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Daily News on the Southeast Asian Region
24 July 2020
(pm) - 27 July
2020 (am)
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Greetings
This issue of Daily News Alert includes the following commentaries and citations attributed to researchers at ISEAS-Yusof Ishak Institute. You can click on their names to go to these articles directly.
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Southeast Asia Countries
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Brunei Darussalam
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Singapore
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Timor-Leste (East Timor)
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Region
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 Cambodia
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'Free-trade agreements the future': Seang Thay, spokesman and secretary of state at the Ministry of Commerce, said that FTA partners will provide Cambodia more benefits than the current situation. He said Cambodia needs to gain more benefits via bilateral trade agreements. "We have been preparing to complete bilateral trade agreements with eight other countries. We will start with South Korea and have plans for Japan, the UK, India, Mongolia, the EAEU and the USA - all of which we already have working groups attending to," he said.
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Survey sheds light on coronavirus-restricted SMBs: Cambodian small and medium-sized businesses (SMBs) have recorded lower sales during the pandemic while 39 per cent of them have trimmed down their staff, a Facebook survey found. Among the business owners in Cambodia who responded, the State of Small Businesses survey found that 52 per cent said they remained positive in their outlooks despite cash flow problems presented by the pandemic.
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Indonesia
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After Spotify and Netflix, govt seeks further tech taxation: The government has been struggling to collect more revenues to fund its widening budget deficit of 6.34 percent of the gross domestic product (GDP) as the COVID-19 pandemic hits businesses, which prompted the government to provide Rp 120 trillion worth of tax incentives.
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BI needs exit strategy in burden sharing: Most central banks around the world also contributed to the financing of fiscal deficits that rose sharply after the pandemic. Nonetheless, we should be cautious about the direct support of BI in the burden-sharing scheme. Even buying government bonds in the primary market, as BI has done since May, is basically printing money. As of June, the total amount of government bonds bought by BI in the primary and secondary markets already totaled Rp 447 trillion.
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Jobs bill puts spotlight on graft in natural resources sector in Indonesia: Amid rampant corruption in the natural resources sector, the government is proposing centralized licensing and environmental management in the omnibus bill on job creation, in a move that would be a step back for regional autonomy.
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Ideologi Pancasila Melemah? [Pancasila ideology weakening?] Pancasila sebagai falsafah negara akan menyaring semua elemen yang bertentangan dengannya.
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Peluang Besar Koalisi Demokrat-PKS [Big chance for Democrat-PKS coalition]: Hubungan antara Demokrat dan PKS diharapkannya tak hanya terjadi ketika adanya kontestasi politik saja. Namun, ikut bekerja sama dalam penanganan pandemi Covid-19. "Kita selalu berorientasi pada tujuan besar. Bersama kita ingin bisa bangkit bersama dari pandemi Covid-19, mudah-mudahan ekonomi kita juga bisa selamat," ujar AHY.
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8
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Ini Empat Indikator Terpenuhinya Keadilan Pemilu [Four indicators for the fulfilment of electoral justice]: Pertama, yaitu kesetaraan bagi seluruh elemen yang terlibat dalam proses pemilu, termasuk dalam penegakan hukum. ... Indikator kedua, kepastian hukum dalam setiap tahapan dan proses penyelesaian sengketa dan pelanggaran. Adanya hukum acara merupakan dalam rangka memberikan kepastian hukum. ...
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9
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'You Can Vote against Me': Jokowi's Son Responds to Political Dynasty Allegation: Gibran Rakabuming Raka, the eldest son of President Joko "Jokowi" Widodo, blasted reports that his family is grooming a political dynasty, as he secured nomination for the mayoral election in Solo, Central Java. "I can win or lose in this election and there is no obligation for anybody to vote for me," Gibran said in an internal discussion of the ruling Indonesian Democratic Party of Struggle (PDI-P) on Friday. "People can vote for me or against me. This is about election, not job appointment. What political dynasty?" the 32-year-old said.
