Cravesy News: 04/14/14

Songkran Festival: Thailand Welcome New Year With Huge Water Fight

Thailand is currently celebrating New Year the way it does every year – with a big water fight. The three-day New Year period from 13 to 15 April coincides with the ancient Songkran festival, celebrated by throwing water on people.

During Songkran Thais roam the streets with water pistols or buckets, drenching random passersby to wish them well for the coming year. The celebrations in the northern city of Chiang Mai are particularly enthusiastic, going on for six days or more, making it a popular party for tourists.

A Thai child takes part in a water battle to celebrate Thai New Year on Khaosan road in BangkokReuters

A man throws water at three girls on a motorbike in Thailand's southern province of NarathiwatAFP

A tourist takes a direct hit on Silom Road in BangkokReuters

A woman blasts revellers with a firehose on Silom Road in BangkokReuters

Foam is sprayed over revellers on Khaosan road in BangkokReuters

Children splash elephants with water...Reuters

...and the elephants retaliateAFP

A tourist reacts as an elephant sprays her with water during Songkran festivities in Ayutthaya provinceReuters

Children prepare to drench tourists on Bangkok's Khaosan RoadReuters

A boy shoots a water pistol from the back of a truck in Chiang MaiGetty

Tourists and Thai residents take part in a water fight in Chiang MaiGetty

Revellers take part in a water fight during Songkran celebrations on Silom Road in BangkokReuters

A Thai man pours a bucket of water on a man riding a scooter in Chiang MaiGetty

YOU MIGHT LIKE THISSponsored Content by Taboola

Syria's War Economy: How it Works and Who Makes Money

Smoke rises from buildings after what activists said was shelling from forces loyal to Syria's President Bashar al-Assad in the besieged area of HomsReuters

When the international media first entered the Yarmouk camp near Damascus in February, the residents' stories of suffering appalled the world. Many were malnourished and exhausted, barely surviving a siege that had lasted for months.

While the UN managed to broker a deal that secured limited access for aid convoys to the camp, the desperate reality for Syria's remaining civilian population became clear for the world to see.

That reality is a total breakdown of normal economic and social activity. A lack of electricity, inadequate food, barely any functioning schools and health care services a mere memory. In place of the vibrant economy that had once thrived in towns and cities across Syria, now a war time economy has taken root.

A recent report published by the European Council on Foreign Relations (ECFR) has revealed which parts of Syrian society broke down and what's emerged in its place.

Areas under control of the Syrian government have maintained basic services, refreshed by regular injections of cash from governments and individuals still friendly with the Syrian President Bashar al-Assad. Soldiers in the government army still receive a regular salary.

Those living in contested areas and opposition strongholds enjoy no such luxury. When security collapsed, so too did the local economy and society - there was a power vacuum. In time, an informal economy rooted in smuggling, kidnapping and looting has filled the void.

The old business class has been replaced by a new kind of businessman. Those adept at stripping assets from factories to be sold, looting the vaults of regional banks or seizing oil fields have become empowered.

Oil fields, border posts and grain storehouses are now vital economic lifelines, which is why some of the bloodiest fighting between rebel militias has taken place far from the primary front lines of Aleppo or Homs.

Jabhat al-Nusra, an Islamist militia with loose ties to al-Qaeda, has been effective in managing its resources. The oil fields are so lucrative that a new market has evolved near to the Turkish border, where oil is sold for export to Turkey or within Syria.

Another Islamist rebel brigade, the Islamic State of Iraq and Syria (ISIS,) has seized flour mills in the northeast of the country, big enough to make bread for a million people each day. Setting-up and manning checkpoints on the road is a lucrative way to extort cash from passing vehicles.

Meanwhile, the battles themselves have become an opportunity to generate revenue. There have been reports that groups have prolonged an attack in a bid to win more money from wealthy individual supporters.

Moreover, the international sanctions against the Syrian regime have created opportunities to generate cash. Middlemen acting for the regime can establish elaborate schemes to avoid sanctions and bring goods and serviced into the country, charging fat fees along the way and sucking moee money out of state coffers and into cronies' pockets. The ECFR report highlights Assad loyalist Rami Makhlouf as among the businessmen profiteering from this new economy.

