Indonesia

Jakarta’s First Light Rail Transit System to Begin Operations in April 2019 (10 Jan)

PT Light Rail Transit (LRT) Jakarta Project Director Iwan Takwin said that construction on phase one of Jakarta’s LRT system is 97 percent complete, and that commercial operations are expected to commence in April. The LRT is one of the public transport modes that President Joko “Jokowi” Widodo has expressed interest in, as he grapples with reports that traffic congestion in Greater Jakarta costs US$6.5 billion every year.

Sources: Jakarta Post, Straits Times

Indonesia’s Full-year Trade Deficit Reaches Historic High (15 Jan)

Indonesia’s trade balance for 2018 ended poorly with a larger-than-expected deficit in December, bringing the overall trade deficit to a historic US$8.57 billion. The size of the deficit contrasts with the surpluses it posted in 2017 and 2016, which stood at US$11.84 billion and US$9.48 billion respectively. The deficit has been attributed to slowing exports amid a surge in imports, particularly in the area of oil and gas.

Sources: The Edge Markets, Jakarta Post, Antara News

Jokowi and Prabowo Trade Jabs at the First Presidential Debate (17 Jan)

Incumbent President Joko “Jokowi” Widodo and his challenger, Prabowo Subianto, participated in a live debate alongside their vice presidential candidates ahead of the 17 April presidential election. The debate, which focused on discussing corruption, terrorism, human rights and the law, is the first in a series of presidential debates on key issues in Indonesia. The latest polls from six separate institutions, conducted between November and January, show that Jokowi’s electability is between 47.7-54.9 percent, in contrast to 30.6-35.5 for Prabowo. However, both candidates are moving to target the undecided voters, who constitute 10.6-16.8 percent of people polled.

Sources: The Straits Times, Jakarta Post, Jakarta Globe

Malaysia

WSJ Publishes Another 1MDB Exposé On Alleged Deals Between Malaysia and China (7 Jan)

The Wall Street Journal (WSJ) reported on 7 January that senior Chinese leaders had offered to help bail out the 1Malaysia Development Berhad (1MDB) fund in exchange for lucrative deals on railway and pipeline projects in Malaysia. These claims were based on previously undisclosed meeting minutes that had come into the WSJ’s possession. They also alleged that the Chinese leaders offered to bug the homes and offices of WSJ reporters investigating the fund, and to use their country’s influence to get the US and other countries to drop their 1MDB probes. Prime Minister Dr Mahathir Mohamad said that it would be necessary for the Malaysian government to obtain the documents in question before the allegations can be assessed.

Sources: The Wall Street Journal, Malay Mail

More Details About Malaysia’s Third National Car Project Emerge (7, 14 Jan)

Minister for Entrepreneur Development (MED) Redzuan Yusof announced that up to RM20 million (US$4.9 million) in funds has been approved to attract private investors to develop the prototype for the third national car. This “catalyst” is to be sourced from existing grants. In response to concerns, Redzuan assured Free Malaysia Today that the government had no intention of the project becoming a drain on public funds, and that it would not be bailed out. Separately, MED Secretary General Wan Suraya Wan Mohd Radzi said the prototype is expected to be announced in the first quarter of 2019.

Sources: Free Malaysia Today, Free Malaysia Today, The Malaysian Reserve

Cameron Highlands By-Election Campaign Begins (12 Jan)

The Cameron Highlands by-election campaign kicked off on 12 January, and is the first by-election in a seat that was won by Barisan Nasional (BN). Bangi MP Ong Kian Ming noted that Pakatan Harapan’s victory is not a given, as it still faced challenges such as increasing the current base of Malay and Orang Asli support without alienating Chinese and Indian voters. The polls will open on 26 January.

Sources: Malaysiakini

Singapore Postpones Joint Ministerial Talks on Iskandar Malaysia (12, 16 Jan)

Singapore’s Ministry of Foreign Afairs announced the postponement of the 14^th Joint Ministerial Committee for Iskandar Malaysia (JMCIM) on 12 January, following Johor Menteri Besar Osman Sapian’s visit to the MV Pedoman, anchored in Singapore’s territorial waters. The two sides had previously taken steps to defuse air and maritime tensions, including suspending the restricted military area of Pasir Gudang. Tensions flared again, however, as Osman reportedly defied Putrajaya to visit the ship.

Sources: Free Malaysia Today, The Star, Malay Mail

In the interim, Malaysian Foreign Minister Saifuddin Abdullah said that channels of communications between the two countries remain open. Economic Affairs Minister Azmin Ali also met with Singaporean Foreign Minister Vivian Balakrishnan after the postponement of the JMCIM to discuss bilateral issues on 16 January.