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OPINION: After 36 years, who still remembers CEDAW? The most relevant issues with regard to discriminatory practices actually remain the same from year to year. Nursyahbani has reminded us about two important issues. First is eliminating stereotyping of women, which is currently becoming even more serious due to the rise in primordial and conservative religious views in defining the roles and status of women.
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OPINION: Indonesia needs to upgrade US alliance to fend off Chinese aggression: The idea of expanding military ties with the U.S. finds support from some in the Indonesian military's senior ranks. They say their country has been cooperating militarily with Washington for more than 40 years, focusing on joint exercises and drills, but believe such a cooperation needs to be taken to a higher level, similar to an alliance, to make sure China will not dictate its policy in the region.
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Businesses like Sri Mulyani most, Yasonna least in Cabinet opinion poll: A recent survey of business players by Jakarta-based pollster Indikator Politik Indonesia awarded Finance Minister Sri Mulyani Indrawati the highest job approval rating of President Joko "Jokowi" Widodo's Cabinet... Some 61 percent of the respondents said the finance minister's performance had met their expectations. State-Owned Enterprises (SOEs) Minister Erick Thohir came in second place with 57.7 percent, followed by Defense Minister Prabowo Subianto and Foreign Minister Retno LP Marsudi in third and fourth place, respectively.
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US-China tensions heighten terror threat in Indonesia, experts warn: The focus on Beijing's treatment of Uygur Muslims, and the expansion of its investment in Indonesia, are tapping into negativity towards the Chinese. With fake news on the spread of communism also gaining traction, analysts warn that these fault lines are at risk of being exploited by terror groups.
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Has COVID-19 accelerated smart city initiatives in Indonesia? Cities like Jakarta, Bandung and Makassar have established command rooms to obtain solutions to real-time urban problem such as traffic congestion through a more synchronized traffic monitoring system... With the advent of the COVID-19 pandemic, the government's plans to enable smart cities has had to shift gears. The pandemic has put unforeseen pressure on the state machinery and caused important resources to be diverted toward increased health expenditure and economic stimuli to counter a decrease in economic growth.
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Laos
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A broken dam and broken promises: Laos doubles down on hydropower despite risks: Two years after a dam in southern Laos collapsed, displacing thousands, the country's hydropower gold rush continues. As the companies and governments involved refuse to take responsibility for what happened, Laos still pins its hopes on hydropower without addressing the risks.
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Malaysia
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Fed up, Sarawak DAP vice-chief quits party: In a statement, Wong said he had become "sick and tired" of some actions of the party and its members. This included a youth wing demand that the party contest the Batu Lintang seat at the coming state elections. The seat was formerly contested by PKR, a partner in Pakatan Harapan. "Why are you doing this to an ally of yours? Why can't you just sit down with your ally and sort it out among yourselves?" he said.
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Prime Minister's post is so near yet so far, I still stand a chance, says Anwar: In an exclusive interview with Sin Chew Daily conducted at his office, Anwar said in jest, "There is an old song where the lyric is 'so near, yet so far away'. You can search the lyric online."... Asked about his feelings for missing the boat to be the Prime Minister, Anwar said: "I am a human being too. At times I do feel why this is unfair to me. I have worked hard, opted to forgive and supported (Dr Mahathir). ... I did not create any issues during the 22 months of rule by the Pakatan Harapan government. I merely said "yes, yes, yes" and supported the government even when there were matters that I disagreed," he said.
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Analysts say Dr M has 'nothing to offer' in defection game: Dr Mahathir Mohamad and the opposition bloc should focus on facing the next general election instead of trying to obtain the support of enought MPs to regain power in the federal government, say two political analysts. Azmi Hassan of Universiti Teknologi Malaysia said that Prime Minister Muhyiddin Yassin now had the upper hand. "I see the PM now has the advantage of gaining more support from opposition MPs, instead of the other way round where Tun M is getting support from PN-aligned MPs," he said. "Tun has nothing to offer," Azmi added.
