Strategic Allies US and Singapore Aggravate Beijing

On 7 December,US Secretary of Defense Ashton Carter and Singapore Defence Minister Ng Eng Hen met at the Pentagon,where they signed an enhanced Defense Cooperation Agreement,or DCA.It provides for an expanded defence relationship between the two countries,the Pentagon said.Singapore already provides logistical support for US military aircraft and ships.A small number of US military personnel conduct logistics and planning activities in Singapore for US ships and aircraft in the region.
Singapore agrees that the US presence in the region is critical for peace,prosperity and stability in the Asia Pacific,as expressed in the 1990 Memorandum of Understanding and 2005 DCA the two nations signed.The enhanced DCA calls for continued cooperation in the military,policy,strategic and technology spheres,as well as in the new areas of humanitarian and disaster relief (HADR),cyber defence,biosecurity and public communications.It also introduces new high-level dialogues between the defence establishments of the two countries.*
Specifically,the defence relationship involves the US rotationally deploying US Navy littoral combat ships to Singapore.The USS Fort Worth was deployed there in December 2014.The next LCS will be deployed to Singapore in 2016 as the US ramps up to deploying four LCSs coterminously in the APAC region.
The US has just made the inaugural deployment of a US Navy P-8A Poseidon maritime surveillance aircraft to Singapore,which runs from 7-14 December,in accordance with the 1990 and 2005 bilateral defence agreements.Further deployments of the P-8A could be expected,a US defence official said.The deployments are to promote greater interoperability with regional forces through participation in bilateral and multilateral exercises,while providing timely support for regional HADR and maritime security efforts.
Besides these deployments of ships and aircraft,the US and Singapore air forces conduct joint exercises,personnel exchanges and cross-attendance of courses.Exercise Tiger Balm between the Singapore and US armies,as well as Exercise Commando Sling between the two air forces,which has grown in scale and complexity since its inaugural iteration in 1990,are concrete examples of such cooperation,as are the annual bilateral Cooperation Afloat and Training (CART) naval exercises.
Singapore and the US have served together in construction and stability operations in Afghanistan and Iraq,as well as in counter-piracy operations in the Gulf of Aden and in the anti-ISIL Operation Inherent Resolve.APAC countries must work together to counter transnational threats such as terrorism,maritime security and natural disasters,Dr.Ng and Dr.Carter agreed.*
China expressed concern about the enhanced defence cooperation between the US and Singapore.The Chinese Defence Ministry said we are paying close attention as to how the relevant situation develops and hope bilateral defence cooperation between the relevant countries is beneficial to regional peace and stability,and not the opposite.The Chinese Foreign Ministry said more bluntly that the P-8A's presence in Singapore was aimed at militarising the region,which does not conform to the common and long-term interests among the regional countries.
In May,the Chinese PLA Navy shrilly and repeatedly warned a US Navy P-8A that was flying near China's artificial islands in the disputed South China Sea,which China claims almost all of for itself,contrary to the views of the US and several Southeast Asian nations.The P8-A is also stationed in Japan and the Philippines.

Managing Director:Asia's New Rising Star

We expect the third and fourth quarter to look a lot better in China,said Nigel Chalk,PhD,Managing Director and Head of Emerging Asia Research at Barclays.In the end,they're gonna do more investment,more credit.Data show things are not as bad as people think.
India has much less room for maneuver.It's unclear how they're gonna turn around growth.We like the Philippines.They have a good fiscal and monetary policy side.On a lot of fronts,they seem to be the rising star.
Dr.Chalk was a longtime IMF official,most recently serving as Mission Chief to China.He received his Economics doctorate from UCLA and a MSc in Economics from the London School of Economics.
Barclays was named "Best Global Investment Bank" for 2011 by Euromoney magazine.
Hugh Young of Aberdeen Asset Management adds that Singapore has strong banks.Go with the strongest banks.Worry about the balance sheets,not the earnings power.
Barclays PLC(BCS)

