barracks in contrast to earlier decades when military coups were a staple of Thai politics.
An army general, speaking on condition of anonymity, said Gen. Sondhi Boonyaratkalin had used the military to take over power from the prime minister. The general said troops were moved from the western province of Kanchanaburi to stage the coup.
Gen. Sondhi is known to be close to Thailand’s constitutional monarch.
Army spokesman Col. Akara Chitroj told reporters that Deputy Prime Minister Chitchai Wannasathit had been removed from his post.
“The government is no longer administering the country,” he said.
“I think Thaksin will not return to Thailand for the time being,” he said, without elaborating what would happen if Thaksin returned.
Akara didn’t elaborate on Chitchai’s fate, but the general said the coup makers arrested him along with Defense Minister Thammarak Isaragura na Ayuthaya — two close loyalists of Thaksin.
In a vain attempt to stave off the coup, Thaksin had ordered Sondhi to report to Chitchai immediately, effectively dismissing him from his military duties. Thaksin told of his move when he declared a state of emergency in Bangkok at 9:15 p.m., when he spoke on TV Channel 9 by audio from New York, where he was attending the UN General Assembly. At least 14 tanks surrounded Government House, Thaksin’s office.
The coup went largely unnoticed in Thailand’s popular tourist districts. But word raced among street vendors hawking T-shirts who packed up their carts quickly and started heading home. Hundreds of people gathered at Government House taking photos and video of themselves with the tanks, among them Sasiprapha Chantawong, a student at Thammasat University.
“I don’t agree with the coup, but now that they’ve done it, I support it because Thaksin has refused to resign from his position,” Sasiprapha said. “Allowing Thaksin to carry on will ruin the country more than this. The reputation of the country may be somewhat damaged, but it’s better than letting Thaksin stay in power.”
The move came a day before a major rally — the first in several months — was to be staged in Bangkok by a anti-Thaksin coalition that has been seeking his resignation for alleged corruption and abuse of power.
Mass street protests demanding Thaksin’s ouster began late last year, resulting in a political crisis that has dragged on for months. In recent days, Thaksin had hinted that he might leave the political scene.
Recently, Thaksin alienated a segment of the military by claiming senior officers had tried to assassinate him in a failed bombing attempt. He also attempted to remove officers loyal to Sondhi from key positions.
— Additional input from AP.
Tang Li, Arab News
SINGAPORE, 20 September 2006 — For the first time since democracy and civilian rule was restored to Thailand in 1992, troops backed by tanks took control of the premier’s office in Bangkok yesterday. Witnesses outside Government House in central Bangkok said forces loyal to military commander Lt. Gen. Sonthi Boonyaratglin had taken control of the building in a bloodless coup.
Gen. Sonthi met late yesterday with the king after declaring that he had staged a coup against Prime Minister Thaksin Shinawatra.
Gen. Sonthi and the leaders of the navy and the air force met for more than two hours with the highly influential King Bhumibol Adulyadej at his palace immediately after announcing the coup, a palace official said.
After the meeting, Gen. Sonthi and the other military leaders went to the military headquarters without making any comment.
An announcement flashed on all public television channels said police and military forces loyal to King Bhumibol Adulyadej had taken control of Bangkok “to maintain law and order”. Listeners were told that the troops belonged to the “Council of Political Reform.”
An announcement on national television, signed by Gen. Sondhi, said martial law had been declared across Thailand and the Constitution revoked. He ordered all troops to report to their duty stations and not leave without permission from their commanders.
Earlier, Sondhi’s troops circled Thaksin’s offices with tanks, seizing control of television stations and declaring a provisional authority loyal to the king.
The announcement declared that a “Council of Administrative Reform” with the king as head of state had seized power in Bangkok and nearby provinces without any resistance.
“The armed forces commander and the national police commander have successfully taken over Bangkok and the surrounding area in order to maintain peace and order. There has been no struggle,” the announcement said. “We ask for the cooperation of the public and ask your pardon for the inconvenience.”
The coup was the first military intervention in the Thai political scene since 1992 when an attempt by Prime Minister Suchinda Kraprayoon, a military general, to retain power was countered by mass street demonstrations and Suchinda’s ouster.
After the incident, the military vowed to remain in the barracks in contrast to earlier decades when military coups were a staple of Thai politics.
An army general, speaking on condition of anonymity, said Gen. Sondhi Boonyaratkalin had used the military to take over power from the prime minister. The general said troops were moved from the western province of Kanchanaburi to stage the coup.
Gen. Sondhi is known to be close to Thailand’s constitutional monarch.
Army spokesman Col. Akara Chitroj told reporters that Deputy Prime Minister Chitchai Wannasathit had been removed from his post.
“The government is no longer administering the country,” he said.
“I think Thaksin will not return to Thailand for the time being,” he said, without elaborating what would happen if Thaksin returned.
Akara didn’t elaborate on Chitchai’s fate, but the general said the coup makers arrested him along with Defense Minister Thammarak Isaragura na Ayuthaya — two close loyalists of Thaksin.
In a vain attempt to stave off the coup, Thaksin had ordered Sondhi to report to Chitchai immediately, effectively dismissing him from his military duties. Thaksin told of his move when he declared a state of emergency in Bangkok at 9:15 p.m., when he spoke on TV Channel 9 by audio from New York, where he was attending the UN General Assembly. At least 14 tanks surrounded Government House, Thaksin’s office.
The coup went largely unnoticed in Thailand’s popular tourist districts. But word raced among street vendors hawking T-shirts who packed up their carts quickly and started heading home. Hundreds of people gathered at Government House taking photos and video of themselves with the tanks, among them Sasiprapha Chantawong, a student at Thammasat University.
“I don’t agree with the coup, but now that they’ve done it, I support it because Thaksin has refused to resign from his position,” Sasiprapha said. “Allowing Thaksin to carry on will ruin the country more than this. The reputation of the country may be somewhat damaged, but it’s better than letting Thaksin stay in power.”
The move came a day before a major rally — the first in several months — was to be staged in Bangkok by a anti-Thaksin coalition that has been seeking his resignation for alleged corruption and abuse of power.
Mass street protests demanding Thaksin’s ouster began late last year, resulting in a political crisis that has dragged on for months. In recent days, Thaksin had hinted that he might leave the political scene.
Recently, Thaksin alienated a segment of the military by claiming senior officers had tried to assassinate him in a failed bombing attempt. He also attempted to remove officers loyal to Sondhi from key positions.
— Additional input from AP.
dinsdag, september 19, 2006
IMF OKs Radical Reform Plan
http://www.arabnews.com/?page=6§ion=0&article=86817&d=19&m=9&y=2006&pix=business.jpg&category=Business
Tang Li, Arab News
SINGAPORE, 19 September 2006 — As many had expected, the board of governors of the International Monetary Fund (IMF) adopted a resolution on quota and voice reform in the IMF. The resolution, which had been recommended by the IMF’s executive board to the IMF board of governors, is a package of reforms on quotas and voice in the IMF that would provide greater voting power to economies from the developing world, which have been underrepresented in the IMF’s decision-making process relative to their share of the global economy.
The two-year reform program includes as a first step ad hoc quota increases for a group of the most clearly underrepresented countries - China, Korea, Mexico and Turkey. The radical overhaul was backed by 90.6 percent of the vote. Germany’s Finance Minister Peer Steinbrueck described the outcome of the vote as, “an important and a very good result,” and reiterated Germany’s call for the IMF to provide stronger representation for developing nations.
“It’s a small step but an important step,” US Treasury Secretary Henry Paulson said earlier referring to the overhaul. “Our institutions, to be relevant, have to change with the economy.”
The four countries to benefit from the changes are said by the IMF to be the only members under-represented on all four elements of the criteria that determine a country’s voting rights.
The criteria includes: The member’s gross domestic product, its openness to trade, the “variability” of its economy (in other words how volatile its growth is), and the amount of its reserves.
“The international community recognizes that China has increased its role in the world economy,” said IMF Managing Director Rodrigo Rato during weekend meetings of the IMF here. Rato also described the revamp as an “historical change.” “I think the institution is becoming more and more aware of the need to reflect the situation of low-income countries,” he added.
Along with its sister institution the World Bank, the IMF had come under criticism in countries like Argentina and in Southeast Asia and Africa for prescribing severe belt-tightening measures that were blamed for causing severe economic hardship on the poor.
Some US critics had also opposed any increase in China’s IMF influence unless the rising Asian Giant took radical steps to overhaul and reform its currency, which many had accused China of keeping artificially low in order to keep its exports “unfairly” competitive. Criticism of China’s currency regime by the Group Seven (G-7) industrial nations had become particularly loud as China had recently recorded a record trade surplus while the US recorded a record deficit.
However, Paulson applauded the increased voting power for China. Paulson, who will be leaving for China on Sept. 19, 2006, said, “China has to play its role in the world, whether or not the IMF reforms.”
Earlier today, People’s Bank of China governor, Zhou Xiaochuan, told the Emerging Markets newspaper that China would not rush into liberalizing its exchange rate regime and is not certain that any relaxation will lead to an appreciation of the yuan. Zhou also told Bloomberg that he had not been challenged about the exchange rate when he met G-7 officials and predicted the 0.3 percent daily band - in which his currency can move against the dollar in intraday trading - will be widened “sooner or later.” China’s bank regulator said lenders should prepare for currency fluctuations by learning to use derivatives to manage risk.
Paulson, who is a former chief executive of Goldman Sachs Inc., had visited China 70 times before taking over from John Snow is expected to take the debate away from the topic and talk to his Chinese host about moving toward the revamping of its economy and markets.