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Sabah party elects Anifah as president, to get new name: Former foreign minister Anifah Aman is the new president of local outfit Parti Cinta Sabah after winning the post uncontested in the party's elections here today. The party also approved an amendment to rename itself as Parti Kesedaran Rakyat Sabah, with a new flag and symbol. The change must be approved by the Registrar of Societies before it takes effect. Anifah takes over from outgoing president Wilfred Bumburing, who was elected as deputy president.
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Dissatisfaction among 'pessimistic' Malays led to change in govt, think tank suggests: In its First Quarterly Poll of 2020, Emir Research said this sentiment had apparently set the stage for the formation of the Malay-dominated Perikatan Nasional, which included Bersatu and its former political enemies Umno and PAS. "This higher sense of dissatisfaction among the Malays and other Bumiputeras provided the setting for politicians in Malay-based parties who sensed the timing was perfect to go for the jugular to hatch a plot for the demise of the Pakatan Harapan government, which became a reality in the aftermath of the political crisis brought about by Dr Mahathir's resignation," it said.
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3-fold increase in aid recipients with revised poverty line: [Minister Rina Harun] said that based on the previous monthly household income of RM980, the department had allocated RM1.53 billion a year to be channelled to more than 500,000 eligible recipients.
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Kebebasan media perlu seiring perkasa kedaulatan negara [Media freedom should be in tandem with strengthening the country's sovereignty]: ...pendekatan kerajaan pada masa kini seharusnya tidak semakin autokratik, tetapi lebih untuk mendidik masyarakat bagi menjadi penonton bijak dalam menapis dan menilai sendiri tontonan mereka. Peranan Lembaga Penapisan Filem (LPF) contohnya tidak harus dilihat sebagai platform penguatkuasaan semata-mata, sebaliknya organisasi yang seharusnya edukatif.
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PKR grassroots say no to going solo in GE15: PKR stands a better chance of wresting back power if it sticks with the team of Pakatan Harapan in the next general election, said party grassroots. Party members on the sidelines of the PKR convention today said the party should remain in Pakatan Harapan as it holds the controlling stake in the pact.
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Shafie is opposition's best bet as PM candidate, Liew says: MOHD Shafie Apdal's time in the cabinet was not tainted by scandals, unlike his former Umno colleagues, making him the opposition's best choice of prime minister candidate, said Parti Warisan Sabah permanent chairman Liew Vui Keong.
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UMNO mahu Labuan dikembalikan kepada Sabah [Umno wants Labuan returned to Sabah]: UMNO Sabah menawarkan empat perjanjian baru untuk rakyat negeri ini sebagai manifesto bagi Pilihan Raya Umum (PRU) ke-15. Pengerusi Badan Perhubungan UMNO Sabah, Datuk Seri Bung Moktar Radin, berkata tawaran pertama ialah kerajaan Persekutuan tidak boleh lagi merancang pembangunan di Sabah kerana tugas itu akan dilakukan oleh kerajaan negeri Sabah sepenuhnya.
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Malaysia faces crucial graft test as Najib's first 1MDB verdict looms: Malaysian former prime minister Najib Razak, fighting dozens of charges over a multi-billion-dollar graft scandal at state fund 1MDB, faces his first verdict on Tuesday in a landmark case that tests the country's efforts to stamp out corruption and could have big political implications.
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Will verdict in Najib's first 1MDB trial trip up Malaysia snap election contenders? Media reports have suggested the election could be called by year's end to help the ruling Perikatan Nasional bloc shore up its two-seat parliamentary majority. It is not yet certain if Muhyiddin - who is not an Umno member - will be the prime ministerial candidate for the ruling camp if polls are called. Instead, talk has been swirling that Najib, prime minister from 2009 to 2018, could make a shock comeback.
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The three black swans in Malaysian politics: ...in Malaysian politics, we have seen a great deal of black swan incidents in recent years that have smashed the stereotyped conventions and have had tremendous impact on the country's political ecosystem. I would like to cite the examples of past, present and future black swans in Malaysian politics...
