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India, so far has shied away from large scale manufacturing exports. However, as per McKinsey Report, ‘Made in India’ brand will be the next big thing in the upcoming years. With developed nations trying to manufacture and source products from low cost countries (LCCs), it is predicted that in the coming years, India is likely to gain significantly from this evolving global trend. The biggest USP that will help India leap-frog is its educated cheap work-force.

According to the report, India’s manufacturing exports was US$40 billion in 2002 which will increase approximately to US$300 billion by 2015, which roughly translates into 3.5 per cent in world manufacturing trade.

Moreover, the increase in manufacturing exports will create 25-30 million new jobs in the manufacturing domain and add 1 percent to India’s annual GDP growth rate. However, to go full-throttle in manufacturing exports the Indian manufacturers will need to assume a global outlook, marketing flair, cost-efficiency, and prudently select the product segments, where they can gain the maximum vantage point. Improvement in taxation, infrastructure, SEZs, and skill enhancement should also be focused upon to help India climb up the export ladder.

SKILL-INTENSIVE INDUSTRIES IN FOCUS FOR MANUFACTURING EXPORTS

It is reported in 2002, US imported good worth US$1,300-US$1,400 from LCCs. Labour-intensive industries like toys, apparel and footwear and skill-intensive industries like computer hardware and consumer electronics formed a huge part of US imports.

The Low Cost Countries which actively exported their products to US included, China, Taiwan, Malaysia, India, South Africa, Turkey, Brazil, Indonesia, Thailand, Poland, Russia, Mexico and the Philippines.

From now onwards, the offshoring will include skill-intensive industries such as auto components, industrial electronics and specialty chemicals. This will result in increased exports of goods from LCC, from the current US$1,300-US$1,400 billion to US$4,000-US$4,500 billion by 2015.

The factors that will aid this growth rate are: growing strong supplier base in LCCs, margin pressure in players in home markets and the unshackling of regulatory barriers enforced by World Trade Centre.

INDIA HAS THE CAPACITY TO CAPTURE ABOUT US$300 BILLION IN MANUFACTURING EXPORTS BY 2015

India’s manufacturing exports in 2002 was US$40 billion, way below China’s manufacturing exports US$ 300 billion, Taiwan’s US$ 145 billion, MexicoUS$ 140 billion, Malaysia’s US$78 billion and Thailand’s US$55 billion. Notwithstanding its restrained start, India still can make it to the top three in terms of exports, by 2015. In 2002, India’s export’s was just 0.2 percent of the total world exports. Now, the economy aspires to achieve 3.5 percent by 2015.

Powered by skill intensive industries like auto components and pharmaceuticals, cheaper wage rates, good engineering skills, well set-up raw material bases, a growing suppliers list and evolving domestic demand will help India script a new chapter in manufacturing exports.

In-depth study, demonstrates that of the approximately US$300 billion targeted of manufacturing exports, US$70-US$90 billion could be easily gained through just four segments –apparel, specialty chemicals, auto components and electrical and electronic products.

India total exports in these four sectors in 2002 were just US$ 10 billion. In apparel alone, global trade could raise from US$200 billion in 2002 to over US$300 billion by 2015. Of this, India can grow from US$6 billion in 2002 to US$25-US$30billion by 2015, i.e., thereby can earn the reputation of being the second-largest LCC exporter with 8-10 percent of global trade. China has currently captured 20 percent of the world trade and in the future may capture 40-50 percent of the world trade.

When it comes to auto components, LCC offshoring is poised to reach US$375 billion by 2015. India should attempt to capture US$20-US$25 billion of this by 2015. India’s exports in 2003 touched US$1 billion, which means the growth rate required is almost 30 percent a year.

Competing LCCs, for instance, Thailand and China have been trying to achieve phenomenal growth rate over the last three years in this sector, so we don’t see any reason why India should stay behind.

In electrical and electronic products, India should bid to capture US$15-US$18 billion, in comparison to exports of US$1.2 billion in 2002.

Quite a few Indian companies are already made headway in areas such as pharmaceutical intermediates and India is leading LCC exporters in segments like dyes and intermediates, Active Pharmaceutical Ingredients (APIs) and agrochemicals for crop protection.

India can definitely achieve the aforesaid goals if Indian companies, the central and state governments and MNCs go hammer and tongs to achieve this goal.

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Source by Devis Martin

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When thinking of the art of Indochina, one tends to think mainly of the Buddhist art displayed in temples across the area or of the Khmer architecture of Cambodia. But that is to miss a lot of what Indochina has to offer to the art lover. And the region’s art is not all ancient! There is a flourishing contemporary art scene throughout the area, attracting serious buyers and collectors from across the globe.

To take Vietnam as an example, we can see a long history of artistic works, from the stone age to the present day. As with many aspects of Vietnam’s culture, influences have been absorbed from far and wide. Some of the oldest art is displayed through decorated bronze drums depicting scenes of everyday life such as farming, fighting, shipbuilding, music making, etc. Later the influence of China was dominant and the Vietnamese learned many new skills and techniques. Ceramics and porcelain became important.

After independence from China, art continued to flourish, with artists combining elements from whichever cultures they came into contact with. During the Nguyen dynasty, Vietnam’s last imperial dynasty, the emperors encouraged artists and Vietnamese ceramics were exported across Indochina and beyond. Today, calligraphy, originally based on Chinese, now continues using the Roman alphabet, making a unique art form while silk painting and woodblock prints are also very popular.

During the French colonisation, artists across Indochina began to absorb European influences and the French established several art schools. Today that tradition of absorption continues and there are rich, vibrant art scenes in Hanoi, Phnom Penh, Bangkok etc. In Hanoi, for example, the old district is a maze of streets where you can find several galleries specialising in contemporary Vietnamese art. You can even find a French style café with art displays and sales.

When in Indochina look out for the architecture, not only the original architecture of the indigenous people, but also the strong influences of the Chinese and French. In particular, look out for where these have combined to create something innovative.

Laos has a more religion based art. The decorative arts and architecture of the temples and the Buddhist sculptures comprise the high art while in the folk arts the many minorities have their own distinctive styles. Lao ceramics were unknown until the 1970s when they were discovered during excavations in the Vientiane area. Again, western art using oils and water colours were introduced by the French and there is a small but active art community in Vientiane, centred on the National Faculty of Fine Arts, producing original works. Vientiane’s T’Shop Laϊ Gallery displays and sells contemporary art.

As with much of its population, Cambodia’s artists suffered unimaginably during the Pol Pot era, but today, thanks to the Cambodian government. NGOs and the growing number of visitors, a dynamic art scene has emerged here combining the ancient and the modern. But Cambodia’s arts highlight must remain Ankor Wat, the peak of the Khmer civilisation’s artistic achievement. The architecture and decoration will leave a permanent impression.