Paulson said, “China needs greater currency flexibility and stronger domestic consumption as well as financial sector reform,” he said. “The biggest message I am going to take is to encourage China to move forward, more quickly with reforms.”
Tang Li, Arab News
SINGAPORE, 19 September 2006 — As many had expected, the board of governors of the International Monetary Fund (IMF) adopted a resolution on quota and voice reform in the IMF. The resolution, which had been recommended by the IMF’s executive board to the IMF board of governors, is a package of reforms on quotas and voice in the IMF that would provide greater voting power to economies from the developing world, which have been underrepresented in the IMF’s decision-making process relative to their share of the global economy.
The two-year reform program includes as a first step ad hoc quota increases for a group of the most clearly underrepresented countries - China, Korea, Mexico and Turkey. The radical overhaul was backed by 90.6 percent of the vote. Germany’s Finance Minister Peer Steinbrueck described the outcome of the vote as, “an important and a very good result,” and reiterated Germany’s call for the IMF to provide stronger representation for developing nations.
“It’s a small step but an important step,” US Treasury Secretary Henry Paulson said earlier referring to the overhaul. “Our institutions, to be relevant, have to change with the economy.”
The four countries to benefit from the changes are said by the IMF to be the only members under-represented on all four elements of the criteria that determine a country’s voting rights.
The criteria includes: The member’s gross domestic product, its openness to trade, the “variability” of its economy (in other words how volatile its growth is), and the amount of its reserves.
“The international community recognizes that China has increased its role in the world economy,” said IMF Managing Director Rodrigo Rato during weekend meetings of the IMF here. Rato also described the revamp as an “historical change.” “I think the institution is becoming more and more aware of the need to reflect the situation of low-income countries,” he added.
Along with its sister institution the World Bank, the IMF had come under criticism in countries like Argentina and in Southeast Asia and Africa for prescribing severe belt-tightening measures that were blamed for causing severe economic hardship on the poor.
Some US critics had also opposed any increase in China’s IMF influence unless the rising Asian Giant took radical steps to overhaul and reform its currency, which many had accused China of keeping artificially low in order to keep its exports “unfairly” competitive. Criticism of China’s currency regime by the Group Seven (G-7) industrial nations had become particularly loud as China had recently recorded a record trade surplus while the US recorded a record deficit.
However, Paulson applauded the increased voting power for China. Paulson, who will be leaving for China on Sept. 19, 2006, said, “China has to play its role in the world, whether or not the IMF reforms.”
Earlier today, People’s Bank of China governor, Zhou Xiaochuan, told the Emerging Markets newspaper that China would not rush into liberalizing its exchange rate regime and is not certain that any relaxation will lead to an appreciation of the yuan. Zhou also told Bloomberg that he had not been challenged about the exchange rate when he met G-7 officials and predicted the 0.3 percent daily band - in which his currency can move against the dollar in intraday trading - will be widened “sooner or later.” China’s bank regulator said lenders should prepare for currency fluctuations by learning to use derivatives to manage risk.
Paulson, who is a former chief executive of Goldman Sachs Inc., had visited China 70 times before taking over from John Snow is expected to take the debate away from the topic and talk to his Chinese host about moving toward the revamping of its economy and markets.
Paulson said, “China needs greater currency flexibility and stronger domestic consumption as well as financial sector reform,” he said. “The biggest message I am going to take is to encourage China to move forward, more quickly with reforms.”
Fan Mail 2
Date: Mon, 18 Sep 2006 04:05:11 -0700 [19:05:11 SGT]
From: sadiq mohammed
To: Tang Li
Reply-To: sadiq mohammed
Subject: Re: letter of appriciation
Headers: Show All Headers
Dear Sir,
Thanks for the email, i would surely would like to be in touch with such a personality, well i would like to add here that i am an indian expatriate working here in jeddah and it would be an honour if i can be of help to you with regard to information for your articles. any ways good luck best regards
Sadiq Mohammed
----- Original Message ----
From: Tang Li
To: sadiq mohammed
Sent: Thursday, September 14, 2006 7:43:54 PM
Subject: Re: letter of appriciation
Shukran.
It was a plesant surprise to read your letter and I think it's
Inshallah that you wrote to me.
Saudi Arabia and Singapore have been busy building up
government-to-government and business relationships over the past few
years but I think at the end of the day, such developments can only be
concreet when we have strong people-to-people relationships.
Do keep in touch.
Ma Salaam.
From: sadiq mohammed
To: Tang Li
Reply-To: sadiq mohammed
Subject: Re: letter of appriciation
Headers: Show All Headers
Dear Sir,
Thanks for the email, i would surely would like to be in touch with such a personality, well i would like to add here that i am an indian expatriate working here in jeddah and it would be an honour if i can be of help to you with regard to information for your articles. any ways good luck best regards
Sadiq Mohammed
----- Original Message ----
From: Tang Li
To: sadiq mohammed
Sent: Thursday, September 14, 2006 7:43:54 PM
Subject: Re: letter of appriciation
Shukran.
It was a plesant surprise to read your letter and I think it's
Inshallah that you wrote to me.
Saudi Arabia and Singapore have been busy building up
government-to-government and business relationships over the past few
years but I think at the end of the day, such developments can only be
concreet when we have strong people-to-people relationships.
Do keep in touch.
Ma Salaam.
maandag, september 18, 2006
‘Volatile Oil Prices a Big Worry’
http://www.arabnews.com/?page=6§ion=0&article=86700&d=17&m=9&y=2006&pix=business.jpg&category=Business
Tang Li, Arab News
SINGAPORE, 17 September 2006 — Indian Finance Minister Palaniappan Chidambaram called on the International Monetary Fund (IMF) to play a more proactive role in regards to the oil market.
Chidambaram, who is leading the Indian delegation (comprising of Bangladesh, Bhutan, India and Sri Lanka) to the IMF’s Monetary and Financial Committee, was addressing the committee on the global economy.
In his statement to the committee, Chidambaram noted that while the global economic climate was healthy, the global economy faced risk from inflationary pressures, high and volatile oil prices and global trade imbalances. He noted that oil prices were a major concern, especially for developing nations.
Chidambaram told the committee that while rising oil prices had initially pushed up headline inflation, spare capacity and an increase in productivity and stronger corporate balance sheets had helped the global economy sustain inflationary pressures. Major central banks, he said, had been promoted to raise interest rates to keep inflationary pressures in check.
However, Chidambaram questioned how long raising interest rates would be effective in slowing down economic growth and inflation if high oil prices remained high. He noted that, “Higher interest rates in advanced economies had implications for financial markets,” but for emerging markets, they could, “Exacerbate vulnerabilities.”
Chidambaram told the committee that the failure of high oil prices to stimulate higher investment to augment oil supplies reflected rigidities in the oil market and he noted that, “It is difficult to fully explain the sustained high oil prices purely as a result of supply-demand balance,” and he noted that, “We think there is a strong element of speculation and profit taking in the market.”
Chidamaram talked about the importance of oil to the global economy and said that there was; “A need for policy intervention, both at national and international levels, to improve the market microstructure and incentives investment in oil production.” India’s economy has seen India’s appetite for oil grow by leaps and bounds in the past few years. According to the latest data on the first quarter for the fiscal year 2006-2007, India’s oil imports for the month of June 2006 were valued at $4.82 billion, up 55.59 percent from the same period one year ago.
The economy’s need for energy has made India sensitive to the fluctuations in the oil market. According to Alexander’s Gas & Oil Connections in 2004 when oil was trading at $45 a barrel, the Indian government had to cut taxes on gasoline, kerosene and cooking oil to ease pressures on the economy and the population.
India imports three quarters of her oil needs and her oil bill accounts for a third of the total value of all imports. According to Alexander’s Gas &Oil Connections mentioned in 2004 that J.P. Morgan Stanley warned that a five-dollar increase could shave growth by a quarter of a percent.
Given India’s vulnerability to the price fluctuations in the oil market, India, like China has been on the lookout for oil supplies and this has helped to shape its international relations. This has been particularly true of its relationship with Saudi Arabia.
Harsh V. Plant, a lecturer at the defense studies department at Kings College London noted that the Kingdom and India had, “Significant interest beyond oil.” However, India’s growing economy and appetite for oil means that, “Energy is now the driving force in Saudi-Indian relations.” The Kingdome is a chief supplier of oil and India is currently the fourth largest recipient of Saudi oil after China, the US and Japan.
Saudi-Indian relations have been on an upswing in January 2006 when Custodian of the Two Holy Mosques King Abdullah became the first Saudi king to visit India since 1955. During his visit to India, King Abdullah emphasized Saudi Arabia’s commitment to provide uninterrupted supplies to friendly countries like India regardless of global price trends.
Tang Li, Arab News
SINGAPORE, 17 September 2006 — Indian Finance Minister Palaniappan Chidambaram called on the International Monetary Fund (IMF) to play a more proactive role in regards to the oil market.
Chidambaram, who is leading the Indian delegation (comprising of Bangladesh, Bhutan, India and Sri Lanka) to the IMF’s Monetary and Financial Committee, was addressing the committee on the global economy.
In his statement to the committee, Chidambaram noted that while the global economic climate was healthy, the global economy faced risk from inflationary pressures, high and volatile oil prices and global trade imbalances. He noted that oil prices were a major concern, especially for developing nations.
