Indonesia

Indonesia Engages Softbank, UAE and Others to Build New Capital City (10 Jan – Ongoing)

Indonesia’s National Development Planning Minister Soeharso Monoarfa announced that at least five foreign investors have expressed interest in developing Indonesia’s new capital city in East Kalimantan. The relocation project, announced in August 2019, was estimated to cost around US$31 billion. These investors and partners include:

• The Japanese conglomerate SoftBank offered to provide technology such as autonomous vehicles and artificial intelligence. In July 2019, SoftBank promised to invest U$2 billion over five years through Grab, the Singapore-based ride hailing company, though Coordinating Minister for Maritime Affairs and Investments Luhut Pandjaitan said that the company has since offered to invest US$30-40 billion in the new capital.

• The US offered up to US$5 billion through the newly created International Development Finance Corporation (IDFC), which manages more than US$200 billion in investments for emerging countries

• The United Arab Emirates (UAE) offered to provide financial support for the project. During President Joko Widodo “Jokowi’s” visit to the UAE in January 2020, he secured US$23 billion in investments and signed 11 business agreements in sectors ranging from petrochemicals to telecommunications. The investments will be made through Indonesia’s planned sovereign wealth fund, and SoftBank and the IDFC have expressed their support for the fund.

• Several business leaders and public figures have also volunteered to join the project’s board of advisors, including UAE Crown Prince Sheikh Mohammad bin Zayed Al Nahyan, Former United Kingdom Prime Minister Tony Blair and SoftBank CEO Masayoshi Son.

In addition to support from these parties, Jokowi announced that his government would invite the private sector to develop non-public infrastructure in the new capital through public-private partnerships (PPPs) or direct investment. He expressed confidence that such measures could reduce the cost of moving the capital to US$7.3 billion.

Sources: The Jakarta Post, Nikkei Asian Review, Financial Times, The Jakarta Post, South China Morning Post

Challenges Mount as Jokowi Pushes Omnibus Laws (15 Jan – Ongoing)

President Jokowi’s efforts to pass three omnibus bills to reform Indonesia’s economy have met stiff resistance. The bills, which cover job creation, taxation and small and medium enterprises (SMEs), were created to cut through cumbersome bureaucratic processes and attract investments, and were submitted to the House of Representatives for deliberations on 20 January. However, labour unions have asserted that they were not consulted during the drafting of the bill, and that its proposed amendments to minimum wages, severance pay and other issues would undermine their rights as workers. In response, Jokowi ordered law enforcers and intelligence agencies to approach the labour organisations to “communicate” with them while the bills are being deliberated. He expressed his hope that the deliberations would be finished in less than 100 working days.

Sources: South China Morning Post, Jakarta Globe, The Jakarta Post, The Jakarta Post

KPK Faces First Test Under New Law, But It’s Not Doing Well (8 Jan – Ongoing)

The effectiveness of the Corruption Eradication Commission (KPK) under its new governing law has been called into question following a high profile case against General Elections Commissioner (KPU) Wahyu Setiawan. Wahyu was apprehended on 8 January on suspicion of taking a US$66,000 bribe from Harun Masiku, an Indonesian Democratic Party of Struggle (PDI-P) legislative candidate who sought to take over a vacant seat following the death of its elected representative (A fellow PDI-P member). In the process, one of the leaders implicated in the scandal was Hasto Kristiyanto, the PDI-P Secretary-General.

However, the KPK not only failed to apprehend Hasto due to the lack of a warrant, but the PDI-P also set up a legal team to question the legality of the KPK’s investigation. The team reported the KPK to its own supervisory council to express concerns about the commission’s attempt to raid without a warrant. This has led media outlets and observers to express their frustration with how the KPK’s performance has been undermined, and renew their calls for a presidential regulation to amend the KPK law.

Sources: Jakarta Globe, Tempo.co, The Jakarta Post

Malaysia

UMNO Wins By-Election in Kimanis, Marking Fifth PH Loss Out of 10 (18 Jan)

Malaysia’s opposition coalition Barisan Nasional (BN) retained its parliamentary seat in Kimanis, Sabah, after United Malays National Organisation (UMNO) member Mohamad Alamin beat his rival from Parti Warisan Sabah during the by-election on 18 January. While the seat had initially been held by BN after May 2018 general election, UMNO managed to extend its narrow victory margin of 156 votes from 2018 to 2,029 votes. Warisan attributed their loss to unrest concerning the Sabah Temporary Pass system (PSS), which UMNO criticised as a ploy to encourage illegal immigration and change the demographics of Sabah to favour the ruling government. BN is now tied with the Pakatan Harapan (PH) coalition with five by-election victories each.