Thailand, being the most outward looking nation in Indochina, with its more established tourism has a thriving contemporary art scene and has taken part in many European art events. Again, contemporary Thai art combines modern techniques and ideas with the more traditional, which in Thailand’s case also means the Buddhist tradition. Traditional art is to be found in the sumptuously decorated temples and in the Buddhist statues. Most art is to be seen in the innumerable temples, but there is also a fine collection in the National Gallery of the National Museum in Bangkok, as well as in many smaller galleries.

Yunnan in southwest China has a strong tradition of ethnic art from its minority peoples. Woodblock prints are especially popular, with each artist taking weeks to create each work. Batiks are also produced featuring both traditional and modern topics and themes. Towns and cities such as Dali, Lijiang and Xishuangbanna’s Jinghong have gallery shops where you can see and purchase this special art.

Please note that most countries in Indochina have restrictions on the export of antiques. Thailand does not allow even new Buddha images to leave the country without a licence. You can visit http://www.indochinaodysseytours.com to get more information about this.

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Source by China Odyssey Tours

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When transferring money overseas the first effective factor to consider is the amount of money that is to be sent, as this can directly affect the method to choose for the transfer. Below, we will look at the two likely situations.

A. Sending Small Amounts:

Sending small amounts of money overseas means that the currency exchange rate will not be the most important factor in the transfer and one could save money by choosing commission-free or low-commission services which are fast and secure. Although the presence of a bank account on either end means that funds can be transferred through international wire transfers for a small transfer fee (£10-35) and usually commission-free, the bank-to-bank transfer of money can take from 1 day to several weeks depending on the service you choose. You will have a choice of wire transfer (1 day to complete, most expensive), cheque (5-7 weeks and relatively expensive), Foreign Draft (3 weeks and relatively cheaper) and money order (5 days and quite cheap).

When sending a cheque abroad the recipient will need to pay the processing fee and it will take about 4-6 weeks. Even though it’s easy to issue a cheque to transfer money overseas, it may not be easy for the recipient to cash the cheque, especially with some countries having banking systems which tend to be less welcoming towards foreign-drawn cheques.

Foreign drafts can take from a few days to a week to be prepared by the initiating bank, depending on the city or town it is in. The money comes out of the account when the draft is prepared and not when the recipient gets it. Since the draft is drawn on your bank to another bank, the recipient must have access to the corresponding bank in order to cash the draft.
Wire transfers can be initiated without the need to be a customer of the bank, for an extra charge, provided the money is paid to the bank in cash. Although wire transfer is the most expensive type of bank transfer it tends to be much faster and more secure, but the recipient still needs to have access to the corresponding bank.

While bank transfers may not provide for the most cost-effective international money transfer method, they have the advantage of being able to transfer money overseas to almost all countries, a limitation set by many other services.

This all was possible with the presence of a bank account on either end, but many cases of international money transfer do not actually involve a bank account on either end. For such types of transfer, i.e. cash transfers, customers must refer to international money transfer companies such as Western Union, MoneyGram, and Travelex. WESTERN UNION, MONEYGRAM, AND TRAVELEX

Western Union is known to be the leading service for international money transfer where there is need to transfer money overseas in cash or without involvement of a bank. Western Union has been in business since the early days when it would send wire transfer on actual wires using telegraphs, contributing towards the remaining name for today’s ‘wire transfers’ now referring to electronic exchange networks. Western Union uses its many 245,000 many transfer agents in over 200 countries to send and receive money abroad. A customer takes cash to a local money transfer agent, fills-in a form detailing the recipient’s name and the destination country, and pays the money to the agent. This agent will then inform the recipient agent about the money transfer providing them with the same transaction code given to the payee. Meanwhile the payee will have contacted the payment recipient and provided him/her with the transaction code. This code is then used by the recipient to collect the money from the money agent residing in the destination country. The whole process could take as little as 20 minutes depending on the two countries.

Although Western Union is known to be a very fast and secure international money transfer service, it is also known to give customers a relatively poor exchange rate as well as having high-rate commissions. That being the case, Western Union is now finding increasingly new rivals in the business including MoneyGram who claim to have cheaper rates compared to Western Union.

MoneyGram being one of the main rivals of Western Union operates in over 170 countries through more than 75,000 outlets. One must, however, bear in mind that despite the claim to have cheaper rates than Western Union, the actual cost of any one transaction may be either higher or lower than that offered by Western Union.

Founded in 1976 by Lloyd Dorfman, Travelex is the world’s largest non-bank foreign exchange payment company serving over 29 million customers in 29 countries each year. Countries include United States of America, Canada, United Kingdom, Malta, Netherlands, Belgium, Germany, Switzerland, Finland, France, Czech Republic, Italy, Bahrain, Oman, Hong Kong, Singapore, Indonesia, Thailand, Australia, and New Zealand.

About 40 percent of the world’s airline passengers now pass through airports at which Travelex operates its retail foreign exchange branches, including the major gateways at London, New York, Hong Kong, Frankfurt and Sydney.

In Jan 2006, Western Union signed an exclusive global agreement with Travelex. Travelex locations will now only offer the Western Union Money Transfer service, making it available at 650 of their 700 retail locations in city centres and across 97 airports worldwide. The agreement marks an important milestone in the ongoing expansion of the Western Union global network. The addition of Travelex, in particular locations at the world’s leading airports, extends Western Union’s connection to the more than 185 million people living outside their country of origin.

Recently, these companies have introduced a good online service that provides for estimating the transaction costs as well as making it possible to transfer money overseas through their websites and online. This has also eliminated the need to pay-in by cash, where credit/debit card payments have also become an alternative. Payment collection must however be done in-person, except in some countries where Travelex will transfer cash to a bank account instead.

All the above companies tend to pose restrictions on the amount of money that can be sent per transaction, although it is highly discouraged to send large amounts of money overseas through these companied due to the poor exchange rates they give their customers. Alternatively, in the case of large transfers, it is suggested to transfer money overseas through Forex Brokers. B. Sending Large Amounts:

All the services and companies mentioned above are known for giving their customers substantially poor exchange rates and hence less value for money. A single percentage of difference in exchange rates would mean hundreds of thousands of dollars of difference in the final price, where large amounts of money transfer are in place.

In such cases it is best to refer to specialist international currency companies that are part of the forex who usually tend to provide better exchange rates, generally commission-free, due to their competition with the leading dealers in the foreign exchange market (Forex).

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Source by Ali Jamalan

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Recently Capgemini, the global consulting, technology and outsourcing services major, in its latest report has said that global manufacturers in their quest for newer places to carry out their operations, may find India as a favourite destination. The report even said that India can emerge as the ‘number one outsourced manufacturing destination due to its competitive cost advantages over China’.

The report also rightly noted that India is now diversifying from its stronghold in the IT and BPO segment to the manufacturing segment, which is currently dominated by its neighbour, China.

If we base our assumptions on the findings of this report, I see an early stirring of a manufacturing-based economic growth in the country.

And why not? I agree that for decades, manufacturing in India has been plagued by draconian labour laws, bad infrastructure and extensive paperwork. But the authorities have, of late, been burning the midnight oil to do away with these bottlenecks and have considerably succeeded. And this is being noticed by global manufacturing giants.

