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Dear Colleagues,

It has been three months since we last communicated.

With the great effort of our International Chair, Esther Tan, we now have a new representation in Vietnam. International Auditing and Financial Consulting Company Ltd.(“IFC”) is a good medium sized firm located in Hanoi, Vietnam. It is a young firm established in 2001, but has grown very fast. With partners and staff over 100, the firm provides audit, tax, financial consulting and other professional services to clients. Partners of the firm had work experience at Big 4s, and are able to handle international engagements. With continuing influx of international investments into the country, I am confident that the firm will provide good support to AGN International.

Searching for a new member firm in the Philippines still goes on. A pre-admission review of a prospective firm in Qingdao, China is expected to be carried out very soon.

The regional board has resolved to hold the Annual Conference in Ho Chi Minh City, Vietnam from 26 to 28 April. Ho Chi Minh City is the largest city in Vietnam, and its city centre lies at the banks of Saigon River. It is an interesting place to visit and a good place for the Conference. IFC has kindly agreed to host the Conference, and preparation work is on the way.

The global economy began to contract as from the last quarter of 2008, and the resulting sharp adjustments were beyond the expectation of most people. Professional accountants are facing unprecedented challenges on certifying the accounts of their clients. Many business failures came about in the midst of the financial crisis due to shortage of working capital caused by the global credit crunch. While on one hand, professional exposure to critical accounting issues such as asset valuation, financial and credit risk exposure, going concern assessment, etc requires accountants to plan and do their work more cautiously; demands for reduction of service fees from clients on the other hand make their lives much harder.

China, being one of the world’s largest economies, is not immune to the predicament. The export chain has been affected greatly due to the contraction of global consumer markets, especially the USA. As a result of a significant reduction in sales orders, a large number of factories in the Southern part of China have closed down, and many workers have lost their jobs. Inflation is no longer a big issue for China. The country will shift its economic emphasis from controlling inflation to stimulating domestic demand, and concentrate on infrastructure spending to maintain economic growth. The Chinese Government has re-adjusted the annual target growth rate to 8%. With the second phase of the financial tsunami to come, it is expected that the Government will put forward many more fiscal stimulus, including reduction in interest rates and tax cuts, to restore confidence and to put the economy back on a proper footing. Such a move might turn out to be a good time for foreign investors to get into the China market.

Ricky Wong
Chair, Asia Pacific Region
Wong Brothers & Co.
Hong Kong
rickywong@wongbros.com.hk

CHINA AND HONG KONG
CHINA REGAL CPAS AND WONG BROTHERS & CO
Both member firms have submitted a joint venture agreement between themselves, covering a number of common activities, to the Chinese authorities for approval which is anticipated in the near future.

MALAYSIA
GEP ASSOCIATES
Our Malaysian member firm has redesigned its website; visit on www.gep.com.my. Esther Tan, contact partner of this firm and Chair of AGN International recently paid a visit to the office of our Indonesian Member firm Kanto, Tony, Frans & Darmawan in Surabaya. Also, Esther Tan and Felix Gong and two of their local management staff attended a seminar on several ISA’s which included audit risks.