WEBODIGY Business & Finance Journal

Increased exports of South Korea reached the highest level in 17 months to strengthen the signal in the country’s recovery from the crush of global recession.

Ministry of Economy explained overseas shipments rose 33.7% in December from a year earlier to U.S. $ 36.2 billion. This figure is higher than the median estimate of 10 economists in 27.9%. While imports rose 24% to U.S. $ 32.9 billion trade surplus so that there is U.S. $ 3.3 billion.

The high sales abroad that emphasize the strong recovery in South Korea, the third quarter the economy grew 3.2%. Exports in November 2008 recorded the largest decline for a year due to weak demand amid the financial crisis.

“Export growth will continue in the coming months following the increase in demand from abroad. South Korea should take advantage of China and the restoration of a small state affected the global recession,” said Kim Jae Eun, an economist at Hyundai Securities Co. in Seoul.

Sales of Hyundai Motor Co. and other South Korean car maker is expected to reach 1.4 million vehicles in the domestic market this year, higher than the estimate of 1.37 million in 2009.

Hyundai Heavy Industries Co., the largest shipbuilder in the world, targeting orders reached U.S. $ 17.7 billion in 2010.

During 2009, the Ministry reported a trade surplus reached a record U.S. $ 41 billion as imports fell 25.8% and exports rose 13.8%.

Exports in January predicted to grow double digits from last year after the global financial crisis cut shipments in January 2009 of 34.5%.

The Ministry also explained exports will increase 13.2% this year, after the 2009 fall of 13.9%. Exports to China, South Korea’s largest market products, up 74.4% on the first day of December 20th. Shipping to the U.S. also rose 8.7% and to Europe rose 49.4% in the same period.

Prime Minister Lee Hsien Loong said Singapore’s economy started to squirm after having contractions for the first time in 2001.

In yesterday’s New Year message, Lee said the gross domestic product fell 2.1% in 2009. Achievement is in line with government estimates of the contraction of 2% -2.5%. Ministry of trade expansion projected 3% -5% in 2010. This figure is again mentioned by Lee.

“Our economy is growing again, and rose from the recession that hit since 2008. The global economy is beginning to stabilize. U.S., Japan, and Europe is also growing again although there are still problems,” he said.

Singapore along with other Asian countries out of the global slump last year after the regional government stimulus flushing almost Rp1 trillion. Even so, demand for domestic products is still weak as Stats Chippac Ltd..

Lee said the economy grew 3.5% in the IV quarter of the previous year. That figure is still below the median estimate of nine economists by 3.8%.

While eight other analysts predict annual GDP contraction of 2.1% in the IV quarter of the previous quarter. Ministry of Trade will launch this data on January 4.

Economist CIMB-GK Securities Pte Song Seng Wun said the Lee-economic project in the Southeast Asian country could be shrunk to 5% in the IV quarter of the previous three months.

Singapore’s economy experienced a contraction in the 12 months to March as the deterioration of global recession.

Thailand’s benchmark stock index that had the biggest gain in 6 years, is estimated to fall down the middle of next year due to political instability and high inflation.

Siam City Securities analyst Sukit Udomsirikul Co. predicts the SET Index fell to the lowest level at 540 Second or third quarter of 2010. That means fell 26% from yesterday’s closing position.

“There was a sharp correction in the Thai market in the mid of next year due to political confrontation which could reach a critical point. Interest rates may start rising in the second half due to acceleration of inflation,” said Sukit, which ranked third best analyst of the Securities Analysts Association selection in 2008, the day it.

Thai stock index followed in Indonesia, Malaysia, Philippines, and Singapore since the 2006 coup which removed former Prime Minister Thaksin Shinawatra. While PM Abhisit Vejjajiva, who came to power about a year, facing pressure of demonstrations security of Thaksin’s supporters in April.

Moody’s Investors Service in September of Thailand held a negative credit rating outlook by considerations of political unrest and the potential collapse of confidence. Inflation rate probably rose to 3% -4% this year and continue early next year due to fuel prices.