Take for instance, India’s Special Economic Zones (SEZs); these zones can spearhead its export-led industrialization providing tax holidays and other incentives. SEZs also will have more control over infrastructure like water and power and less regulation. They can create an appetite for worldwide giants to come to India.

India’s emergence as a manufacturing hub has, and will continue as multinationals are looking for alternatives to China. A talent shortage is lifting wages in China, which has already led to Chinese goods becoming costlier and reducing its advantages over India.

Above that, the West is threatening to impose anti-dumping duties on several Chinese products which has become a matter of worry for multinationals with operations in China. This will be another strong factor that will keep multinational manufacturers interested in India. Without doubt China’s low-cost tag is not without risks. India scores a point here!

Although critics are of the opinion that certain Southeast Asian nations, including Thailand, Vietnam and Cambodia, can attract global players, I strongly feel that India’s advantage lies in the fact that it has a big domestic market of more than one billion people. This is where the other Southeast Asian countries lose out. Add to that the low Indian wages as compared to an average daily wages in Thailand or China.

I agree with the Capgemini report that India has to make significant investments for improving its infrastructure to cater to the increased demand of manufacturing and supply chain operations. Indeed the Indian government is eager to attract foreign manufacturing activities, but it will need to make significant investments to harvest this potential….there is no doubt about that.

Even the best reasoning and rationale will only tell us all that the next great manufacturing story can be that of India. Let’s all work towards this!

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Source by Bikky Khosla

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The Indo-Malaysian genus of Aquilaria in family Thymelaeaceae contains nearly about 15 species & Aquilaria malaccensis is one of them. It is a strong tree that can attain a maximum height of 40m and radius of 2.5m and mostly found in tropical forest conditions prevalent in an altitude range of 0-1000m above the sea level. This particular species grows in abundance at areas including Malaysia, Indonesia, India, Bangladesh, Bhutan, Philippines, Myanmar, Thailand & Singapore. Auillaria malaccensis & Auillaria agollocha are famous for producing highly expensive & aromatic heartwood. This resinous heartwood is given several names including Gaharu, Agarwood, aloeswood, oud, Jinko & eaglewood. The demand for this wood is rising fast due to its large scale application in Agarwood beads, Aloeswood oil, Agarwood incense & perfumes across Middle East & Asia. 

The illegal cultivation & trading of Aloeswood is putting this species under threat. Therefore Gaharu producing countries have formulated forest laws to protect its habitat. The law in some form or other regulates cultivation of Agarwood in Indonesia, Malaysia & India but countries like Thailand, Singapore, Myanmar, Philippines & Bhutan have made the species fully protected. India has put a ban on the export of all Agarwood products except Oud oil. Similarly the trade & cultivation of Auillaria is not legalized in Bangladesh. So nothing can be said for sure about the conservation of Agarwood in this country. However, Agarwood cultivation & trading quota has been fixed for each year in Indonesia. The cultivation quota for A. malaccensis accounts for four more species of Agarwood plant namely A. hirta, A. microcarpa, Gyrinops versteegii and A. beccariana. There is no specific governing body to supervise the trading & conservation of Agarwood in the South East Asian countries.

The export & import of Oud oil for the international trade market has all started from India & proceeded eastwards to Borneo & Sumatra through Myanmar, Malaysia, Indo-China bordering states, Indonesia & Philippines Since 1997, Papua New Guinea has been supplying a major chunk of Agarwood products including Jinko chips oil, Agarwood chips & Agarwood incense in international market. Earlier all its exported products to Singapore were sourced from Aquilaria filarial but later changed to Gyrinops iedermannji in 1999. Malaysia & Indonesia have been among the top suppliers of Aloeswood in global market with an export record of 1,043 t and 2,420 t in the years 1995 & 2001 respectively. Singapore is re exporting several Agarwood products including Agarwood chips, Aloeswood oil & Agarwood dust/powder from both Malaysia & Indonesia & continuing to influence the global trade statistics in a remarkable way. A whole total amount of 1,448t has so far been re-exported from Singapore in between the period of 1995-2001. India, Thailand & Hong Kong S.A.R are also among the Agarwood consuming & re-exporting states. Taiwan has been into export and import of A. malaccensis & Aquilaria spp for decades. Some other global recognized Agarwood supply sources include Saudi Arabia, Japan & United Arab Emirates. Both Malaysia & Indonesia has reported export of a variety of Agarwood producing species such as A. beccariana, A. microcarpa & Aetoxylon Sympetalum under the name of A filarial & A. malaccensis. Singapore finds difficulty in identifying the Agarwood species during export/import. 

Agarwood grown in different countries does not show the same characteristic features. It is divided into separate grades depending on the type of product used in trading & the place where it is grown. Hence the value of Aloeswood and its extracts such as Agarwood beads, Oud oil, Agarwood incense, perfume, wine & tea is decided on the basis of certain factors including its source, aroma value, duration, purity, wood thickness, resin quantity, size & color. The kind of quality of Agarwood produced in a country may vary a lot from others. Some professional Agarwood dealers in Singapore are offering high quality Agarwood chips for USD$40, 00/10gm excluding freight charges.

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Source by loardjohan

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ECONOMY. Indonesia is a market-based economy but the government plays a significant role in the country’s economy with 160 government-owned enterprises. Indonesia’s GDP per capita ranks fifth after Singapore, Brunei, Malaysia and Thailand. The Asian economic crisis of 1997 adversely affected the country economy and businesses and caused spiralling prices of necessities resulting in social unrest. Future prospects of Indonesia’s economy are bright with economic structural reforms in placed since the Asian economic crisis.
Indonesia’s GDP was US$258.3 billion with a GDP per capita of US$1,193 in 2004. Indonesia’s real GDP grew at an average of 4.6% annually from 2000 to 2004 driven by domestic consumption accounting for nearly three-quarters of Indonesia’s GDP. Inflation rose from 3.8% in 2000 to 11.9% in 2002 but eventually declined to 6.1% by 2004. GDP per capita increased from US$801 in 2000 to US$1,193 in 2004 but unemployment also increased from 6.1% to 9.9% during the period.
The manufacturing sector contributed towards 43.7% of Indonesia’s GDP in 2004 while the service sector contributed 40.9%. Though nearly 45.0% of the country’s workforce is involved in agriculture, this sector contributed only 15.4% of the country’s GDP during the period. Major industries include petroleum and natural gas, textiles, apparel, footwear, mining, cement, chemical fertilisers, plywood, rubber, food and tourism. Major agriculture products include rice, palm oil, rubber, cacao, peanuts, copra and cloves.