Sources: The Edge Markets, Malaysiakini

Myanmar

Muse-Mandalay Railway and Road Projects Moving Forward (7-9 Jan)

It was announced on the 7^th of January that work on the feasibility study for lengths of railway on the proposed 431km Muse-Mandalay railway route has begun, just three months after it was put forward in October 2018. Mandalay officials have suggested that the project is set to begin in earnest in 2020. Alongside this, Myanmar’s Ministry of Construction announced on the 9^th of January that the state-owned China Harbour Engineering Company will be building a US$100m bridge near the Goke Hteik railway viaduct in western Shan State. This viaduct is situated along the existing Muse-Mandalay road. The Muse-Mandalay rail project is being positioned as a major component of the China-Myanmar Economic Corridor.

Sources: Irrawaddy, Myanmar Times, Myanmar Times

High Court Rejects Appeal by Reuters Reporters (11 Jan)

Yangon’s High Court rejected an appeal filed by the lawyers of Wa Lone and Kyaw Soe Oo, the two Reuters reporters sentenced last year to seven years in jail for breaching Myanmar’s Official Secrets Act. The court ruled that there was insufficient evidence to assert that the two reporters were innocent. The initial sentence and this rejection have both been met by international condemnation. The pair of reporters retains the option of making an appeal to Myanmar’s Supreme Court in Naypyidaw.

Sources: Irrawaddy, Channel NewsAsia

Rakhine State Government Bans International Humanitarian Organisations (14 Jan)

The Rakhine State government banned non-governmental organisations and UN agencies from traveling to the rural townships of Buthidaung, Maungdaw, Ponnagyun, Kyauktaw and Rathedaung, on the grounds of escalating violence in the region. Only the International Committee of the Red Cross and World Food Programme were exempted from this ban. Any other aid organisations must submit requests to the Rakhine State government through the Security and Border Affairs Ministry. The United Nations has responded by urging the Myanmar government to allow “rapid and unimpeded” humanitarian access to Rakhine State.

Sources: Myanmar Times, Reuters

Kachin Political Parties Contest Chinese Assertions of Support for Myitsone Dam (14 Jan)

Several Kachin political parties have publicly disavowed a statement made by the Chinese Embassy in Myanmar, which asserted that Kachin state’s political leaders and organisations held a “positive attitude” towards the stalled Myitsone dam project. They have instead reaffirmed their commitment to seeking a “permanent suspension” of the project. Kachin leaders who had met Chinese diplomats in the Kachin State capital of Myitkyina earlier in the month had mentioned threatening statements to discourage further opposition of the Myitsone dam.

Sources: Frontier Myanmar, Myanmar Times, Irrawaddy

European Union Reimposes Tariffs on Rice Imports from Myanmar (17 Jan)

The European Union has announced that it will reimpose tariffs on Myanmar’s rice imports on the 18^th of January, citing economic damage to European producers. Import duties on rice will be gradually reduced over a period of three years, from €175 per tonne in the first year, to €150 and €125 in the second and third years respectively. Myanmar officials have said that this will have limited impact, affecting only between 60,000 to 100,000 tonnes of exported rice. Myanmar exported over 3 million tonnes of rice in 2017-2018. EU spokespersons have emphasized that this decision is unrelated to the potential withdrawal of Myanmar’s privileged access to the EU’s Generalised Scheme of Preferences.

Sources: Myanmar Times, Reuters

Thailand

Thailand to Extend Waiver Scheme for Visa-On-Arrival Fee (9 Jan)

Thailand will be extending the waiver on the 2,000 baht (US$63.13) visa-on-arrival fee until the end of April to boost tourism during the Chinese New Year period. The waiver applies for nationals of 20 countries, including China and India, and came into effect in November 2018 amid a slump in Chinese tourist numbers. Chinese tourists constitute 28 percent of all tourist arrivals to Thailand, and account for 3.4 percent of their GDP through tourist receipts.

Sources: Chiang Rai Times, Business Times, The Straits Times

Cambodia Pulls Passport Perk After Yingluck Revelation (16 Jan)

The South China Morning Post reported on 9 January that former Thai Prime Minister Yingluck Shinawatra possessed a Cambodian passport, based on corporate filings in Hong Kong that used the document. The revelation fuelled speculation that Yingluck, a fugitive, used the passport to flee Thailand back in 2017. While Cambodia denied that it issued a passport to Yingluck, Cambodian Prime Minister Hun Sen issued instructions on 9 January to annul diplomatic passports issued to non-Cambodians, and to reject new passport applications.

Sources: South China Morning Post, The Nation, Phnom Penh Post

Confirmation that the Thai Election Will Be Delayed (17 Jan)

Thai Prime Minister Prayuth Chan-ocha appeared to admit on 17 January that the election, scheduled for 24 February would be postponed, citing clashes with the coronation activities for King Maha Vajiralongkorn. This admission comes after hundreds of people protested over the past week against rumours about an impending delay, prompting warnings from Army Chief Apirat Kongsompong not to “cross the line”. At present, the Thai government is looking at 10 or 24 March as potential alternatives, although Deputy Prime Minister Wissanu Krea-ngam has expressed support for the latter date.

Sources: Bangkok Post, The Nation, Nikkei Asian Review