Sources: The Straits Times, The Edge Markets MY, New Straits Times, Channel NewsAsia

Rumours Surface About a Mahathir-PAS Axis (20 Jan)

Free Malaysia Today reported that Prime Minister Dr Mahathir Mohamad might be planning to shake up the Malaysian political landscape by allying with Parti Islam Se-Malaysia (PAS). Following Education Minister Maszlee Malik’s resignation on 2 January, sources told the online newspaper that at least one more minister from Dr Mahathir’s Parti Pribumi Bersatu Malaysia (PPBM) is expected to resign soon, particularly given the government’s by-election defeat in Kimanis.

Meanwhile, PAS leaders were seen paying visits to the Yang Di-Pertuan Agong, Sultan Abdullah Sultan Ahmad Shah, as well as Dr Mahathir himself. This fed speculation that Dr Mahathir was conducting backdoor negotiations with PAS to bring them into the government. While no concrete evidence has been presented to support these claims, PAS’ admission to the government would likely deal a significant blow to the Democratic Action Party (DAP), and to the stability of the government itself.

Sources: Free Malaysia Today, Malaysiakini

1MDB Najib Recordings Cause a Stir (8 Jan – Ongoing)

The Malaysia Anti-Corruption Commission (MACC) released a series of audio recordings of conversations between former Prime Minister Najib Razak and other individuals linked to the 1Malaysia Development Berhad (1MDB) scandal on 8 January. These conversations dated back to 2016, and were between Najib and parties such as former MACC Chief Commissioner Dzulkifli Ahmad, Najib’s wife Rosmah Mansor and Crown Prince of Abu Dhabi Sheikh Mohamed Zayed Al-Nahyan. While Dr Mahathir defended the MACC’s decision to release the tapes, others, including Parti Keadilan Rakyat (PKR) President Anwar Ibrahim, questioned the wisdom behind the action. Najib has filed an application to obtain the audio recordings, reasoning that they are relevant to his ongoing court cases over 1MDB.

Sources: Malay Mail, The Straits Times, The Edge Markets MY

Myanmar

Xi Jinping Visit Puts Spotlight on China-Myanmar Relations and Deals (17-18 Jan)

Chinese President Xi Jinping inked 33 agreements with Myanmar’s government during his two-day visit to Naypyitaw. The deals spanned infrastructure, power and trade, including a concession agreement and shareholders’ agreement for the Kyaukpyu Special Economic Zone (SEZ) deep seaport project in Rakhine State. The project is linked to a 1,700 km China Myanmar Economic Corridor (CMEC) that is part of the Belt and Road Initiative (BRI). Both governments also agreed on MoUs to undertake a feasibility study on the Myanmar-China Power Interconnection Project in addition to conducting feasibility studies for the Yangon River Estuary West Bank Protection, Mandalay-Bagan Railway Line, and Watalone Tunnel projects. There was no mention of the controversial $3.6 billion 6,000 megawatt Myitsone Hydropower Project that was suspended by the previous government in 2011. President Xi last visited the country in 2009 as vice president while Jiang Zemin was the last Chinese president to visit Myanmar close to two decades ago.

Sources: Asia Times, Myanmar Times, Mizzima

Myanmar Government Appointed Panel Finds No ‘Genocide’ Against Rohingya (20 Jan)

A commission appointed by Myanmar’s government to investigate the 2017 Rakhine crackdown has concluded that there was no evidence of genocide against the Rohingya Muslim minority. The Independent Commission of Enquiry (ICOE) described the situation as an “internal armed conflict” and found insufficient evidence that “the crimes committed were undertaken with the intent to destroy, in whole or in part, a national, ethnical, racial or religious group”. President U Win Myint said he will seek the prosecution of those involved in human rights abuses during the 2017 conflict. The ICOE released the findings on Monday 20th January, ahead of a UN top court ruling expected on Thursday 23rd January. The Gambia had brought about a case to the International Court of Justice alleging genocide in Myanmar. State Counsellor Aung San Suu Kyi defended Myanmar against these allegations in The Hague last month.

Sources: Straits Times, Al Jazeera, Myanmar Times

Western Union Cuts Ties with Myanmar Military Owned Bank (9 Jan)

Western Union has stopped using military-owned Myawaddy Bank as one of its agents in Myanmar. The US-based money transfer service ended its contract after human rights organizations called for the company to cut ties with Myanmar’s military, also known as the Tatmadaw. Myawaddy Bank is a subsidiary of military business conglomerate, Union of Myanmar Economic Holdings (MEHL). A UN Fact-Finding Mission on Myanmar has urged companies to sever ties with the country’s military and companies linked to the Tatmadaw. NGOs such as the International Campaign for the Rohingya and No Business With Genocide expect more companies to stop doing business with Myanmar’s military.