DEMOGRAPHY. Indonesia comprises nearly 18,000 islands and has the largest population among the Southeast Asian countries with 217 million people in 2004. Main islands are Java accounting for 55% of the population followed by Sumatra (18%), Kalimatan (5%) and Sulawesi (6%). Other less populated islands include Irian Jaya, Bali and Nusa Tenggara.
Indonesia is a country of diverse ethnic and sub-ethnic communities with different languages and dialects, cultures and foods. The Javanese accounts for 45% of the population followed by Sundanese (14%) and Madurese (8%) and coastal Malays (8%). Chinese who migrated to Indonesia during the Dutch colonial period account for nearly 5% of the population. Islam is the predominant religion followed by Christianity and minority religions include Buddhism and Hinduism. The national language is Bahasa Indonesia (similar to Malay used in Malaysia, Singapore and Brunei). English is not widely used but many businesses and government officials dealing with foreign companies and foreigners are fluent in the language.
More than half of the population live in the rural areas but the proportion of the urban population is increasing from 36.0% in 1995 to 45.0% by 2004. Major cities include Jakarta with a population of 10 million followed by Surabaya, Bandung, Semarang, Yogyakarta, Surakarta, Medan and Padang.
Nearly 25% of the population live below the poverty level while another 60% are from the lower income group. The remaining 10% belong to the middle income and 5% in the higher income group. Though Indonesia has a relatively small proportion of middle to high-income consumers, this equates to nearly 33 million consumers. This is more than Singapore’s 4.3 million population with a GDP per capita on par with many advanced economies of the European Union.

INFRASTRUCTURE. Indonesia’s domestic telecommunication system is generally fair while its international services can be categorised as good. Internet broadband services are mainly concentrated in the major cities. Road systems are more developed on Indonesia’s populated island of Java, fairly developed in Sumatra and Sulawesi but poorly developed on the island of Kalimantan. Besides sea ports serving the international shipping lines, Indonesia are also served by smaller sea ports serving coastal shipping. All the cities and major towns are connected by airline services.

INTERNATIONAL TRADE. Indonesia’s major trading partners include Japan, US, Singapore, South Korea and China. Much of the imports from Singapore are Singapore’s re-exports from other countries and exports to Singapore are re-exported to other countries. Main exports from Indonesia include oil and gas, electrical appliances, plywood, textiles and rubber products. Main imports include machineries and equipments, transport equipments, chemicals, fuels and foods.

CONSUMER USAGE OF TECHNOLOGY. Mobile phone penetration is just 13% of the populations, which is lower than Singapore (93%), Malaysia (67%) and Thailand (45%). Furthermore, there are only 10 million fixed-line telephones serving the whole country. The penetration of computers is less than 2% of the households and the country has only 1.2 million internet subscribers with an estimated 12 million internet users i.e. a penetration of only 0.5% of the population. Most middle and high-income homes would own televisions but the penetration in lower income homes is lower. Thus the household penetration of television in Java is nearly 60% and in Sumatra 52%. Similar scenario exists for refrigerators.

RETAIL MARKET. Retail sales of food and non-food items totalled an estimated US$32 billion in 2004. Many Indonesians still shop at the traditional markets or “mom and pop” establishments but shopping at modern shopping malls, hypermarkets, supermarkets, mini-markets and supermarkets is increasingly popular. There are nearly 5,000 such modern establishments in Indonesia accounting US$4.5 billion in retail sales in 2004. Most of these establishments are concentrated on the island of Java followed by Sumatra. Since 1998, the government opened the retail industry to foreign investments and participation.

FOOD CULTURE. Indonesia’s food culture is diverse because of the various ethnic and sub-ethnic communities that comprise the country’s population. Typical meals eaten are rice-based dishes and occasionally noodles. However, there are many western franchise fast food outlets located mainly in the major cities such as Jakarta, Surabaya, Bandung, Semarang and Yogyakarta. Mid to high-end bakery outlets serving western and local bakeries are also found in the major cities.

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Source by Khal Mastan

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This article hopes to give you the knowledge you need, to feel that you have a firm grasp on the subject.

In Thailand they have an herbal lodge that is believed to help in mounting your breasts, and they are fearful it may drop into strange hands.

The Pueraria mirifica delve has been popular with Thai women for decades. The lodge is believed to have an estrogenic prompt and can enlarge the breasts and hips of women. How greatly depends from woman to woman, they claim. And, of course, numerous Japanese firms are interested.

The Japanese have enthused in, and the Germans and even the US firms are ready to after the plant. Thailand’s government is considering a ban on the plant’s export to thwart piracy to strange countries.

Ask yourself a few simple questions to determine if you fully understand the concepts that we have went over so far.

Indeed, if estrogenic, the herb isn’t ready to be handy because you can’t just give people estrogens in high enough doses to encourage their breasts. It is not that simple

From beginning to end, this article has helped you to learn more about this topic than you probably thought you would ever know.

Pueraplus is a premuim grade Thai traditional herbal formula derived mainly from White Kwao Krua (Pueraria Mirifica) which contains Phytoestrogens (Natural Plant Estrogen). After many years of research from Thailand, the studies indicated that this herb shows estrogenic and rejuvenate effects to the female body especially at the breast, hip, facial skin, body skin, hair and vaginal epithelium. Thus elevate the appearance of the female secondary sexual characteristics and also the skin beauty.

ALL Natural Dietary Supplement

Hight Phytoestrogen (especially isoflavonet):

*Increases sensitivity and vitality

*Promotes silky shiny hair

*Enhances breast and skin appearance

*Serves as a anti-wrinkle agent

*Enhances physical and mental ability

*Serves as a fountain of youth
Ingredients : Pueraria Mirifica and other herbs (60 capsules per box)
Recommended Dosage : Take 1 capsule after breakfast and dinner, start the first capsule at the 1st day of menstruation till day 15 th. then stop and reconsume at the next menstruation cycle,

Warning : It should not be used in pregnant women, nursing cervix mothers, or women diagnosed with tumors in estrogen-sensitive organs, e.g., ovary, uterus and breast.

Precaution Always consult a physician before beginning any dietary supplement program, particularly if you have a medical condition

http://www.pueraria-mirifica.net/

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Source by Amporn Saechin

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The delicate and timeless beauty of Asian furniture is currently experiencing an unparalleled popularity in American interior design.

An Overview of Asian Furniture

The name “Asian Furniture” is a general term, describing all home decor products – including art and furniture – from the countries of China, Korea, the Philippines, Taiwan, Japan, Burma, Indonesia, Malaysia, Singapore, Thailand, and often India. It also includes the (now antique) items crafted during the British occupation, mostly of furniture from India and Burma, including contemporary reproductions in this style.

Although very similar in basic design, each of these countries produces furniture and art that is specific to its own culture. For instance, while the Shoji screen originated in China, it was then reinvented in Japan and is now considered a wholly Japanese export. Feng Shui design philosophy is singularly Chinese, while Southeast Asian furniture often displays Hindu-influenced carvings over very dark wood.