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The China-Malaysia Digital Free Trade Zone: National Security Considerations: While the DFTZ promises growth for both Malaysians and Chinese enterprises, Malaysia must take care to ensure its digital independence.
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Anwar: PKR all set if snap polls called soon: PKR is ready to contest in a snap general election if one is called in the near future, party president Datuk Seri Anwar Ibrahim said today. "The matters of a general election, it is a decision up to the prime minister but for PKR, our party machinery is ready, even for Negri Sembilan, including Port Dickson, the party machinery here is ready," he reporters at an event in Port Dickson. Anwar also said that Pakatan Harapan (PH) too has formed a committee to prepare for the possible election.
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31
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Chinese politics at a new crossroads: Up to 95% of Chinese voters went for Pakatan in the general election but the coalition's approval rating among Chinese is down to only 44%, according to a recent Merdeka Centre survey in Selangor. The survey also showed that Pakatan's approval rating among the Indians is only 28% and a dismal 17% among the Malays. ...Chinese political sentiment is in a state of flux."They feel let down, there is a lot of disappointment after throwing all their votes to Pakatan. The community is entering a period of indifference to politics.
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32
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PKR chose wrong leader for Sarawak, says analyst: "PKR won't make any impact in Dayak areas as it is led by a Chinese - it's the wrong choice of leader for Sarawak PKR," Universiti Putra Malaysia's Jayum Jawan told FMT. He said the Chinese community in the state would not support PKR, even with a Chinese leader at the helm. "The Chinese interests are better articulated through DAP or the Sarawak United Peoples' Party." Jawan said PKR would have a better chance of getting the support of the Malays and Dayaks and also going against Gabungan Parti Sarawak (GPS) in the coming state elections if the party was led by a Malay or Dayak.
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Perikatan must clarify if Finas Act is to serve as 'ISA-lite': Given the circumstances, it's fairly apparent that PN is intending to utilise Finas Act to stifle dissent as the Act prescribes ridiculous unchecked powers in terms of enforcement. Section 26 of the Act gives authority for arrest and search without warrant for merely being a suspect to be in breach of the Finas Act. If its current interpretation of "films" persists, then virtually everyone in Malaysia can be arrested under this act without a warrant.
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统考议题的政治性质
[The political nature of the UEC question]:
从国阵到希盟再到国盟，每一个执政联盟承认统考的可能性都很低，主要是因为那将动摇以马来文为国语的
"
国本
"
；更极端的是网路上开始出现
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独中生不爱国
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缺乏国家认同
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的言论，但提出这种看法的人并不以同样的标准质疑巫裔政治精英把子孙送去国内的私立或国际学校的做法；而认为到中国或台湾留学的华裔
"
离地
"
者，恐怕也忽略了在马来社会，除了传统的西方国家之外，埃及和约旦也崛起成为极受欢迎的升学国家，但这些人似乎从来不必背负
"
离地
"
的罪名。
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PN seat allocation talks and PPBM's destiny: Even if Umno and PAS were to eventually form an alliance with PPBM, the two parties have said it was only for strategic needs. As such, it will take much more than Muhyiddin's popularity for his party to become a dominant force in the new alliance. Umno has not only formed a "Muafakat Nasional" alliance with PAS, it still retains its BN ties with MCA, MIC and PBS. In either alliance, Umno still has the largest number of seats and will very naturally want to assume a dominant role in the next GE.
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Myanmar
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Raising public health literacy: crucial in second phase of COVID-19 pandemic: Myanmar is entering the rainy season from early June and the second phase of the COVID-19 outbreak. When people resume their lives, out of economic necessity, practicing physical distancing will be more important than ever. As this concept is not practiced widely by the population and not well understood, raising public health literacy and public awareness are needed.
