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SHOULD Asian nations cut interest rates in order to head off an expected economic slowdown this year? Countries such as Australia and Thailand have already begun the process. Others widely regarded as preparing to follow suit include Vietnam and the Philippines.

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IN A pattern that has repeated itself with depressing regularity for decades, yet another acrimonious debate has broken out in Manila about the wisdom of pursuing stalled peace talks with the rebel Moro Islamic Liberation Front (MILF).

Key Political Risks

President Benigno Aquino has stepped up efforts to lure foreign investors into the country, so far without much success. The country continues to be hobbled by widespread corruption and several long-running insurgencies. 

However, the government has had some success in reducing the budget deficit. The president also remains popular with voters. 

WHAT TO WATCH FOR:

  • Extent to which foreign and domestic investors show interest in big ticket infrastructure projects.
  • Increased spending on the air force and navy to counter Beijing's territorial claims in the disputed Spratly Islands. The issue could become an important point of contention at the East Asia forum in Indonesia in November.
  • The implementation of the "framework agreement" between Manila and the insurgent Moro Islamic Liberation Front announced in early October. If all goes well, a final peace deal may be signed by 2016. 

About Me

My name is Dr Bruce Gale and I am a senior writer with the Singapore Straits Times. I studied at  LaTrobe University (BA Hons) in Melbourne and later at the Centre for Southeast Asian Studies at Monash University (MA). My PhD thesis, which focussed on Malaysian political economy, was completed at the Malaysian National University (Universiti Kebangsaan Malaysia) in 1987.

From 1988 to 2003 I was Singapore Regional Manager for the Hong Kong based Political and Economic Risk Consultancy (PERC). 

I have written several books and articles on Southeast Asian affairs, including Political Risk and International Business: Case Studies in Southeast Asia (Pelanduk Publications, 2007). Books on language include Mastering Indonesian: a guide to reading Indonesian language newspapers (Pelanduk Publications, 2008)

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