Syria's civil war is now into its fourth year and there's still no sight of an ending. As the society and the economy broke down, both sides in this war have manoeuvered to exploit the new economy to its benefit, with the aim of strengthening their respective war machines.

In the short run, it's proved very profitable for those with the skill to manage their resources. However, the long term implications for Syria and its people are dire. The country has fragmented so much that it's hard to envisage a central state based on pre-war norms and the presence of newly empowered warlords is troubling.

If the conflict can ever be solved at the negotiating table, there's no doubt that the very men profiteering from the war will be there at the table, ready to claim a stake in the new Syria.

Gerrie Nel Accuses Oscar Pistorius of Crying to Escape Justice for Killing Reeva Steenkamp

Oscar Pistorius was accused of using of of control emotions to "escape" grilling by Gerrie NelReuters

Oscar Pistorius was accused of crying to escape facing justice by prosecutor Gerrie Nel in court.

Nel made the claim to the Olympian and Paralympian after he broke down in tears for the fourth time on the first day of his second week in the witness box.

The man trying to get Pistorius convicted of murder asked him: "You're not using your emotional state as an escape, are you Mr Pistorius?"

His stark suggestion came after Pistorius had repeatedly answered "I don't know" to questions about fine details of what happened on the night Reeva Steenkamp, 29, was shot dead by the runner.

It was another tough day for the fallen star who denies murdering his former girlfriend. He foundered under forensic questioning and looked close to being overcome at times.

Nel claimed Pistorius was "tailoring" his evidence during cross-examination by changing details as he went along on matters relating to Steenkamp's last meal, the position and a duvet in the bedroom and the position of fans.

Nel said: "I'm pointing out to you how improbable your evidence is, how you're tailoring your evidence and it's not true."

Pistorius denies pre-meditated murder and claims he mistook Steenkamp for an intruder inside his luxury home on the outskirts of Pretoria. The prosecution alleges he killed her following an argument between the couple.

Pistorius also faces charges of illegally firing a gun in public and of illegally possessing ammunition, both of which he denies.

There are no juries at trials in South Africa, and his fate will ultimately be decided by the judge, assisted by two assessors.

The trial continues.

Egypt: Electricity Price Hikes Shock Rich as Further Reforms Floated

Egypt's interim government says it will reduce subsidies on electricity before the presidential election(Reuters)

Egypt's interim government will increase the price of electricity for the wealthiest Egyptians before May's presidential elections, according to the planning minister.

Ashraf al-Arabi said the richest 20% of Egyptians will have to pay more for electricity, while a decision on hiking petrol prices would be taken "very soon."

For decades, the Egyptian state has provided heavy energy discounts to the public, while also subsidising staples like bread.

"This energy subsidy system is unsustainable; we cannot afford [for] this to continue," al-Arabi said at the IMF-World Bank meetings in Washington.

"We don't have time to waste ... It's better for Egypt to start some of these measures at least before the presidential election, just to pave the way for the coming president, to make his life easier," he said.

Egypt's energy subsidy costs shot up in the wake of the 2011 uprising that toppled Hosni Mubarak, as the Egyptian currency plummeted and energy imports became more expensive.

The country's finance minister warned in March that state spending on energy subsidies would reach 10-12% above budget unless reforms were made to the system immediately.

Economic reform has been slow and arduous in Egypt, as leaders have deemed cutting subsidies too politically risky and likely to spur social unrest.

The new impetus brings the interim government closer to the IMF's position. The fund has long urged Cairo to push through structural reforms like cutting subsidies.

The previous administration of Mohamed Morsi was in negotiations with the IMF over a massive loan which would have seen the government reducing subsidies, but the former president was ousted before a deal could be reached.

Al-Arabi said the electricity price hikes would be introduced gradually over a period of three to five years, while 15% of the cost savings would be used for social programmes that benefit the poorest Egyptians.

"This will benefit the poor, because we will take this from the rich and reallocate it to the poor and social spending," he said. "So I believe we have a good story to tell to the Egyptian people."