Chidambaram told the committee that while rising oil prices had initially pushed up headline inflation, spare capacity and an increase in productivity and stronger corporate balance sheets had helped the global economy sustain inflationary pressures. Major central banks, he said, had been promoted to raise interest rates to keep inflationary pressures in check.
However, Chidambaram questioned how long raising interest rates would be effective in slowing down economic growth and inflation if high oil prices remained high. He noted that, “Higher interest rates in advanced economies had implications for financial markets,” but for emerging markets, they could, “Exacerbate vulnerabilities.”
Chidambaram told the committee that the failure of high oil prices to stimulate higher investment to augment oil supplies reflected rigidities in the oil market and he noted that, “It is difficult to fully explain the sustained high oil prices purely as a result of supply-demand balance,” and he noted that, “We think there is a strong element of speculation and profit taking in the market.”
Chidamaram talked about the importance of oil to the global economy and said that there was; “A need for policy intervention, both at national and international levels, to improve the market microstructure and incentives investment in oil production.” India’s economy has seen India’s appetite for oil grow by leaps and bounds in the past few years. According to the latest data on the first quarter for the fiscal year 2006-2007, India’s oil imports for the month of June 2006 were valued at $4.82 billion, up 55.59 percent from the same period one year ago.
The economy’s need for energy has made India sensitive to the fluctuations in the oil market. According to Alexander’s Gas & Oil Connections in 2004 when oil was trading at $45 a barrel, the Indian government had to cut taxes on gasoline, kerosene and cooking oil to ease pressures on the economy and the population.
India imports three quarters of her oil needs and her oil bill accounts for a third of the total value of all imports. According to Alexander’s Gas &Oil Connections mentioned in 2004 that J.P. Morgan Stanley warned that a five-dollar increase could shave growth by a quarter of a percent.
Given India’s vulnerability to the price fluctuations in the oil market, India, like China has been on the lookout for oil supplies and this has helped to shape its international relations. This has been particularly true of its relationship with Saudi Arabia.
Harsh V. Plant, a lecturer at the defense studies department at Kings College London noted that the Kingdom and India had, “Significant interest beyond oil.” However, India’s growing economy and appetite for oil means that, “Energy is now the driving force in Saudi-Indian relations.” The Kingdome is a chief supplier of oil and India is currently the fourth largest recipient of Saudi oil after China, the US and Japan.
Saudi-Indian relations have been on an upswing in January 2006 when Custodian of the Two Holy Mosques King Abdullah became the first Saudi king to visit India since 1955. During his visit to India, King Abdullah emphasized Saudi Arabia’s commitment to provide uninterrupted supplies to friendly countries like India regardless of global price trends.
Get Doha Round Moving, Says Brown
http://www.arabnews.com/?page=6§ion=0&article=86756&d=18&m=9&y=2006&pix=business.jpg&category=Business
Tang Li, Arab News
SINGAPORE, 18 September 2006 — Britain’s Chancellor of the Exchequer Gordon Brown urged countries across the world to resist rising protectionist sentiments and to get the Doha Round of trade talks moving at a press conference for the IMF’s International Monetary and Finance Committee (IMFC).
Brown, who was speaking in his capacity as chairman of the IMFC, noted that prospects for the global economy looked good but faced the potential risk from global trade imbalances and high oil prices. However, Brown said that, “the most worrying for the long term, worrying for growth in all areas of the world, is the stalling of the Doha Round of world trade talks.”
He told reporter, “The IMFC Committee was united in expressing our deep disappointment (with rising protectionist sentiments), and these are the words in our communiqué, that the trade negotiations had been suspended, but we went on to urge all nations and all members of the World Trade Organization to resist protectionist calls.” Brown then went onto mention that the IMFC had called for, “leadership from major trading nations to work urgently toward an early resumption of the negotiations,” and an successful outcome to talks by the end of the year that would be, “based on a commitment to a comprehensive package on agriculture, industrial products and services, to which all countries will need to contribute.”
He expressed optimism after a briefing by WTO director-general, Pascal Lamy and said that, “there is a basis for a deal,” and that, “countries are now seized of both the importance of a deal and the urgency of achieving one.” Brown went onto to tell reporters that he believed that, “prospects of such a deal are enhanced by the pledges of more than $4 billion a year that have been made by the richest countries to the developing world to aid trade for infrastructure development, money that will be of benefit to reforming the infrastructure communications transport, of developing economies.” Brown also mentioned that the determination of US treasury secretary, Henry Paulson to break the deadlock had provided him with a sense of optimism.
However, as Brown spoke, Indian Commerce Minister Kamal Nath poured cold water on the chances of a breakthrough, saying too many Indians scraped a living from the land for India to continuous opening up its market further to imports of farm goods.
“There is no question of India making concessions at all where agriculture is concerned because our issue is subsistence,” Nath, a pivotal player in the Doha talks, told reporters. India was also at the forefront in objecting to a blueprint to overhaul the governance of the 184-member IMF to better reflect the growing clout of emerging economies. Brown did mention that the IMF should concentrate on its work to help low-income countries to enjoy sustained growth and backed by macroeconomic reforms that support the achievement of the important millennium development goals. Brown thanked IMF managing director, Rodrigo de Rato and World Bank president, Paul Wolfowitz for the progress they had made on debt relief to developing countries.
He noted: “The new global challenges that we have been considering require more than ever the IMF to keep pace with the global and multilateral nature of today’s economies,” and he said that quota reforms at IMF (That would give China, South Korea, Mexico and Turkey a greater say in the IMF) would, “Enhance the participation and voice of low-income countries in the IMF. This will be the biggest reform to the governance of the International Monetary Fund for 60 years.”
Brown stressed the need for, “the urgency for the sake of the world economy of moving forward with the trade talks so that we can remove the risks of protectionism in the world economy and we are seized by the importance of reaching a trade deal as soon as possible.”
Tang Li, Arab News
SINGAPORE, 18 September 2006 — Britain’s Chancellor of the Exchequer Gordon Brown urged countries across the world to resist rising protectionist sentiments and to get the Doha Round of trade talks moving at a press conference for the IMF’s International Monetary and Finance Committee (IMFC).
Brown, who was speaking in his capacity as chairman of the IMFC, noted that prospects for the global economy looked good but faced the potential risk from global trade imbalances and high oil prices. However, Brown said that, “the most worrying for the long term, worrying for growth in all areas of the world, is the stalling of the Doha Round of world trade talks.”
He told reporter, “The IMFC Committee was united in expressing our deep disappointment (with rising protectionist sentiments), and these are the words in our communiqué, that the trade negotiations had been suspended, but we went on to urge all nations and all members of the World Trade Organization to resist protectionist calls.” Brown then went onto mention that the IMFC had called for, “leadership from major trading nations to work urgently toward an early resumption of the negotiations,” and an successful outcome to talks by the end of the year that would be, “based on a commitment to a comprehensive package on agriculture, industrial products and services, to which all countries will need to contribute.”
He expressed optimism after a briefing by WTO director-general, Pascal Lamy and said that, “there is a basis for a deal,” and that, “countries are now seized of both the importance of a deal and the urgency of achieving one.” Brown went onto to tell reporters that he believed that, “prospects of such a deal are enhanced by the pledges of more than $4 billion a year that have been made by the richest countries to the developing world to aid trade for infrastructure development, money that will be of benefit to reforming the infrastructure communications transport, of developing economies.” Brown also mentioned that the determination of US treasury secretary, Henry Paulson to break the deadlock had provided him with a sense of optimism.
However, as Brown spoke, Indian Commerce Minister Kamal Nath poured cold water on the chances of a breakthrough, saying too many Indians scraped a living from the land for India to continuous opening up its market further to imports of farm goods.
“There is no question of India making concessions at all where agriculture is concerned because our issue is subsistence,” Nath, a pivotal player in the Doha talks, told reporters. India was also at the forefront in objecting to a blueprint to overhaul the governance of the 184-member IMF to better reflect the growing clout of emerging economies. Brown did mention that the IMF should concentrate on its work to help low-income countries to enjoy sustained growth and backed by macroeconomic reforms that support the achievement of the important millennium development goals. Brown thanked IMF managing director, Rodrigo de Rato and World Bank president, Paul Wolfowitz for the progress they had made on debt relief to developing countries.
He noted: “The new global challenges that we have been considering require more than ever the IMF to keep pace with the global and multilateral nature of today’s economies,” and he said that quota reforms at IMF (That would give China, South Korea, Mexico and Turkey a greater say in the IMF) would, “Enhance the participation and voice of low-income countries in the IMF. This will be the biggest reform to the governance of the International Monetary Fund for 60 years.”
Brown stressed the need for, “the urgency for the sake of the world economy of moving forward with the trade talks so that we can remove the risks of protectionism in the world economy and we are seized by the importance of reaching a trade deal as soon as possible.”
zondag, september 17, 2006
Doha Bank Opens Office in Singapore
http://www.arabnews.com/?page=6§ion=0&article=86702&d=17&m=9&y=2006&pix=business.jpg&category=Business
Tang Li, Arab News
SINGAPORE, 17 September 2006 — Amidst the backdrop of the conferences and discussions being held at the IMF-World Bank meetings in Singapore, Arab-Asian business ties took a major step closer together when Doha Bank, the largest private bank opened a representative office in Singapore.
Doha Bank opened its Singapore office in an event where Abdullah Saud Al-Thani, governor of Qatar Central Bank was the guest of Honor.
Doha Bank’s Managing Director and CEO Abdul Rehman ibn Mohammad Al-Thani described the opening of representative office in Singapore is a major step in spreading Doha Bank’s wings on the global network.
