COVID-19 Policy Responses

Malaysia Imposes Domestic Movement and Foreign Travel Restrictions as Multinational Cluster Causes Surge in Cases (11 Mar – Ongoing)

Malaysian Prime Minister Muhyiddin Yassin announced country-wide movement restrictions on Monday, 16 March, as the country grappled with a surge in new coronavirus (COVID-19) cases. The restrictions, which take effect on 18 March, include a partial domestic lockdown via the suspension of all learning institutions and the closure of all government and private businesses outside of essential services such as utilities and postal services. The government also imposed entry restrictions for foreign visitors and exit restrictions for Malaysians. Malaysians working in Thailand and Singapore are currently not allowed to commute during the restriction period, which is scheduled to last until 31 March. However, Singapore Prime Minister Lee Hsien Loong said that he had been assured that the flow of goods and cargo between Singapore and Malaysia would continue.

 Sources: Channel NewsAsia, Malay Mail, Channel NewsAsia

Malaysia is currently the worst-affected country in Southeast Asia with a total of 790 COVID-19 cases confirmed by Wednesday, 17 March. Two-thirds of these were attributable to a multinational cluster from a religious event in Kuala Lumpur. The three-day “tabligh” in Sri Petaling Mosque attracted 16,000 attendees, 14,500 of whom were Malaysians. However, the event led to infections elsewhere in ASEAN, including Cambodia, Singapore, Brunei and Vietnam. Regional governments are conducting contact tracing and screening to arrest the spread of the virus, while the event organiser urged attendees to contact medical authorities for treatment.

 Sources: Channel NewsAsia, The Edge News MY, Malay Mail, The Straits Times

More Restrictions in Indonesia Amid Surge in Cases (14 Mar – Ongoing)

Indonesia experienced a sharp rise in COVID-19 cases over the past fortnight, with 227 cases of the disease and 19 deaths confirmed as of Wednesday, 18 March. Transport Minister Budi Karya Sumadi was confirmed as case number 76 on Saturday, 14 March, prompting Indonesian President Joko Widodo “Jokowi” and other ministers to be tested for the disease. Most schools in Jakarta, Banten, West Java, Central Java and East Java were closed from 16 March, while Jokowi urged Indonesians to “work from home, learn from home and worship at home”. Indonesia is also set to suspend its visa exemption policy for all countries for one month, and expand temporary travel bans on people who visited countries such as Italy and Germany over the past 14 days. However, the central government has stopped short of enforcing strict movement restrictions in the worst-hit regions of the country despite mounting pressure.

 Sources: Channel NewsAsia, Jakarta Globe, Jakarta Globe, The Jakarta Post, Channel NewsAsia, The Jakarta Post, The Jakarta Post

Singapore Ramps Up Travel Restrictions (15 Mar, 18 Mar)

The Singapore government ramped up its counter-COVID policies with new travel restrictions on Wednesday, 18 March.

• Under the new restrictions, all Singaporeans, permanent residents, long-term pass holders and short-term visitors entering Singapore on and after Saturday, 21 March would be issued a 14-day stay-home notice. Short term visitors must provide proof of where they intend to serve the notice.
• Singapore residents and long-term pass holders who recently visited Hubei province in China would have to serve a 14-day quarantine.
• Short-term visitors with recent travel history to mainland China, France, Germany, Italy, Iran, South Korea and Spain would not be allowed to enter or transit through Singapore.

The Singapore government had previously announced restrictions on select countries such as Japan, Switzerland and the United Kingdom on Sunday, 15 March. However, with a sharp rise in cases over the next three days to 313 on Wednesday, prompting a revision of the earlier standards. The Ministry of Health also upgraded its earlier advisory for Singaporeans to defer all non-essential travel for 30 days to deferring all travel.

 Sources: Channel NewsAsia, Channel NewsAsia, The Straits Times

Stimulus and Sequel Packages Announced (6 Mar – Ongoing)

Over the past two weeks, numerous ASEAN countries have revealed new stimulus packages. On 6 March, Vietnamese Prime Minister Nguyen Xuan Phuc signed off on a credit package worth US$10.9 billion and a fiscal package worth US$1.3 billion to address COVID-19’s economic impact. Likewise, Thailand’s Cabinet approved a US$12.7 billion stimulus package on Tuesday, 10 March, which would be used to pay for measures such as tax deductions.

