SEC says ASEAN Link on track

THE PHILIPPINES is still on track in its bid to join the ASEAN Trading Link, despite a delay in achieving the key milestone of being accepted as a member of the International Organization of Securities Commissions (IOSCO), a government official said.

The government has an unofficial target of joining the Trading Link by the November 2015 Asia-Pacific Economic Cooperation (APEC) summit, which the Philippines will host, Securities and Exchange Commission (SEC) Chairperson Teresita J. Herbosa told BusinessWorld in an interview last week.

“Actually we’re supposed to be part of (the ASEAN Trading Link) by 2015 at the latest… Maybe before the APEC meeting here. But we have to first get our membership in IOSCO,” the commissioner said.

The IOSCO includes over 120 regulatory agencies and sets global standards for the securities sector.

The ASEAN Trading Link, on the other hand, is intended to connect the stock markets of six ASEAN members as part of an effort to promote them as a single asset class. The link, which is now live, currently involves only three bourses: the Stock Exchange of Thailand, Bursa Malaysia and the Singapore Exchange.

Asked about the status of the application for IOSCO membership, Ms. Herbosa said: “Sigurowe’re going to receive word mga November pa. Kasi we were targeting September, pero ’di raw kami mate-take up ngayong July eh. So if it’s taken up mga August or September, the next meeting of IOSCO will be November. Siguro that’s when they can take it up.”

The SEC was supposed to make a case for inclusion with an IOSCO review committee in Paris this month.

Ms. Herbosa said IOSCO’s board will still have to conduct a “peer review” in order to assess if SEC’s application for full membership is “compliant.”

“We cannot be a part of this ASEAN capital markets initiatives if we don’t become a member of IOSCO,” she said, noting that the government is confident of being granted full IOSCO membership by November next year. 

“[W]e’re very serious about fulfilling our role as securities regulator.”

The Philippines postponed its participation in 2011, as it sought more time to improve trading volumes and implement reforms, including the planned merger of the local stock and fixed-income markets.

The Philippines has been lobbying for IOSCO membership since 2008 but has been held back by the failure to improve regulator access to bank records. -- Daphne J. Magturo

source:  Businessworld

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Moody's publishes latest edition of "Inside ASEAN"

Moody's Investors Service has today released the latest edition of "Inside ASEAN", a quarterly publication looking at major credit trends prevalent in the Southeast Asian region.

"In this edition, we look at the implications of a correction in growth in China for the ASEAN economies and the long-term effects of ASEAN's demographics on economic growth," says Philipp Lotter, Moody's Managing Director for Corporate Finance in ASEAN and India.

Moody's says that the ASEAN economies are vulnerable to a pronounced growth correction in China, which is now the region's largest trading partner.

On aggregate, 12.2% of ASEAN's outbound shipments went to China in 2013, up from just 7.3% a decade earlier.

In such an environment, a downturn in Chinese growth in 2014 and 2015 that is greater than the estimated 6.5-7.5% in our baseline projection would have a significant bearing on ASEAN's macroeconomic outlook. And for the region, Singapore's economy is the most exposed, followed by Indonesia.

From a longer-term perspective, a young and rapidly growing population bodes well for economic growth in ASEAN. Specifically, it means a large labour force and attractive domestic market potential.

Although all ASEAN countries, with the exception of Thailand, will see their labour forces increase, marked differences exist in terms of projected growth. The labour forces in Laos, the Philippines and Cambodia, for instance, are projected to grow by more than 20%, while Vietnam's labour force will increase by only 7%.

"In this edition, we also highlight how Indonesian property developers will deal with slower economic growth," says Lotter.

Moody's expects revenue growth of Indonesian developers will slow to 11% in 2014, from 29% in 2013. Moody's expects the four rated Indonesian property developers to see growth in aggregated revenues moderate this year as a result of a high base of comparison last year and slower marketing sales. Moody's views developers with a higher percentage of recurring income and larger liquidity buffer, such as Lippo Karawaci Tbk (Ba3 stable) and Pakuwon Jati Tbk (B1 stable), to be more resilient.

This edition also includes summaries of various Moody's reports related to ASEAN, including reports on the stable outlooks for the Banking Systems in Thailand and Malaysia; on Malaysia's Sukuk Market, which we see growing by 10% in 2014 and 2015; and on how Southeast Asian high yield companies are managing their foreign currency debt exposure.

source:  Moody's Investor Service

Palace welcomes US Senate resolution backing PH on sea dispute

MANILA, Philippines – Amid the continuing conflict between Southeast Asian Nations and China, the United States recently approved a resolution supporting the Philippines’ moves for peaceful settlement of territorial dispute.

Map showing the disputed areas in the West Philippine Sea (south China Sea), including the Spratlys Islands and Scarborough Shoal. AFP

Quoting US Senate Resolution no. 412, Communications Secretary Herminio Coloma Jr. on Sunday said the US reaffirmed “its unwavering commitment and support for allies and partners in the Asia-Pacific Region, including long-standing United States policy regarding Article V of the United States-Philippines Mutual Defense Treat.”

Coloma explained that the resolution showed the US’ support for arbitration and peaceful settlement of disputes in West Philippine Sea (South China Sea), as well as its approval of Philippines’ actions.

“The Republic of the Philippines properly exercised its rights to peaceful settlement mechanisms with the filing of arbitration case under Article 287 and Article VII of the Convention of the Law of the Sea in order to achieve a peaceful and durable solution to the dispute,” the resolution said.

Coloma said Section 1 of the resolution clearly “condemns coercive and threatening actions or the use of force to impede freedom of operations in international airspace by military or civilian aircraft, to alter the status quo or to destabilize the Asia-Pacific Region.”

The Philippine official assured the people that the government would continue to pursue diplomatic options while maintaining dialogue with its Southeast Asian neighbors and allies.

Read more: http://globalnation.inquirer.net/107868/palace-welcomes-us-senate-resolution-backing-ph-on-sea-dispute#ixzz39u81WQ9f 
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