Since Morsi was toppled in July 2013, the Egyptian government has relied heavily on massive aid donations from Gulf states, including Saudi Arabia, Kuwait and the United Arab Emirates.

Israel 'Holding Secret Talks with Saudi Arabia and Kuwait' Says Lieberman

Israeli Foreign Minister Avigdor LiebermanReuters

Israel is seeking to establish a diplomatic channel with some Sunni Arab states in the Gulf through secret talks, based on their common hostility towards Iran.

That is according to Israeli foreign minister Avigdor Lieberman, who made the hawkish remarks in an interview with newspaper Yedioth Ahronoth.

If confirmed, this would represent the first diplomatic contact between Israel and countries such as Saudi Arabia and Kuwait, which have always been opposed to the Jewish state.

Israel has thus far only signed peace deals with Egypt and Lebanon.

Lieberman said:

For the first time there is an understanding there that the real threat is not Israel, the Jews or Zionism. It is Iran, global jihad, Hezbollah [the Shiite Lebanese militant group] and al-Qaida.

There are contacts, there are talks, but we are very close to the stage in which within a year or 18 months it will no longer be secret, it will be conducted openly.

Admitting that he spent "more than a few years of meetings and talks with them", Lieberman listed "moderate" Arab countries such as Saudi Arabia and Kuwait as places he would have no problem visiting.

According to the Yedioth newspaper, new Israeli-Arab peace deals would be signed in 2019.

However a spokesman for Saudi Arabia's foreign ministry denied that any "ties or talks" were being entertained with Israel at any level, while Kuwait also dismissed the report.

Israel accuses the Iran of seeking to build a nuclear weapon behind the ambitious atomic programme, something Tehran has always denied planning.

Senior Israeli officials have slammed the United States for not pursuing a tougher line on Iran.

Anglo American Could Sell Strike-Hit South African Mines: CEO Mark Cutifani

A member of the South Africa's Association of Mineworkers and Construction Union (AMCU) holds placards as he attends a rally in Rustenburg, in January 2014.Reuters

Mining giant Anglo American could sell its unrest-hit South African platinum mines to focus on open-cast extraction.

The London-traded firm's mines in South Africa's platinum belt of Rustenburg, north of Johannesburg, have been inoperative for nearly three months. The region is home to the world's largest platinum deposits.

About 80,000 miners are on strike and have declared they will not return to work until their minimum monthly wage is doubled to 12,500 rand, (£710, €858, $1,189). The mines are labour-intensive and shafts are often deep, making mechanisation a costly affair.

Anglo American says that demand, if met, would ruin its platinum division.

The status-quo has forced the firm to tap into its reserves, which in turn is hitting its profits.

"The Rustenburg resource is no longer what it used to be," Anglo American chief executive Mark Cutifani told South African newspaper Business Day.

"I don't think that's where our best skills set sits."

"That's why I've been quite vocal saying we should consider taking a back step from Rustenburg," Cutifani said.

"We should be focusing on the more mechanised operations which is what I think we do much better, and allow someone who has better skills set in those types of mines to run those kinds of assets," he added.

Sibanye Gold, the largest producer of gold in the country, has said it could purchase some platinum mines once the unrest is sorted.

Negotiations between the firm and the Association of Mineworkers and Construction Union (AMCU), which represents striking workers, have not yielded results thus far, reported AFP.

In February, the world's leading platinum miner Amplats warned of restructuring as its Rustenburg and Union mines, located in South Africa's northern and north-western regions, were "in the most marginal financial position."

Strikes are costing Amplats some $92m a day as production has dropped by 4,000 ounces of platinum per day.

Palladium Rallies to Near Three-Year High on Supply Disruption Fears

A machine engraves information on an ingot of 99.96% pure palladium at the Krastsvetmet nonferrous metals plant in Russia.Reuters

Palladium prices gained for a fifth successive session on 14 April, to a near three-year high, over concerns that US sanctions on top producer Russia and drawn out labour unrest in the second-largest producer South Africa could hit supplies.

Palladium, used alongside platinum in devices that clean car emissions, shot up some 1.7% to $814.20 an ounce in early London trade on 14 April, its highest since 3 August, 2011.