 Sources: Hanoi Times, The Straits Times

In the meantime, Singapore, Indonesia and Malaysia announced sequels to their ongoing stimulus packages. Indonesia, for example, announced a US$8.1 billion second stimulus which centred on boosting manufacturing activity. In contrast, the first stimulus mainly focused on tourism and social welfare. Singapore is also looking to ensure that local workers can keep their jobs, while investing more in training and skills upgrading. Malaysia, on the other hand, has not revealed details about the second stimulus, but did mention that options to bolster revenue including the reintroduction of the goods and services tax (GST) were on the table.

 Sources: Channel NewsAsia, The Straits Times, The Jakarta Post, Nikkei Asian Review

Indonesia

Dutch King Visit Leads to US$1bn Worth of Business Deals for Indonesia (10 – 13 Mar)

Indonesia and the Netherlands signed a wide array of business deals during the visit of Dutch King Willem-Alexander and Queen Maxima on 10 to 13 March. The Netherlands has been a key investor for Indonesia, and was Indonesia’s fifth largest foreign investor in 2019 with an injection of US$2.59 billion. The deals, amounting to US$1 billion, covered areas such as the development of fuel storage tankers for Dutch logistics and service providers at Tanjung Priok Port, as well as investments by Shell in the Indonesian downstream oil and gas industry. During the visit, the King also apologised for colonial violence in Indonesia, and returned a kris belonging to Prince Diponegoro, a historical figure who led a rebellion against Dutch rule in the early 19^th century.

 Sources: The Jakarta Post, Antara News, Antara News

Democratic Party Elects Agus Yudhoyono as New Chairman (15 Mar)

Agus Harimurti Yudhoyono, the eldest son of former President Susilo Bambang Yudhoyono, was elected as the Chairman of the Democratic Party on Sunday, 15 March. The decision was made after a plenary session held during the party’s fifth national congress in Jakarta, though Agus benefitted from being the sole candidate for the chairmanship. The Harvard-educated military veteran lost the 2017 Jakarta gubernatorial election to Anies Baswedan, but has been serving as the Deputy Chairman of the Democratic Party since October 2019. Observers have suggested that he may present himself as a Presidential candidate in 2024.

 Sources: The Straits Times

Only Jakarta for Olympic Bid, Says Indonesian Official (10 – 14 Mar)

Indonesia’s National Olympic Committee (NOC) said that the country is only considering Jakarta for its proposal to host the 2032 Olympic Games, as other cities were unlikely to meet the sustainability standards outlined in the International Olympic Committee’s Agenda 2020. This statement followed a report by Reuters, based on conversations with the Indonesian Investment Coordinating Board (BKPM) that Indonesia was considering its unnamed new capital in East Kalimantan as the proposed venue.

 Sources: The Jakarta Post, Reuters

Malaysia 

New Cabinet Lineup Draws Praise, Criticism (9 Mar – Ongoing)

Malaysian Prime Minister Muhyiddin revealed his Cabinet line-up on Monday, 9 March. Of the 32 ministers and 38 deputy ministers, over one-third were from Parti Pribumi Bersatu Malaysia (PPBM), while 17 were from the United Malays National Organisation (UMNO) and 9 from Parti Islam Se-Malaysia (PAS). Some observers expressed relief that controversial figures such as Former-Prime Minister Najib Razak were not included in the list, and praised his appointment of the former CIMB Chief Executive Tengku Zafrul as the new Finance Minister. Muhyiddin’s appointment of veteran graft-buster Azam Baki as head of the Anti-Corruption Commission (MACC) and federal court judge Idris Harun as the new Attorney General also won praise. Others also noted the lack of a Deputy Prime Minister, and speculated that the open position might be used as a political reward for loyalty at a later point.

Sources: Malay Mail, The Business Times, Channel NewsAsia, Channel NewsAsia

However, not all parties were satisfied with the arrangement. Before the end of the week, UMNO leaders complained about the allocation of Cabinet seats, questioning why PPBM received the most seats despite being the second biggest party within the Perikatan Nasional (PN) government. Najib also issued a warning in a Facebook posting that UMNO’s support for the PN government “has limits”.

Sources: Malay Mail, The Star, The Straits Times

PPBM Gears Up for Rocky June Election as Mahathir Returns as Chairman (16 Mar)

Former-Prime Minister Dr Mahathir Mohamad was returned uncontested as PPBM chairman on Monday, 16 March, according to a statement by the party’s election committee. The elder statesman had been at a centre of the political tumult that gripped Malaysia at the end of February, and had technically stepped down as PPBM Chairman. Furthermore, he had refused to work with UMNO, PPBM’s new coalition partner. However, Dr Mahathir not only returned as Chairman, but his son Mukhriz Mahathir is also running against Muhyiddin for the Party Presidency. The stage is set for a struggle for dominance within PPBM during the party’s internal election in June.

