RP manufacturing output up 5.9%

RP manufacturing output up 5.9%
JP/16/Money

MANILA: Manufacturing output in the Philippines grew 5.9
percent from a year earlier in June, the National Statistics
Office said Tuesday.

The figure was substantially lower than the double-digit gains
over the previous three months.

Nevertheless electrical machinery, a sector that includes
electronics and which comprises more than half of all merchandise
exports, rose 53.1 percent from a year earlier.

Furniture, petroleum products, and non-electrical machinery
all posted double-digit declines.

Aggregate capacity use by the 475 sample factories stood at
75.9 percent, up slightly from 75.0 percent in May, it added.

Philippine exports plunged by 15.6 percent last year amid
recession in the United States and Japan, its main export
markets. -- AFP

Thailand calls for FTA with Japan

TOKYO: Visiting Thai Deputy Prime Minister and Finance
Minister Somkid Jatusripitak told Japanese Finance Minister
Masajuro Shiokawa on Tuesday that Thailand wants to see the two
countries sign a bilateral free-trade agreement (FTA), Kyodo News
reported, citing a Finance Ministry official.

In a meeting at the ministry, Somkid said Bangkok believes
that it is also important to pursue an FTA linking the
Association of Southeast Asian Nations (ASEAN) with Japan, South
Korea and China, according to the official.

Shiokawa didn't comment on either proposal, but told Somkid
that Japan wants to establish a close relationship with the ASEAN
region that will be different from its ties with other areas,
according to the official.

Japan signed a bilateral FTA with Singapore in January this
year. -- Dow Jones

Malaysia considers hiring Vietnamese

KUALA LUMPUR: Malaysia is considering hiring Vietnamese
workers to ease a labor shortage after a mass exodus of thousands
of illegal aliens recently, a news report said Tuesday.

The Star daily quoted Deputy Foreign Minister Leo Michael
Toyad as saying the government has agreed in principal to import
Vietnamese nationals in labour-short sectors.

The announcement comes following an offer by Vietnamese Deputy
Prime Minister Nguyen Tan Dzung to Malaysian Deputy Prime
Minister Abdullah Ahmad Badawi at a meeting in Kuala Lumpur on
Monday.

Malaysian employers, particularly in the construction and
manufacturing sectors, have faced a shortage of workers since the
government began cracking down on illegal workers under a harsh
new immigration policy, which includes jail time and caning of
illegal aliens. -- DPA

Taiwan minister to visit Australia

TAIPEI: Taiwan economic minister Lin Yi-fu will travel to
Australia this weekend in a bid to secure deals for the supply of
oil, uranium and natural gas, the Economic Daily News reported
Tuesday.

Lin, on a business trip in New Zealand, will fly to Perth on
Saturday accompanied by Pan Wen-yen, president of the state-owned
Chinese Petroleum Corp. (CPC), the Taiwanese newspaper said.

An agreement for the CPC to acquire rights to explore for oil
reserves in north-western Australia was expected to be signed
during their stay, it added.

Australia was seeking to provide uranium to the island's
fourth nuclear power plant, which is expected to become
operational at the end of 2005, it said.

Australia was also trying to win a A$400 billion (US$11.7
billion) contract to supply state-owned Taiwan Power Co.
(Taipower) with 1.68 million tons of natural gas annually for 25
years beginning 2008.

Indonesia is competing for the natural gas deal. -- AFP

EU, South Korean talks break down

SEOUL :Two days of talks between the European Union and South
Korea broke down Tuesday with negotiators unable to settle a row
over alleged unfair price competition by South Korean
shipbuilders, officials said.

"During the consultations, the two parties were not able to
bring their positions closer," the European Union said in a
statement.

The EU was "rather disappointed" about a South Korean proposal
focusing on setting shipbuilding prices.

South Korea's commerce, industry and energy ministry said the
two sides discussed ways of setting minimum target prices but
failed to reach agreement.

However, the EU has proposed another round of high-level talks
in Brussels on Sept.16-18.

"Should these efforts fail, the EU has no option but to go to
the WTO," the European Union said, reiterating its warning it
would file a complaint with the World Trade Organization if there
no agreement by the end of September. --AFP.