Wednesday, August 5, 2015

Malaysia's anti-graft unit to ask Najib to explain US$671m donation







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Malaysia's anti-graft unit to ask Najib to explain US$671m donation


[KUALA LUMPUR] Malaysia's anti-graft unit said in a statement on Wednesday it would ask Prime Minister Najib Razak to explain a RM2.6 billion (US$671 million) donation that was deposited into his private bank account.
The Malaysian Anti-Corruption Commission (MACC) said it had verified the sum was given by a donor from the Middle East but could not disclose the donor's identity.
The MACC said it had confirmed this with the donor and through documents obtained from the bank that showed the money had been deposited into Mr Najib's account. But it said the donation had no connection to troubled state fund 1MDB .
A spokesman for the Prime Minister's office could not immediately be reached for comment.




The Wall Street Journal reported in July that investigators looking into allegations of graft and financial mismanagement in 1MDB found that nearly US$700 million was deposited into Mr Najib's private bank account. Reuters has not verified the report.
1MDB has debts of more than US$11 billion and Mr Najib is the chairman of its advisory board.
The MACC said it had been advised by the attorney-general to announce its findings on its own and not through the task force set up to probe 1MDB. The MACC will continue its own internal investigation into the donation.
REUTERS

Tuesday, August 4, 2015

Update: 27 dead after two trains derail in India

Update: 27 dead after two trains derail in India 


[NEW DELHI] Two passenger trains derailed after being hit by flash floods on a bridge in central India, killing at least 27 people in the latest deadly accident on the nation's crumbling rail network.
Rescuers have been searching through the night for passengers trapped on the trains that toppled when a swollen river struck the tracks in Madhya Pradesh state, railway officials said.
Roughly 300 people were rescued after about 10 of the trains' carriages derailed outside the town of Harda at about 11.30pm (1800 GMT) on Tuesday, police and other officials said.
A passenger described how water poured into the carriages in the minutes after the accident.





"Water filled the coach till here," the unnamed man told a regional TV station, gesturing to his waist.
Another said there was "a sudden jerk and the carriage broke and people were crushed under that".
Television footage showed carriages lying on their sides in a field of mud and medical supplies piled on a nearby station platform.
"There have been 27 deaths due to the accidents," Madhya Pradesh railway police chief M.S Gupta told AFP.
"All the coaches have been cleared and all bodies have been collected from inside," he said, adding that the death toll could still rise slightly.
At least another 25 people have been injured and taken to hospital, other rescue officials said, adding that carriages were not feared to have sunk in the river.
The Kamayani Express travelling from the financial city of Mumbai appeared to have been hit by a sudden surge of water on the swollen Machak river, derailing the last four to five carriages, railway ministry spokesman Anil Saxena told Indian television.
The Janata Express, travelling to Mumbai from the eastern city of Patna, was also hit by the water, with the engine and the first two to three carriages derailing, he said.
"There is some suggestion of flash floods on the tracks that caved the tracks. Most of the coaches had passed but the last few carriages were derailed," Mr Saxena said of the first train.
Rescuers with specialist cutting equipment and diving suits have been deployed along with doctors to the accident site.
WORKING IN DARKNESS
Rescuers were initally working through the night mostly in darkness, with the flood waters hampering their efforts.
"The entire area has been reeling under heavy rainfall for the last few days. The roads are badly damaged, even the access road," Mr Saxena said.
The heavy flow of water had pushed some of the bodies from the carriages into a nearby field, railway police chief Gupta said.
Monsoon rains have hit large swathes of the country in recent weeks, flooding rivers and roads and claiming some 180 lives in mainly western and eastern India.
The government has ordered an inquiry into the cause of the accident, while Prime Minister Narendra Modi expressed his sadness at the loss of life.
"Authorities are doing everything possible on the ground. The situation is being monitored very closely," Mr Modi said on Twitter.
"Rushing emergency medical and other relief personnel to spot, darkness, water creating hurdles but ordered all possible help. Trying our best," Railway Minister Suresh Prabhu said on Twitter shortly after the accident.
India's railway network, one of the world's largest, is still the main form of long-distance travel in the vast country, but it is poorly funded and deadly accidents are frequent.
In 2012, a government report said almost 15,000 people were killed every year in incidents on the rail network, describing the deaths as an annual "massacre" due mainly to poor safety standards.
An express train ploughed into a packed rickshaw in northern Bihar state last August, killing 20 people, some of them children.
India's government has pledged to invest US$137 billion to modernise its crumbling railways, making them safer, faster and more efficient.
AFP