Meanwhile, platinum climbed 1% to trade at its highest in about a month amid labour strikes in South Africa.

Palladium has outperformed other precious metals this year, surging some 14% amid supply-disruption fears and growing demand in the automobile sector.

HSBC said in a note to clients: "The combination of the ongoing mining strikes in South Africa and the tension buildup between Russia and the West over Ukraine puts nearly three quarters of palladium supply at risk of some form of disruption.

"On the demand side, continued strength in the US and China auto market is a supportive case for palladium as it is an important component used in the fabrication of autocatalysts.

"It's a double-edged sword for palladium, we're seeing robust demand and also supply constraints," said James Moore, a London-based analyst at FastMarkets.

"You've got the South African strikes and concern regarding Russian sanctions as tension bubbles along. Investment demand is strong," Moore told Bloomberg.

Ukraine Crisis

At an emergency session of the UN Security Council on 13 April, Ukraine's representative said Moscow had orchestrated the unrest in eastern cities, while Ukraine's foreign ministry said it had proof that Russia was behind a "separatist operation."

The Russian delegate urged Kiev to enter in to a genuine dialogue with the protestors and warned against using violence.

Meanwhile, the US and the European Union are considering deeper economic sanctions against Russia.

Washington and Brussels imposed sanctions against individuals with ties to the Kremlin and a Russian bank following Russia's annexation of the Crimean peninsula. Leaders have previously discussed imposing tougher sanctions against Russian entities and more individuals with links to Putin.

UK's Petrofac Among Nine Firms to Undertake $7.2bn Kuwait Refineries Upgrade

Petrofac group chief executive Ayman Asfari.Reuters

British, Dutch, American and South Korean firms have bagged orders totalling $7.2bn from Kuwait National Petroleum (KNPC) to boost capacity and improve environmental standards at Kuwait's largest oil refineries.

The contracts stem from the $12bn (£7.2bn, €8.7bn) in bids approved in February for the state-run company's 4.6bn dinar ($16.4bn) Clean Fuels Project. The project is part of a broader economic development plan that had been held up for a while, partly because of political volatility.

Samsung Engineering, in a regulatory filing on 14 April, said it has bagged a $1.62bn order for the Mina Abdullah refinery along with its partners, British firm Petrofac and Dutch firm Chicago Bridge & Iron Company.

Daewoo Engineering & Construction said in a statement that it had won an order for the Mina Abdullah refinery in Kuwait as part of a joint venture with Hyundai Heavy Industries and Texas-based Fluor.

The order is worth $1.13bn each for the three firms, Daewoo added.

GS Engineering & Construction and unlisted SK Engineering & Construction also said that they bagged an order for refinery work in Kuwait along with Japan's JGC.

The order, for the Mina Al-Ahmadi refinery, is worth about $1.66bn for each of the three firms, the Korean firms added.

Korean Push

The partnerships highlight increasing efforts by South Korean builders to boost margins through joint bids with local and foreign players.

Overseas plant orders won by South Korean builders jumped 42.1% year-on-year during the three months to March 2014, data from Seoul showed earlier in the month.

Middle East's Largest Refinery

Kuwait proposes to issue construction tenders for the planned 4bn dinar Al Zour oil refinery next month, and could sign contracts early next year, a state oil firm official said on 13 April, reported Reuters.

The 615,000-barrels-per-day (bpd) oil refinery will end up being the largest in the Middle East, when operations commence in late 2018 or early 2019.

Is Saudi Arabia's Deal for Hundreds of German Tanks About to Bomb?

Leopard II battle tank is pictured in action at the Oberlausitz training area in WeisskeisselReuters

A deal to sell hundreds of German tanks to Saudi Arabia is in jeopardy because a German minister opposes the deal.

The German press has reported that the Gulf kingdom is interested in purchasing as many as 800 Leopard-2 tanks from Germany, the country's flagship battle tank.

Arms sales are an extremely sensitive in Germany and the details of negotiations and deals are rarely confirmed by manufacturers or government officials.