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Virus-Hit Sectors In Myanmar: The Asian Development Bank (ADB) has projected that growth in Southeast Asia will decelerate from 4.4 percent in 2019 to one percent this year before rebounding to 4.7 percent in 2021. "The evolution of the global pandemic - and thus the outlook for the global and regional economy -is highly uncertain. Growth could turn out lower, and the recovery slower, than we are currently forecasting," said Yasuyuki Sawada, ADB's chief economist. For ASEAN member state Myanmar, despite the low reported cases of COVID-19 in the country which stands at 343 infections as of 23 July - the social and economic effects could be severe, noted the International Monetary Fund (IMF).
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NLD chooses 80 pc of current lawmakers for coming election: The ruling National League for Democracy (NLD) has chosen 80 per cent of its current lawmakers as candidates for the 2020 General Election, including its chair Daw Aung San Suu Kyi who currently acts as Myanmar State Counsellor and Vice-Chair-1 U Win Myint who serves as the President... A total of 1,131 candidates from the NLD will run for the parliamentary seats in the election--319 seats for lower house parliament, 162 for the upper house parliament, 622 for the region and state parliaments and 29 for ethnics affairs.
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NLD skips 12 constituencies in Rakhine State in 2020 election: The ruling National League for Democracy (NLD) will not compete in 12 constituencies in Rakhine State, including the lower house parliamentary seats in Minbya and MraukU Townships... The NLD will run for 15 seats for lower house parliament, seven seats for upper house parliament and 30 seats for the Rakhine State parliament (including Chin ethnics affairs minister).
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Philippines
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Philippines Enters Phase II Of Virus Action Plan: The NAP (National Action Plan) Phase II according to Carlito Galvez Jr, Chief Implementer of the NTF against COVID-19 seeks to create a balance between breathing life into the nation's economy and at the same time protecting the health and welfare of Filipinos against the deadly virus... Secretary Galvez also further reiterated that the said plan is multi-pronged with the following salient features and objectives...
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4 years of Duterte: Grip secure, legacy in the balance, say pundits: "There's a ripple now," said Jan Robert Go, assistant professor in political science at the University of the Philippines, who noted the unusual vigor of street demonstrations in support of ABS-CBN despite the threat of the novel coronavirus. "I'm not expecting an Edsa Revolution out of this, but I'm expecting people will realize that once their lives are affected by their leader, they have to do something," Go told the Inquirer in a phone interview.
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Will the Philippines' anti-terror bill crush communists, or give them a boost? The army is keen to use the new legislation to lump the Communist Party of the Philippines in the same category as groups such as Abu Sayyaf. There are also concerns the act will be used to 'red-tag' leftist organisations that hold seats in Congress, pushing some people towards the rebels.
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Thailand
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Thailand's King Vajiralongkorn: turning back time: Since becoming Thailand's king in 2016, Vajiralongkorn has been regaining control over the wealth and property that his family lost after the absolute monarchy was toppled on 24 June 1932. But it's about more than money. He appears to be erasing emblematic reminders of what he considers his family's humiliation. And he's setting the crown on a path that's less dependent on the hitherto domineering army.
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Vacancies no hurdle for Prayut, but what about student protests? It is daunting to face a downturn with six ministerial seats vacant, but that is where Thai Premier Prayut Chan-o-cha is at now, after his finance minister, energy minister and four other Cabinet members resigned rather than wait for the axe in the upcoming reshuffle. Heaping pressure on Asean's worst-performing economy are growing youth-led protests calling for the Parliament to be dissolved. But this vacuum in Mr Prayut's government will not last for long, as corporate movements last week indicate that rather than handing the key jobs to professional politicians, he has convinced private sector leaders to come aboard.
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Anutin backs charter reform: Speaking at the party's annual meeting, Anutin Charnvirakul, leader of this second-largest coalition partner, said the party is willing to listen to the voices of civil society. It is ready to amend the charter, but it should be done under a political framework. "The party is ready for constitutional amendments, but it should be done under the law. A constitution amendment assembly should be set up to draft a new one, together with a referendum procedure to approve it," said the leader of the coalition party with 61 MPs."
