Indonesia

Jokowi Lashes Out at Prabowo over “Russian Propaganda”, Then Clarifies Statement (2 Feb)

Incumbent President Joko Widodo “Jokowi” accused the campaign team of Prabowo Subianto of disseminating propaganda via a foreign consultant, calling the efforts “Russian propaganda”. Prabowo’s team denied the accusation. When subsequently asked to explain his statement, Jokowi clarified that he was “not referring to Russia as a country in this case”. One of his advisors suggested that Jokowi was instead referring to a model of propaganda that originated from 19^th century Russia, which came to modern prominence during the 2016 US presidential election.

Sources: Jakarta Post, The Straits Times, Bloomberg

Bank Indonesia to Maintain Hawkish Stance, Help Narrow Current Account Deficit (12 Feb)

Bank Indonesia Governor Perry Warjiyo hinted that his institution will maintain tight monetary policy in 2019 amid external challenges. Bank Indonesia had recorded a US$31.1 billion current account deficit for Indonesia in 2018, or 2.98% of its gross domestic product. The Governor also asserted that Bank Indonesia and the government need to cooperate to narrow this deficit, and aims to maintain interest rates.

Sources: Jakarta Post

Lead-up to the Second Presidential Debate on 17 February, Sunday (12-15 Feb)

The second round of the presidential debates will take place on 17 Feb, and will focus on energy, food, natural resources, the environment and infrastructure. The two candidates have contrasting views on approaching certain issues. Prabowo’s camp, for instance, wants “instant and concrete” action in adopting clean energy, while Jokowi wants a more gradual transition. Infrastructure is also shaping up to be a contentious issue. Prabowo’s camp has stepped up accusations that Jokowi is neglecting the rising cost of living, and that infrastructure projects under him lack efficiency.

Sources: Jakarta Post, Tempo.co

Malaysia

PH Leaders Caught Up in Controversy Over Dubious Qualifications (9-12 Feb)

Several leaders in the Pakatan Harapan (PH) government have recently been accused of possessing dubious academic qualifications. Deputy Foreign Minister Marzuki Yahya was the first to be questioned over claims that he had attained a bachelor’s degree from Britain’s Cambridge University via a distance learning programme. He later admitted that he had graduated from a similarly-named Cambridge International University in the US, and his party, Parti Bersatu Pribumi Malaysia, or PPBM, has since said that they accept his explanation for the issue. The spotlight was also turned to Defence Minister Mohamad Sabu, Housing and Local Government Minister Zuraida Kamaruddin, Johor Menteri Besar Osman Sapian and Perak executive councillor Paul Yong Choo Kiong. The latest PH minister to come under fire is Finance Minister Lim Guan Eng over the validity of his claim to have been a “professional qualified accountant”. Separate efforts are also ongoing to question the validity of former Prime Minister Najib Razak’s degree from the University of Nottingham.

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

Najib’s First 1MDB Trial Delayed (11 Feb)

Former Prime Minister Najib Razak succeeded in deferring his first 1Malaysia Development Berhad (1MDB)-linked trial. The Malaysian Court of Appeal unanimously allowed Najib’s application to stay the trial, due to contention over case’s transfer from the Sessions Court to the High Court. It also set 11 and 12 March to hear four appeals by Najib regarding the matter. Najib currently has 42 charges levelled against him, 25 of which involve power abuse and money laundering.

Sources: Free Malaysia Today, Malay Mail, The Guardian, The Edge Markets

Economic Action Council Created, Unites Political and Business Leaders (11 Feb)

The government of Prime Minister Dr Mahathir Mohamad announced the formation of an Economic Action Council comprising ministers and business leaders on 11 February. The Council, whose main aim will be to stimulate economic growth and to improve the distribution of wealth, will include Dr Mahathir, Economic Affairs Minister Azmin Ali, Finance Minister Lim Guan Eng, International Trade and Industry Minister Darell Leiking and Works Minister Baru Bian. A conspicuous absence, however, is Parti Keadilan Rakyat (PKR) President Anwar Ibrahim. Azmin noted that this omission was greenlighted by Dr Mahathir, but assured media that they would engage with “many stakeholders” to obtain input and feedback.