Kerry and Chinese FM discuss tensions over islands

Kerry and Chinese FM discuss tensions over islands   


[KUALA LUMPUR] US Secretary of State John Kerry and his Chinese counterpart on Wednesday discussed rising tensions over the South China Sea, a flashpoint issue that has been stoked by Beijing's island building in the disputed waters.
Beijing has sparked alarm in the region by expanding tiny reefs and constructing military posts to reinforce its claims over the strategic waters.
The United States and Southeast Asian countries have called for Beijing to halt such activities, which have dominated discussions at the regional security forum, but China has refused.
Mr Kerry and China's foreign minister Wang Yi discussed the matter in Kuala Lumpur on the sidelines of the gathering, hosted by the 10-member Association of Southeast Asian Nations (Asean), which runs until Thursday.





But they downplayed the issue, a day after Southeast Asian warned the row was threatening peace and stability.
"I would just add I had a good meeting with the foreign minister of China and I hope very much that at this meeting over the course of today and tomorrow we will find a way to move forward effectively together, all of us," Mr Kerry said after their talks.
Mr Wang, meanwhile, told reporters that Mr Kerry "welcomed China's support for peacefully resolving the South China Sea issue." Beijing claims control over nearly the entire South China Sea, a key shipping route thought to hold rich oil and gas reserves.
Vietnam, the Philippines, Malaysia and Brunei - all Asean members - also have various claims, as does Taiwan, many of which overlap.
'PEACE AND STABILITY'
Before their bilateral meeting, Kerry had said it was just one of the issues in the two power's complex relations that would command attention in the talks.
These include plans for a September visit by Chinese President Xi Jinping to the United States and China's "great cooperation" on the recent Iran nuclear deal, Mr Kerry said.
On Tuesday, Southeast Asian foreign ministers said China's land-reclamation activities were raising regional tensions, with the Philippines slamming Beijing's "unilateral and aggressive activities".
The US and some Southeast Asian countries have called for China to freeze such activities.
Mr Kerry, in a meeting on Wednesday with Asean foreign ministers later Wednesday, said Washington shares their desire "to preserve peace and stability in the South China Sea".
He stressed the need to maintain "the security of critical sea lanes and fishing grounds and to see that disputes in the area are managed peacefully and on the basis of international law." But he otherwise avoided strong language.
China has insisted it will not discuss the issue during formal meetings at the forum, saying disagreements must be handled on a bilateral basis between rival claimants.
Diplomats and analysts say this stance is aimed at preventing Asean from presenting a more united front.
A Washington-based think tank said this week Beijing could be preparing to build a second airstrip on an artificial island.
China is already building a 3,000m runway on Fiery Cross reef, which could ultimately be used for combat operations, according to the Center for Strategic and International Studies.
AFP

Philippine inflation slows to record 0.8% in July








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Philippine inflation slows to record 0.8% in July


[MANILA] Philippine inflation slowed to a record low of 0.8 per cent year-on-year in July on lower electricity, petrol and transportation costs, the government said on Wednesday.
The rate of inflation was within the central bank's forecast of 0.5 per cent to 1.3 per cent, but marked a steep fall from June's year-on-year rate of 1.2 per cent, according to the Philippine Statistics Authority (PSA).
Petrol, electricity and water prices decreased by 1.1 per cent last month while transportation prices declined 0.5 per cent. Inflation for food and non-alcoholic beverages slowed to 1.3 per cent, the PSA said.
The figures were released ahead of a central bank meeting on interest rates next week, with authorities under pressure to help spur slowing economic growth.