Newspaper Bild am Sonntag said that Saudi Arabia has pushed for a deal with the German firms Krauss-Maffei Wegmann and Rheinmetall for years and that the Gulf kingdom had around $25bn (£15bn, €18bn) set aside to buy the tanks.

The newspaper said that Germany's Social Democrat Economy Minister, Sigmar Gabriel, opposed the deal and that it had not been sent to the German national security council for approval.

The council, which includes German Chancellor Angela Merkel as well as minsters for economy, defence, development and foreign affairs, has to approve arms deals but its decisions are not published.

"The government will not approve the disputed export," the newspaper reported, citing government sources.

"Gabriel plays a key role in this, as he has positioned himself against a tanks delivery to the autocratic royal house, according to government sources."

Germany has refused to sell arms to Saudi Arabia for decades, out of concern for Israel's security and the kingdom's record on human rights.

The minister has been quoted in the past saying it was a "shame" that Germany exported so many arms.

A spokeswoman from the economy ministry told AFP the government does not comment on "individual procedural stages of possible approvals for export of munitions."

Pakistani Arrested for Cannibalism alongside a Newborn's Head

Pakistani arrested for cannibalism alongside a child's headReuters

A Pakistani man, a convicted cannibal, has been arrested for once again eating human flesh from the corpse of a newborn in Bhakkar city.

The police recovered the head of the child when they conducted a raid at the residence of the offender, who goes by only one name, Arif, in the Punjab town.

Arif was first arrested in April 2011 along with his brother Zaman, who remains missing now. A manhunt is on to catch the absconder.

The accused is said to have admitted to the crime.

The brothers were released following a jail term and a fine of 200,000 Pakistani rupees each. The residents in the town of Darya Khan, the brothers' hometown, had protested against their release.

It was reported that the duo had been performing cannibalism by digging up dead bodies from a local graveyard for black magic rituals.

They are believed to have eaten nearly 150 corpses in over a period of 10 years before being arrested by the authorities three years ago.

Asia CFOs Claims Political Unrest Will Lead to Business Boost

A woman shows her ink-marked finger after casting her vote in the northeastern state of Assam on 7 April.Reuters

A bulk of chief financial officers from Asia's largest companies, with annual revenues of $1bn and above, believes that political change will help boost business opportunities in the region, rather than create risk.

According to Bank of America Merrill Lynch's benchmark 2014 CFO Outlook Asia report, which is an of an annual survey that combines the thoughts and insights of over 600 CFOs and other senior financial executives in Asia Pacific, only 13% of CFOs are worried that political change in their home countries this year will have a negative impact on their business.

Around 38% across Asia expect a positive impact while around 53% of CFOs are optimistic about the impact of elections in India.

"To a surprising degree CFOs in Asia see political change in 2014 less as a risk than an opportunity. Several major political shifts are afoot in the region, starting with the national elections in India this year. Indonesia faces a change of president," said the BAML report.

"China's government, meanwhile, is only a year into the term of the fifth generation of Communist Party leaders. The Bo Xilai scandal that culminated in a showcase trial in 2013 was the precursor of a thorough and on-going anti-corruption campaign, embroiling foreign and local companies alike."

BAML

China

In China, around 89% of CFOs feel that political change will either have no impact (61%), slight positive impact (27%), or major positive impact (1%) on their businesses this year.

"The growth rates throughout Asia are still strong, despite some slowing, and have been for some time. This tends to take precedence over concerns about local market political risk," said Robert van der Zalm, CFO of Noble Group, a Hong Kong supply-chain solutions company.

"Remember that 7% growth in China now probably equates to 14% growth 10 years ago. That's massive."

India

The results in India reflect generally positive business opinion about this year's national election—with Narendra Modi, the front-runner to become prime minister, lauded for the economic achievements seen in Gujarat during his tenure as chief minister of the state," said the BAML report.

Meanwhile, optimism also surrounds the candidacy in Indonesia's presidential election of Jakarta's popular governor, Joko Widodo.

India's Central Statistics Office, meanwhile, projected that the nation's growth would hit a decade low of 4.5% for the fiscal year 2012-2013 ending in March, attributed partly to slowdowns in the construction and mining sectors.

