Indonesia

Jokowi to Double Cash Handouts under PKH (11 Dec)

Social Affairs Minister Agus Gumiwan Kartasasmita told reporters that the PKH aid programme would double in scope from US$1.3 billion to US$2.6 billion in 2019. The programme, aimed at 10 million families, will be dispersed in four phases, the first two of which will be in January and April. The Indonesian government maintains that the programme has nothing to do with upcoming elections.

Sources: Bloomberg

Australian Recognition of West Jerusalem as Israeli Capital Causes Waves in Indonesia (15 Dec)

Australian Prime Minister Scott Morrison announced on Saturday, 15 December that Canberra would recognise West Jerusalem as the capital of Israel. The Islamic Defenders Front has already criticised the announcement and called for a boycott of Australian products. To date, the Indonesian foreign ministry has offered a restrained response that called on Australia to adhere to the principle of the two-state solution. However, the announcement is likely to impact the signing of the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA CEPA).

Sources: The Straits Times, The Australian, The Guardian

Indonesia and the European Free Trade Association Sign a Trade Deal (16 Dec)

Indonesia and four European countries (Switzerland, Liechtenstein, Norway and Iceland) signed an agreement to eliminate tariff and non-tariff barriers on thousands of products. Indonesian palm oil, the main sticking point in negotiations, will be given better market access with a number of exceptions. In 2017, trade between Indonesia and these four countries was worth US$2.4 billion, with Indonesia enjoying a trade surplus of US$212 million. There are hopes that the completion of this agreement will provide a stepping stone for negotiations surrounding the Indonesia-EU Comprehensive Economic Partnership Arrangement, the seventh round of which is scheduled to commence in March 2019.

Sources: Ministry of Foreign Affairs, Indonesia,  Nikkei Asian Review, Jakarta Post

Malaysia

ICERD Rally Draws a Crowd of 55,000-80,000 (8 Dec)

The turnout for the rally against the International Convention on the Elimination of All Forms of Racial Discrimination (ICERD) fell under the organiser’s target of 500,000 participants, but nonetheless drew a crowd of between 55,000 (police figures) to 80,000 (online estimates). Aside from its implications for Malaysia’s social fabric, the rally was a testament to the ability of Parti Islam Se-Malaysia (PAS) to mobilise its supporters from Kelantan and Terengganu, and to conduct a peaceful gathering.

Sources: Malay Mail, Channel NewsAsia

UMNO Experiences Mass Exodus, Down to 37 Members of Parliament (16 Dec)

Following a series of high profile defections, the United Malays National Organisation (UMNO) lost a significant proportion of its elected representatives. Most of the defectors have applied to join Dr Mahathir Mohamad’s Parti Pribumi Bersatu Malaysia (PPBM), but other coalition parties have voiced their concerns about accepting this influx of ex-UMNO members. Meanwhile, calls for President Ahmad Zahid Hamidi to resign have increased in volume, but he has maintained that only a two-thirds majority in the party general assembly can compel him to leave.

Sources: The Straits Times, Malay Mail, The Star

Malaysia Files Criminal Charges against Goldman Sachs in Relation to 1MDB (17 Dec)

Malaysia has filed criminal charges against Goldman Sachs and its employees over alleged false statements made in relation to 1Malaysia Development Berhad (1MDB) bond sales. Putrajaya seeks fines of over US$2.7 billion and US$600 million in fees received by Goldman for the 1MDB deal. Goldman responded in a statement that they had been misled by the former Malaysian government about the proceeds from 1MDB transactions, and denied any wrongdoing on their part.

Sources: Financial Times, Bloomberg, The Straits Times

Myanmar

Malaysia’s PM Mahathir calls for ASEAN to pressure Myanmar on the Rohingya issue (16 Dec)

Malaysian Prime Minister Dr Mahathir Mohamad has called for ASEAN to exert greater pressure on Myanmar to address the ongoing humanitarian crisis in Rakhine state. Speaking to Thailand’s The Nation, Dr Mahathir stated that “ASEAN has to learn how to bring pressure on governments that are not treating their own people with fairness and justice.” He also called on ASEAN to support international efforts to bring an end to the crisis. Dr Mahathir noted that Malaysia wanted to return the Rohingya currently resident there to Myanmar, but could not do so against their volition. He further noted that while they remained ineligible for Malaysian citizenship, they would continue to be accepted as refugees.

Source: The Nation, The Star Online

Construction completed on new general Cargo Wharf in Thilawa SEZ (14 Dec)

Work on a cargo terminal attached to the Thilawa Special Economic Zone (SEZ) just outside of Yangon concluded on 14 December, with operations due to begin as soon as March 2019. The terminal features a 400-meter long wharf that can accommodate two cargo vessels at a time, and is equipped to handle 200,000 TEU of cargo a year. The US$227m terminal is owned by the Myanmar Port Authority, and will be operated by Japanese logistics firm Kamigumi. The terminal’s wharf is due to be extended to 1km, which will quintuple annual cargo capacity to one million TEU, after the second and third phases of construction on the Thilawa SEZ are completed.

Source: Nikkei Asian Review, Eleven Myanmar

US House of Representatives approves resolution denouncing ‘genocide’ in Myanmar (13 Dec)

The United States House of Representatives has approved a resolution decrying Myanmar’s actions in Rakhine state against Rohingya Muslims as ‘genocide’. The resolution calls for President Donald Trump to impose further targeted sanctions against members of Myanmar’s military and notably identifies Tatmadaw Senior General Min Aung Hlaing. The resolution further calls for Myanmar’s government to free Wa Lone and Kyaw Soe Oo, the two Reuters journalists imprisoned by the Myanmar government earlier this year. President Donald Trump has not officially commented on the humanitarian crisis in Myanmar.

Source: Washington Post, Congress.gov

Thailand

Ban on Political Activity Lifted, Paving the Way for Elections in February (11 Dec)

The National Council for Peace and Order (NCPO) fully lifted a four-year old ban on political activities on Tuesday, 11 December. Campaigning for the election is likely to begin in January, but parties have already begun to outline their platforms.

Sources: Bangkok Post, Channel NewsAsia,

The Straits Times (For more information on individual parties)

Economists Peg Thai Growth Forecasts for 2019 at Around 4% (13 Dec)

Speaking at a seminar hosted by Chulalongkorn University, Finance Minister Apisak Tantivorawong said that a growth rate of 4% is possible due to the positive effects of supply chain adjustments for Thailand. However, he warned that growth in 2019 is still expected to be slower than in 2018 due to the dampening effect of trade tensions on economic activity, and said that the government will focus on promoting Industry 4.0 policies and the Eastern Economic Corridor to weather external crises.

Sources: Bangkok Post, The Nation

The Future Forward Party Unveils their Platform Amidst Internal Unrest (16 Dec)

The Future Forward Party (FFP) laid out its key agenda items for the election: stopping power centralisation, promoting equality through comprehensive welfare programmes and reforming education. Drawing on an earlier proposal, they also called for drastic cutbacks in the size of the armed forces and the abolishment of military conscription. This revelation comes as FFP deals with internal issues including contentions about the selection of MP candidates and allegations of fund misuse.

Sources: Bangkok Post, Khaosod English