SET Index rose 63% during this year which is the best performance since 2003 and better than 2008 which fell 48%. Expectations of economic recovery that will be able to raise revenue to support stock index.

Ministry of Finance reported Thailand’s economic growth estimated at 4% in 2010 supported by higher government spending and exports rebound.

Sukit explains stock index could rebound to the level of 880 in the first quarter triggered IV/2010 government spending to stimulate consumption and rising exports following the restoration of global conditions.

Abhisit implement a stimulus package worth 116.7 billion baht (U.S. $ 3.5 billion) for the construction of roads, bridges, and other public purposes to create jobs and economic growth.

Profits of steel companies in China is estimated to drop to 40% to 50 billion yuan (U.S. $ 7.3 billion) this year.

According to Qi Xiangdong, deputy secretary-general of China Iron & Steel Association was quoted in the China Securities Journal today, most steel companies are still suffering from losses in November.

This, he added, due to high costs and low selling prices despite a high turnover rate.

Qi added profits for steel companies on 72 November to reach 7.3 billion yuan and the results expected in December for less than the level that

Golkar Party faction (FPG) asked President Susilo Bambang Yudhoyono (SBY) to delay the implementation of free trade China-ASEAN (China-ASEAN Free Trade Area / CAFTA) considering the very adverse effects for the national manufacturing industry.

CAFTA by the Golkar Party faction will potentially increase the rate of unemployment and poverty in absolute terms. The statement was made by the Secretary of the Golkar Party faction Ade Komarudin via Press Release that was sent to the media, Sunday (10.1.2010).

“With the implementation of CAFTA, the national manufacturing industry which has been used as a national backbone to absorb labor would be closed by itself. Our manufacturing industry will not be able to compete from the invasion of China products. As a result, unemployment and poverty rates soared, due to widespread layoffs and lack of investment in manufacturing industries. When this happens, it is quite likely to trigger a national instability, “he said.

Therefore, continued Ade, the Golkar Party asked the government to postpone the agreement for the national interest is greater. “Developed countries are also doing that, if the interests affected nasonalnya. Look at the attitude of the United States and other developed countries in WTO negotiations, they tried and are very protective of its national interests,” he said.

According to Ade, the Golkar Party faction argued, but will increase unemployment and poverty, CAFTA will affect the balance of trade imbalance between China and Indonesia. “We are only able to sell raw materials or semi-processed yet, while the government is aggressively pushing China to export to foreign countries with schemes to encourage industry policies that can compete in a productive, so between our imports and exports will be crippled by itself,” he explained.

He said, to grow and develop national industry is still plagued by a lack of infrastructure, high transport costs and port services are still complicated. “With such a large obstacle, the Golkar Party faction rate is unethical for the government to let the national manufacturing industry ‘dead’ by itself due to the implementation of CAFTA agreement.”

Industrial sector which will sink if the study is performed according CAFTA Golkar Party is the textile industry and textile products (TPT), petrochemical industry, industrial equipment and agricultural machinery, footwear, synthetic fiber industry, electronic industry (including cable and electrical equipment), industrial machinery, industrial engineering and steel industry.

“In Vietnam we have manufactured products have lost, especially with China products. That’s why we suggest to the government to examine and assess which products are ready for release within the framework of free trade, and for industrial products that have not been able to compete government should do renegoisasi back to the products included in the list of delayed free trade China-Asean. ”

To help the performance of national industries in the face of global competition, FPG asked the central and local governments to establish a harmonious relationship with the business. “The government should assist the business community in an effort to improve performance through regulation, incentives and facilities that enable businesses to compete competitively. Central and local governments must be synchronized to take and implement policies. So far, the central government policy, sometimes run differently in the region, it is reflected by the number of laws that are not business friendly. ”

Golkar Party faction admitted, that the CAFTA agreement also opens new market opportunities for national industry. “Viewed from the population, the FPG admitted, that the potential market is huge. So the national industrial opportunities to enlarge its market share is also very large. Therefore, FPG in the proposal asked the government to delay implementation for manufacturing products that certainly has not been able to compete,” he added