In Thursday's Asia papers-16/09/2004-ICIS News

China remained an attractive destination for foreign investors who poured in $43.6bn (Euro35.7bn) during the first eight months of the year, 18.8% more than the same period last year, the government said. Contracted foreign direct investment, a measure of future business, surged 38.9% to $93.8bn in the same period, the Ministry of Commerce said in a statement on its website on Wednesday (15 September). While no figure for August alone was immediately available, the ministry's data seemed to complete a picture of an economy that stayed dangerously close to overheating last month. Inflation, one of the most reliable indicators of economic activity in China, rose 5.3% in August, remaining above the 5% danger line previously identified by policy makers.

China's full-year automobile production is set to fall sharply, official forecasts showed on Wednesday (15 September), as competition in the industry heats up amid plunging sales and a major oversupply problem. The National Bureau of Statistics (NBS) slashed its 2004 forecast to 2.39m units from 2.82m and trimmed the annual growth rate to 18% from 40% in the latest sign that earlier output estimates were overblown. From January to August, total sedan production was 1.58m units, up 25.4% from a year ago, the NBS said. It did not say what output was in August, although last week the Economic Information Daily, quoting the China Association of Automobile Manufacturers, said passenger car sales in August were 169 600 units, up 1.5% year-on-year after four months of declines. With output in July and August nearly flat, more than 30% of capacity stood idle as vehicle manufacturers were forced to cut prices to try and get through stalled inventories, the NBS said. China's vehicle market, currently the world's fourth-largest, last year saw astounding growth of 80%, but the pace of sales and output has plummeted as a government clampdown on lending to the auto sector has taken effect.

Indonesia will likely have a new president after next week's elections, two opinion polls showed on Wednesday (15 September). F

ront runner Susilo Bambang Yudhoyono led by about a 30-percentage-point margin over incumbent Megawati Sukarnoputri a week before the presidential run-off. In surveys conducted by the International Foundation for Election Systems and the Indonesian Survey Institute, Megawati has seen her ratings climb over the past month. But analysts said there was not enough time for her to catch up with her rival. Bambang's supporters saw him as being clean, honest and able to fight corruption and create jobs, while Megawati's supporters believed her experience would make for a stable government. The surveys also showed party power had done little to boost Megawati's chances. Despite her party's coalition with political juggernauts such as Golkar and the Indonesian Development Party, most respondents who voted for those parties said they would throw their support behind Bambang.

Channel News Asia, Singapore (online edition)

Anwar fails in final court bid

Malaysian dissident politician Anwar Ibrahim, on Wednesday (15 September) failed in a last attempt to erase his criminal record and free himself of a ban on holding political office, but he vowed not to be silenced. Malaysia's highest court, which two weeks ago quashed a sodomy conviction against the former deputy prime minister and freed him from almost six years in jail, denied a request to re-hear his appeal against his last remaining conviction, for corruption. The conviction means he cannot stand for party office or parliament until April 2008. Only a rare royal pardon can beat the ban, but Anwar said he was undecided whether to ask for one. He was speaking by phone from his hospital bed in Munich, Germany, where he was recovering from back surgery. Anwar has already served his sentence on the corruption count, which landed him in jail in 1999 and sparked violent street protests. He was accused of abuse of power in trying to cover up the sodomy investigation. Anwar said both convictions were trumped up by former leader Mahathir Mohamad to ruin his political career. A general election is not due until 2009, but a pardon would enable Anwar to lead a party or to stand in a by-election, making him a potentially more potent threat to the government, which he says needs to do more to tackle corruption.

Business Day, Thailand (online edition)

Channel News Asia, Singapore (online edition)

S'pore to hold terror suspects 2 more years

The Singapore government said 17 of the 19 men detained in 2002 for suspected terrorist activities will not be released for another two years. They were part of a second wave of Jemaah Islamiyah (JI) arrests in Singapore. Two of the 19, however, have been released but with some restrictions. The Biggen Hill radar station, the water pipes at the Causeway and on the Jurong Island were some of the strategic targets in Singapore which the terror suspects had surveyed and made sketches of. Some had also gone for military training at Al-Qaeda camps in Afghanistan. It was clear to authorities the men were linked to the JI and the Moro Islamic Liberation Front networks. Between August and September 2002, 22 men were arrested under the Internal Security Act (ISA). 19 of them were held for two years. The remaining three persons were not detained but were placed under Restriction Orders for two years from 15 September 2002.

Channel News Asia, Singapore (online edition)

Thailand soothes EU, Myanmar issue

The foreign minister on Wednesday (15 September) moved to mend a month-long rift between Europe and Southeast Asia over Myanmar, saying Asean (Association of Southeast Asian Nations) would not oppose a lower level Yangon delegation to an upcoming summit. European Union (EU) states agreed earlier this month to attend the 8-9 October Asia-Europe (Asem) meeting in Hanoi but said they did not want to see military-ruled Myanmar's top leaders there. Thailand questioned the EU's right to 'dictate' the summit's terms, but Foreign Minister Surakiart Sathirathai, said Asean would be satisfied if Myanmar sent Foreign Minister Win Aung. Myanmar has not yet officially announced who will attend the summit. The EU has also threatened to tighten existing sanctions unless Yangon took steps to improve its human rights record. Myanmar, formerly known as Burma, launched a national political convention earlier this year billed as the junta's first step in its 'roadmap' to democracy. It went into recess in July, and while no official return date has been set observers have pointed to November as a likely restart.

Business Day, Thailand (online edition)

In Thursday's Asia papers

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