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Round a bend in Cambodia’s Tatai River and the virtual silence of a tropical idyll turns suddenly into an industrial nightmare.
Lush jungle hills give way to a flotilla of dredgers operating 24 hours a day, scooping up sand and piling it onto ocean-bound barges. The churned-up waters and fuel discharges, villagers say, have decimated the fish so vital to their livelihoods. Riverbanks are beginning to collapse, and the din and pollution are killing a promising ecotourism industry.
What is bad news for the poor, remote Tatai community is great tidings for Singapore, the wealthy city-state that is expanding its territory by reclaiming land from the sea. Sand from nearby countries is the prime landfill and also essential building material for Singapore’s spectacular skyline.
As more countries ban its export to curb environmental damage _ entire Indonesian islands have been all but wiped off the map _ suppliers to Singapore scour the region for what still can be obtained, legally or not. Cambodia, a poor country where corruption is rife and laws are often flouted, is now the No. 1 source.
Singapore is by no means the only nation taking part in what is a global harvest of sand from beaches, rivers and seabeds. Officials and environmentalists from China to Morocco have voiced concern and urged curbs. As construction booms in emerging economies and more sources dry up, however, exploitation of the remaining ones is likely to intensify.
Sand mining began anew in May on southwestern Tatai River, which empties into the ocean almost directly north of Singapore, across 1,300 kilometers (800 miles) of open water.
Despite denials by the main owner of sand mining rights in Koh Kong province, two Cambodian officials told The Associated Press that the sand is destined for the island nation.
Singapore will not say where its sand comes from; the Construction and Building Authority said it is not public information. The National Development Ministry said the state’s infrastructure development company buys it from “a diverse range of approved sources.”
The mining visible on the Tatai River clearly violates some of Cambodia’s own legal restrictions, not to mention a recent government order to suspend it temporarily.
Vessels of a Vietnamese company were tracked by boat from about 10 kilometers (6 miles) upriver to the Gulf of Thailand, where nearly a dozen seagoing barges, tugs hovering around them, took on the sand.
The AZ Kunming Singapore, a 5,793-ton (5,255-metric ton) barge pulled by the AZ Orchid, was seen arriving empty from the open ocean, its tug flying a Singaporean flag. Both are registered with the Singapore government, which would not comment on the barge’s cargo or destination.
Ships from several countries, including China, were spotted in sand-mining operations in Koh Kong province, where residents joked about going to Singapore and planting a Cambodian flag there.
The vessels included one from Winton Enterprises, a Hong Kong-registered group that was subcontracted to export sand to Singapore, according to Global Witness, a London-based environmental group that published a detailed account of the trade last year.
The report said that miners had penetrated protected mangrove, estuary and sea grass areas, breeding grounds for marine life along a coastline and hinterland harboring some of the country’s last wilderness areas.
Cambodia’s cabinet spokesman, Siphan Phay, who was investigating the issue in Koh Kong, appeared angry that the temporary halt order was being ignored. He described the activity as illegal mining destined for Singapore, a surprising statement given that government ministers awarded the concession.
A police officer in the economic crime division, who demanded anonymity given the issue’s sensitivity, also said the sand is going to Singapore.
Ly Yong Phat, who holds the major concession in Koh Kong, has at times openly acknowledged the Singapore connection. But in a recent AP interview, amid tightening restrictions and mounting criticism, he said his company had not shipped sand to Singapore for more than a year because “our sand did not meet their standards.”
The dredging, he added, was for local sale and to deepen river channels.
However, a Malaysian company, Benalec Holdings, said it was ready to tap up to 530,000 tons for a reclamation project in Singapore from several sources in Cambodia, including Ly Yong Phat’s LYP Group.
Known as the “King of Koh Kong,” Ly Yong Phat is one of Cambodia’s biggest tycoons and a senator with close ties to Prime Minister Hun Sen. His holdings include hotels, a casino and agricultural plantations.
Land reclamation has enlarged Singapore by more than a fifth, and up to 100 square kilometers (nearly 40 square miles) more are slated for reclamation by 2030. What was once seabed is now Changi, among the world’s finest airports, and more recently the Marina Bay complex, which includes a 2,560-room hotel and casino developed by Las Vegas Sands Corp.
Mountains of sand are needed for such fills. U.N. statistics show Singapore imported 14.6 million tons last year, ranking it among the world’s top customers. Global Witness estimated that nearly 800,000 tons a year, worth some $248 million, were streaming to Singapore from Koh Kong alone.
The U.N. figures show that Cambodia supplied 25 percent of Singapore’s imports in 2010, followed by Vietnam, Malaysia, Myanmar and the Philippines. With its secrecy and lax enforcement of environmental regulations, Myanmar could emerge as a major supplier.