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Low expectations from cabinet reshuffle: Poll: A majority of people have limited expectations from a cabinet reshuffle, believing it will not help improve the government's performance, according an opinion survey by the Suan Dusit Rajabhat University, or Suan Dusit Poll. Asked what they wanted the new cabinet prioritise after taking office, with all respondents allowed to give more than one answer, 89.29% wanted it to quickly solve the country's economic problems; 74,06% to solve the problem of unemployment; 72.84% to be transparent in its work; 70.68% to attach importance to people's livelihoods; and 68.05% to look into people's indebtedness.
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Thai teen activists tap social media to spread protest messages: Across Thailand, high school students are becoming noticeable in growing anti-government protests fronted by tertiary students. In Petchabun, Phrae and Chonburi provinces as well as Bangkok last week, such youngsters joined flash mobs and rallies wearing their school uniforms. "High school students have become one of the major forces behind the current student movement," says Chulalongkorn University political scientist Kanokrat Lertchoosakul. The phenomenon, she says, started some seven years ago, when a band of teenagers calling themselves Education for the Liberation of Siam (ELS) demanded reform of Thailand's outdated curriculum.
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48
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Don't write off the 'Four Boys': Deposed PPRP heavyweights tipped for move to Korn Chatikavanij's new economically focused Kla Party - Prime minister under pressure to keep tight grip on cabinet appointments despite 'horse trading' ahead of forthcoming reshuffle
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49
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Thailand's coconut-picking monkeys trigger ethics debate: The Thai coconut industry is worth $400 million annually, according to a local report. Thailand grew 885,751 tons of the fruit in 2018, making it the ninth-biggest producer in the world, according to data from the Food and Agriculture Organization. Indonesia and the Philippines were the world's top two producers that year, growing 18.5 million tons and 14.7 million tons, respectively.
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50
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Opinion: Give Thai youth movement a chance: These millennials and others want Thailand's future back and will do whatever is necessary to get it. As tensions mount, Thailand will either find a new constitutional balance that subsumes the military, monarchy and judiciary within it or end up with longer-term authoritarian rule and economic stagnation. Listening to these young voices and making concessions and compromises with them is better than putting everything on the line with a winner-takes-all response.
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51
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OPINION: Thai royalists must reconsider tactics in dealing with free speech: In recent years, Thailand has been re-engineering its tactics for dealing with critics, particularly those online. The archaic and self-defeating lese-majeste law has been mothballed. Indeed, since late 2017, no lese-majeste cases have been filed compared to hundreds over the last decade, although exact numbers are hard to establish. Prime Minister Prayuth Chan-ocha specifically referenced the sidelining of the law last month.
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Vietnam
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52
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Multiple opportunities exist for Vietnam's technology firms: The latest survey by Vietnam Report found that 73.7 percent of businesses in the field believe that the ICT market will maintain its growth rate in the last six months of the year, while 10.5 percent said the industry will see strong growth in the time to come.
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53
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Corruption fight increasingly drastic, effective: top leader: A report at the event noted that in the first half of 2020, aside from major achievements in the COVID-19 combat, economic development, and social and foreign affairs, the Party building and the corruption fight continued to receive support and high evaluation from the people, officials and Party members, proving that this fight has become stronger and more drastic.
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Pandemic ravages household businesses and MSMEs: survey: Enterprise revenue in April this year as a proportion of December 2019 income was lowest (13 per cent) among MSMEs in the tourism and related services such as hotels, restaurants, and amongst HBs in the garment manufacturing and footwear sector. HBs in the tourism sector and related services recorded an 84 per cent reduction in April revenue.