Abdul Rehman said, “Our representative office will play a major role in linking Far-Eastern financial hub with the GCC region and will facilitate trade transactions between the organizations of Far Eastern countries and Qatar. With our full-fledged operation in Dubai round the corner, now we are best placed to service our corporate and institutional customers across the continents.”
Doha Bank’s Singapore representative office will help to facilitate business and investment opportunities in Qatar for Singaporean companies thus helping to facilitate the trade transactions between Middle East and Far East. The office will help Doha Bank to build relationship with local Singaporean banks and other financial institutions from the Far East. Doha Bank’s office will also help to develop trade ties for Doha Bank in Qatar as well as New York and Dubai
The bank’s representative office will be led by M. Sathyamurthy and it will be located in Singapore’s financial district at Suntec Tower-1, 7 Temasek Boulevard, Singapore.
The opening of a representative office is one of the major steps for Doha Bank in its ambitious plans to expand beyond its shore and throughout the world. Doha Bank has already received license from the UAE central bank to open commercial branch in Dubai it is the only Qatari Bank to have full-fledged branch in New York and UAE.
Doha Bank’s opening of its office in Singapore has been viewed as a boost for the country’s aims to position itself as a regional banking sector and as an “honest broker,” for Middle Eastern financial institutions to operate within the region.
The bank will join other banks from the Arab world who have a presence in Singapore like Arab Bank from Jordan, National Bank of Kuwait as well as National Commercial Bank and Riyad Bank Saudi Arabia.
Tang Li, Arab News
SINGAPORE, 17 September 2006 — Amidst the backdrop of the conferences and discussions being held at the IMF-World Bank meetings in Singapore, Arab-Asian business ties took a major step closer together when Doha Bank, the largest private bank opened a representative office in Singapore.
Doha Bank opened its Singapore office in an event where Abdullah Saud Al-Thani, governor of Qatar Central Bank was the guest of Honor.
Doha Bank’s Managing Director and CEO Abdul Rehman ibn Mohammad Al-Thani described the opening of representative office in Singapore is a major step in spreading Doha Bank’s wings on the global network.
Abdul Rehman said, “Our representative office will play a major role in linking Far-Eastern financial hub with the GCC region and will facilitate trade transactions between the organizations of Far Eastern countries and Qatar. With our full-fledged operation in Dubai round the corner, now we are best placed to service our corporate and institutional customers across the continents.”
Doha Bank’s Singapore representative office will help to facilitate business and investment opportunities in Qatar for Singaporean companies thus helping to facilitate the trade transactions between Middle East and Far East. The office will help Doha Bank to build relationship with local Singaporean banks and other financial institutions from the Far East. Doha Bank’s office will also help to develop trade ties for Doha Bank in Qatar as well as New York and Dubai
The bank’s representative office will be led by M. Sathyamurthy and it will be located in Singapore’s financial district at Suntec Tower-1, 7 Temasek Boulevard, Singapore.
The opening of a representative office is one of the major steps for Doha Bank in its ambitious plans to expand beyond its shore and throughout the world. Doha Bank has already received license from the UAE central bank to open commercial branch in Dubai it is the only Qatari Bank to have full-fledged branch in New York and UAE.
Doha Bank’s opening of its office in Singapore has been viewed as a boost for the country’s aims to position itself as a regional banking sector and as an “honest broker,” for Middle Eastern financial institutions to operate within the region.
The bank will join other banks from the Arab world who have a presence in Singapore like Arab Bank from Jordan, National Bank of Kuwait as well as National Commercial Bank and Riyad Bank Saudi Arabia.
zaterdag, september 16, 2006
IMF Raises Growth Forecast for East Asia
http://www.arabnews.com/?page=6§ion=0&article=86658&d=16&m=9&y=2006&pix=business.jpg&category=Business
Tang Li, Arab News
SINGAPORE, 16 September 2006 — The International Monetary Fund (IMF) has raised its 2006 economic forecast for East Asia excluding Japan. The Fund predicts that the region will expand by 8.3 percent in 2006, a 0.4 percent increase from its April 19 forecast of 7.9 percent. The IMF’s chief economist, Raghuram Rajan described East Asia as “The Most Dynamic Region.”
The dynamism of East Asia’s growth has been linked to the growth of Asia’s traditional giants, China and India. China, long described as the world’s manufacturing center, was forecast to grow its economy by 10 percent in 2006 and 2007. India, which has predicted to take on most of the world’s outsourcing, is predicted to grow its economy by 8.3 percent in 2006 and by 7.3 percent in 2007.
While the Fund acknowledged that the US would remain the final destination for most of the regions goods exports and that the region would still be affected to a considerable degree by business cycle fluctuations in the US and Japan, the impact of the growing Asian giants of China and India would become more prominent.
For Saudi Arabia and its “Look East” policy, the rise of China, India and the East Asian region outside Japan is particularly significant in terms of its trade. The Kingdome’s interest in developing trade relations with East Asia could clearly be seen through the fact that Custodian of the Two Holy Mosques King Abdullah made his first overseas trips upon assuming the throne to China and India.
East Asia, it seems, is where the growth is but as like other regions, the Fund warned that the region faced several risk towards maintaining the growth rates.
Amongst those risk was: The tightening of monetary supply to curb inflation and the high price of oil (The Fund predicted that oil prices would increase by 20 percent in 2007 to $75.5 a barrel.)
As the steward of a quarter of the world’s energy supplies, Saudi Arabia has the potential to ensure that East Asian economies continue to grow at the rates that it has enjoyed during the past few years and has been busy in developing friendly ties with East Asia. Not only did King Abdullah visit China, India, Pakistan and Malaysia on his first overseas trip as King, Crown Prince Sultan made his first overseas journeys to Japan, Singapore and Pakistan.
As Dr. Ibrahim Mishari of Saudi Aramco said at the Institute of South East Asian Studies on the sidelines of Singapore’s annual APPEC conference, “Asia and the Pacific is the number one growth area for our business.”
Tang Li, Arab News
SINGAPORE, 16 September 2006 — The International Monetary Fund (IMF) has raised its 2006 economic forecast for East Asia excluding Japan. The Fund predicts that the region will expand by 8.3 percent in 2006, a 0.4 percent increase from its April 19 forecast of 7.9 percent. The IMF’s chief economist, Raghuram Rajan described East Asia as “The Most Dynamic Region.”
The dynamism of East Asia’s growth has been linked to the growth of Asia’s traditional giants, China and India. China, long described as the world’s manufacturing center, was forecast to grow its economy by 10 percent in 2006 and 2007. India, which has predicted to take on most of the world’s outsourcing, is predicted to grow its economy by 8.3 percent in 2006 and by 7.3 percent in 2007.
While the Fund acknowledged that the US would remain the final destination for most of the regions goods exports and that the region would still be affected to a considerable degree by business cycle fluctuations in the US and Japan, the impact of the growing Asian giants of China and India would become more prominent.
For Saudi Arabia and its “Look East” policy, the rise of China, India and the East Asian region outside Japan is particularly significant in terms of its trade. The Kingdome’s interest in developing trade relations with East Asia could clearly be seen through the fact that Custodian of the Two Holy Mosques King Abdullah made his first overseas trips upon assuming the throne to China and India.
East Asia, it seems, is where the growth is but as like other regions, the Fund warned that the region faced several risk towards maintaining the growth rates.
Amongst those risk was: The tightening of monetary supply to curb inflation and the high price of oil (The Fund predicted that oil prices would increase by 20 percent in 2007 to $75.5 a barrel.)
As the steward of a quarter of the world’s energy supplies, Saudi Arabia has the potential to ensure that East Asian economies continue to grow at the rates that it has enjoyed during the past few years and has been busy in developing friendly ties with East Asia. Not only did King Abdullah visit China, India, Pakistan and Malaysia on his first overseas trip as King, Crown Prince Sultan made his first overseas journeys to Japan, Singapore and Pakistan.
As Dr. Ibrahim Mishari of Saudi Aramco said at the Institute of South East Asian Studies on the sidelines of Singapore’s annual APPEC conference, “Asia and the Pacific is the number one growth area for our business.”
vrijdag, september 15, 2006
IMF Report Sees Solid Growth for Middle East
http://www.arabnews.com/?page=6§ion=0&article=86616&d=15&m=9&y=2006&pix=business.jpg&category=Business
Tang Li, Arab News
SINGAPORE, 15 September 2006 — The Middle East is expected to grow according to the IMF’s World Economic Outlook, which was released by the IMF yesterday. It was revealed that the Middle East is set to enjoy a steady growth rate of 5.8 percent in 2006 and a growth rate of 5.4 percent in 2007. Of the countries in the region, Saudi Arabia’s economy is set to grow 5.8 percent in 2006 and by 6.5 percent in 2007.
Thanks to high oil prices and increased production, particularly in Kuwait, Saudi Arabia, Libya and the UAE, governments of oil exporting countries can expect to see an increased growth in oil revenues. Higher oil revenues are helping to propel the economies of the oil-exporting nations and this has helped to drive the non-oil sectors and improve external current accounts and fiscal balances. With non-oil sector currently running at eight percent, inflation has begun to pick up but has been well contained through a combination of pegged exchange rates, open product and labor markets and low global inflation.
The report noted that on the whole, the outlook for the region remains favorable. Part of the reason is due to the fact that oil prices are set to remain high. However, high oil prices have been supported by prudent fiscal policies and the regional current account surplus is projected to rise further to 23 percent of GDP to around 280 billion.
