Indonesia

Indonesia Closes the US$3.85 billion Freeport-McMoRan Mine Deal (21 Dec 2018)

Indonesia’s state-owned mine company PT Inalum took control of the local unit of Freeport-McMoRan Inc on 21 December, Friday, giving it control of the massive Grasberg copper mine. The deal hands Inalum a 51.23% stake in PT Freeport Indonesia, and also hands President Joko “Jokowi” Widodo a political victory going into the April 2019 Election.

Sources: South China Morning Post, Jakarta Post

Jokowi Orders National Agency to Buy New Tsunami Detectors (24 Dec 2018)

Indonesian President Jokowi has ordered the country’s Meteorology, Climatology and Geophysics Agency (BMKG) to purchase new early warning systems, following a devastating tsunami that left at least 373 dead and more than 1,400 injured. The previous warning system had been out of order since 2012 due to vandalism, neglect and lack of funding. Overall, 4,231 people died or were declared missing during disasters across Indonesia in 2018, making it the country’s deadliest year since 2007.

Sources: Channel NewsAsia, Reuters, The Straits Times

Ministry of Finance: Indonesia’s Growth Below Target, But Budget Deficit Narrowed (2 Jan 2019)

Finance Minister Sri Mulyani Indrawati forecasted that Indonesia’s economic growth for 2018 will be around 5.15%. This is short of the 5.4% target set in the state budget. Yet, Indonesia also recorded a budget deficit of 1.76% of their gross domestic product (GDP), the lowest deficit in six years. This has been attributed to higher-than-expected revenue and declines in the financing of net debts.

Sources: Antara News, Nikkei Asian Review

Malaysia

Cracks Deepen Between Azmin and Anwar (29 Dec 2018)

The feud between Parti Keadilan Rakyat (PKR) President Anwar Ibrahim and Deputy President Mohamed Azmin Ali spilled into the open in late December. While the relationship between the two leaders had been strained during the months-long PKR election, they deteriorated sharply with Anwar’s appointment of Rafizi Ramli, Azmin’s political rival, as PKR Vice President on 28 December. As PKR is the largest party in both Pakatan Harapan and the Malaysian Parliament, observing this leadership squabble will be an important issue in the coming months.

Sources: Malay Mail, The Star, New Straits Times

PPBM Vice President Rashid Draws Flak at the PPBM Annual General Meeting (29-31 Dec 2018)

Parti Pribumi Bersatu Malaysia (PPBM) Vice President Abdul Rashid Abdul Rahman surprised party members with his assertion that the party’s division leaders should be helped with government contracts in order to maintain their power, and that not doing so was “stupid”. Rashid was ostensibly responding to Minister of Youth and Sport Syed Saddiq Syed Abdul Rahman’s criticism of a Federal Territories Bersatu representative for demanding contracts and positions, and he also went on to call for PPBM to win elections “by hook or by crook”. While Prime Minister Dr Mahathir Mohamad subsequently assuaged listeners that his administration was moving towards open tenders for awards, and that any wrongdoing would be investigated by the Malaysian Anti-Corruption Commission, leaked communications from PPBM members suggest that Rashid’s views resonate to an extent.

Sources: Free Malaysia Today, Malay Mail, Malaysiakini

Revival of the ECRL, and Hopes for a Malaysian Train Manufacturing Industry (2-3 Jan 2019)

In an interview with Sin Chew Daily, Dr Mahathir said that the Malaysian government is in talks with China to downsize the East Coast Rail Link (ECRL). The project was put on hold after the 14^th General Election. While negotiations have yet to yield any breakthroughs, Chinese Ambassador to Malaysia Bai Tian expressed his optimism that a win-win solution can be found.

Separately, Transport Minister Anthony Loke expressed his hope that Malaysia would develop its train manufacturing industry with the help of China Railway Rolling Stock Corp. The company, which is China’s largest manufacturer, established the first and only train manufacturing centre in the ASEAN region in 2015. It is currently looking to expand the capacity of the centre, which could result in increased technology transfers to its local partners.