Thailand

Thailand, meanwhile, is amid a fractious challenge to the nation's government that has been disrupting daily life in Bangkok for months.

In that country a full 90% believe that political change will have either no impact (52%), a slight positive impact (19%) or a major positive impact (19%) on their business this year.

"Perhaps most surprisingly just 20% of CFOs in Thailand believe political unrest is a primary operating risk," said BAML.

BAML

"The relatively tranquil result from Thailand (only the Australia and Taiwan responses were lower, at 12% and 17% respectively) comes in the face of declining GDP growth in 2013 largely due to civil unrest.

For the full year, GDP growth stood at 2.9%, according to the state planning agency. Growth in the final quarter of the year slowed to just 0.6% compared to the previous three months as anti-government protests intensified.

In contrast, GDP growth in Thailand for all of 2012 stood at 6.2%, despite continued recovery from devastating floods in late 2011.

Many multinationals in Thailand are sanguine about the domestic political environment, for the time being at least.

"We have a natural hedge against disruptions in Thailand because much of our business is overseas," said Krailuck Asawachatroj of Thoresen Thai Agencies.

"Since two of our major businesses are in energy and shipping, our receivables are primarily in US and Singapore dollars. Our exposure in Thai baht is limited."

Hot Shots Photos of the Day: Coachella, Zac Efron Shirtless, Grumpy Cat

Rita Ora rips Zac Efron's shirt open as he accepts the award for best shirtless performance for "That Awkward Moment" at the 2014 MTV Movie Awards in Los AngelesReuters

Zac Efron flexes his muscles after accepting the award for best shirtless performanceReuters

Rihanna is photographed as she arrives at the 2014 MTV Movie Awards in Los AngelesReuters

Grumpy Cat arrives with his owner Tabatha Bundesen at the 2014 MTV Movie Awards in Los AngelesReuters

A view out across the crowds at one of the stages at the 2014 Coachella Valley Music & Arts Festival in Indio, CaliforniaGetty

People stand in front of a large-scale moving sculpture called "Escape Velocity" by the Poetic Kinetics at CoachellaReuters

Beyonce performs with her sister Solange onstage at CoachellaGetty

A contestant performs at the World Irish Dance Championship at London's Hilton Metropole hotelGetty

Hooded penitents take part in a Palm Sunday procession in Malaga during Holy WeekReuters

A masked penitent dressed as a Roman soldier checks his mobile phone during Holy Week on Marinduque island in the PhilippinesReuters

Female bodybuilders prepare to go on stage during the 2014 NABBA/WFF Korea Championship in DaeguGetty

Edmond Aviv sits with a sign he made, on a street corner in South Euclid, a suburb of Cleveland, Ohio. A judge ordered him to display the sign as punishment for feuding with his neighbour and her adopted, disabled African-American childrenReuters

Demonstrators clash with police during a protest against austerity measures in RomeReuters

An armed man sits near the police headquarters in Slaviansk. Pro-Russian gunmen have seized or occupied government buildings in at least nine cities in eastern UkraineReuters

Kate Middleton and Prince William take a spin on the Shotover Jet, a 50mph jet boat, on the Shotover River in Queenstown, New ZealandGetty

Prince William tries to hit a ball with a cricket bat as he and Kate Middleton attend a promotional event for the upcoming Cricket World Cup in ChristchurchReuters

Singapore Set to Record Strong Growth on Global Demand Recovery

The ongoing recovery in the US and Europe is expected to help trade-reliant Singapore's economy.Reuters

Singapore's central bank has kept its monetary policy unchanged despite a growth slowdown in the first quarter, as it expects a solid growth over the rest of the year due to recovering global demand.

The Monetary Authority of Singapore (MAS) said that it remains comfortable with its existing monetary policy stance, adding that it would maintain its policy of allowing a "modest and gradual" appreciation of the Singapore dollar.

Due to its large dependence on global trade, Singapore manages its monetary policy by controlling the exchange rate. The MAS lets the dollar appreciate or depreciate against the currencies of its main trading partners within a specific trading band.

