“On Monday, President Trump instructed me to look into Chinese laws, policies, and practices which may be harming American intellectual property rights, innovation, or technology development,” US Trade Representative Robert Lighthizer said in a statement.

“After consulting with stakeholders and other government agencies, I have determined that these critical issues merit a thorough investigation.”

Foreign companies have long complained about Beijing’s failure to protect know-how and patents, and in some cases forcing firms to share information with domestic partners as the price for doing business in the massive Chinese market.

But they also have been timid about pressing too hard for their governments to take action, for fear of losing access to China.

But “Washington will turn a blind eye no longer,” Trump insisted on Monday.

“We will safeguard the copyrights, patents, trademarks, trade secrets and other intellectual property that is so vital to our security and to our prosperity,” he said.

America, he added, will no longer tolerate Beijing’s “theft” of US industrial secrets.

Lighthizer is launching the investigation under Section 301 of US trade law, which addresses intellectual property.

Beijing this week fired back, warning that “everybody will lose” in the event of a trade war between the world’s two largest economies.

The United States is China’s second-largest trading partner after the European Union, and had a deficit of nearly $310 billion last year.

The country requires a budget of about US$5.4 billion (Bt179 billion) to spend on national socioeconomic development efforts per year, Deputy Planning and Investment Minister Khamlien Pholsena told a meeting to introduce the investment environment and policy in Laos.

The country also had to raise about $3 billion per year from the private sector to fund development.

In the era of integration, cooperation with the outside world is seen as essential for national socioeconomic development, a goal to which Laos has attached great importance.

The country has a open-door policy on investment cooperation with foreign countries, in particular, cooperation with China is in mutual and multiple forms through regional and international stages, he said.

Since the open-door policy on investment promotion and protection between Laos and China was signed in 1993, investment from China in Laos has grown.

Chinese investors now have over 838 projects in areas including agriculture, industry, mining and services with a combined value of more than $6.6 billion, making China the greatest source of investment in Laos.

A flagship of cooperation between the two is the Sino-Lao railway project, the first to connect Laos with the vast railway system in China using Chinese technology and equipment and supported by significant joint investment.

The project has a total investment of 40 billion yuan (Bt199 billion), 70 per cent of which comes from China, with 30 per cent from Laos.

The railway that will traverse 427 kilometres and is set to be completed by 2021 is seen to mark a significant milestone in the socioeconomic cooperation strategy of the two countries. China also ranks as the second largest trading partner with Laos, after Thailand.

Khamlien said this cooperation as well as investment promotion, exchanges of high-level officials and visits of people of the two countries has contributed to the development and poverty reduction of Laotians.

Such cooperation also provided a solid foundation for the implementation of the nation’s Five-Year Socioeconomic Development Plan (2016-20), Strategy 2025 and Vision 2030.

The meeting was essential and meaningful to both Laos and China because it has contributed to expanding the cooperative relationship between the two countries.

Indonesia’s state-owned energy giant Pertamina has said it has convinced Saudi Arabian oil giant Saudi Aramco and Russia’s Rosneft to conduct joint marketing efforts, which will ease its financial burden.

Last December, Pertamina signed a joint-venture agreement with Saudi Aramco on upgrading the Cilacap refinery in East Java with a total investment of US$5.8 billion (Bt193 billion).

Pertamina will team up with Rosneft to develop the $15-billion Tuban refinery, also in East Java.

Pertamina, which owns 55 per cent of both projects, was the sole off-taker of output by the Cilacap and Tuban refineries.

This resulted in all debts from these projects being Pertamina’s alone, resulting in an increase in its debt burden.

“So, we are renegotiating the Cilacap and Tuban projects, with negotiations reaching 95 per cent completion.

“We’re currently just waiting for the legal process before going to the next phase,” Pertamina finance director Arief Budiman said on Wednesday.

Pertamina said both Saudi Aramco and Rosneft had agreed to give financial support for the basic engineering design and front-end engineering design of the two refinery projects.

The basic studies and FEED for the Tuban project alone will cost $270 million. – The Jakarta Post

Fullerton Health acquiring Healthscope’s medical centres

Singapore’s Fullerton Healthcare Corp said yesterday that it has acquired the medical centre operations of Healthscope, comprising 43 medical centres, four specialist skin clinics and one specialist breast diagnostic clinic across Australia.

The network has more than 350 doctors, providing care to 1.8 million patients each year.

