The Monetary Authority of Singapore (MAS) and the China Securities Regulatory Commission (CSRC) agreed to strengthen supervisory cooperation and facilitate the development of their capital markets, during the second MAS-CSRC Supervisory Roundtable held in Singapore on Tuesday.

The MAS and CSRC discussed regulatory developments in the derivatives markets and their respective frameworks for supervising fund managers. They also deliberated on enhancing information-sharing arrangements for derivative products through an upgraded memorandum of understanding.

The roundtable was co-chaired by MAS deputy managing director Ong Chong Tee and CSRC’s vice-chairman Fang Xinghai.

The roundtable is one of the key outcomes of Chinese President Xi Jinping’s state visit to Singapore in 2015. He had called for securities regulators from both sides to hold regular high-level dialogue sessions. The inaugural roundtable was held in Chongqing, China, in April last year.

“As global capital markets become more interlinked, it is important for supervisory authorities to promote greater understanding of their respective regulatory frameworks,” Ong said.

”With growing cross-border capital market activities taking place between China and Singapore, the MAS-CSRC Roundtable provides a good platform for both agencies to exchange views on potential areas for supervisory cooperation on a regular and timely basis.” – The Straits Times

Pertamina secures gas supply from ConocoPhillips’ Corridor Block

Indonesia’s sate-owned energy giant Pertamina has signed a gas sale and purchase agreement with American oil and gas giant ConocoPhillips to secure a gas supply totalling 65 trillion British thermal units (BTU) from the latter’s Corridor Block in South Sumatra within the period from 2018 to 2023.

The gas supply will be used to fuel the operations of Pertamina’s Dumai refinery in Riau Islands, which has a capacity to produce 175,000 barrels per day (bpd). Pertamina has planned to upgrade the facility so that it can produce 300,000 bpd in 2024 with an investment value of around US$5 billion (Bt166 billion).

“This is a strategic step for us to minimise the fuel costs coming from the operation of our refineries,” Pertamina gas director Yenny Andayani said in a statement on Friday.

Under the agreement, the Corridor Block will first supply 57 million standard cubic feet per day (MMSCFD) of gas from 2018 to 2020. The figure will later increase to 120 MMSCFD between 2021 and 2023.

The gas will be transmitted through the Duri-Dumai pipeline, which is being jointly developed by Pertamina and state-owned gas firm PT Perusahaan Gas Negara with a total investment value of $76 million.

The Duri-Dumai pipeline, slated for completion by October 2018, will span 67 kilometres with a capacity to transport 140 MMSCFD of gas. – The Jakarta Post

Manufacturing output picks up as demand rises in Philippines

Manufacturing picked up in October ahead of the holiday season although the weaker peso that month pushed costs higher, the latest Nikkei Philippines Manufacturing Purchasing Managers’ Index (PMI) showed.

At the start of the fourth quarter, the PMI score increased to 53.7 from 50.8 in September, “signalling a marked pickup in the pace of improvement in operating conditions,” global research firm IHS Markit said in a statement on Thursday.

A PMI score of above 50 indicates an overall increase in manufacturing activity.

The PMI reading for October was also “well above the third quarter average,” IHS Markit noted.

“Growth in both output and new orders picked up noticeably, prompting firms to step up input purchases and hiring. Anticipating greater demand, companies also built up stocks of inputs and finished goods, while increased staff numbers helped them keep on top of workloads in October,” IHS Markit said.

After two months of marginal growth, there was a flurry of activity in the Philippine manufacturing sector at the start of the fourth quarter, IHS Markit noted.

Demand for Filipino manufactured goods strengthened noticeably, with order book growth picking up to a five-month high, it said.

“Greater demand lifted production volumes, which in turn prompted firms to hire more workers,” said Bernard Aw, principal economist at IHS Markit.

However, Aw warned that “further weakening of the peso poses a problem for manufacturers, especially those that rely on imported inputs for production.”

The peso hit fresh 11-year lows in October.

As such, “input cost inflation picked up sharply, which led firms to raise prices in order to preserve profit margins,” Aw said. – Philippine National Inquirer

Vietnam Airlines offers low |prices for regular travellers

National carrier Vietnam Airlines has launched a promotional programme named “Flying to Thailand, Malaysia and Singapore” with preferential prices of only US$35.2 (Bt1,170) per ticket from Vietnam. The programme offers attractive fares for regular travellers from Vietnam and will end on March 31, 2018.

When the customer buys two or three economy class tickets at the same time, the price of the second ticket will be reduced by up to 30 per cent and the price of the third ticket can be discounted by up to half of the price of the first ticket. These tickets must all have the same customer name, with the same itinerary, and the conditions are applicable for travel from now until the promotional programme ends.

Passengers have a variety of flight options on Vietnam Airlines to these destinations, with frequencies of one to two daily flights to Malaysia, five flights per day to Singapore and six flights per day to Thailand. — Viet Nam News

Indonesia up in arms over EU’s |negative campaign against palm oil

Indonesia’s trade minister, Enggartiasto Lukita, called on palm oil stakeholders to join hands to fight the European Union’s negative campaign against palm oil-based products at a conference in Nusa Dua, Bali, on Friday.

In response to the EU campaign, Indonesia would take strong action by disrupting import commodities from Europe, such as milk powder, he added. “If the EU disrupts palm oil production, we will disrupt milk powder imports,” he told reporters on the sidelines of 13th Indonesian Palm Oil Conference.

Enggar also threatened to stop palm oil exports to Europe for a month, if the EU keeps putting pressure on Indonesia.

He said the EU’s negative campaign against palm oil products, based on environmental issues and health concerns, was unfair and baseless.

Oil palm plantations in Indonesia have been strictly controlled through sustainable practices and the consumption of palm oil has also been proven to be healthy, Enggar said.

Palm oil is a crucial commodity for Indonesia as it accounts for 12.5 per cent of the country’s total export earnings of US$18 billion (Bt598 billion) last year. From January to August this year, it reached $15 billion. – The Jakarta Post