Origins of The Oriental Style

Also known as “Oriental Furniture”, Asian-styled furniture is very often crafted from teak wood, and is usually based on the Buddhist principles of living simply and in harmony with one’s surroundings. Asian home furniture is a blend of form and function, where art and design are intended to be both beautiful and purposeful. In the interest of blending Western and Eastern styles, it is increasingly popular to find Shoji screens that reflect traditional Western tastes. More colors are becoming available, and designers have begun to take liberties in creating more daring and expressive fusion pieces.

Perhaps the most famous Asian decor item is the Shoji screen. Made from latticed wood and rice paper, it is becoming increasingly common to see Shoji door Kits, Shoji lamps, and Shoji screen room dividers, even in traditionally Western homes and offices. Other popular Asian furniture items are cabinets and accessories, typically ornamented with striking mother-of-pearl inlay.

Asian Furniture Today

Today the largest markets and manufacturers of Oriental furniture are Korea and Taiwan, although much is also manufactured in the US, Europe and Australia. The top importers of Asian furniture and home decor are the United States, Germany, France, the United Kingdom, Japan and Canada.

Whether you are creating your very own “Dojo”, crafting an intentional meditative space, or if you are simply drawn to the beauty and craftsmanship of Asian furniture, you are certain to find inspiration in the timelessness and transportive qualities of this truly dazzling style.

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Source by Claudia Beach

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Brazil brings to mind the images of soccer or the Amazon or the carnival. Although a small fraction, it is indeed a part of what makes Brazil. It is the largest country in South America in land mass and population, and shares borders with ten neighboring nations. Being rich and diverse in natural resources, it is a fascinating country with full of opportunities to be developed. Brazil is one of the great socioeconomic paradoxes, and although it resides comfortably at number ten in the world economic rankings, it is still a developing nation.

Starting a Business in Brazil
Brazil is a lucrative area for investment. It has the necessary infrastructure and talent to initiate any business. It is perhaps the free approach that makes Brazil such a unique location to do business. In spite of Brazilians being entrepreneurial, starting a business in Brazil may not be a fast process. The federal republican government offers several business opportunities to foreign investors, and maintains a steady process of privatization and deregulation. There is huge economic potential, an eager domestic market and the third most advanced industrial sector of the Americas. There has never been a more opportune or pragmatic moment to invest. There has been tremendous economic growth over the last fifteen years. Having one of the most rapidly developing economies in the world, it is responsible for almost half of Latin Americas GDP.

The main business opportunities here
The expected boom of the Brazilian economy is attracting investors from all around the world. Companies from all around the world registering business in Brazil are queuing. Brazil is a global power in agriculture and natural resource and provides one of the largest workforces and consumers in the Americas. It owns a sophisticated technological sector and develops projects for submarines, aircraft and equipment for space stations. Major exports include aircraft, automobiles, iron ore, steel, electrical equipment, ethanol, textiles, footwear, etc. Some of the important areas of business opportunities include Hospitality and hotel (infrastructure and equipments), Logistic, Public Security and safety , Marketing, Public Health, Tourism, Oil (high sea exploration) and natural gas, Heliport infrastructure (new helicopters and new heliports on the coasts), Power and Renewable energy, Shipbuilding (construction and maintenance), etc.

Overcoming the challenges
When doing business overseas, especially in an emerging market, investors need to know about the risks involved in investing in their market segment of choice. Bureaucracy, a complex tax system and pretty high interest rates can be recognized obstacles to trade and should definitely be taken into account when looking to expand a business in Brazil. It is always best to ensure that reliable legal, financial and fiscal advice is taken at the earliest possible stage, rather than risk long and possibly expensive wrangling at a later date. With the help a professional you can understand how to avoid the pitfalls in a new country, gain a business advantage and end up in a winning position. As it may not be possible to get acclimatized with a country’s laws and regulations, a business consultant can provide specialist expertise in all aspects of your business like regulatory filings, compliance, international accounting, etc.

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INTRODUCTION
The explosive growth of international financial transactions and capital flows is one of the most far-reaching economic developments of the late 20th century. Net private capital flows to developing countries tripled – to more than US$150 billion a year during 1995 to 1997 from roughly US$50 billion a year during 1987 to 1989. At the same time, the ratio of private capital flows to domestic investment in developing countries increased to 20% in 1996 from only 3% in 1990. Hence, this has effected a shift from the national economy to global economies in which production and consumption is internationalised and capital flow freely and instantly across borders.

Powerful forces have driven the rapid growth of international capital flows, including the trend in both industrial and developing countries towards economic liberalization and the globalisation of trade. Revolutionary changes in information and communications technologies have transformed the financial services industry worldwide. Computer links enable investors to access information on asset prices at minimal cost on a real time basis, while increased computing power enables them to rapidly circulate correlations among asset prices and between asset prices and other variables. At the same time, new technologies make it increasingly difficult for governments to control either inward or outward international capital flows when they wish to do so.

In this context, perhaps financial markets are best understood as networks and global markets as networks of different markets linked through hubs or financial centres.

All this means that the liberalisation of capital markets and with it, likely increases in the volume and volatility of international capital flows is an ongoing, and to some extent, irreversible process.

It has contributed to higher investment, faster growth and rising living standards. But this can also give rise to shocks and stresses resulting in financial crisis as we have all witnessed in 1997 and 1998.

Testimonies to the risks of open capital markets are the several waves of instability in the financial markets in early 1998 and again in the wake of the Russian crisis in August/September 1998. To illustrate, net private capital outflows from the five countries most affected by the crisis, namely, Indonesia, Korea, Malaysia, Thailand and the Philippines rose to US $28.3 billion in 1998, reflecting mainly the decline in net bank and non-bank lending. Meanwhile, foreign direct investment which had been one of the main sources of growth during the pre-crisis period in these countries remained sluggish in 1998, amounting to US$8.5 billion as compared to an average amount of US$17.8 billion during the period 1995 to 1995.

Global trade has experienced a slowdown over the past two years due to trade contraction of East Asian economies. Generally, world GDP and trade growth slowed in the past 1997/1998 as the East Asian crisis deepened and its repercussion were felt increasingly outside the region. Asia recorded the strongest import and export contraction in volume and value terms of all regions of the world. The dollar value of Asia’s imports registered an unprecedented decline of 17.5%. The five Asian countries most affected by the financial crisis that broke in mid-1997, that is, Malaysia, Indonesia, Philippines, the Republic of Korea and Thailand experienced import contraction by one-third.

In the context of these powerful trends, I like to discuss a few significant the issues relating to them, particularly from a capital market regulator’s perspective. Given the breadth of the topic at hand, and in the interest of keeping to time, please allow me to focus particularly on current trends and difficulties faced in the capital markets.

DEVELOPMENTS IN ELECTRONIC COMMERCE AND CAPITAL MARKET REGULATION
Developments in computer and information technology have made dramatic changes to the way the financial services industry operates. These changes are affecting and will affect every aspect of the financial services industry and offer the possibility of reduced costs in raising capital, greater efficiencies in the mobilisation of domestic and international savings and the provision of better, cheaper investment products more closely tailored to the needs of different investor segments. The convergence of computer and communications technology is promoting the development of computer mediated networks, allowing for users to communicate and transmit data and other information regardless of boundaries and distance. As communication costs continue to fall, the potential of outsourcing grows.