"We will see at our meeting next week if there is (a) need for any adjustments to our stance of policy," central bank governor Amando Tetangco said in a statement following the release of the inflation data.
Tetangco said average inflation for the full year would likely fall "close to the lower end" of the bank's 2.0 per cent to 4.0 per cent target.
"We will monitor developments, especially those from external sources, that may raise volatility in financial markets or impact on inflation expectations," he said.
The monetary authority has kept its benchmark overnight borrowing and lending rates at 4.0 per cent and 6.0 per cent respectively since last year.
Year-on-year economic growth slowed to a three-year low of 5.2 per cent in the first quarter of this year due to lethargic government spending and weak exports.
It was the worst expansion for what has recently been one of Asia's fastest-growing economies since the last quarter of 2011, when it grew by 3.8 per cent.
The slowdown also imperilled the government's 7.0 per cent to 8.0 per cent growth target for the year.
AF
P

Rupiah falls toward 1998 low on bond outflows before GDP report

Rupiah falls toward 1998 low on bond outflows before GDP report


[JARKATA] Indonesia's rupiah fell to near a 17-year low after foreign funds sold the nation's bonds before data forecast to show growth slowing for a second quarter.
Overseas investors pulled a net 6.9 trillion rupiah (S$704 million) from local-currency government debt in a seven-day run of outflows through Monday, the latest Finance Ministry figures show.
Gross domestic product probably increased 4.64 per cent in the three months through June, compared with 4.71 per cent in the first quarter, according to the median estimate in a Bloomberg survey before data due Wednesday.
The rupiah fell 0.2 per cent to 13,518 a dollar as of 9.22am in Jakarta, according to prices from local banks. It reached 13,555 yesterday, the weakest level since August 1998, and is down 8.4 per cent this year in Asia's worst performance after Malaysia's ringgit.




"Investors are concerned that even with all the talk of reform and investment, we haven't seen execution on the ground," said I Made Adi Saputra, a fixed-income analyst at PT BNI Securities in Jakarta. "Markets can rebound if investors think growth and the rupiah has bottomed out, but that may not be the case, especially for the rupiah." BNI Securities sees the Indonesian currency weakening to 13,800 a dollar by year-end and forecasts 2015 growth will be 4.78 per cent, he said said.
Economic expansion in the third and fourth quarters may exceed 5 per cent, Bank Indonesia Governor Agus Martowardojo said on Tuesday, adding that he sees the current-account deficit narrowing to less than 2.3 per cent of GDP in 2015, compared with 2.81 per cent last year.
IMPORT TARIFFS
"The good news is, the current account is narrowing and that could give room for the central bank to cut policy rates come the end of the year," said Edward Teather, a senior economist at UBS AG in Singapore. "The central bank wants to ease, it just needs the window or the right macro economic conditions to do so."
Increases to import tariffs last month may boost inflation by at least 1 to 1.5 percentage points, dashing any hopes for a rate cut this year or next, Hak Bin Chua, an economist at Bank of America Merrill Lynch in Singapore, wrote in a research note released Wednesday.
The yield on government bonds due September 2026 fell one basis point to 8.54 percent, according to the Inter Dealer Market Association. The yield has risen 30 basis points in the past month.
BLOOMBERG

Nikkei Singapore PMI shows further improvement in business conditions in July




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Nikkei Singapore PMI shows further improvement in business conditions in July


SINGAPORE firms signalled a further improvement in overall operating conditions in July, according to the Nikkei Singapore purchasing managers' index (PMI) released on Wednesday.
The headline PMI was at 51.3 in July - up slightly from June's 51.1. This marked the second successive monthly improvement in the health of Singapore's private sector.
A reading above 50 signals improved business conditions in Singapore, while one below that shows deterioration.
Still, the rate of improvement remained modest overall, and slower than the series average, according to Markit (the financial information services provider which compiles the index).