The damage caused by sand extraction has spurred clampdowns on exports.
Malaysia imposed a ban in 1997, though the media there frequently report on massive smuggling into neighboring Singapore. Former Prime Minister Mahathir Mohamad complains that sand pirates are “digging Malaysia and giving her to other people.”
An Indonesian ban came in 2007, following years of strained relations with Singapore over the sand on islands lying between the two countries. When miners finished with Nipah Island, reportedly all that was left was three or four palm trees protruding above the waterline. Environmental groups say smuggling is believed to be continuing.
Vietnam banned exports late last year.
Cambodia outlawed the export of sand from rivers in 2009 but allows it from some seabeds. Recently, some government officials said that rivers where seawater flowed into fresh water, replenishing sand naturally, were exempt.
Global Witness spokesman Oliver Courtney said the trade in Cambodia revealed a “mismatch between Singapore’s reliance on questionably sourced sand and its position as a leader for sustainable development.” The city-state prides itself on environmentally sound urban planning.
The dredging of the Tatai River began on May 17 “with a fury,” creating a veritable traffic jam on the water, said Janet Newman, owner of the riverside Rainbow Lodge.
“Before you could see crab pots bobbing in the river everywhere and fishermen going out. Now there is nothing and nobody,” the British woman said.
Chea Manith of the Nature Tourism Community of Tatai said 270 families along the river have seen an estimated 85 percent drop in catch of fish, crab and lobsters and were being forced to eke out a living from small garden plots. Tourists have all but vanished.
Armed with a petition, village leaders, tourism operators and a wildlife group met with Ly Yong Phat in early July. He appeared sympathetic, Newman said. He substantially reduced the dredging and has promised to stop altogether in October.
A subsequent letter from the Minister of Water Resources and Meteorology ordered the LYP group to halt operations temporarily on the Tatai, citing a breach of regulations. The letter was obtained by Cambodia’s Phnom Penh Post newspaper, which made it available to the AP.
Hun Sen himself expressed concern over the mining in the river.
“We hoped that the prime minister’s recent promise to review the impacts of the sand trade would lead to proper regulation of dredging operations,” said Courtney of Global Witness. “Unfortunately, the pledge does not appear to have been followed up with meaningful action.”
The mining has continued on the Tatai, and violations, such as dredging closer than 150 meters (165 yards) from riverbanks, were clearly evident.
The Post also obtained a Ministry of Industry, Mining and Energy letter extending LYP Group’s concession in Koh Kong until Sept. 2012.
“We are just little people. We cannot do anything,” Chea Manith said.
Newman sounded a more optimistic note. “It’s my hope that the LYP Group will become sympathetic through this experience of having seen the reaction from people passionate about protecting their environment,” she said. “It would be sad if they just went somewhere else to dump the same on others.”
Aetna says its second-quarter net income rose 9 percent in part because it benefited from a continued slowdown in the use of health care services by its members.
The health insurer also raised its full-year operating earnings forecast on Wednesday.
Aetna earned $536.7 million, or $1.39 per share, for the three months ended June 30. That’s up from $491 million, or $1.14 per share, in the same period last year.
This beat the $1.07 per share that analysts expected.
Revenue slipped 3 percent to $8.34 billion from $8.55 billion, but still topped Wall Street’s $8.25 billion.
Total medical membership fell 2 percent to 18.2 million members.
Aetna, based in Hartford, Conn., is the third-largest commercial health insurer based on both enrollment and revenue, trailing WellPoint and UnitedHealth.
Britain’s competition regulator has affirmed a preliminary ruling that BAA, the owner of Heathrow airport, most dispose of London’s Stansted airport and one Scottish airport.
The Competition Commission said Tuesday that it saw no reason to change its preliminary ruling in March, which it said was the right decision for air travelers. The ruling also requires BAA to sell either its Edinburgh or Glasgow airport in Scotland.
It says the sale process should start within three months.
BAA, owned by a consortium headed by Grupo Ferrovial of Spain, had fought a long regulatory and legal battle against being forced to sell. It says it will consider contesting the latest ruling in court.
China’s premier says the government will keep controls on property deals in place to help fend off a speculative bubble, reflecting top-level unease over limited progress in cooling the overheated market.
Wen Jiabao urged local governments to abide by efforts to cool the property market and to meet targets for building more affordable public housing. Such housing is meant to accommodate ordinary families unable to afford commercial property due to surging prices.
“Pressure on housing prices in some cities is still strong, and in some places controls have been relaxed,” a government statement cited Wen as telling a Cabinet meeting Thursday. “The current real estate market is at a critical period. We must unswervingly stick to controlling the trends,” it said.
As of the end of June, construction had begun on more than 5 million units of public housing, more than half the annual target, the statement said.
