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International Business News
Japan to help trim Asean development gap: Surin
AFP, Manila
Japan on Wednesday promised to help the Association of Southeast Asian Nations narrow the gap between its rich and poor members that could undermine economic integration.
Japanese Foreign Minister Masahiko Komura met with his ASEAN counterparts in Singapore and promised Tokyo would soon appoint a permanent ambassador to the bloc, ASEAN secretary general Surin Pitsuwan said.
"We are looking into further cooperation. They are supporting efforts of ASEAN in bridging the gap" between die rich and poor members, Surin said.
"We told them this was a structural defect within the ASEAN organisation. If we can't bridge the gap, it would be difficult to create one fully integrated economy," Surin said.
" Japan has taken that issue ver)' seriously."
Japan has already signed a free trade accord with ASEAN, under which about 90 percent of trade between Asia's largest economy and the 10-nation bloc will be tariff-free within 10 years.
ASEAN has also signed a landmark deal with Japan's economic rival, China, to create the world's biggest free trade zone by 2010.
China warns state firms against risky investments
AFP, Shanghai
A Chinese watchdog has warned state-owndd.enterprises to exercise extreme care when investing in a time of growing financial turmoil, state media reported Wednesday.
Li Rongrong, head of die State-owned Assets Supervision and Administration Commission, urged the companies to cut costs when getting involved in mergers and acquisitions, the Shanghai Securities News reported.
Ln a speech Tuesday, he especially warned firms with large-scale investments both at home and abroad, according to the report.
State-owned companies should avoid investments outside their core business, and should take care not to exceed their financial capacity or participate in projects with low returns, according to the newspaper.
Li also warned companies against using bank loans for speculative investments in securities and real estate.
In a statement posted on the administration's website, Li said state companies are facing challenges from high global raw material prices, a rising local currency and financing difficulties due to a tight monetary policy.
Limited success for poverty programmes in Philippines
AFP, Manila
The Asian Development Bank said Wednesday that its programmes aimed at lifting millions of Filipinos out of poverty have only had limited success.
"ADB assistance programme over the past five years has been successful in meeting its more selective objectives, despite need for improvements. However, the larger context for the next country strategy continues to be daunting," it said.
The Manila-based lender said it had lent nearly 10 billion dollars for programmes addressing the Philippines' fiscal woes, developing capital markets and ensuring reliable power supply.
Despite these, tax revenues slipped to 14.1 percent last year, below the 14.8 percent target set by the government, and poverty rose to 32.9 percent of the population in 2006 "despite robust growth.”
Sri Lanka tea output grows byover18pc
AFP, Colombo
Sri Lanka's tea production rose by 18.2 percent to 171.3 million kilograms (376.9 million pounds) during the first half of this year, the Sri Lankan Tea Board said Wednesday.
Production in June was 27.3 million kilograms, up 16.2 percent from the 23.5 million kilos during the same month last year.
"The weather gods have been good to us this year, while companies are also applying fertiliser periodically, despite high world prices," said Anil Cooke, senior vice president of the privately-run Asia Siyaka Commodity brokers.
Ceylon Tea is one of Sri Lanka's main foreign currency revenue earners along with remittances, clothing and tourism.
Sri Lanka, the world s largest exporter of tea after Kenya, has benefitted from the recent global commodity boom. It earned 507.1 million dollars from tea during January to May this year, up 43 percent over the same period in 2007.