On the whole, the oil-exporting nations are expected to enjoy more robust growth than the non-oil exporters. However, even the non-oil exporting countries like Egypt, Syria and Lebanon are expected to enjoy steady average growth 4.7 percent in 2006 and 5.2 percent in 2007. Much of this underlying growth is supported by favorable conditions at the regional and global levels.
The region does face some risk. Amongst those risks is the current windfall coming from high-energy prices. Higher revenues from energy exports have helped to swell government coffers and this has led to increased government expenditure on infrastructure improvements and much needed structural developments.
However, a greater portion of the windfall has been making its way into richly valued assets and asset price increases could be a sign of overheating. Regional equity markets faced a major correction in the early part of 2006 and although stability was maintained (in Saudi Arabia, Prince Alwaleed went as far as pumping some $2 billion plus to stabilize the stock market), regional economies cannot rule out the possibility of further corrections in the other asset classes.
Non-oil exporters also face the risk of external balance implications of large terms-of-trade losses. However, as the monthlong war between Israel and the Hezbollah in July showed, the most likely factor to fact growth is the external geopolitical situation. As long as international investors are weary of investing in a politically unstable region, the Middle East will not enjoy the large inflows of foreign direct investment that it may otherwise have.
The report stated that the central policy challenge for the oil exporting nations of the region was in the management of the current boom in oil revenues. The report commended the oil exporting countries for using the current windfall in energy prices to tackle long-term structural problems like the need to generate jobs for a rapidly growing market and investing in human and capital development and upgrading infrastructure.
However, the report cautioned the region that continued credit growth could cause overheating and stressed the importance for higher expenditure to go hand-in-hand with determined efforts at capacity enhancing reforms to ensure the good management of funds, thus making the economies of the oil exporters less dependent on global energy prices.
Such reforms would prioritize the need to create greater private sector participation in the economy and investments in various sectors to help diversify oil-dependent economies.
The report mentioned that if expenditure increases were appropriately in line with macroeconomic conditions and accompanied by structural reforms, pickup inflation would remain containable and temporary.
The report praised Saudi Arabia’s recent reforms that allowed foreigners to take part in its equity market, arguing that such moves helped to increase liquidity and transparency in the equity markets and would thus help reduce asset volatility.
Tang Li, Arab News
SINGAPORE, 15 September 2006 — The Middle East is expected to grow according to the IMF’s World Economic Outlook, which was released by the IMF yesterday. It was revealed that the Middle East is set to enjoy a steady growth rate of 5.8 percent in 2006 and a growth rate of 5.4 percent in 2007. Of the countries in the region, Saudi Arabia’s economy is set to grow 5.8 percent in 2006 and by 6.5 percent in 2007.
Thanks to high oil prices and increased production, particularly in Kuwait, Saudi Arabia, Libya and the UAE, governments of oil exporting countries can expect to see an increased growth in oil revenues. Higher oil revenues are helping to propel the economies of the oil-exporting nations and this has helped to drive the non-oil sectors and improve external current accounts and fiscal balances. With non-oil sector currently running at eight percent, inflation has begun to pick up but has been well contained through a combination of pegged exchange rates, open product and labor markets and low global inflation.
The report noted that on the whole, the outlook for the region remains favorable. Part of the reason is due to the fact that oil prices are set to remain high. However, high oil prices have been supported by prudent fiscal policies and the regional current account surplus is projected to rise further to 23 percent of GDP to around 280 billion.
On the whole, the oil-exporting nations are expected to enjoy more robust growth than the non-oil exporters. However, even the non-oil exporting countries like Egypt, Syria and Lebanon are expected to enjoy steady average growth 4.7 percent in 2006 and 5.2 percent in 2007. Much of this underlying growth is supported by favorable conditions at the regional and global levels.
The region does face some risk. Amongst those risks is the current windfall coming from high-energy prices. Higher revenues from energy exports have helped to swell government coffers and this has led to increased government expenditure on infrastructure improvements and much needed structural developments.
However, a greater portion of the windfall has been making its way into richly valued assets and asset price increases could be a sign of overheating. Regional equity markets faced a major correction in the early part of 2006 and although stability was maintained (in Saudi Arabia, Prince Alwaleed went as far as pumping some $2 billion plus to stabilize the stock market), regional economies cannot rule out the possibility of further corrections in the other asset classes.
Non-oil exporters also face the risk of external balance implications of large terms-of-trade losses. However, as the monthlong war between Israel and the Hezbollah in July showed, the most likely factor to fact growth is the external geopolitical situation. As long as international investors are weary of investing in a politically unstable region, the Middle East will not enjoy the large inflows of foreign direct investment that it may otherwise have.
The report stated that the central policy challenge for the oil exporting nations of the region was in the management of the current boom in oil revenues. The report commended the oil exporting countries for using the current windfall in energy prices to tackle long-term structural problems like the need to generate jobs for a rapidly growing market and investing in human and capital development and upgrading infrastructure.
However, the report cautioned the region that continued credit growth could cause overheating and stressed the importance for higher expenditure to go hand-in-hand with determined efforts at capacity enhancing reforms to ensure the good management of funds, thus making the economies of the oil exporters less dependent on global energy prices.
Such reforms would prioritize the need to create greater private sector participation in the economy and investments in various sectors to help diversify oil-dependent economies.
The report mentioned that if expenditure increases were appropriately in line with macroeconomic conditions and accompanied by structural reforms, pickup inflation would remain containable and temporary.
The report praised Saudi Arabia’s recent reforms that allowed foreigners to take part in its equity market, arguing that such moves helped to increase liquidity and transparency in the equity markets and would thus help reduce asset volatility.
donderdag, september 14, 2006
Singapore Firms Urged to Tap Middle East
http://www.arabnews.com/?page=6§ion=0&article=86565&d=14&m=9&y=2006&pix=business.jpg&category=Business
Tang Li, Arab News
SINGAPORE, 14 September 2006 — Singapore’s Senior Minister Goh Chok Tong called on Singapore’s firms to tap on the potential growth in the Middle East. In an interview with Singapore’s media, the senior minister told Singapore’s business community that, “Business opportunities in the Middle East abound,” and estimated that the opportunities available to Singapore’s business community in the Middle East were worth an estimated S$4 billion ($2.54 billion)
Goh admitted that Singapore had been a late comer to the opportunities available in the Middle East but argued that Singapore had made up for lost ground. Goh, who visited Saudi Arabia in February 2005, noted that Singapore’s companies had been active in the Middle East for the past two-years, taking on projects to build infrastructure, develop housing and provide consultancy services.
Another growth area in which Singapore companies have been trying to explore in the Middle East is in financial services. According to Goh, Singapore, which is currently trying to develop itself as a center for private banking can increase its opportunities for growth by tapping into the lucrative financial markets of the Middle East. One of the examples that Goh provided was that of the Development Bank of Singapore (DBS,) which recently set up a branch in Dubai. While describing the potential for growth in the Middle East, Goh described his feelings toward the development, “disappointed that the growth was not bigger than I had expected. Growth has been about 30 percent, and this is growth in assets under management by Singapore entities, which includes foreign banks in Singapore. The base is quite low so I thought the growth should be higher than 30 percent.”
Goh’s enthusiasm for the Middle East has not gone unnoticed. Saudi Arabia, the largest market in the GCC region has been busy trying to help Goh realize his aspirations for Singapore in the markets of the Middle East.
Saudi Arabia and Singapore have been busy building up a good working relationship and in 2006, Saudi-Singapore ties reached an all time high. In March, Singapore’s minister mentor, Lee Kuan Yew visited the Kingdom where he met with Custodian of the Two Holy Mosque King Abdullah and Crown Prince Sultan. A month later, Crown Prince Sultan became the most senior member of the royal family to visit Singapore.
Saudi Arabia’s ambassador to Singapore, Dr. Mohamed Amin Kurdi describes the visits as creating: “Regular face-to-face discussions between the highest level Saudi and the Singaporean leadership contributed a great deal to better mutual understanding, a closer examination of cooperation opportunities, and renewed commitment to deepening the relationship.”
Tang Li, Arab News
SINGAPORE, 14 September 2006 — Singapore’s Senior Minister Goh Chok Tong called on Singapore’s firms to tap on the potential growth in the Middle East. In an interview with Singapore’s media, the senior minister told Singapore’s business community that, “Business opportunities in the Middle East abound,” and estimated that the opportunities available to Singapore’s business community in the Middle East were worth an estimated S$4 billion ($2.54 billion)
Goh admitted that Singapore had been a late comer to the opportunities available in the Middle East but argued that Singapore had made up for lost ground. Goh, who visited Saudi Arabia in February 2005, noted that Singapore’s companies had been active in the Middle East for the past two-years, taking on projects to build infrastructure, develop housing and provide consultancy services.
Another growth area in which Singapore companies have been trying to explore in the Middle East is in financial services. According to Goh, Singapore, which is currently trying to develop itself as a center for private banking can increase its opportunities for growth by tapping into the lucrative financial markets of the Middle East. One of the examples that Goh provided was that of the Development Bank of Singapore (DBS,) which recently set up a branch in Dubai. While describing the potential for growth in the Middle East, Goh described his feelings toward the development, “disappointed that the growth was not bigger than I had expected. Growth has been about 30 percent, and this is growth in assets under management by Singapore entities, which includes foreign banks in Singapore. The base is quite low so I thought the growth should be higher than 30 percent.”
Goh’s enthusiasm for the Middle East has not gone unnoticed. Saudi Arabia, the largest market in the GCC region has been busy trying to help Goh realize his aspirations for Singapore in the markets of the Middle East.