The central bank trimmed its forecast for headline inflation in 2014 to 1.5-2.5%, down from 2-3% previously, but kept its forecast for core inflation unchanged at 2-3%.

Meanwhile, an advance estimate of first-quarter gross domestic product (GDP) showed that the economy expanded just 0.1% sequentially in the first quarter on a seasonally adjusted, annualised basis. In the fourth quarter, the economy grew at a seasonally-adjusted 6.1% pace.

Manufacturing growth slowed down to 4.5% from 10.4% in the fourth quarter and services contracted by 1.8%, while construction expanded by a strong 10.7%.

Solid Growth in 2014

Despite the weak growth, the central bank expects the economy to rebound due to the ongoing recovery in the US and Europe. The MAS noted that core inflation has increased over the last six months, and it is worried that tight labour market conditions will feed into stronger price pressures in the medium term.

"Barring a significant shock in the external environment, the Singapore economy should expand at a moderate pace over the course of the year. Wage pressures will persist and firms are likely to pass on business costs to consumer prices," the central bank said in a statement.

Monthly trade figures have shown a pick-up in exports to the European Union and emerging markets at the start of the year, but a marked fall in exports to the US. US demand is expected to recover over the coming months.

The MAS is forecasting an expansion of 2-4% in 2014.

The economy, however, is likely to face a slowdown in late 2015, given the "dangerous pace" of credit growth in recent years, according to Daniel Martin, Asia economist at Capital Economics.

"When the US Fed starts to raise rates in mid-2015, interest rates will also rise in Singapore, which could trigger an increase in credit defaults," Martin said.

Singapore's local rates tend to track the US Fed funds rate closely and they currently remain at very low levels since the onset of the global financial crisis.

Oscar Pistorius Fanclub: Blonde Woman Embraces Killer at Steenkamp Murder Trial

Oscar Pistorius embraced by blonde woman as he arrives at his murder trialReuters

Oscar Pistorius embraced a blonde woman as he arrived for another gruelling day at his murder trial.

The woman was among a group of wellwishers waiting for the disabled star at North Gauteng High Court.

She stepped in to his path and appeared to plant a kiss on the killer's face or whisper something in his ear.

Pistorius clasped her to him briefly and then freed himself from her embrace to march in to court.

The 27-year-old Olympian and Paralympian runner faces a scrum every day he arrives and leaves the building where he is standing trial for shooting dead Reeva Steenkamp, 29. He denies murder.

Gun killer Oscar Pistorius hugs supporter at North Gauteng High CourtReuters

Pistorius has begun his second week of giving evidence in the witness box under forensic cross-examination by prosecutor Gerrie Nel.

Appearing distraught and repeatedly breaking down in the face of Nel's tough questioning may have sparked sympathy among some trial observers for Pistorius, who looks emotionally wrecked by the experience.

His model girlfriend died of devastating gunshot injuries after he fired four through a bathroom door at his luxury home on Valentine's Day 2013.

Reeva's sister Simone branded Pistorius a "disgusting" liar" and claimed he did not care about her. Steenkamp, 48, told the Daily Mail: "He is trying to convince the court that they were really close and that he cared for her. It's not true. He is a disgusting liar."

Pistorius denies pre-meditated murder and claims he mistook Steenkamp for an intruder inside his Pretoria home. The prosecution alleges he killed her after an argument between the two.

The trial continues.

Chile Fire: Amazing Photos Show Scale of Devastating Valparaiso Blaze

Firefighters battled deadly forest fires in Valparaiso, Chile for a second night after coastal winds whipped up the flames again.

At least 12 people were killed and 500 injured as the blaze swept through the hills above the city, destroying 2,000 homes and forcing 10,000 people to flee.

A huge cloud of smoke from a forest fire engulfs Valparaiso in ChileReuters

Fires emergency services thought they had under control were reignited by Sunday afternoon's winds and raged out of control, threatening to spread to more areas of the city.

The blaze began in a forested ravine next to ramshackle housing on one of Valparaiso's 42 hilltops, and spread rapidly. Hot ash rained down over wooden houses and narrow streets. Electricity failed as the fire grew, turning the night sky orange and reducing suburbs on six hilltops to ashes.