These changes will affect –

• The way investment products are offered, distributed and marketed and the way in which investors access information about the products and entities involved;
• The activities of financial services intermediaries, especially advisers, and the way they deal with investors;
• The continued blurring of product and institutional boundaries, and even the scope of financial services sector itself as non-traditional entities take on some of the functions of financial intermediaries;
• The methods of distribution and marketing of investment products which will increasingly draw upon the techniques of mass marketed consumer products; and
• The way secondary trading in investment products takes place as greater scope for direct investor transactions and low cost competitors to established securities and futures markets becomes more of a reality.

Just as electronic commerce affects investors and providers of financial products and services, it will affect the role of corporations and capital market regulators. Just as electronic commerce facilitates activities across jurisdictional borders, it poses in clear terms questions about the practical enforceability of national laws. As well as practical enforcement questions, electronic commerce also raises issues about the role that capital market regulators should play and the effectiveness of many of the traditional regulatory approaches and mechanisms that have been employed by them. An example might be an offering of securities made without a prospectus or registration statement on the Internet by a person in a jurisdiction with which the capital market regulator has no regular contact or mutual enforcement arrangements. There are also concerns about illegal and fraudulent activity on the Internet.

In this regard, the Malaysian position is that it is committed towards a structured development of electronic commerce. Towards this end, Malaysia has proposed to introduce a National E-Commerce Masterplan. This Masterplan should focus on key initiatives which will create momentum in trading via e-commerce. Besides looking at developing the technological infrastructure such as telecommunications infrastructure and systems providing for electronic delivery of goods as well as payment, the Government is also aware that there are legal and regulatory issues which will arise with regard to e-commerce. Malaysia has introduced several sets of laws catered towards proper regulation of e-commerce known as ‘Cyberlaws’. The Cyberlaws which have been introduced include, among others :

(i) Computer Crimes Act 1997

This Act provides for a framework to counter computer offences such as unauthorised access to computer material, crimes of fraud and dishonesty through the computer, unauthorised modification of contents of a computer and so on. The Act is not limited by jurisdiction. It has effect outside as well as inside Malaysia. Where a computer crime is committed outside Malaysia in respect of computers or data in Malaysia or that which may be connected to or used in Malaysia, the crime may be treated as a crime within Malaysia and the perpetrator may be dealt with under the provisions of this Act; and

(ii) Digital Signatures Act 1997

This Act addresses issues of security and authenticity of electronic transactions and it allows for greater confidentiality and integrity of messages. It allows for businesses to use electronic signatures instead of hand-written counterparts in legal and business transactions. The Act provides for the treatment of document signed with a digital signature created in accordance with this Act to be treated as legally binding as if the document was signed with a handwritten signature.

The development of an effective regulatory framework is essential in attracting and maintaining confidence for the world in trading with Malaysian counterparts via electronic means. The regulatory framework as it stands is currently incomplete as many other areas such as electronic banking and broking are still in the process of development.

To instil confidence, Malaysia must be able to provide for regulatory certainty and coherence as well as prevent regulatory capriciousness. In relation to financial services, a major consideration is cross-border implications. The Securities Commission, as an example, is currently looking at issues relating to Internet offering of securities and fund management and broking services over the Internet. A re-examination of current laws would need to be conducted to ensure that they have not been overtaken by technology and to restructure the laws so that they are technology neutral.

As far as the capital market is concerned, the Securities Commission recognises that electronic commerce is an area where it is important that the regulatory infrastructure responds in a positive and timely way to facilitate market developments and not hinder innovation in market products and processes. We believe that there are important benefits to be gained through the Commission’s facilitation of market developments in this area for the competitiveness of the Malaysian capital market, efficiencies in the operation of our capital markets and the better making of investors at lower cost. At the same time, the Securities Commission considers that it is important for the successful implementation of electronic commerce that investors retain confidence in the integrity of the market for investment products.

LIBERALISATION VS. PROTECTIONISM

On the issue of liberalisation vis-à-vis protectionism, there has been a proliferation of multi-lateral trade agreements since the middle of the century. Such agreements provide for a framework of rules within which nations are ‘obligated’ to assure other nations signatory to the agreement of a sovereign’s approach towards international trade. For example, Malaysia is a member of, among others, the World Trade Organisation through which it is a signatory to the GATS (General Agreement on Trade in Services) and GATT (General Agreement on Tariffs in Trade), APEC as well as ASEAN, all of which have the objective of achieving liberalised trading of goods and services within specified, albeit not immediate, time frames. Through these trade blocs, Malaysia has committed itself to progressive liberalisation which essentially entails a gradual opening of the economy to foreign participants.

The globalisation of economies is intrinsically linked to the internationalisation of the services industry. It plays a fundamental role in the growing interdependence of markets and production across nations. Information technology has further expanded the scope of tradability of this industry. Access to efficient services matters not only because it creates new potential for export but also it will be an increasingly important determinant of economic productivity and competitiveness. The main thrusts of the ‘services revolution’ are the rapid expansion of the knowledge-based services such as professional and technical services, banking and insurance, healthcare and education. Responding to this phenomenon, regulatory barriers to entry in service industries are being reduced worldwide, either through unilateral reforms, reciprocal negotiation or multilateral agreements. Developing countries such as Malaysia are increasingly looking at foreign direct investment in services as an especially powerful means of transferring technical and managerial know-how, besides attracting foreign capital and investment to the country.

Malaysia has made a commitment under GATS under legal services covering advisory and consultancy services relating to home country laws, international law and offshore corporation laws of Malaysia. Under the GATS commitments, commercial presence of foreign legal firms is not available except in relation to the Federal Territory of Labuan and in such a case, their services are limited to legal services given to offshore corporations established in Labuan. However, there are no limitations placed on the provision of legal service cross-border, that is, provision of such service from a foreigner without having a legal presence in Malaysia. This may be done via fax, telephone or the Internet. As stated before, most aspects of legal services does not need the physical presence of the service provider except perhaps where a court appearance is necessary. Furthermore, a Malaysian may obtain legal services abroad without any limitation either.

Malaysia is also signatory to the ASEAN Framework Agreement on Trade in Services (AFAS). The AFAS is an agreement made within the auspices of the GATS. In very basic terms, commitments under AFAS are GATS-plus which means that liberalisation of trade is accelerated within the ASEAN region under the AFAS as compared to the world at large under GATS. Its ultimate aim is to achieve regional integration and free flow of services within the region. In achieving integration and free flow of services within the region, many issues would need to be ironed out. Issues such as harmonisation of professional standards, acceptable levels of accreditation between member countries, movement of labour in relation to provision of these services, licensing and certification of service suppliers are still under intense discussion within the Member Countries. Taking into account the different levels of economic and regulatory maturity of Member Countries within the ASEAN, it is understandable that it would be a long process of consultation before a consensus may be achieved.