Sources: Malay Mail, Malay Mail (Reactions), The Star Online, Nikkei Asian Review

PPBM’s Acceptance of Former-UMNO Members Draws Flak from Coalition Partners (14 Feb)

Seven former members of the United Malays National Organisation (UMNO) have been accepted into Parti Pribumi Bersatu Malaysia (PPBM), Prime Minister Dr Mahathir Mohamad announced on 14 February. The seven, including Former-Minister of Domestic Trade, Cooperatives and Consumerism Hamzah Zainuddin, will remain ordinary members without any position. Nonetheless, their admission sparked an outcry among PPBM’s coalition partners and their supporters, with politicians from Parti Keadilan Rakyat (PKR) and the Democratic Action Party (DAP) among those expressing their dismay on social media. Dr Mahathir has defended his decision by assuring that the seven were carefully reviewed, and that they do not have protection from past wrongdoings. He also threatened to personally switch to another party if his Pakatan Harapan partners were not “loyal to the country”.

Sources: Free Malaysia Today, Channel NewsAsia, Malay Mail

Myanmar

Mobile money transfer provider Red Dot Network ceases operation (5 Feb)

After several months of deteriorating service in late 2018, the widely-used mobile payment solutions provider Red Dot Network abruptly ceased responding to support requests, marking an unannounced end to its operations in Myanmar after it stopped facilitating transfers in December 2018. Red Dot agents have been left seeking assistance from the government to reclaim funds and deposits lost while dealing with the firm. Red Dot was founded by Irish businessman John Nagle with the backing of Jamaica-based mobile operator Digicel. The company was operating openly despite not having been issued a Mobile Financial Service license by the Central Bank of Myanmar (CBM).

Sources: Myanmar Times, Myanmar Times

More refugees flee from Rakhine state to Bangladesh (6 Feb)

Renewed fighting between the Tatmadaw and Arakan Army in Rakhine State since January has prompted many residents to flee across the border to Bangladesh. These new arrivals are from the Rakhine Buddhist ethnic group, along with members of other tribal affiliations. Myanmar’s Ambassador to Bangladesh has been summoned, and a formal protest has been lodged. The United Nations has noted that approximately 5,200 people have been displaced by the recent fighting.

Sources: Channel Newsasia

Central Bank of Myanmar to begin issuing remittance licenses to regulate Hundi system (7 Feb)

The CBM has announced that it will begin issuing remittance licenses to authorised money changers within two months. This initiative is intended to crack down on illegal remittances and stifle the informal flow of foreign currency into Myanmar. Remittances have traditionally been conducted under the informal Hundi system, which is largely based on trust and kinship ties and thus broadly absent of governmental regulation. This announcement follows the CBM’s earlier decision to officially allow the use of the Japanese yen and Chinese yuan as settlement options for banks in cross-border payments.

Source: Myanmar Times

10,000 Kachin march in protest of the Myitsone Dam (7 Feb)

10,000 Kachin took to the streets in the Kachin capital of Myitkyina to call for the cessation of the Myitsone Dam project. Among the protestors were Kachin religious leaders, Buddhist monks and the leaders of Kachin civil society organisations and political parties. Activists and locals from Myitkyina and Waingmaw townships also joined the protest. This follows a meeting between Tatmadaw Senior General Min Aung Hlaing and Kachin religious leaders, who called on the general to push for the project’s cessation.

Source: Irrawaddy

Japan announces plans to support economic development in Rakhine State (8 Feb)

Japan’s Ambassador to Myanmar Ichiro Maruyama has announced Japan’s plans to promote economic development in Rakhine State by supporting the upcoming Rakhine State Investment Fair and encouraging Japanese investors to direct their investments there. The Rakhine State Investment Fair is being held from the 21^st to 23^rd of February, and is jointly organised with the Japan International Cooperation Agency (JICA) and the Japan External Trade Organization (JETRO).