Sources: New Straits Times, The Straits Times

Muhyiddin had reportedly attempted to mend ties with Dr Mahathir, writing a letter to his predecessor to ask for a meeting and seek his endorsement of the new government. However, Dr Mahathir has not responded to the letter, and said that he would only do so if Muhyiddin could assure him that the trials for Najib and UMNO President Ahmad Zahid Hamidi would be carried out without any obstruction.

Sources: Free Malaysia Today, New Straits Times, Asiaone

Uncertainty Surrounds No-Confidence Vote as Mahathir Voices Doubt about Numbers (10 Mar – Ongoing)

Dr Mahathir expressed concerns that Pakatan Harapan (PH) parties only had a small chance of succeeding in their no-confidence motion against Muhyiddin’s PN. While Dr Mahathir had previously claimed the support of 114 MPs, he told Bloomberg that the number has since dwindled to 108 as some of them had been offered ministerial portfolios. During an earlier interview with Sinar Harian, Dr Mahathir also said that it appeared Muhyiddin would be able to last until the next general election. At present, the no-confidence vote is expected to occur when Parliament convenes on 18 May.

Sources: Malay Mail, The Straits Times

Myanmar

Myanmar and COVID-19

As of 17 March:

• Myanmar’s State Counsellor, Aung San Suu Kyi gave a televised address on 16 March saying that the country had no cases of Covid-19. She also announced a waiver of the 2 percent advance income tax on exports until the end of this fiscal year (Sept 1, 2020).
• Daw Aung San Suu Kyi said a fund for the prevention, control and treatment of COVID-19 would be launched with contributions from the public
• On March 15, authorities announced they would quarantine or turn away tourists from Italy, Germany, France, Spain, and Iran.
• Myanmar health officials have already halted or suspended public gatherings. Cinemas have been shuttered as of March 16. Myanmar’s upcoming water festival (Thingyan) was cancelled.
• Several factories have been shut down due to a lack of raw materials from China and a sharp drop in border trade. 7000 workers have been laid off.
• On March 12, the Central Bank of Myanmar announced a 0.5 percentage point cut in interest rates

Sources: The Guardian, Irrawaddy, Myanmar Times

Singapore’s Banyan Tree Signs Hotel JV in Myanmar (16 March)

Banyan Tree Holdings has inked a 50-50 joint venture agreement to form a hotel management business in Myanmar with Htoo Hospitality. The joint venture will include the 17 hotels and resorts owned by Htoo – 15 existing properties and two in the pipeline. These include Aureum Palace Hotels & Resorts (located at Bagan, Ngapali and Inle Lake), Myanmar Treasure Resorts and Malikha Lodge. The projects under development are the Kandawygi Palace Hotel in Yangon and a new destination resort in the Mergui Archipelago. The Htoo Group of Companies is run by business tycoon, U Tay Za, who was a target of financial sanctions from 2007 to 2016. He was regarded as one of Myanmar’s “cronies” because of his reportedly close relationship to former head of state, Senior General Than Shwe.

Sources: Myanmar Times, Travel Daily Media, Business Times

Myanmar Constitution: Proposals to Reduce Military Role in Government Blocked (10 March)

On Tuesday 10 March, parliamentarians failed to get the required votes to push through amendments to the 2008 Constitution that would have reduced the Tatmadaw’s (military) role in government. The provision would have gradually reduced the number of military MPs over a period of 15 years. The proposal only received 404 votes, less than 62 percent of lawmakers. The army also blocked the party’s bid to change the constitution’s description of Myanmar from a “disciplined democracy” to a “democracy”, as well as its effort to remove the clauses of the constitution that have prevented Miss Suu Kyi from becoming president.

Sources: Irrawaddy, Myanmar Times, The Economist

Thailand

Ex-Future Forward MPs Regroup Under the Move Forward Party (8 Mar)

Two weeks after the dissolution of the popular Future Forward Party (FFP), 55 of its former MPs regrouped under the Move Forward Party (MFP). Led by Pita Limjaroenrat, the new party’s immediate agenda would be to push for five bills previously proposed by FFP, including revisions to labour laws and the clean air act. MFP also denied that it had active links to former FFP leader Thanathorn Juangroongruangkit and Former-Secretary-General Piyabutr Saengkanokkul, though it will likely need to rely on the reputation of these former leaders to rebuild their voter support.

Sources: The Straits Times, Bangkok Post, Khaosod English

Meanwhile, the Election Commission (EC) resolved on Tuesday, 10 March, to pursue criminal charges against Thanathorn over a media shareholding case. Under Section 151 of the 2018 MP Election Act, Thanathorn faces a jail term of up to 10 years and a 20-year ban from politics if found guilty. He could also be jailed for a further five years if the EC takes criminal action for illegal donations to his party.