LIBERALISATION OF CAPITAL ACCOUNT

A most obvious impact of globalisation of trade are pressures exerted on developing nations to liberalise their financial markets and capital accounts. However, it is important to recognise that domestic and international financial liberalisation heighten the risk of crises if not supported by prudential supervision and regulation and appropriate macroeconomic policies. Domestic liberalisation, by intensifying competition in the financial sector, removes a cushion protecting intermediaries from the consequences of bad loan and management practices. It can allow domestic financial institutions to expand risky activities at rates that far exceed their capacity to manage them. By allowing domestic financial institutions access to complex derivative instruments it can make evaluating bank balance sheets more difficult and stretch the capacity of regulators to monitor risks. External financial liberalisation in allowing foreign entry into the domestic financial markets may facilitate easy access to an abundant supply of offshore funding and risky foreign investments. A currency crisis or unexpected devaluation (such as in the Asian crisis) can undermine the solvency of banks and corporations which may have built up large liabilities denominated in foreign currency and are unprotected against foreign exchange rate changes.

The ideal free market is one that every one should be free to enter, to participate in and to leave. However, events in the recent financial crises have led many of us to believe that in the freest of markets, there is a need to ensure that free flow of capital does not destabilise the market itself.

Indeed, calls for reform have gained increasing support and credence within the international community with the unfolding of the devastating effects of the crisis beginning mid-1997. The SC’s work within IOSCO’s Emerging Markets Committee has drawn attention to fundamental weaknesses in the existing global financial infrastructure that have caused and exacerbated these effects. These weaknesses include the inordinate power of highly leveraged institutions to move markets, the destabilising force of volatile short-term capital flows and the failure of existing credit assessment systems to adequately inform market participants of increasing risk of default.

One example of this mounting consensus was the express recognition by G7 countries at their recent meeting in Cologne of the need to strengthen the international financial architecture.

There are now increasing calls for greater transparency and regulation of hedge funds and greater awareness of the dangers of volatile short-term capital flows. To rebuild East Asia and the global economy, we now urgently need to engage in a sincere discussion about what constitutes sound governance in the contemporary world.

On the domestic front, we would have to ask ourselves this question: has our financial markets kept pace with change? Whilst markets have become global, applicable rules and regulations remain predominantly parochial or local. From a regulator’s perspective, the challenge for us in a global market is to design the regulatory and structural framework which will allow the market to function efficiently, competitively in a fair and level playing field environment, ensuring at the same time that the market is not subject to highly concentrated or destabilising forces that would disrupt its functioning.

The recent crisis also shows up the need for a careful and sequenced approach towards liberalising a country’s capital account. The experiences of Thailand, Korea and Indonesia clearly tells us that there is no prescribed formula on sequencing. However, it is important to recognise that countries vary greatly in their levels of economic and financial development, in their institutional structures, in their legal systems and business practices, and their capacity to manage change in a host of areas relevant for financial liberalisation. It is in recognition of this that the IMF policy-setting committee and subsequently the Finance Ministers and central bank governors of the G7 industrial nations, in the fall of 1998, stressed that a country opening its capital account must do so in an orderly, gradual and well sequenced manner.

Issues of liberalisation versus protectionism would need to be considered at great length to ensure that a country is competitive in a global trading environment. In a developing nation such as Malaysia, a protectionist policy towards local financial services industry and industry participants have been adopted to assist the local industry to develop to international standards. In the area of financial services, for example, the Government’s stance has been that consolidation of local financial services providers is necessary to ensure the development of a core group of strong and stable financial institutions to be able to withstand international competition when the financial services markets are opened to international participants.

Indeed, the Malaysian experience clearly shows that a premature freeing up of the capital account, which was done in 1988, without the requisite reforms and institutional arrangements in order to withstand the shocks, can result in debilitating effects as was faced in the Malaysian financial services industry.

MALAYSIA’S EXPERIENCE

Perhaps the most important lesson learnt from the Asian financial crisis was the interdependence of financial markets. Even the most developed economies were not spared of the effects of the financial turmoil which began as a result of Thailand’s default on its eurobond issue in February 1997. By May, 1997, the Malaysian Ringgit was under severe pressure from currency speculators and interest rates had risen from between 7% to 9%. It was reported that Bank Negara Malaysia expended about RM1.2 billion of its foreign exchange reserves to try to stave off the attack of currency speculators. However, this was the first of many repeated attacks on the currency.

The effects of the currency crisis began to take its toll on the country in 1998. Interest rates were rising to above 11% and the Ringgit had dipped to an unprecedented low of RM4.71 in January, 1998. All sectors of the economy experienced severe contraction as access to liquidity and credit became more scarce. Bank Negara had made many attempts to quell the effects of the financial crisis through imposition of tight monetary policies and attempts to ease credit to certain sectors of the economy to no avail. But the avalanche would not stop.

Malaysia’s sovereign credit rating was downgraded by international rating agencies to just above so-called junk bond status. Malaysia was facing a serious credit squeeze. Raising international capital was prohibitively costly. Flight of capital from the country resulted in a sharp decline in the stock market which fell to levels of 250 before bottoming out in the second half of 1998.

As many of you are aware Malaysia’s response to the crisis was one that was totally unexpected by the global community. The Government decided that it needed to protect the economy from increasing global pressures on the Malaysian economy. On 1 September, 1998 the Government introduced selective exchange controls with the intention of curbing and preventing further manipulation and speculation on the Ringgit. The Ringgit was pegged at RM3.80. The Government took further measures to discourage short-term flows of money by requiring that inflow of funds should remain in the country for at least one year. On 15 February 1999, this was replaced with an exit levy for repatriation of capital. The selective exchange control measures imposed by the central bank on 1 September, 1998 were directed towards reducing the internationalisation of the Ringgit by eliminating access to Ringgit by speculators and reducing offshore trading of the Ringgit. This involved the introduction of rules relating to the external account transactions of non-residents and currency of settlement of trade transactions. However, general payments, including movement of funds relating to long-term investments and repatriation of profits, interest and dividends remain unaffected. Payment for the import of goods and services must be made in foreign currency. All export proceeds must be repatriated back to Malaysia within six months of the date of export and proceeds from exports must be received in foreign currency.

The selective exchange control regime is intended to provide the time and opportunity for the Government to institute the necessary financial reforms in the Malaysian financial markets. This is in fact in progress in the work of Danamodal (the equivalent of the Resolution Trust Corporation of the US) to alleviate non-performing loan from banks’ balance sheets and Danamodal which is to recapitalise the banks. The Government is also committed to consolidating the domestic financial services industry in having few but strong and viable financial services providers in order to be prepared for financial liberalisation.

GIVING CERTAINTY TO INTERNATIONAL FINANCIAL TRANSACTIONS AND PROTECTION TO FOREIGN INVESTMENTS

International trade and finance, because of its global nature, necessarily involves many areas which may give rise to uncertainty as to the applicability of the contract under which certain trade and financing arrangements are made. These areas range from political issues and political stability to sovereign intervention of the economy, certainty of applicable laws as well as independence of the judiciary.