Saudi Arabia and Singapore have been busy building up a good working relationship and in 2006, Saudi-Singapore ties reached an all time high. In March, Singapore’s minister mentor, Lee Kuan Yew visited the Kingdom where he met with Custodian of the Two Holy Mosque King Abdullah and Crown Prince Sultan. A month later, Crown Prince Sultan became the most senior member of the royal family to visit Singapore.
Saudi Arabia’s ambassador to Singapore, Dr. Mohamed Amin Kurdi describes the visits as creating: “Regular face-to-face discussions between the highest level Saudi and the Singaporean leadership contributed a great deal to better mutual understanding, a closer examination of cooperation opportunities, and renewed commitment to deepening the relationship.”
Voting Rights to Dominate IMF-WB Meetings
http://www.arabnews.com/?page=6§ion=0&article=86558&d=14&m=9&y=2006
Tang Li, Arab News
SINGAPORE, 14 September 2006 — The IMF-World Bank Meetings opened yesterday in Singapore with a focus on the key issues that will affect the world economy over the next few years.
While the formal meetings do not begin until Sept. 19, many of the key issues will be discussed and the issue that is expected to dominate discussions is that of voting rights and quotas at the IMF.
For the delegates from the developing world, this is a particularly significant issue as the quota or shareholding determines the voting right of the country in the 184-member organization and thus the power of the nation to shape the policy of the IMF particularly in the area of prevention and crisis management. Increased voting rights also come hand in hand with the increased obligations to the IMF.
The review of the voting rights was raised by IMF managing director, Rodrigo de Rato at a speech in Spruce Meadows, Calgary, Canada on Sept. 8. De Rato noted that, “Over the last thirty years, new economic powers have arisen,” and because of this, the Fund would have to, “Adapt both its works and governing structure to reflect the new realities.”
The United States, followed by the European Union and Japan dominate the shareholdings and the voting rights of the IMF. As the largest shareholder, the US dominates the policymaking of the IMF, while the IMF managing director is by tradition a European (To balance things, the presidency of the World Bank traditionally goes to an American.) While this reflects the global economic pecking order, many of the IMF’s critics have accused it as being a tool of American hegemony, and during instances like the 1997 Asian financial crisis, the IMF was accused of imposing policies created by experts from the developed world with little knowledge of the ground situation.
As such, the calls for reviewing the voting rights in the IMF have been growing louder, particularly from developing nations. De Rato says, “There is a clear need for a rebalancing of quotas to reflect changed economic realities, especially the increased economic weight of major emerging markets,” and during the meetings in Singapore, De Rato plans to, ask members to approve an increase in the quotas of four under-represented countries: China, Korea, Mexico, and Turkey, and to endorse a broader reform of the quota process over the next two years. “This would involve a new formula designed to capture member countries’ weight in the global economy in a simpler and more transparent manner,” he said.
De Rato’s ideas have been generally well received by the delegates from the developing world.
“Asian economies and countries would be very conscious of the fact that in 1997 the economies over here were affected by the Asian financial crisis, and some blame it on the IMF,” said Singapore’s Senior Minister Goh Chok Tong. “Surely they want to have a bigger voice in the IMF to ensure that should such an event recur, then they would have a voice in saying how their own economy should be managed under such a situation. Countries like China have become more important in the global economy. Asian countries contribute nearly a quarter of world’s GDP but only have 10 percent of voting rights. Surely they should be given more voice.” However, while the idea of reforming the IMF’s voting system has been generally well received, not all nations have approved of the IMF’s methods. India, which is in favor of increasing the voting rights of developing nations, is opposed to the IMF’s two-tier system of reforms. Indian IMF representative Bhawani Mishra says that India wants to “change the formula” and making transparent and simple.
Tang Li, Arab News
SINGAPORE, 14 September 2006 — The IMF-World Bank Meetings opened yesterday in Singapore with a focus on the key issues that will affect the world economy over the next few years.
While the formal meetings do not begin until Sept. 19, many of the key issues will be discussed and the issue that is expected to dominate discussions is that of voting rights and quotas at the IMF.
For the delegates from the developing world, this is a particularly significant issue as the quota or shareholding determines the voting right of the country in the 184-member organization and thus the power of the nation to shape the policy of the IMF particularly in the area of prevention and crisis management. Increased voting rights also come hand in hand with the increased obligations to the IMF.
The review of the voting rights was raised by IMF managing director, Rodrigo de Rato at a speech in Spruce Meadows, Calgary, Canada on Sept. 8. De Rato noted that, “Over the last thirty years, new economic powers have arisen,” and because of this, the Fund would have to, “Adapt both its works and governing structure to reflect the new realities.”
The United States, followed by the European Union and Japan dominate the shareholdings and the voting rights of the IMF. As the largest shareholder, the US dominates the policymaking of the IMF, while the IMF managing director is by tradition a European (To balance things, the presidency of the World Bank traditionally goes to an American.) While this reflects the global economic pecking order, many of the IMF’s critics have accused it as being a tool of American hegemony, and during instances like the 1997 Asian financial crisis, the IMF was accused of imposing policies created by experts from the developed world with little knowledge of the ground situation.
As such, the calls for reviewing the voting rights in the IMF have been growing louder, particularly from developing nations. De Rato says, “There is a clear need for a rebalancing of quotas to reflect changed economic realities, especially the increased economic weight of major emerging markets,” and during the meetings in Singapore, De Rato plans to, ask members to approve an increase in the quotas of four under-represented countries: China, Korea, Mexico, and Turkey, and to endorse a broader reform of the quota process over the next two years. “This would involve a new formula designed to capture member countries’ weight in the global economy in a simpler and more transparent manner,” he said.
De Rato’s ideas have been generally well received by the delegates from the developing world.
“Asian economies and countries would be very conscious of the fact that in 1997 the economies over here were affected by the Asian financial crisis, and some blame it on the IMF,” said Singapore’s Senior Minister Goh Chok Tong. “Surely they want to have a bigger voice in the IMF to ensure that should such an event recur, then they would have a voice in saying how their own economy should be managed under such a situation. Countries like China have become more important in the global economy. Asian countries contribute nearly a quarter of world’s GDP but only have 10 percent of voting rights. Surely they should be given more voice.” However, while the idea of reforming the IMF’s voting system has been generally well received, not all nations have approved of the IMF’s methods. India, which is in favor of increasing the voting rights of developing nations, is opposed to the IMF’s two-tier system of reforms. Indian IMF representative Bhawani Mishra says that India wants to “change the formula” and making transparent and simple.
woensdag, september 13, 2006
The Asian Renaissance at the IMF-WB Meetings
http://www.arabnews.com/?page=6§ion=0&article=86508&d=13&m=9&y=2006&pix=business.jpg&category=Business
Tang Li, Arab News
SINGAPORE, 13 September 2006 — Much of the focus of the IMF-World Bank meetings has been on Singapore’s banning of outdoor protest and the baring of 28 activists from entering Singapore during the meetings which begin today.
However, the Singapore government and many of the Asian delegates will be focused on another story - the revival of the “miraculous Asian growth story.” For the host nation, hosting the IMF-World Bank meeting is being presented as a “coming of age.” Singapore’s $118 billion economy has been enjoying its longest expansion in five years and signs of a dynamic economy such as rising prices of luxury property are becoming visible.
Singapore’s growing economy is not unique to Asia. The IMF’s managing director, Rodrigo de Rato says,” Asian countries’ commitment to openness, trade, and private sector development have made the region the most dynamic in the world.” The statistics that support Rato are staggering. “Asian Development Outlook 2006,” published by the Asian Development Bank, notes that: “Aggregate gross domestic product for the region expanded by a robust 7.4 percent in 2005. Growth was underpinned by a favorable external environment and by continuing progress on domestic reform issues. Looking forward, the baseline projection is for continued robust growth.”
This scenario is very different from the last time the IMF-World Bank meetings were held in Asia - which was in Hong Kong in 1997, just as Asia was about to enter its “economic crisis.” Then, the relationship between the IMF and Asia was expressed through the picture of then managing director of the IMF, Michel Camdessus looking over then Indonesian President Suharto signing a bailout package for the Indonesian Economy. The IMF became the “villain of choice,” for Asian governments and even international economist, Professor Jeffery Sachs slammed the IMF for, “exacerbating,” the situation, as countries like Indonesia, South Korea and Thailand went into an economic and social meltdown.
What has changed since then? The reasons have been fairly straightforward. Debts were restructured, companies with bad loans were allowed to go bankrupt and corporate governance improved. Corruption which had been tolerated in the good times no longer became tolerable.
Tang Li, Arab News
SINGAPORE, 13 September 2006 — Much of the focus of the IMF-World Bank meetings has been on Singapore’s banning of outdoor protest and the baring of 28 activists from entering Singapore during the meetings which begin today.
However, the Singapore government and many of the Asian delegates will be focused on another story - the revival of the “miraculous Asian growth story.” For the host nation, hosting the IMF-World Bank meeting is being presented as a “coming of age.” Singapore’s $118 billion economy has been enjoying its longest expansion in five years and signs of a dynamic economy such as rising prices of luxury property are becoming visible.
Singapore’s growing economy is not unique to Asia. The IMF’s managing director, Rodrigo de Rato says,” Asian countries’ commitment to openness, trade, and private sector development have made the region the most dynamic in the world.” The statistics that support Rato are staggering. “Asian Development Outlook 2006,” published by the Asian Development Bank, notes that: “Aggregate gross domestic product for the region expanded by a robust 7.4 percent in 2005. Growth was underpinned by a favorable external environment and by continuing progress on domestic reform issues. Looking forward, the baseline projection is for continued robust growth.”