State media say more than 30 million people are having trouble finding affordable housing, and developers have been lukewarm on investing in the relatively unprofitable part of the market.
Noting uneven progress and low use rates in some areas, Wen called for fair and equitable distribution of such housing and curbs on surging rents no fax cash advances.
Investment in property rose by nearly a third over a year earlier in the first half of this year to 2.63 trillion yuan ($404.6 billion), according to data released Wednesday.
Despite 15 months of efforts to cool the housing market, prices remain firm, according to a recent report by Standard Chartered Bank, which surveyed the situation in both large cities and in smaller provincial cities.
The government has raised interest rates and bank reserve requirements, repeatedly. Some cities have also hiked the amount of money needed for downpayments and imposed restrictions on families’ purchases of second and third properties. But prices are still rising, though at a slower pace.
China’s economic growth slowed to a still-robust 9.5 percent in April-June, giving Beijing room to tighten controls to fight surging inflation, which hit a three-year high of 6.4 percent in June as food prices raced higher.
Such increases worry China’s communist leaders as they erode public trust in their ability to continue deliver improving living standards.
It feels like MySpace has been the butt of every social media joke for almost two years. Lapped by rival services, the hits just keep on coming, whether it is in new mocking viral videos or last year’s Buzzfeed post about the
As gas prices continue to climb, drivers need every edge they can get to save money at the pump.
One area where motorists can take action is with driving habits and car maintenance schedules, which can help improve a vehicle’s fuel efficiency.
What measures can drivers take to get the most out of a full tank of gas? Several websites can provide a variety of tips and insights.
Car Care Council
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FuelBudget.com
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Fueleconomy.gov
Spotlights gas-saving tips related to driving habits, auto maintenance and choosing a fuel-efficient car.
http://www.fueleconomy.gov/feg/drive.shtml
Federal Trade Commission
Interactive graphic highlights parts of the car for gas-saving tips.
http://www.ftc.gov/bcp/edu/microsites/energysavings/savegas/flash.html
Pfizer Inc. says its first-quarter profit rose 10 percent, due to lower costs for production and research and a smaller tax bill.
The world’s biggest drugmaker by revenue says its net income was $2.22 billion, or 28 cents per share. That’s up from $2.03 billion, or 25 cents per share, in 2010’s first quarter.
Excluding one-time items, income would have been $4.81 billion, or 60 cents a share, down just over 1 percent from a year ago.
The maker of cholesterol blockbuster Lipitor and impotence pill Viagra says revenue was $16 installment payday loans.5 billion, down a half-percent from $16.58 billion a year ago.
Analysts surveyed by FactSet expected earnings per share of 58 cents and revenue of $16.59 billion. Typically, they exclude one-time items.
(This version CORRECTS the revenue forecast in the last paragraph to $16.59 billion.)
Most economists expect the Bank of Canada to hold the line Tuesday on its lending key rate, keeping it at the one per cent level.
The Bank of Japan’s reluctance to fund government borrowing is set to be tested by the economy’s need for stimulus in the aftermath of the March 11 earthquake.
Prime Minister Naoto Kan’s bill for clearing wreckage and rebuilding roads, housing and utilities is forecast at 5 trillion yen ($62 billion) or higher by Nomura Holdings Inc., Morgan Stanley and Barclays Capital. With debt issuance poised to rise, BOJ Governor Masaaki Shirakawa warned last week the bank must avoid underwriting debt to retain its credibility.
The BOJ’s reluctance is an echo of the European Central Bank’s initial decision to refrain from buying government bonds as the euro-region’s sovereign-debt crisis spread a year ago, before it agreed to do so in May. As the scale of the efforts needed to restart an economy already shrinking at the end of 2010 becomes clear, Shirakawa and his colleagues may step up.
“This is something the BOJ should have done even before the earthquake,” said Takeo Hoshi, an economics professor at the University of California, San Diego and author of “Corporate Financing and Governance in Japan: The Road to the Future,” winner of Nikkei’s 2002 prize for best economics book. “It’s even more important for the Bank of Japan to support the recovery” in the aftermath of the earthquake, he said.
Yen Impact
Additional monetary stimulus would help combat an appreciating yen, by increasing its supply. The nation’s currency climbed to a post-war high against the dollar on March 17, prompting Finance Minister Yoshihiko Noda the next day to request that the Group of Seven mount its first coordinated intervention in the foreign-exchange market since 2000.
The yen fell for a second day today, to 80.94 as of 10:30 a.m. in Singapore, compared with the high of 76.25 last week. The currency’s March 18 drop offered a fillip to equities, with the Nikkei 225 (NKY) Stock Average advancing 2.7 percent, limiting its loss since the temblor to 12 percent. The Tokyo market is closed today for a holiday.