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ASEAN/Southeast Asia
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55
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Ideas: Capturing the gains of supply-chain diversification: So where will these factories relocate to? On the surface, Asean appears to be the logical option. The region's relative geographic proximity and strong trading ties with China, where many core supply-chain processes will still remain, as well as the prospect of a single market, make it an attractive choice. Asean also stands to massively benefit from further involvement in global value chains... The Center for Indonesian Policy Studies (CIPS) recently hosted a panel discussion on Asean participation in value chains, featuring Lau Zheng Zhou from the Institute for Democracy and Economic Affairs (IDEAS), Dr Jayant Menon (ISEAS) and Andree Surianta (CIPS).
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Malaysia, Singapore agree on key aspects of cross-border travel: Malaysia and Singapore have agreed on all the key aspects of the Reciprocal Green Lane (RGL) and Periodic Commuting Arrangement (PCA) for cross-border travel between the two countries. In a joint statement, they said they had a constructive discussion on the two schemes, which will facilitate cross-border travel for official, business and work purposes between Singapore and Malaysia, and look forward to their launch.
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ASEAN's youth learns financial resilience during pandemic: "It is a tough time and people want to be prepared to face the uncertainties. So, they learn more about conserving and managing cash, as well as ways to save for rainy days," said Santitarn Sathirathai, group chief economist from Sea, a Singapore-based global consumer internet company that conducted the study along with the WEF. He went on to say that 31 percent of respondents also found new business models and new ways to improve income. The trend is especially true for entrepreneurs aged 26 to 35.
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Laos, Vietnam Confirm First COVID-19 Cases in Three Months: In Laos, a 32-year-old South Korean national who is an expert working on the Nam Ngiep 1 dam project in Bolikhamxay province, tested positive Thursday evening... Vietnam also confirmed two COVID-19 cases Thursday, breaking a streak of no new cases in 99 days.
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Asia Pacific
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Covid-19 accelerates maritime insecurity in the Asia-Pacific: Covid-19 is showing the world how a health crisis can exert disproportionate pressure on existing social and political fissures. The Asia-Pacific maritime environment is no exception, with hybrid challenges persisting and non-conventional incidents on the rise. As state budgets adjust to accommodate the health crisis, non-state actors are escalating violence on land that is spilling over into the maritime domain.
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By painting its contest with China as a 'good versus evil' struggle, the US misses the mark: As Pompeo called the free world to arms to fight this "mission of our time" against a ruthless, hegemonic China, I am reminded that this simple "good versus evil" conviction at the heart of the current US administration runs deep and has a long history.
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APEC Trade Ministers Issue Statement: The statement reflects the outcomes of the 2020 Virtual APEC Ministers Responsible for Trade Meeting chaired by Senior Minister and Minister of International Trade and Industry of Malaysia, Dato' Seri Mohamed Azmin Ali. It identifies initiatives that APEC can undertake in response to the impact of the COVID-19 pandemic for charting a path to economic recovery. Separately, APEC Trade Ministers reaffirmed their commitment to facilitate the flow of essential goods and services and issued the Declaration on Facilitating the Movement of Essential Goods.
[contains links to the statements]
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OPINION: Asia's garment industry should drive post-COVID economic recovery: Western fashion brands and retailers still treat Asia as their single largest apparel sourcing base, with no alternative suppliers in prospect. For example, from January to May 2020 more than 80% of U.S. apparel imports, measured by both value and quantity, came from Asia. Fashion retailers have diversified sourcing away from China, but their orders have largely been fulfilled by other Asian countries -- mainly to the benefit of Bangladesh, Vietnam and elsewhere in ASEAN.
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63
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Document of the Week: Pompeo Buries U.S.-China Engagement Policy: In a series of scorching anti-China speeches by top U.S. cabinet members and via the closure of the Chinese Consulate in Houston amid espionage charges, Washington made it clear that relations are long overdue for a wholesale makeover. In an important speech on Thursday at the Richard Nixon Presidential Library and Museum in California, U.S. Secretary of State Mike Pompeo suggested that engagement with China, the work of then-President Richard Nixon and National Security Advisor Henry Kissinger, may have been well intentioned, but naive.