This scenario is very different from the last time the IMF-World Bank meetings were held in Asia - which was in Hong Kong in 1997, just as Asia was about to enter its “economic crisis.” Then, the relationship between the IMF and Asia was expressed through the picture of then managing director of the IMF, Michel Camdessus looking over then Indonesian President Suharto signing a bailout package for the Indonesian Economy. The IMF became the “villain of choice,” for Asian governments and even international economist, Professor Jeffery Sachs slammed the IMF for, “exacerbating,” the situation, as countries like Indonesia, South Korea and Thailand went into an economic and social meltdown.
What has changed since then? The reasons have been fairly straightforward. Debts were restructured, companies with bad loans were allowed to go bankrupt and corporate governance improved. Corruption which had been tolerated in the good times no longer became tolerable.
zondag, september 10, 2006
Singapore Bans Protests During IMF-WB Meetings
http://www.arabnews.com/?page=6§ion=0&article=86345&d=10&m=9&y=2006t
Tang Li, Arab News
SINGAPORE, 10 September 2006 — Since the coming out of the anti-globalization movement at the World Trade Organization’s ministerial conference in Seattle in 1999, it’s been something of a tradition for global events hosted by the WTO, the International Monetary Fund (IMF) and the World Bank to be greeted by street protests.
However, the upcoming IMF and World Bank meetings that will be held in Singapore starting Wednesday will be breaking with this tradition. The Singapore government has made it clear that vandalism and street agitation will not be welcome during this week’s IMF and World Bank meetings.
Street protest have been banned and so called “civil society action” has been restricted to a ten-by-four meter area inside Singapore’s Suntec International Convention and Exhibition Center where the meetings will be held.
This position has pitted officials at the IMF and World Bank against the Singapore government. Both the IMF and World Bank have actually accredited some of the organizations that planned to protest their policies.
However, the Singapore government has stood firm in its position.
“Under the current security environment, we will be cautious about who we allow into our borders,” said a statement issued by Singapore authorities.
One group has tried to test the mettle of the Singapore’s resolve in keeping out supposed troublemakers.
People for the Ethical Treatment of Animals, or PETA, perhaps most famous for tossing paint on the fur coats worn by celebrities, had sent out a media release stating its intention to hold “naked” protest outside a KFC franchise in Singapore’s Victoria Street to protest the chain’s alleged inhumane slaughter of chickens.
The police reported that they received calls about people acting suspiciously and on they interviewed an American and a Canadian national. A Filipina woman was detained on Friday. The three PETA activists were deported.
Reactions to the crackdown on civil dissent have been predictable. Representatives of non-governmental organizations have registered their unhappiness with the Singapore’s decision to ban outdoor protest in all but a designated fenced-in area.
Lidy Nacpil, international coordinator of Jubilee South, an organization that protests developmental loans, described Singapore as, “one of the worst cities to host the meetings,” and “not respecting people’s right to peaceful assembly.” Jubilee South has been unable to organize protests in Singapore against the IMF and World bank, whose policies the group says are designed to maintain a cycle of debt to poor countries by loaning money to corrupt governments who then pay companies in the developed world for large projects, often in the energy sector, in no-bid contracts rife with bribery.
However, international protesters like Nacpil will be challenged to find local partners with whom to join forces with.
“When we go to these meetings, the movements in these cities are usually prepared to join us,” she said. “We work with local movements, and we consider what they’re ready for.”
Thus far, Singapore’s civil organizations, which have developed in a culture where public protests have been kept at bay (The last license issued for a public protest was in the 1980s) have shown themselves to be reluctant to join forces with international CSOs like Ms Nacil’s Jubilee South.
Senior Minister Goh Chok Tong recently told Bloomberg TV: “We have very strict rules for our own locals, and we can’t have two standards because otherwise, we’ll be in deep political trouble with our own citizens.”
Reactions within Singapore toward the banning of protest at the IMF and World Bank meetings have generally been supportive of the government. While some have argued that Singapore is showing that its intolerance towards dissent shows its lack of political development, most have argued that this underlines the very reason why Singapore was chosen to host these meetings.
Says Kishore Mahbubani, dean of the Lee Kuan Yew School of Public Policy: “By now, people know what the image of Singapore is, and they realize we are who we are. We’re one of the most disciplined societies in the world because the environment we live in is special.”
Koh Ee Mei, project management director at Spires Research and Consulting, echoes Mahbubani’s sentiments and states that this will enforce Singapore’s image as being authoritarian but as also as a nation of laws.
Singapore may not be popular with activist but it is consistent in the way in which its laws are applied and people like Mahbubani are confident that the activist will get a chance to be heard even if they are not allowed to protest.
Tang Li, Arab News
SINGAPORE, 10 September 2006 — Since the coming out of the anti-globalization movement at the World Trade Organization’s ministerial conference in Seattle in 1999, it’s been something of a tradition for global events hosted by the WTO, the International Monetary Fund (IMF) and the World Bank to be greeted by street protests.
However, the upcoming IMF and World Bank meetings that will be held in Singapore starting Wednesday will be breaking with this tradition. The Singapore government has made it clear that vandalism and street agitation will not be welcome during this week’s IMF and World Bank meetings.
Street protest have been banned and so called “civil society action” has been restricted to a ten-by-four meter area inside Singapore’s Suntec International Convention and Exhibition Center where the meetings will be held.
This position has pitted officials at the IMF and World Bank against the Singapore government. Both the IMF and World Bank have actually accredited some of the organizations that planned to protest their policies.
However, the Singapore government has stood firm in its position.
“Under the current security environment, we will be cautious about who we allow into our borders,” said a statement issued by Singapore authorities.
One group has tried to test the mettle of the Singapore’s resolve in keeping out supposed troublemakers.
People for the Ethical Treatment of Animals, or PETA, perhaps most famous for tossing paint on the fur coats worn by celebrities, had sent out a media release stating its intention to hold “naked” protest outside a KFC franchise in Singapore’s Victoria Street to protest the chain’s alleged inhumane slaughter of chickens.
The police reported that they received calls about people acting suspiciously and on they interviewed an American and a Canadian national. A Filipina woman was detained on Friday. The three PETA activists were deported.
Reactions to the crackdown on civil dissent have been predictable. Representatives of non-governmental organizations have registered their unhappiness with the Singapore’s decision to ban outdoor protest in all but a designated fenced-in area.
Lidy Nacpil, international coordinator of Jubilee South, an organization that protests developmental loans, described Singapore as, “one of the worst cities to host the meetings,” and “not respecting people’s right to peaceful assembly.” Jubilee South has been unable to organize protests in Singapore against the IMF and World bank, whose policies the group says are designed to maintain a cycle of debt to poor countries by loaning money to corrupt governments who then pay companies in the developed world for large projects, often in the energy sector, in no-bid contracts rife with bribery.
However, international protesters like Nacpil will be challenged to find local partners with whom to join forces with.
“When we go to these meetings, the movements in these cities are usually prepared to join us,” she said. “We work with local movements, and we consider what they’re ready for.”
Thus far, Singapore’s civil organizations, which have developed in a culture where public protests have been kept at bay (The last license issued for a public protest was in the 1980s) have shown themselves to be reluctant to join forces with international CSOs like Ms Nacil’s Jubilee South.
Senior Minister Goh Chok Tong recently told Bloomberg TV: “We have very strict rules for our own locals, and we can’t have two standards because otherwise, we’ll be in deep political trouble with our own citizens.”
Reactions within Singapore toward the banning of protest at the IMF and World Bank meetings have generally been supportive of the government. While some have argued that Singapore is showing that its intolerance towards dissent shows its lack of political development, most have argued that this underlines the very reason why Singapore was chosen to host these meetings.
Says Kishore Mahbubani, dean of the Lee Kuan Yew School of Public Policy: “By now, people know what the image of Singapore is, and they realize we are who we are. We’re one of the most disciplined societies in the world because the environment we live in is special.”
Koh Ee Mei, project management director at Spires Research and Consulting, echoes Mahbubani’s sentiments and states that this will enforce Singapore’s image as being authoritarian but as also as a nation of laws.
Singapore may not be popular with activist but it is consistent in the way in which its laws are applied and people like Mahbubani are confident that the activist will get a chance to be heard even if they are not allowed to protest.
vrijdag, september 01, 2006
Outcry against torturing cats applies to humans too
STI Home > ST Forum > Online Story
Sep 1, 2006
http://straitstimes.asiaone.com/portal/site/STI/menuitem.c2aef3d65baca16abb31f610a06310a0/?vgnextoid=f832758920e39010VgnVCM1000000a35010aRCRD&vgnextfmt=vgnartid:23562e411c36d010VgnVCM100000430a0a0aRCRD
IT WAS a delight to read the letter, 'Light sentence for cat torturer sends wrong signal' by Ms Zhang Xiaowei (ST, Aug 29). She rightly argues that handing down a light sentence against the 'cat torturer' sends the message that Singapore condones barbaric behaviour and finds torture acceptable. I'm glad she has shown that for all that is said about Singaporeans lacking social graces and Singapore's low rankings in 'happiness' surveys, at their core, Singaporeans are decent people who believe in treating those who are weaker than themselves with respect and dignity.