Sources: The Edge Markets, The Star, Malay Mail

Study: Malays’ Confidence in Lawmakers Dropped Over 2018 (3 Jan 2019)

A survey by the International Islamic University Malaysia’s Department of Communication found that the confidence of Malays or Bumiputeras in their government fell between January and December 2018. These indicators included confidence in political parties (down from 65 to 58%), leaders (down from 63 to 57%) and parliament (down from 74 to 67%). In contrast, ethnic Chinese and Indians responders indicated that they had much more confidence in their government.

Sources: Malay Mail

Myanmar

Bangladeshi Prime Minister Sheikh Hasina re-elected (31 Dec 2018)

Bangladeshi Prime Minister Sheikh Hasina has secured her fourth straight term amidst claims by opposition parties that voting was rigged. Her triumph at the polls – however contested – is likely to see Bangladesh’s existing plans for the Rohingya stay in place. Such plans include the relocation of a large number of the 700,000 refugees currently residing at Cox’s Bazar to the island of Bhasan Char, where accommodation is being constructed. Nevertheless, what this means in the short-term for repatriation negotiations remains uncertain. Prime Minister Hasina has in the past accused Myanmar of failing to upkeep its obligation to create a safe environment for returnees, but has repeatedly noted that Rohingya refugees will not be allowed to permanently reside at Cox’s Bazar.

Sources: Straits Times, Myanmar Times, Reuters

Myanmar opens Insurance market to foreign companies (2 Jan 2019)

Myanmar’s Ministry of Planning and Finance has invited foreign life insurers to submit Expressions of Interest to be one of three overseas-based life insurers allowed to operate wholly-owned local subsidiaries. Other foreign life insurers and nonlife insurers which already have offices in Myanmar will also be allowed to form joint ventures with local partners to expand their operations. This change is highly anticipated, and patience had previously worn thin over abortive liberalisation efforts which had stalled due to the intervention of domestic, state-affiliated providers. Foreign operators had previously only been allowed to operate nonlife insurance businesses in the Thilawa SEZ. Myanmar’s insurance market is largely untapped, with only around 4% of the total population being insured.

Sources: Myanmar Times, Nikkei Asian Review

Thailand

Thailand Backs Laws Approving Medical Marijuana and Same-Sex Civil Unions (26 Dec 2018)

Thailand’s government has approved a bill legalising medical marijuana, while a bill legalising same-sex civil unions is pending final approval by the parliament that takes power after the February election. The medical marijuana law was termed by the chairman of its drafting committee as a “New Year’s gift from the assembly to the government and the Thai people”, and ostensibly joins a series of handouts such as free SIM cards for registered low-income earners in the lead-up to the election.

Sources: Financial Times, The Straits Times, Nikkei Asian Review

“Rolex General” Graft Probe Dropped (27 Dec 2018)

A graft probe into the luxury watch collection of Deputy Prime Minister General Prawit Wongsuwan was dropped on Thursday, 27 December, with the Thai anti-corruption agency citing that there was “no grounds” for an investigation. General Prawit drew online ire earlier this year after amateur sleuths found old photos of him wearing at least 22 different watches, collectively worth US$1.2 million, despite the relatively humble size of his official salary. The ruling has sparked criticism from opposition political parties such as Pheu Thai and civil activists.

Sources: Channel NewsAsia, Bangkok Post, Bangkok Post (Reactions), Bangkok Post (Reactions)

Possibility of an Election Delay Due to Coronation Activities (4 Jan 2019)

Deputy Prime Minister Wissanu Krea-ngam said on 3 January, Thursday, that the date of the election (24 February) may have to be delayed to avoid clashes with preparation work for the royal coronation. King Maha Vajiralongkorn, who ascended the throne after his father’s death in October 2016, will be crowned during an elaborate three-day ceremony between 4-6 May. However, preparatory and follow-up work for the event are expected to last two weeks before and after the ceremony, clashing with the release of electoral results and the inauguration of the new parliament. Wissanu said that the election would still occur before the coronation, but maintained that deciding the date is the responsibility of the Election Commission.

Sources: Bangkok Post, The Nation, Bloomberg