Sources: Myanmar Times, Irrawaddy

Thailand

Future Forward Found Not Guilty of Opposing Monarchy, Escapes Dissolution (21 Jan)

On 21 January, the Future Forward Party (FFP) was found not guilty of opposing the country’s monarchy, an accusation that could have led to its dissolution. Thailand’s Constitutional Court rejected the claims that the party, which came in third during the 2018 election, sought to overthrow the monarchy, including the bizarre point that its triangular symbol was proof of its link to the Illuminati. However, newspapers have been quick to point out that FFP remains at risk. A separate petition filed by the Election Commission of Thailand claimed that the party received money from an illegal source when it accepted a US$6.3 million loan from leader Thanathorn Juangroongruangkit, and could also lead to its dissolution.

Sources: Reuters, Nikkei Asian Review

Record-Breaking Thai Budget Passed by the House of Representatives (11 Jan)

The Thai House of Representatives passed the budget bill for the 2020 financial year on Saturday, 11 January, four months later than when it is usually passed. The US$105 billion budget was the biggest in Thailand’s history, and featured changes from the 2019 budget such as a 45% cut in Defence funding and a 19.8% increase in funding for the Labour Ministry. The debate had almost been discontinued when opposition MPs boycotted the debate after failing to secure an extension to it, but just enough MPs (253) remained in the House to make quorum (250). The bill is currently being vetted by the Senate, though news emerged on Tuesday, 21 January that a voting discrepancy, whereby an absent MP still voted for the bill, might lead the House to refer the matter to the Constitutional Court.

Sources: The Straits Times, Bangkok Post, Bangkok Post, Bangkok Post

Inter-Airport High Speed Rail Project Reaches Agreement Following Land Pledge (18 Jan)

Thailand reached an agreement regarding the construction of a US$7.4 billion high-speed railway between Suvarnabhumi, Don Mueang International and U-Tapao International airports after months of delays. A consortium led by Charoen Pokphand (CP) Group had signed a contract with the State Railway of Thailand (SRT) in late 2019 to build the railway, but questions about land expropriation and ownership led the consortium to drag out the talks as they sought a government guarantee. The talks finally reached a breakthrough after the government promised to deliver all lots within four years of signing the contract, though the consortium was also motivated by Deputy Prime Minister Anutin Charnvirakul’s threat to blacklist its members from future projects if they failed to reach a deal. The railway is expected to partially open in 2023.

Sources: Nikkei Asian Review

Vietnam

European Parliament Gives Initial Backing on Vietnam Trade Deal (21 Jan)

The Committee on International Trade under the European Parliament approved free trade and investment protection agreements between the EU and Vietnam. This paves the way for a vote in full parliament on a deal where almost all tariffs to be gradually eliminated over the course of ten years. The agreement commits Vietnam to apply the Paris Agreement and to schedule the ratification of a bill on the abolition of forced labour. The deal is expected to increase Vietnamese exports of goods and services by 15 billion euros and for EU exports to Vietnam to climb by 8.3 billion euros by 2035. Vietnam is the EU’s second-largest trading partner in ASEAN after Singapore, with trade in goods worth 47.6 billion euros a year and 3.6 billion euros when it comes to services.

Sources: Tuoi Tre News, New York Times

Viettel Pushes for Launch of 5G Services (20 Jan)

State-owned telecoms company, Viettel, plans to launch commercial 5G services from June this year based on its own equipment and software. The company held trials of a video call using a 5G network. The move comes as Vietnam’s government tries to promote local industrial champions. Viettel is controlled by Vietnam’s military and is the country’s biggest telco. Viettel said it would be the sixth producer of 5G equipment after Ericsson, Nokia, Huawei, Samsung Electronics and ZTE. hopes to complete nationwide deployment next year.

Sources: Financial Times, Biz Hub

Land Disputes in Vietnam Lead to Deadly Clashes (9 Jan)

Protesters clashed with police over a land rights dispute in the village of Dong Tam, a suburb of Hanoi. Three Vietnamese policemen and a local leader were killed during the clashes. According to Vietnam’s Ministry of Public Security, protesters attacked the troops with hand grenades, petrol bombs and knives. The deadly clash was the latest incident in a long-standing dispute over the land where the Mieu Mon Military Airport is to be built. Locals have said that their land has been unfairly taken over and were not properly compensated.

Sources: Reuters, VN Express, BBC