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How Covid-19 responses worsen inequality: Yet another phenomenon is clearly emerging in Southeast Asia at the moment, in which governments have been reluctant to fully open their respective economies despite the very limited diffusion of the virus; in this region, the trade-off analysis would be much easier than elsewhere.
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East/South China Sea
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65
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South China Sea: Time To Display Firm Resolve: Be that as it may, there is a need to redress whatever policy gap there is in terms of both diplomacy and security which calls for their alignment and coordination. Towards that end, left without any other realistic and viable option at least for now and in light of the lack of satisfactory outcomes of on-going bilateral as well as multilateral talks (twin-track approach), Malaysia should, among others...
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Australia lays down the law in the South China Sea dispute: Australia's language has been more circumspect, sticking closely to legal rather than behavioural issues. But it won't be lost on China that Australia has chosen to make its own statement just ahead of next week's AUSMIN meeting. In a note verbale dated 23 July, Australia's mission to the United Nations clarified Canberra's legal position, explicitly rejecting maritime claims by the People's Republic of China (PRC) that Australia views as inconsistent with the 1982 United Nations Convention on the Law of the Sea (UNCLOS).
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No end to South China Sea disputes without code of conduct: The turmoil has gone unabated when the negotiation of the Code of Conduct (CoC) in South China Sea has been put on hold, mostly because of the pandemic.The talks on the CoC, however, have been subject to criticism in the first place. One American scholar commented that the current draft, passed in September 2019, had "very little 'agreed' upon." Some points are still very contentious, such as dispute settlement procedures, and fishing and seabed management. Meanwhile, a Singaporean scholar said that, as the negotiation was suspended, Beijing was consolidating its presence amid the COVID-19 outbreak. As ASEAN member states have their hands full in dealing with the pandemic, Beijing wants to raise its leverage in the negotiation when it restarts.
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Golden period of China-Philippines friendship loses its shine: Manila shows signs of pivoting from Beijing over South China Sea differences and unfulfilled funding promises. Growing distrust of China could fuel public backlash against President Rodrigo Duterte's China-friendly policies.
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US, China Play Dangerous South China Sea Game: The evidence of growing political tensions is quite compelling. These tensions have steadily increased in recent years after China went overboard within what Beijing regards as the nine-dash line outlining Chinese hegemony despite President Xi Jinping's assurance to former US President Barack Obama that China would not militarize the area.
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Asian states face stark choice in threat of China-US military clash: Le Hong Hiep, a Vietnamese affairs expert from Singapore's ISEAS-Yusof Ishak Institute, disagreed. "As far as Vietnam is concerned, Hanoi does not wish to see a military conflict between the US and China to flare up in the South China Sea," he said. "In case such a conflict does happen, Vietnam will try to stay neutral, but if push comes to shove, due to Vietnam's own grievances against China in the South China Sea, Vietnam is likely to stay on the side of the US rather than China."
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AIIB
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AIIB makes first loan to Vietnam bank amid South China Sea tensions: Analysts said the $100 million loan is linked to AIIB's clear lending goal to support its Belt and Road Initiative, Beijing's global infrastructure development strategy.
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Superpower relations and the region
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US and China engage in 'war of words' over Myanmar and Philippines: In an article he contributed to the Irrawaddy newspaper and published on July 18, George Sibley, the charge d'affaires of the U.S. Embassy in Myanmar, condemned China's interference in Myanmar, particularly over the Kyaukpyu Port development project in Rakhine State in the west of the country which has been promoted by Beijing as part of its Belt and Road infrastructure initiative... U.S. Ambassador to the Philippines Sung Kim contributed an article titled "The Philippines' Future Floats in the West Philippine Sea" to local newspapers. "Beijing's harassment of Philippine fisheries and offshore energy development within those areas is unlawful, as are any unilateral Chinese actions to exploit those resources," Kim wrote, using the term "the West Philippine Sea", which is how the Philippine government refers to the South China Sea.
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