The Asian lawyer will be fascinated by the rapid changes which are taking place in foreign investment law both within this region as well as in the rest of the world. In less than half a century, the states of Asia have moved through a whole range of stances which could be adopted towards foreign investment. The immediate post-colonial period was characterised by a period of hostility towards foreign investment, motivated by the belief that the ending of economic imperialism alone will bring about true independence. The ensuing period was dominated by a debate about the regulation of multinational corporations and the fear that they posed a threat to state sovereignty. In this period, laws were devised to control the entry of foreign investment and the manner in which such foreign investment operated in the host country after entry. The third and present period is a period of pragmatism where the dominant view is that foreign investment, if properly harnessed, can be an instrument which generates rapid economic development. Competition for the limited investment that is available means that each state country which is bent on a foreign investment led growth strategy must make its laws as hospitable to the foreign investor as the other state which is also bent on a similar strategy.

As much as there is competition among countries to attract foreign investment, there is competition among multinational corporations to enter host countries. Whereas previously the market was dominated by large multinationals, now, there are small and medium enterprises which can transfer more appropriate technology and bring sufficient assets for investment.

This “open door” policy towards foreign investment in developing countries is typically achieved through careful screening of entry by administrative agencies which have been established for the purpose and regulation of the process of foreign investment after entry has been made. After entry, there is continued surveillance of the foreign investment to ensure that the foreign investment keeps to the conditions upon which entry was permitted. In this regard, attitudes to foreign investment protection and dispute resolution will be affected by the new strategies adopted towards foreign investment.

In the context of the new strategies which have been developed by controlling entry and the later surveillance of operations of foreign investment, the foreign investment has ceased to be a contract based matter and had become a process initiated by a contract no doubt but controlled at every point through the public law machinery of the state. The old notions of foreign investment protection which concentrated on the making of the contract and the contract as the basis of all rights of the foreign investor would inevitably become obsolete. This transformation which has taken place is crucial to the devising of effective methods of foreign investment protection. The subject matter of the protection has also changed in that not only physical assets of the foreign investor but his intangible assets which includes intellectual property rights as well as public law rights to licences and privileges have become the subject of protection.

The proposition that contractual provisions in an agreement concluded with a host country offer little protection to foreign investment must be qualified in a situation when a bilateral investment treaty has been entered between the state of the foreign investor and the host country. The result will be different, for the contract becomes effectively internationalised as a result of the existence of such a treaty. It is a basic proposition of international law that any matter that is essentially within the domestic jurisdiction of any state could be internationalised if it is made the subject of an international treaty. The existence of a bilateral investment treaty which covers the foreign investment then internationalises the whole process of foreign investment which would otherwise have been a process that takes place entirely within the sovereign jurisdiction of the host state. But, whether this result will follow depends on the terms of the bilateral investment treaty.

As a matter of general international law, the position seem to be that a contract between a party and host country must always be subject to a national legal system. Those who seek to prove the contrary have an onerous task of showing that his accepted proposition has undergone a change. There are a few usually uncontested arbitral awards which support the view that a foreign investment contract is subject to international law or some other supranational system.

Bilateral investment treaties are obviously regarded as important by both capital exporting and capital importing states. But, these treaties are not uniform and they do not have the ability to create any uniform law on foreign investment protection. But their existence adds to investor confidence and creates an expectation of investor protection. The importance of these treaties lies in the several results they achieve. The first is a signaling function about the national policy towards foreign investment.

Another advantage is that the foreign investment contract in the context of a bilateral investment treaties could have the effect of forming assets protected by the bilateral investment treaties. This will also include licences and other advantages obtained from the government during the course of the foreign investment. Whereas without the bilateral investment treaty these licences and advantages may have been without protection under general international law, they new receive protection as a result of the wide definition of property in the bilateral investment treaty. Whether the host country did intend that its administrative decisions be subjected to international review as a result of the treaty, will remain a moot point. But, it remains a possible result if the treaty.

In Malaysia, efforts have been made by the Government to ensure a level of certainty between international trading partners trading with Malaysian counterparts. The Government has expressly guaranteed that foreign companies acquiring equity participation in local companies would not be required to restructure its equity at any time[1]. Further to this, the Government has taken many steps to increase confidence of foreign investors in Malaysia.

INVESTMENT GUARANTEE AGREEMENTS (IGA”)

The Investment Guarantee Agreement protects parties involved in an international transaction from non-commercial risks such as nationalisation and expropriation. The IGA will provide a foreign investor with the following :

• protection against nationalisation and expropriation;
• prompt and adequate compensation in the event of nationalisation or expropriation under a lawful or public purpose;
• free remittance of currency, profits, capital or other fees on investment;
• settlement of investment disputes either through a process of consultation through diplomatic channels or if such process fails, for referral to the International Court of Justice. Disputes in connection with investments, under IGAs should first be resolved through local judicial facilities. In the event of failure to settle, it would be referred to the Convention on the Settlement of Investment Disputes or the International Adhoc Arbitral Tribunal established under the Arbitration Rules of the United Nations Commission on International Trade Law.

Malaysia has concluded IGAs with about 64 trading nations including trading blocs such as ASEAN and major trading partners such as the United States of America, United Kingdom, Germany, Taiwan, etc.

TRADE DISPUTE SETTLEMENT

Another aspect of international trade is the availability of acceptable dispute resolution form. Globalisation of trade obviously involves greater potential for generating international trade disputes. The international business community looks for prompt, economical and fair conflict-resolution mechanisms. Negotiation, conciliation, litigation, and arbitration are well-known conflict-resolution devices. Direct negotiations and conciliation may resolve a conflict. However, when parties fail to solve the controversy through direct negotiations, they have two choices: litigation or arbitration.

Within the context of the GATS, there is an express provision for trade settlement dispute where countries have disputes in relation to commitments made under the agreement. The WTO have provided for procedures in relation to a dispute settlement process. The dispute settlement procedure is considered to be the WTO’s most individual contribution to the stability of the global economy. The WTO’s procedure underscores the rule of law, and it makes the trading system more secure and predictable. It is clearly structured, with flexible timetables set for completing a case. First rulings are made by a panel, appeals based on points of law are possible and all final rulings or decisions are made by the WTO’s full membership. No single country can block a decision.

Malaysia is also signatory to the Convention on the Settlement of Investment Disputes established under the auspices of the International Bank for Reconstruction and Development that establishes facilities for international conciliation or arbitration. Further to this, the Kuala Lumpur Regional Centre for Arbitration was established in 1978 with the objective of providing a system for the settlement of disputes for the benefit of parties engaged in trade, commerce and investments with and within the Asian and Pacific region.

In conclusion, as we draw close to the new millennium, it is indeed a challenge to us all to be able to grapple with some of the abovementioned issues and adopt appropriate responses.

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