Said Annabel Fiddes, an economist at Markit: "Private sector companies in Singapore signalled a further robust expansion in output at the start of the third quarter, which in turn contributed to the first increase in staff numbers for five months.
"However, client demand remains relatively muted, with total new work and new export business both declining slightly in July. Unless customer demand starts to show signs of reviving, this could weigh on overall growth of the sector in the coming months."
The Nikkei Singapore PMI covers a wider range of sectors and more companies than an existing PMI compiled by the Singapore Institute of Purchasing & Materials Management (SIPMM). The latter covers only the manufacturing sector.
SIPMM's manufacturing PMI reverted to contraction mode in July, slipping 0.7 point to 49.7 after rising for two straight months.

MH370: What happens to debris when a plane crashes in the ocean?

MH370: What happens to debris when a plane crashes in the ocean?    


[SYDNEY] Australia is leading the hunt for Malaysia Airlines flight MH370 which is thought to have gone down in the southern Indian Ocean, with experts in France due to examine Wednesday a wing part that washed up on La Reunion island.
The national science agency, CSIRO, along with the Australian Transport Safety Bureau, has performed drift modelling based on their current search zone for the jet that vanished last year en route from Kuala Lumpur to Beijing with 239 people on board.
Here are some of their insights released on Wednesday.
Q. What happens when a plane crashes into the ocean?


A. There is almost always some debris left floating after an aircraft crashes in water. The opportunity to locate and recover debris from the sea surface diminishes rapidly over the first few weeks from the time of a crash. Thereafter, some less permeable items of debris will remain afloat for a longer period but they will be increasingly dispersed.
Q. What type of debris from a plane is likely to float?
A. Items designed to float include seat cushions, life jackets, escape slides. Many items from the cabin, such as cabin linings and tray tables, which are made of low density synthetic materials, can also remain buoyant. Similarly, aircraft structural components may entrap enough air to remain afloat for reasonable periods and have been commonly found on the water's surface following a crash.
Q. How long does debris stay afloat?
A. Over time, all floating debris will become waterlogged and then sink. For some items this may be relatively fast. For example, items which are buoyant due to entrapped air will sink when the air is released or void spaces become filled, a process which is hastened by the action of wind and waves.
Other items constructed of materials which are less permeable, such as seat cushions, will float for long periods but they too will eventually sink when the material degrades through chemical and/or mechanical decomposition. This decomposition may take a very long time in the case of some synthetic materials, plastics in particular, but is quicker for items which biodegrade.
Q. Is it unusual for wreckage to wash ashore?
A. The opportunity to locate and recover debris from the sea surface diminishes rapidly over the first few weeks from the time of a crash. Thereafter, there will be some less permeable items of debris which will remain afloat for a longer period but they will be increasingly dispersed. Dispersal is directly related to the surface drift experienced by the individual items of debris, which in turn is related to their physical characteristics: size, shape and density. To be found ashore, an item of debris must remain afloat long enough and be subjected to the right combination of wind and currents for it to make landfall.
Q. Could debris from MH370 have drifted 4,000km west from where the current search for the plane is underway in the southern Indian Ocean to the French territory of La Reunion Island?
A. Yes. The most recent drift modelling indicated that most debris from MH370 is likely to have drifted first north then west away from the probable accident site in the 16 months since the plane disappeared to July 2015. The drift analysis undertaken by the CSIRO further supports that the debris from MH370 may be found as far west of the search area as La Reunion Island.
Source: Australian Transport Safety Bureau and the Commonwealth Scientific and Industrial Research Organisation (CSIRO).
AFP

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