Dr Michael Tan, co-founder and chief executive of Fullerton Health, said this is an important acquisition that reinforces the company’s strategy of developing a strong presence in markets across the region, and specifically to broaden its network in Australia.

“Through this acquisition, we will become the third-largest primary care business in the country, and will be well positioned to support even more doctors and clinics,” he said.

Founded in Singapore in 2011, Fullerton Health owns more than 225 medical centres across seven countries, with a network of more than 8,000 medical providers around the world. – The Straits Times

BNM objects to SGX’s ringgit futures meant for Malaysia

Bank Negara Malaysia’s recent statement objecting to the Singapore Stock Exchange’s move to introduce the trading of ringgit futures was meant for Malaysians.

BNM Governor Muhammad Ibrahim had cautioned Malaysians that offshore trading of the ringgit was not allowed.

“We’ll certainly take action,” he said.

Foreign banks licensed in Malaysia that helped Malaysians facilitate such transactions would also be taken to task.

“It’s important to note that this is not a new policy or regulation,” he said.

“Contravention of the FEA (foreign exchange administration rules) is an offence under the Financial Services Act of 2013 and Islamic Financial Services Act of 2013,” the central bank said in a statement . – The Star

‘Hot money’ inflow hits six-month high in July

The Bangko Sentral ng Pilipinas has reported a net “hot money” inflow of US$206.47 million (Bt6.86 billion) in July, the highest in six months, partly on the back of investors’ positive reaction to the president’s report on his first year in office.

BSP data showed that the $1.43-billion inflow of foreign portfolio investment exceeded the $1.23-billion outflow, resulting in a net inflow for the second straight month.

The net inflow last month was the biggest since January’s $301.33 million, but was dwarfed by the $1.07-billion net inflow in the same month last year.

The July inflow was also lower by 36.8 per cent year-on-year and 28.9 per cent month-on-month.

Hot money outflow rose 2.1 per cent on year but declined 36.8 per cent on month.

The central bank attributed the higher inflows of foreign portfolio investment last month to “positive investor sentiment on news of inflation declining to 2.8 per cent in June from 3.1 per cent in May, strong net foreign buying, investor reaction to President (Rodrigo) Duterte’s second state of the nation address and the US Federal Reserve’s decision to maintain interest rates”. – Philippine Daily Inquirer

This is the first time Myanmar is receiving direct financial support for its budget, aimed at accelerating economic changes needed for long-term peace and prosperity.

The agreement was signed by Daw Nwe Nwe Win, director-general of the Treasury Department under the Planning and Finance Ministry, and Ellen Goldstein, the World Bank’s director for Myanmar, Cambodia and Laos, in the presence of U Maung Maung Win, deputy planning and finance minister.

The government’s programme supported by this operation includes reforms to address rising inflation, public debt sustainability, efficiency of government spending and strengthening of tax administration.

“We are confident that our policy actions would help sustain growth and reduce poverty, and help improve public access to services like electricity, education and health.

“The reforms would also help Myanmar attract high quality investments that create more jobs and give more benefits to the poor,” U Maung Maung Win said. The development policy operation has two pillars.

The macroeconomic stability pillar supports reforms to promote prudent public debt management, improved fiscal discipline of state economic enterprises and more effective budgeting processes.

Reforms under the fiscal resilience pillar aim to increase tax collection, improve management of gas revenues and strengthen public finance management.

By providing funding directly to the budget to support these actions, the development policy operation provides long-term, soft financing for priority public investments.

“Budget support is an important tool to underpin key government reforms and implement priority government programmes” Goldstein said.

“This first budget support will help Myanmar modernise economic management and build a more effective state.

“This includes measures to maintain economic stability, which is essential for high levels of investment, inclusive growth and job creation, as well as fiscal measures that will allow for the expansion and improvement of public service delivery.”

The terms of the credit, which comes from the International Development Association, the bank’s fund for low income countries, include a repayment period of 38 years, a grace period of six years and a zero interest rate.

The second annual private-public sector workshop was designed to discuss the challenges small- and medium-size enterprises face in securing adequate lines of credit, meeting technical export requirements, reducing certificates of origin fees and overcoming other trade barriers.

Te Taing Por, president of the Federation of Association for Small- and Medium-Sized Enterprises of Cambodia, said that while local companies continued to grow this year, unfair competition and cheaper imports from neighbouring countries stifled growth potential.

Local products are unlikely to be found in the country’s shopping malls, hotels and restaurants.