Ms Zhang rightly points out that we should not dismiss animal abuse because the victims are merely 'animals'. As she argues, every animal abuser is a potential human abuser. People who take pleasure inflicting pain on defenceless animals are likely to enjoy inflicting pain on defenceless children and others weaker than themselves and this is morally unacceptable.
Say what you will about Singaporeans being apolitical and apathetic about the world around them but if people like Ms Zhang can feel angry about the torture of a cat, there is clearly a feeling among Singaporeans to make society better. Just as every animal abuser is a potential human abuser, everyone who is upset by animal abuse has the passion to ensure that humans are not abused.
The case of the cat torturer shows that torture is an unproductive byproduct of a disturbed mind. United States Senator John McCain, a Vietnam War hero and former torture victim, has rightly argued that torture is sadistic and unproductive, contrary to arguments that it is sometimes necessary and justified to gather intelligence against terrorists.
Given Senator McCain's real-life experiences in the military and as a prisoner of war, I have come to understand that brutal treatment leading to 'society-saving' intelligence exists merely in the minds of movie producers. No society that wants to be considered decent or civilised can condone torture by anyone.
Thank goodness we have people like Ms Zhang who understand how morally repugnant and unproductive torture is. As long as there are people like her who take a moral stand against torture, we can be assured that Singapore will have a decent society for many years to come.
Tang Li
Sep 1, 2006
http://straitstimes.asiaone.com/portal/site/STI/menuitem.c2aef3d65baca16abb31f610a06310a0/?vgnextoid=f832758920e39010VgnVCM1000000a35010aRCRD&vgnextfmt=vgnartid:23562e411c36d010VgnVCM100000430a0a0aRCRD
IT WAS a delight to read the letter, 'Light sentence for cat torturer sends wrong signal' by Ms Zhang Xiaowei (ST, Aug 29). She rightly argues that handing down a light sentence against the 'cat torturer' sends the message that Singapore condones barbaric behaviour and finds torture acceptable. I'm glad she has shown that for all that is said about Singaporeans lacking social graces and Singapore's low rankings in 'happiness' surveys, at their core, Singaporeans are decent people who believe in treating those who are weaker than themselves with respect and dignity.
Ms Zhang rightly points out that we should not dismiss animal abuse because the victims are merely 'animals'. As she argues, every animal abuser is a potential human abuser. People who take pleasure inflicting pain on defenceless animals are likely to enjoy inflicting pain on defenceless children and others weaker than themselves and this is morally unacceptable.
Say what you will about Singaporeans being apolitical and apathetic about the world around them but if people like Ms Zhang can feel angry about the torture of a cat, there is clearly a feeling among Singaporeans to make society better. Just as every animal abuser is a potential human abuser, everyone who is upset by animal abuse has the passion to ensure that humans are not abused.
The case of the cat torturer shows that torture is an unproductive byproduct of a disturbed mind. United States Senator John McCain, a Vietnam War hero and former torture victim, has rightly argued that torture is sadistic and unproductive, contrary to arguments that it is sometimes necessary and justified to gather intelligence against terrorists.
Given Senator McCain's real-life experiences in the military and as a prisoner of war, I have come to understand that brutal treatment leading to 'society-saving' intelligence exists merely in the minds of movie producers. No society that wants to be considered decent or civilised can condone torture by anyone.
Thank goodness we have people like Ms Zhang who understand how morally repugnant and unproductive torture is. As long as there are people like her who take a moral stand against torture, we can be assured that Singapore will have a decent society for many years to come.
Tang Li
are you afraid to compete?
http://www.todayonline.com/articles/139803.asp
Voices // Friday, September 1, 2006
Tang Li
The article, "They're here to help us" (Aug 21) made me realise that in spite of being a nation built by people who faced intense competition, Singapore has become a nation where a businessman can become a hero when he succeeds in appealing to the Government to end "destructive competition".
.
This made me wonder if Singaporeans have an innate fear of competition and what could be done to change things. In a way, the Government is responsible for inadvertently cultivating this competition-phobia. Thanks to its obsession with honesty, efficiency and effectiveness, the Government has created a culture of comfort. Life in Singapore has been good — not only have we enjoyed first-world living standards, we have been conditioned to believe that success has a formula.
.
Perhaps it's only natural for Singaporeans to be threatened by competition. We have been brought up to view competition as something that reduces one's chances in life. Whatever the Government says about foreign talent at school or in the workforce, we view such talent with suspicion because they are a threat to limited opportunities.
.
As much as I sympathise with this position, this attitude towards competition is unhealthy. As we have often been reminded, Singapore is a "dot" in a globalising world. Singapore companies and Singaporeans need to expand beyond our borders — the world without the protections offered by the Government — in order to survive. The Government has been fairly quick to understand that local companies need to develop corporate cultures that can make the most of competition. SingTel, for example, lost its domestic monopoly, had to improve its operations and look for opportunities overseas, and is now a stronger company than it was before.
.
However, while globalisation has forced Singapore companies to accept and grow with competition, Singaporeans are still frightened by the idea. For example, when Crown Prince Sultan of Saudi Arabia visited Singapore in April, he signed an agreement to allow 500 Saudi students to be educated here.
.
Instead of welcoming this vote of confidence in our education system from a country that had always sent its best and brightest to the West, some Singaporeans wrote to the newspapers worrying that there would be 500 fewer places for Singaporeans.
.
This is worrying and we need to change this attitude.
.
We need to start at the ground level and schools need to be encouraged to create a culture that accepts competition. Perhaps there should be a sort of school prize that is awarded to the child who makes the biggest comeback from a setback, and another one for the child who creates an opportunity for himself or herself when he or she fails to meet a goal.
.
If we're talking about relaxing the bankruptcy laws to encourage greater risk-taking among entrepreneurs, surely we can do something similar for school children.
.
National Education lessons should look at the life of Minister Mentor Lee Kuan Yew, who faced political competition from the likes of Mr David Marshall and the Plen. To survive them, he needed to offer the people better policies and had to work harder at selling them.
.
When Singapore was forced out of Malaysia in 1965, Singapore faced competition but had to innovate and create relevance to survive and thrive. Whatever we do, we need to create a culture that welcomes healthy competition and the benefits it brings — such as greater opportunities for people to hone their talents and for greater innovation. Thanks to compeition from other freelance writers to get their articles published, I've had to discover other avenues of writing such as advertising copy and brochures. I've also had to become a better writer.
.
Without competition, my life would be comfortable but I would be the poorer from it. I believe the same applies to rest of the nation.
.
The contributor is a
.
freelance writer. Tang Li
Copyright: MediaCorp Press Ltd (C) 2006
Voices // Friday, September 1, 2006
Tang Li
The article, "They're here to help us" (Aug 21) made me realise that in spite of being a nation built by people who faced intense competition, Singapore has become a nation where a businessman can become a hero when he succeeds in appealing to the Government to end "destructive competition".
.
This made me wonder if Singaporeans have an innate fear of competition and what could be done to change things. In a way, the Government is responsible for inadvertently cultivating this competition-phobia. Thanks to its obsession with honesty, efficiency and effectiveness, the Government has created a culture of comfort. Life in Singapore has been good — not only have we enjoyed first-world living standards, we have been conditioned to believe that success has a formula.
.
Perhaps it's only natural for Singaporeans to be threatened by competition. We have been brought up to view competition as something that reduces one's chances in life. Whatever the Government says about foreign talent at school or in the workforce, we view such talent with suspicion because they are a threat to limited opportunities.
.
As much as I sympathise with this position, this attitude towards competition is unhealthy. As we have often been reminded, Singapore is a "dot" in a globalising world. Singapore companies and Singaporeans need to expand beyond our borders — the world without the protections offered by the Government — in order to survive. The Government has been fairly quick to understand that local companies need to develop corporate cultures that can make the most of competition. SingTel, for example, lost its domestic monopoly, had to improve its operations and look for opportunities overseas, and is now a stronger company than it was before.
.
However, while globalisation has forced Singapore companies to accept and grow with competition, Singaporeans are still frightened by the idea. For example, when Crown Prince Sultan of Saudi Arabia visited Singapore in April, he signed an agreement to allow 500 Saudi students to be educated here.
.
Instead of welcoming this vote of confidence in our education system from a country that had always sent its best and brightest to the West, some Singaporeans wrote to the newspapers worrying that there would be 500 fewer places for Singaporeans.
.
This is worrying and we need to change this attitude.
.
We need to start at the ground level and schools need to be encouraged to create a culture that accepts competition. Perhaps there should be a sort of school prize that is awarded to the child who makes the biggest comeback from a setback, and another one for the child who creates an opportunity for himself or herself when he or she fails to meet a goal.
.
If we're talking about relaxing the bankruptcy laws to encourage greater risk-taking among entrepreneurs, surely we can do something similar for school children.
.
National Education lessons should look at the life of Minister Mentor Lee Kuan Yew, who faced political competition from the likes of Mr David Marshall and the Plen. To survive them, he needed to offer the people better policies and had to work harder at selling them.
.
When Singapore was forced out of Malaysia in 1965, Singapore faced competition but had to innovate and create relevance to survive and thrive. Whatever we do, we need to create a culture that welcomes healthy competition and the benefits it brings — such as greater opportunities for people to hone their talents and for greater innovation. Thanks to compeition from other freelance writers to get their articles published, I've had to discover other avenues of writing such as advertising copy and brochures. I've also had to become a better writer.
.
Without competition, my life would be comfortable but I would be the poorer from it. I believe the same applies to rest of the nation.
.
The contributor is a
.
freelance writer. Tang Li
Copyright: MediaCorp Press Ltd (C) 2006
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