Sources: Bangkok Post

Deputy Agriculture Minister Under Scrutiny for Mask Hoarding Scandal (9 Mar – Ongoing)

 Deputy Agriculture Minister Thammanat Prompao has come under heavy public scrutiny for his alleged role in a mask hoarding scandal. A viral video and post on Facebook alleged that his close aide, Pittinant Rak-iad, was involved in the hoarding and sale of 200 million face mask to buyers in China, even as medical personnel in Thailand were facing shortages of such equipment. Whichai Phochanakij, the head of the Internal Trade Department, was also implicated in the scandal, leading to his resignation on Monday, 16 March. This is not the first time that Thammanat has come under public scrutiny. He was questioned by the opposition during the recent censure debate over reports that he had been imprisoned for drug trafficking in Australia in the 1990s.

Sources: Bangkok Post, Khaosod English, Khaosod English, Khaosod English, The Sydney Morning Herald

Thai Economic Outlook Among the Weakest in the Region (15 Mar – Ongoing)

Thailand’s economic outlook has taken a battering amid measures to counter COVID-19, according to media outlets. Combined with a drought and low public spending due to a delayed budget, many outlets are fearing for the worse. A survey by Bloomberg found that Thailand had the second highest odds of a recession in 2020 after Japan, and Citigroup lowered its 2020 growth forecast for Thailand from 2.2% to 0.2%. While the Thai government approved a US$12.7 billion stimulus package, the lack of success from previous packages left its effectiveness in doubt. In turn, some analysts are warning that worsening economic conditions and rising economic inequality could have negative implications for Thailand’s political stability.

Sources: Bangkok Post, Nikkei Asian Review

Vietnam

Vietnam and COVID-19

As of 17 March:

• Vietnam has confirmed 61 cases of the novel coronavirus infection, including 16 patients that have recovered.
• Vietnam has suspended the issue of new visas for all foreign nationals to curb the spread of coronavirus (17 March). According to state media, the restriction will be in place for 15 to 30 days
• The State Bank of Viet Nam announced it would cut key interest rates beginning March 17. The refinancing rate was reduced by 1 percentage point to 5 per cent. The discount rate was lowered by half a percentage point to 3.5 per cent.
• Tourist sites across Vietnam have been temporarily shut to prevent the spread of COVID-19.
• Everyone in Vietnam is required to wear a mask in public places.
• The Formula One (F1) Vietnam Grand Prix 2020 originally scheduled for April 3-5 had to be postponed. It was supposed to the first F1 racing event Vietnam would host. Vietnam’s largest conglomerate, Vingroup, was the main local sponsor and is likely to to take a hit from the postponement. The event was targeted at promoting the VinFast auto brand, Vietnam’s locally made car.
• Vietnam’s Minister of Industry and Trade, Tran Tuan Anh, is pushing for the resumption of trade activities with China, especially Guangxi Province. He said the two sides should resume supply chains and facilitate customs clearance for goods of the two countries. Vietnam exports a variety of agricultural products and fruits to China through the border gates.

Sources: The Diplomat, Nikkei Asian Review, Viet Nam News, Biz Hub

Samsung Engineers Exempted from Centralised Quarantine (14 March – Ongoing)

700 engineers of Samsung Display will be exempted from mandatory centralised quarantine despite traveling into Vietnam from South Korea. However, they will be under strict medical supervision for 14 days, even as they continue their work to meet Samsung’s production timeline. The engineers will travel in a private jet and transported using private cars to a separate housing area. They will work in a separate building to minimize contact with other employees. Samsung Electronics alone accounts for a fourth of Vietnam’s exports and makes over half of its global smartphones there. The first batch of engineers are reportedly scheduled to fly into Vietnam on 20 March.

Sources: CNA, VN Express

Vietnam’s Mobifone Ready for Commercial 5G Launch (11 March)

MobiFone successfully piloted a 5G mobile network in the four cities of Ho Chi Minh City, Hanoi, Da Nang, and Hai Phong. It is the second mobile player in Vietnam to complete tests on a pilot 5G Network. Its rival Viettel demonstrated 5G capabilities in 2019. MobiFone is run by the state-owned Vietnam Posts and Telecommunications Group. Viettel and Vingroup hope to commercialise 5G telecom devices this year. Of 131 mobile network operators that are deploying 5G, three are in Vietnam. There are still no standards and official frequency for 5G in the world.

Sources: Viet Nam News, Mobile World Live