Britain garment manufacturer moves operations to Cambodia

PHNOM PENH, May 11 (Xinhua) -- A major garment manufacturer will move its product development center from the United Kingdom to Cambodia, a sign, according to some experts, that despite the effects of the economic crisis, the Cambodian garment sector continues to remain internationally competitive, local media reported on Monday.

Britain company New Island Clothing is setting up "a high level standards product development center," making the company one of the first to conduct the whole garment-production process -- from development to the placement of orders -- in Cambodia, New Island General Manager Kevin Plenty was quoted by the Cambodia Daily as saying.

The company, which has been in Cambodia for nine years and produces up to 75,000 men's shirts per week, had decided to set up the center here because it makes "the whole production process quicker for our customers," as the majority of materials come from the ASEAN region, said Plenty.

Kaing Monika, external affairs manager of the Garment Manufacturers Association in Cambodia (GMAC) said New Island's strategy showed the factory's "long-term vision and commitment in Cambodia," adding that most Cambodian factories only do "cut, make and trim" -- a production formula in which raw materials and designs are supplied and factories only really stitch the clothes together.

Tuomo Poutiainen, chief technical adviser for the International Labor Organization's garment sector program Better Factories Cambodia, said New Island's decision was "very positive for industry" and showed there was "enough confidence in the Cambodian garment sector to invest even in bad times."

Hundreds of factories have constituted the backbone of the garment sector of Cambodia, which used to generate above 70 percent of its total annual export volumes.

However, due to the global financial crisis and rising labor disputes, at least 60 garment factories have been closed and more than 50,000 garment workers lost their jobs since late 2008 and the sector's export volumes have also seen an obvious slide in the first quarter of this year.

But Plenty said he believed that the industry will see an economic turnaround within six months, and that he is not the only one within the garment industry to feel that way.

China's banking sector issues first social responsibility report

BEIJING, May 10 (Xinhua) -- China Banking Association (CBA) issued the
first report of its kind in the country on banking sector's social
responsibility on Sunday.

The report, China Banking Sector Social Responsibility Report, introduces
the banking sector's efforts in promoting public welfare and environmental
protection.

The report said the banking sector donated 1.01 billion yuan (148.09 U.S.
dollars) on public welfare covering education, culture, sports, health, science
and environmental protection in 2008.

The banking sector has provided loans worth of 205.36 billion yuan (30.2
billion U.S. dollars) by March end to earthquake-hit areas for relief and
reconstruction, said China Banking Regulatory Commission (CBRC) Saturday.

The banking sector has been giving loans to disadvantaged groups, for
example students who have difficulties to continue with their college education,
the report said.

Founded in 2000, CBA is a non-governmental organization with 81 full members
and 37 associate members.

U.S. service sector shrinks for seventh straight month

WASHINGTON, May 5 (Xinhua) -- Business activity in the U.S. service sector contracted for the seventh consecutive month in April, the Institute for Supply Management (ISM) reported Tuesday in its latest non-manufacturing survey.

The Tempe, Arizona-based research group said its index of business activity in the non-manufacturing sector declined to 43.7last month from March's reading of 40.8.

A reading at or above 50 indicates expansion, while one below indicates contraction.

The service sector -- everything from restaurants and hotels to banks and airlines -- represents about 80 percent of economic activity in the United States.

The ISM is a trade association representing approximately 40,000 supply management professionals. Its service sector index reflects the opinions of purchasing and supply executives at non-manufacturing industries.

Zimbabwe, India negotiate $60 mln mine mechanization deal

HARARE, Feb. 17 (Xinhua) -- The Zimbabwean government is on the verge of striking a deal with India worth 60 million U.S. dollars to revamp mine mechanization, local media The Chronicle reported on Tuesday.

The chief executive officer of the Zimbabwe Miners' Federation (ZMF) Wellington Takavarasha on Monday said the government is finalizing a deal with India worth 60 million dollars that will enhance mine mechanization, especially for the small-scale miners.

The mining industry contributes immensely toward the economy. However, the mining sector last year was reeling under various challenges with the gold sector in particular constrained by high production costs, power outages and shortage of critical inputs.

Takavarasha was optimistic that the mining sector would be revamped should the deal between India and Zimbabwe go through.

He said the ZMF was working to ensure that miners were fully equipped to ensure effectiveness and high output. Takavarasha said the mining sector would not be affected by the recent decision by the Reserve Bank of Zimbabwe to stop funding quasi-fiscal activities.

In the recently announced national budget and the monetary policy statements, the government and the central bank said the RBZ would be stopping engaging in quasi-fiscal activities as these were fuelling inflation.

The ZMF had approached the RBZ to bankroll the mine mechanization program as it had done with farm mechanization.

