■ Economy
Indonesia expects growth
The Indonesian economy is forecast to grow 5.4 percent in 2005, exceeding this year's target of 4.8 percent, President Megawati Sukarnoputri said Monday. "In 2005, Indonesia's economic growth is expected to be better than in 2004 and is estimated to reach 5.4 percent," Megawati said in her annual state-of-the-nation address. She said domestic consumption would remain the main driving force for growth in 2005, backed by increasing exports and stronger investment. She expected the rupiah exchange rate to stay at an average of 8,600 to the dollar in 2005. The inflation rate for the year is projected at an annualised 5.5 percent, compared to seven percent for this year, she said. Oil production in 2005 is expected to reach 1.125 million barrels per day with an assumed average price of US$24 per barrel, Megawati said.
■ Regulations
China advances QFII plan
China plans to lower its barrier to entry for foreigners to buy yuan-denominated securities under its qualified foreign institutional investor (QFII) scheme, state press reported Monday. China now wants to allow mid and small-sized foreign institutional investors to enter the domestic stockmarket and new regulations are expected at the end of the year, the official Economic Observer reported. QFII investments are limited at a minimum of US$50 million and cannot exceed US$800 million worth of purchases in yuan-denominated securities. The highly restrictive measures further do not allow foreign investors to open more than one account and only permit up to 10 percent of A-Shares in a listed company be held.
■ Watchmaking
US officials clear Swatch
The world's leading watchmaker Swatch said Sunday that it had been cleared by the US Department of Labor of charges by former employees that it had evaded taxes. The Swiss watchmaker's share price on the stock exchange plunged by up to 10 percent at the end of the week after the allegations and a complaint to US authorities targetting the company were revealed by two major financial dailies. The charges were made by two former Swatch employees based in the Far East who said that Swatch was guilty of tax evasion in its use of transfer pricing, a complex accountancy procedure that international companies often use to cut their taxes. "The Swatch Group has been advised today that the complaint against the company filed by the two former Swatch Group employees has been dismissed," a company statement said.
■ Mobile Phones
Vodafone makes change
British mobile telephone operator Vodafone said Monday it had appointed Shiro Tsuda as president and chief executive of Vodafone KK, its struggling Japanese unit. Tsuda will replace Brian Clark, the interim president and chief executive, on Dec. 1, Vodafone said in a statement. Tsuda, a former senior executive vice president at rival NTT DoCoMo, will immediately begin serving as an executive officer of Vodafone Holdings KK and Vodafone KK until he assumes the top posts of the operating unit, according to the statement. Vodafone's Japan unit, the nation's third-largest mobile phone carrier, fell into the red in the year to March due to intense competition and an investment loss on fixed-line carrier Japan Telecom.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source