“The need to counter yen strength amid deflation will oblige the Bank of Japan to monetize the fiscal deficits needed to fund reconstruction,” Prasenjit Basu, an economist at Daiwa Capital Markets in Singapore, wrote in a March 17 note.
Policy makers cut the main interest rate to a range of zero to 0.1 percent last year to help bring an end to prolonged deflation, leaving asset purchases at their main instrument.
Asset Purchases
Shirakawa and his fellow board members last week expanded a fund used to buy items including Japanese government bonds, known as JGBs, exchange-traded funds and real-estate investment trusts by 5 trillion yen, to 10 trillion yen. He told reporters that the BOJ by law cannot underwrite JGBs.
The BOJ kept a separate program of monthly JGB purchases at 1.8 trillion yen. The central bank, which can legally buy the bonds in the secondary market, has a rule of keeping its holdings at less than the value of banknotes outstanding. It also has a 3 trillion-yen venture-capital type facility designed to channel capital to growth industries.
“There are too many uncertainties yet” for the central bank to decide whether and how it will add stimulus, said Chiwoong Lee, a senior economist at Goldman Sachs Group Inc. in Tokyo. Should it take additional steps, they could range from increasing asset purchases to boosting the venture-capital program by defining companies that invest in the devastated northeast as fresh sources of growth, he said.
Power Critical
The key determinant for the magnitude of the hit to Japan’s economy will be the duration of power outages, which threaten to disrupt production, according to Lee.
Yesterday, the government said efforts to stabilize the Fukushima Dai-Ichi nuclear plant, crippled from the tsunami after the magnitude-9 temblor and discharging radiation, had some success, while a quick resolution is unlikely.
Tokyo Electric Power Co., owner of the 40-year-old power plant, has imposed rolling blackouts extending to Tokyo.
Stringer’s Optimism
Sony Chairman Howard Stringer said that recovery efforts may jump-start the country’s lagging economy as the country uses savings to rebuild. Japan last year fell behind China as the world’s second-largest economy, and the legacy of a burst asset bubble and financial crisis in the late 1990s has left it with persistent deflation and a record debt load.
Noda said last week that the government will compile a supplementary budget to pay for the recovery, which it will take beyond the end of the month to complete.
Barclays Capital analysts estimated the reconstruction budget at 5 trillion yen to 7 trillion yen in a March 18 research note. Nomura assumed 6 trillion yen in new spending during the fiscal year starting April 1. Morgan Stanley economist Takehiro Sato predicted “10 trillion yen or so,” noting it will take time to gauge the scope of what’s needed.
Tax Cuts
Japan is considering tax cuts to help companies damaged by the disaster, including refunding corporate taxes and not levying fixed-asset taxes from companies and individuals who are unable to rebuild factories and homes, the Nikkei newspaper reported today, without saying where it got the information.
World Bank staff today said in a report that it may take five years for Japan to rebuild, citing private estimates of damage from the disaster at $122 billion to $235 billion.
With Japan’s public debt already at about twice the size of its GDP, Moody’s Investors Service said last week that the disaster may push forward Japan’s “tipping point” for investors to lose confidence in the nation’s credit quality.
“The unsustainable sovereign debt position suggests that the BOJ will have to bear a bigger funding burden,” BNP Paribas SA strategists wrote in a March 18 note.
The financial crisis of 2007-2009 and Europe’s sovereign- debt turmoil that began in 2009 have pressed central bankers into uncharted territory. The Federal Reserve accumulated assets such as junk-rated debt as it sought to forestall a depression. More recently, the Fed pursued a $600 billion initiative to buy Treasuries in its effort to bring down the unemployment rate.
ECB’s Reversal
As the Greek debt crisis threatened to spread in May 2010, ECB President Jean-Claude Trichet oversaw a policy meeting where he said the bank hadn’t discussed the option of buying government bonds. He instead called for “decisive actions by governments” to curb borrowing. Days later, the ECB said it would intervene to buy sovereign debt.
The BOJ, too, may want Kan’s government to spell out how it will pay for additional spending and provide assurance that debt will be reined in over time, some analysts said.
“The government spent a lot and sold a lot of bonds after the Lehman shock occurred, and Japan greatly stepped back from the fiscal rehabilitation,” said Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management Co. “The BOJ is basically reluctant to rush in expanding its balance sheet.”
Deflation Continues
At the same time, a lack of inflationary pressure undermines the argument that BOJ debt purchases run the risk of spurring inflation. A government report this week is forecast to show consumer prices, excluding fresh food, fell 0.3 percent in February from a year before.
“Eventually what’s going to happen is the Bank of Japan has to be a buyer of last resort for JGBs,” said Julian Jessop, an economist at Capital Economics Ltd. in London. “The economic recovery will be more muted so the Bank of Japan will be forced to do more.”
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