Zambia develops measures to ease impact of global economic crunch

Special Report:Global Financial Crisis

LUSAKA, Feb. 8 (Xinhua) -- Zambian President Rupiah
Banda said the government is developing measures to mitigate the adverse impact
of the global credit crunch on the mining industry, Zambia News and Information
Services (ZANIS) reported on Sunday.

The president said the measures are intended to
address concerns raised by the mining companies in order to reduce job loses and
develop a mechanism to salvage mining operations.

He said although the economic meltdown has adversely
affected the economy, particularly the mining sector, the government will remain
committed to getting the country onto a firm economic base.

Banda said he is happy with the confidence from some
investors who are willing to invest in the mining sector in Zambia despite the
prevailing global economic problems.

He observed that despite the fall in metal prices,
investors have not been deferred their investment plans in the country, ZANIS
said.

He said the long term view for the sector is that the
world's demand for the metals, mainly driven by India and China, is likely to
rebound and bring back mining operations to normal.

The President said it is government's policy to
ensure that the business environment remains attractive for further investment
in the country.

He said in the medium and long terms, Zambia will
continue to attract investors in the mining sector due to its conducive
investment atmosphere.

He noted that Zambia still offers some of the best
incentives in the mining industry such as exemption from custom and exercise
duty on all mining equipment and machinery imported for mining purposes, ZANIS
said.

Banda further expressed confidence that the congress
will provide a framework for business people from southern Africa and other
regions to discuss and share ideas on the future of the mining industry on the
continent in the wake of falling metal prices on the world market.

He urged Southern African states and the continent at
large to consider coming up with a common approach to issues of taxation and
environment which are key to sustainable development of the mining sector,
according to ZANIS.

He said the southern African region has much to gain
from the development of their mining economies through employment, taxation and
other benefits, adding that the mining sector will only be sustained through
enhanced cooperation.

EU sets out guidelines on financial sector bonuses

Special Report:Global Financial Crisis

BRUSSELS, April 29 (Xinhua) -- The European
Commission on Wednesday set out guidelines on the bonuses of risk-taking staff
in the financial services sector in response to the global financial crisis.

The guidelines cover the structure of pay, design and
implementation of remuneration policies, and the role of supervisory authorities
in reviewing these policies.

According to the guidelines, financial institutions
should have consistent remuneration policies on risk-taking staff and promote
sound and effective risk-management.

"There have been far too many perverse incentives in
place in the financial services industry," EU Internal Market Commissioner
Charlie McCreevy said, adding that staff's bonuses should not encourage risky
behavior for short-term gain.

McCreevy said staff's remuneration levels should
continue to reflect their long-term performance.

Hong Kong stocks end higher as property sector gains

Special Report:Global Financial Crisis

HONG KONG, April 17 (Xinhua) -- Hong Kong stocks closed slightly higher Fridays as property sector led the moderate gains, but a fall in China-related stocks, or H shares, limited the rise to resume 16,000 level.

The blue-chip Hang Seng Index rose 18.28 points, or 0.12 percent, to 15,601.27 after hitting an intraday high of 15,956.46. The index gained 7.1 percent, or 1,055 points, this week. Turnover rose to 75.30 billion HK dollars (about 9.73 billion US dollars) from Thursday's 74.63 billion HK dollars (about 9.64 billion US dollars).

Cheung Kong rose 0.9 percent to 76.76 HK dollars, but was off its intraday high of 79.60 HK dollars. It said it sold more than 90 percent of 1,068 units in a residential project in the New Territories since its launch Thursday.

Goldman Sachs also upgraded its view on the Hong Kong property sector to neutral from cautious, following the report, Sino Land jumped 9.8 percent to 10.24 HK dollars and Hang Lung Properties rose 1.7 percent to 21.30 percent.

Among the H shares, Chalco shed 4.5 percent to 6.22 HK dollars. PetroChina dropped 1.5 percent to 6.73 HK dollars and China Construction Bank was off 0.8 percent at 4.70 HK dollars.

Cathay Pacific fell 3.4 percent to 9.25 HK dollars. The Hong Kong-based airline said Friday its first-quarter revenue from passenger and cargo services fell 22.4 percent from a year ago, and it was to ask some staff to take unpaid leave.

The airline reported a net loss of 8.6 billion Hong Kong dollars (1.1 billion U.S. dollars) for 2008, a dramatic turnaround from the previous year's profit of 7 billion HK dollars. The company will also reduce passenger and cargo capacity.

HKEx rose 0.5 percent to 89.35, but off intraday high of 91.95 HK dollars.

Mengniu rose 4.83 percent to 13.02 HK dollars on rebound after Thursday's 5.6 percent decline on worse-than-expected 2008 results. After hit by melamine scandal last year, Mengniu's sales of liquid milk recovered rapidly, as first quarter sales volume had recovered to 80 percent of pre-melamine crisis level.