“Because these businesses are biased towards foreign products, it is hard for SMEs to expand in the local market,” he said.

“There are also technical barriers standing between SMEs reaching their exporting goals, so I request that the relevant ministries take action.”

An inter-ministerial group should be created that could facilitate direct communications between Cambodian producers and buyers from foreign markets like the US, Japan and China, he said.

Hak Sovanna, president of the Alliances of Cambodian Agricultural Products Exporters, said the government lacked clarity on sanitary and phytosanitary requirements and the need to obtain a certification of origin.

“Some SMEs have no idea how to apply for SPS and CO registration,” he said, adding that “A more transparent process would help break down export barriers.”

Industry and Handicrafts Minister Cham Prasidh said the government could not give Cambodian products preferential treatment over imports due to free market dynamics.

“Our private sector has to build up its capacity, its quality and its standards of food safety to fairly meet the competition in the market,” he said.

The ministry has created 804 national product standards for local products, and producers are expected to register and maintain the quality of their products in accordance with these set standards.

“Local producers always complain of the difficulties when it comes to getting their products into the market,” he said.

“But often big and small companies alike do not meet our standards or don’t even register their products with the ministry at all.”

The investor group is led by Yunfeng Financial Group, the financial services company backed by Alibaba founder Jack Ma.

The buyers will pay HK$13 billion (Bt55 billion), with about 60 per cent, or about US$1.01 billion, in cash and the rest in Yunfeng stock. In turn, Yunfeng will take a direct 60-per-cent interest in MassMutual Asia, while GIC will hold a 7.5-per-cent stake.

The remaining investors comprise Ant Financial (5 per cent), Sina (5 per cent), Giant Interactive (2.8 per cent), Meyu International (9.8 per cent), Harvest Billion International (4.9 per cent) and Sheen Light Development (5 per cent).

GIC believes MassMutual Asia will continue to enjoy the consistent growth of Hong Kong’s life insurance industry, it said in a statement yesterday. The acquisition is at a very reasonable valuation and there could be significant value-creation through strategic collaboration among MassMutual Asia, Yunfeng Financial and Ant Financial, GIC added.

MassMutual, founded in 1851, has been reshaping its business mix under chief executive officer Roger Crandall, the South China Morning Post said yesterday.

The company has been seeking to expand in asset management and added a network of thousands of advisers in a deal last year with MetLife, SCMP said.

“Definitely, their [ERC] decision on the extension was unanimous, but the question is why 20 years? The contract is long, you have to look at the entire industry,” Senator Sherwin Gatchalian said.

Gatchalian said efforts should be made to make power cheaper, rather than making it more expensive, particularly when renewable alternatives like solar are available.

He said he was informed that Meralco just went into a 3.5 peso per kilowatt hour contract for solar, while the contract for coal is about 6 pesos per kilowatt hour.

“So, the difference is big and yet we would commit ourselves to 6 pesos per kilowatt hour in the next 20 years?” he said.

Gatchalian, who chairs the Senate Committee on Energy, noted the global trend of decreasing solar energy prices over time as a result of competitive bidding regimes instituted by other countries in their renewable energy sectors.

Various groups have questioned the ERC’s move to approve Meralco’s long-term agreements with seven power generation companies that they have called “sweetheart deals” with subsidiaries or co-owned companies.

These consumer groups, including Sanlakas, met with Gatchalian in his Senate office on Thursday asking for a Senate investigation on the issue.

The same group also led a rally on Thursday morning in front of the offices of Meralco Power Generation at the Ortigas Centre in Pasig City to protest the power sale agreements.

Asked whether his Senate committee intends to investigate these alleged midnight deals of Meralco, Gatchalian said: “Congress is now investigating that. We are monitoring that quite well, quite closely.”

In the House of Representatives, Congressman Carlos Isagani Zarate of Bayan Muna had claimed that Meralco’s PSAs were rigged when the November 6, 2015, start-up date of the Competitive Selection Process (CSP) for power contracting was “mysteriously” moved to April 30, 2016, by the ERC.

He said this act kept the door open for entry of over 3,500 MW of Meralco’s seven power supply contracts without the required bidding or competitive selection.

The CSP subjects all power supply contracts to competitive selection to be administered by a designated third party, institute transparency and enforce accountability in the power contracting of distribution utilities which, until CSP, was mostly done through negotiated bilateral contracts where the captive customers had no say or participation.