Source: Irrawaddy

Myanmar’s Parliament passes bill governing Gemstone extraction (8 Feb)

Myanmar’s parliament has passed a bill establishing regulations governing gemstone extraction. A two-year moratorium had previously has been imposed on the sector when the NLD took office in 2016. The newly approved regulations govern medium to artisanal-scale mining, limiting permit durations for medium, small and artisanal mining to three, two and one year(s) respectively. It was noted that large-scale mining was excluded from the legislation on the grounds of its severe environmental impact. This move is nevertheless a necessary first step to the restarting of license issuance for new operators.

Source: Myanmar Times

Myanmar establishes Condominium Registration Office (14 Feb)

Myanmar’s Ministry of Construction has issued a notification formally establishing the Condominium Registration Office, which will govern the registration of condominium unit purchases in accordance to the Condominium Law 2016 and the subsequent Condominium Rules Notification passed in 2017. Despite garnering praise for having for the first time recognised foreign ownership rights for Condominiums, neither the Condominium Law nor the Rule Notification were implemented because no office existed to facilitate registration. Registrars have also been appointed in Myanmar’s States and Regions.

Source: JDSupra

Central Bank of Myanmar implementing QR Code based national payment system (14 Feb)

The CBM’s Vice Governor U Bo Bo Nge has announced that it plans to implement a standardised national payment system by this year. The system will cover international payments, mobile wallets and all mobile network operators, and be based on using Quick Response (QR) codes. The CBM is reportedly in talks with international payment firms like Visa and JCB, as well as local mobile wallet providers such as Wave Money, M Pitesan, OK$, Wechat and Alipay on how best to implement the planned system.

Sources: Myanmar Times

Thailand

Thai Royal gets Nominated as PM Candidate, only for Move to Be Condemned by King (8 Feb)

Thai Raksa Chart, a party affiliated with Thaksin Shinawatra’s Pheu Thai party, made an unexpected revelation on 8 February, Friday, by nominating Princess Ubolratana Rajakanya as their sole Prime Ministerial candidate for the upcoming elections. The move was initially assumed by experts to have been made with the approval of King Maha Vajiralongkorn, the Princess’ younger brother, and would have suggested an apparent rapprochement with fugitive and Former-Prime Minister Thaksin. However, the King’s announcement on Friday evening condemned the decision as “highly inappropriate”, asserting that Princess Ubolratana was still a member of the royal family and should stay above politics. The Election Commission subsequently omitted her name from a list of approved Prime Ministerial candidates.

Sources: Bangkok Post, The Nation

Constitutional Court Accepts Election Commission Petition to Dissolve Thai Raksa Chart (14 Feb)

After some deliberation, Thailand’s Election Commission announced on 13 February that it is seeking the dissolution of Thai Raksa Chart due to its nomination of the King’s sister, which was “antagonistic towards the constitutional monarchy”. The Election Commission’s petition on this issue was accepted by the Constitutional Court, and the case is expected to go to trial. Thai Raksa Chart will be given seven days to submit a written response after receiving its copy of the EC complaint, and the court is scheduled to meet on 27 February for further deliberations on the case.

Sources: The Straits Times, Bangkok Post

Pheu Thai Still Popular in Northeast, Khon Kaen University Survey Finds (13 Feb)

An opinion survey conducted by Khon Kaen University in Thailand’s northeastern region has found that the Pheu Thai party is still more popular than the pro-junta Palang Pracharat among its respondents. Conducted in the aftermath of the dramatic developments of 8 February, the poll reported a 44.8% approval rating for Pheu Thai in comparison to a 7.4% approval rating for Palang Pracharat. The Future Forward Party received 21.2% support, followed by Thai Raksa Chart with 7.5% and the Democrat Party with 3.9%. The region, a traditional Pheu Thai stronghold, contains 116 seats in the upcoming general election. Prime Minister Prayuth Chan-ocha has been engaged in efforts to win over its supporters since at least 2018.

Sources: Bangkok Post, Nikkei Asian Review,

The Straits Times (on Prayuths attempts to win over the Northeast in 2018)