Asia Executive:ASEAN Region Looking Robust This Year

The ASEAN Region-the Association of Southeast Asian Nations and its environs-is growing 5-5.5% this year,according to Stuart Dean,President,ASEAN Region at General Electric.We grew 30% there last year,and we expect double digit growth again this year.
All the businesses had a good year in 2011,and it looks similar this year.GE Aviation had a strong year,and we're gonna be pretty big this year as well.
I think the China landing is likely to be soft.For the next 4-5 years,ASEAN is likely to see growth of 5-6%.There's a lot more opportunity to sell locomotives in ASEAN.The living standards increase,and infrastructure plays a big part in that,Mr.Dean explained.
Stuart Dean has a B.A. in Economics and Political Science from Duke University,as well as an MBA from Harvard University.ASEAN has 10 members,including Indonesia,Malaysia,Singapore and Vietnam.
General Electric(GE)

NYSE/Euronext Sells Indian Stake

NYSE/Euronext has sold its 5% stake in the National Stock Exchange of India to Temasek,a Singaporean sovereign wealth fund,for 150 to 180 million dollars.The stake is part of a growing trend of foreign investment in robustly-growing India.India's central bank said the economy will grow at least 8% in the current fiscal year,which began April 1.
The National Stock Exchange has 1470 listed companies,with a combined market capitalization of about 1.3 trillion dollars as of March 1.NYSE/Euronext had purchased the stake in NSE in January 2007.At the same time,Goldman Sachs had purchased its own 5% of the Indian exchange.
Wisdom Tree Investments offers an India exchange traded fund,EPI,which includes 126 profitable companies,according to the firm.It is a fundamentally weighted fund,meaning allocation to the holdings is determined by their success.

Singapore Expects Solid Growth

Leo Yip of the Singapore Economic Development Board is expecting 4.5-6.5% growth this year,in tandem with the rest of Asia.That's exciting for us,he said.We think Singapore can play a role in companies expanding their Asian footprint.Singapore has excellent connectivity.It sits in the center of rising Asia,a global business city with a business infrastructure.As Asia rises,Asia is gonna demand more and more products and services that suit its own tastes.Singapore provides companies an excellent way to test those products and services for Asia.
We see the growth of Asia as a medium to long term trend,Mr.Yip explained.Singapore presents those companies with a useful proposition.We encourage companies to have a medium to long term Asian strategy.Singapore offers companies a place to integrate their Asian operations,in Mr.Yip's opinion.

China Extends Influence

China is entering the Singapore energy market by purchasing an oil refiner there.Petro China,its biggest oil firm,is to buy 45.5% of the Keppel Corporation's refiner,Singapore Petroleum.Petro China will pay one billion dollars for the stake,which will in turn trigger an offer for the remaining shares.Singapore is the largest oil trading hub in Asia,with 12% of the world's daily output transiting the Strait of Malacca,which is off the Singapore coast.By owning Singapore Petroleum,China may be able to sway the price of oil.China has been expanding its energy holdings at a vigorous pace for some years now.

Asian Highlights

Andrew Freris of BNP Paribas says that,in terms of balance sheet fundamentals,Asia has been essentially unaffected by the subprime mortgage problem.Asian central banks have been free to focus on inflation.Japan was a lender,so it is in better shape than the U.S.,which was a borrower.Singapore isn't much exposed to the declining U.S. export market.Medium term,Mr.Freris likes Asian financials.The Korean banks are the cheapest in Asia.Nonetheless,central banks in Australia,Japan and India have injected capital into their banking systems to counter instability in their financial markets,which have been troubled by the Western financial crisis.

Financial Centres Appraised

The Global Financial Centres Index has been released.The index is based on a statistical model and the opinions of experts.Factors considered include excellence of access,skill level of staff,and proportionality of regulatory regime.The rankings were:1.London,2.New York,3.Hong Kong,4.Singapore and 5.Zurich.Dubai and Shanghai are centres to watch.Singapore is gaining on Hong Kong,and centres at the bottom,such as Moscow,are continuing to climb.