Indonesia

Prabowo Ally Kivlan Zen to Be Questioned for Treason, Role in Assassination Plot (28 May)

Kivlan Zen, a retired Army general and ardent supporter of Prabowo Subianto, has been in police custody since 29 May for treason allegations and his alleged role in an assassination plot against high ranking officials. The plotters aimed to assassinate Chief Security Minister Wiranto, Coordinating Maritime Affairs Minister Luhut Panjaitan, State Intelligence Agency Head Budi Gunawan, Presidential staffer Gories Mere and an unspecified head of a polling egency. If convicted of treason, Zen could face life imprisonment.

Sources: Jakarta Globe, Tempo.Co

Indonesia Aims to Attract Foreign Companies with New Tax Breaks (30 May)

Speaking to the Nikkei Asian Review, Indonesian Industry Minister Airlangga Hartarto said that Indonesia is looking to become a factory floor for the world amid the ongoing US-China trade war. Fiscal incentives, including a deductible tax of up to 200% to both domestic and foreign companies to conduct research and development in the country, will be used to attract global manufacturers. Airlangga also claimed that Pegatron, a Taiwanese electronics manufacturer that assembles Apple products, is considering a US$1 billion investment in a smartphone and wi-fi device factory, though Pegatron maintains that it is still “surveying all possibilities in Southeast Asia”.

Sources: Nikkei Asian Review

Waiting and Positioning as Jokowi’s New Cabinet Makeup Remains Unclear (31 May)

A Bloomberg report suggests that President Joko Widodo (“Jokowi”) may delay the announcement of his Cabinet making until after 28 June, the deadline by which the Constitutional Court is due to rule on Prabowo Subianto’s legal challenge against the presidential election outcome. Finance Minister Sri Mulyani Indrawati is tipped to remain in the Cabinet. The silence has not stopped other parties in Jokowi’s coalition from putting forward their own candidates. National Awakening Party (PKB) chairman Muhaimin Iskandar reportedly requested at least 10 of the 34 seats in the Cabinet, while he is seeking the nomination for the next chairman of the People’s Consultative Assembly (MPR).

Sources: The Jakarta Post, The Straits Times, Jakarta Globe

Former First Lady Adi Yudhoyono Passes Away (1 Jun)

Former First Lady Ani Yudhoyono (or Kristiani Herawati) passed away at Singapore’s National University Hospital from blood cancer, aged 66. Ani was the wife of Former President Susilo Bambang Yudhoyono, and her remains were brought to back to Indonesia and buried on Sunday, 2 June. Among other leaders and politicians who went to pay their respects, Prabowo Subianto reportedly caused a stir when he revealed the presidential candidate whom Ani had voted for during the 2014 and 2019 elections in a televised public statement. Yudhoyono subsequently approached reporters and asked them to not to publish or broadcast that part of the statement, saying that he thought it inappropriate to bring up politics in a time of mourning.

Sources: Tempo.Co, The Jakarta Post

ISIS Sympathiser Stages Attempted Suicide Bombing in Central Java (4 Jun)

An Islamic State in Iraq and Syria (ISIS) sympathiser staged a suicide bombing outside a policy post in Central Java on Monday, 3 June. The man was the only casualty of the attempt, which took place two days ahead of Hari Raya. Attacks around the holiday are not uncommon, with successful strikes against policemen in 2016 and 2017, and a foiled terror plot in 2018.

Sources: The Straits Times, The Jakarta Post

Indonesia Central Bank Mulling Over Rate Cut (7 Jun)

Dody Waluyo, the Deputy Governor of Bank Indonesia, said that his institution is deliberating the right time to cut interest rates. This followed a busy year for the central bank, in which it hiked rates six times to bolster the rupiah after it came under attack during an emerging market rout. Now, they must bolster the Indonesian economy in the face of a growth slowdown, but also avoid undermining the rupiah.

Sources: Bloomberg

Malaysia

Malaysia and the Trade War – Risks and Opportunities (28-31 May)

Muhammed Abdul Khalid, an economic advisor to Prime Minister Dr Mahathir, told CNBC that he sees “some benefit” from the trade diversions caused by the US-China trade war on 28 May. He said that these shifts would spur Malaysia’s growth momentum alongside improvements in consumption and investment figures. Malaysia Rating Corp Bhd (MARC) also noted that Malaysia has been able to weather the turbulence of the trade war well so far, with total merchandise trade with both the US and china continuing to expand in the first quarter of 2019. However, analysts from outlets such as Bloomberg continue to warn that Malaysia is still exposed to a drop in China’s exports to the US, given that 0.7% of Malaysia’s output is tied up with the China-US supply chain.

Sources: CNBC, The Edge Markets MY, Bloomberg

Mahathir: Malaysia to Make Use of Huawei’s Technology “As Much as Possible” (30 May)

Speaking at the annual Future of Asia conference in Tokyo, Malaysian Prime Minister Dr Mahathir Mohamad said that Malaysia would continue to use Huawei Technologies despite calls by the US to stop doing so. While he said that the US government might have grounds for “condemning” Huawei over security concerns, banning it is “not the way to go”. Speaking on a range of topics including ties with China and reducing Malaysia’s debt, Dr Mahathir also criticised the trade war as “stupid”, given that it disturbs the economic progress of countries such as Malaysia while not serving any purpose.

Sources: Nikkei Asian Review, SCMP, The Edge Markets MY

Lynas to be Allowed to Continue Operating Rare Earths Plant (30 May, 5 Jun)

Prime Minister Dr Mahathir Mohamad said on Thursday (30 May) that Australian rare earths producer Lynas Corps would be allowed to keep operating its US$800 million processing plant in Pahang. The firm’s license was thrown into doubt last December when environment Minister Yeo Bee Yin said that it must remove waste stockpiles before its license can be renewed. Yeo will be travelling to Perth to discuss the Lynas issue. However, Western Australia Mines and Petroleum Minister Bill Johnston has said that the state’s position is that raw materials processed overseas “need to be dealt with overseas”.

Sources: The Star, Malay Mail, Australian Financial Review

Mat Sabu: Thoughts on the South China Sea dispute, Rohingya Crisis and US-China Relations (1 Jun)

Malaysian Defence Minister Mohamad Sabu (“Mat Sabu”) said during his address to the Shangri-La Dialogue on Satuday, 1 June that disturbances in the South China Sea and the ongoing Rohingya crisis are the biggest challenges to the region. On the latter, he commented that the crisis is no longer a “domestic conflict”, and warned that the “widespread movement of Rohingyas creates instability”. Mat Sabu also observed that the US-China relationship directly affects the stability of the Asia-Pacific region, and that if anything happens in the South China Sea, “the world will also suffer”.

Sources: The Straits Times, Malay Mail

Dr Mahathir’s Unilateral Appointment of New MACC Chief Ruffles Feathers (5 Jun)

Dr Mahathir’s confirmation that he had not sought his Cabinet’s views on appointing former-Parti Keadilan Rakyat (PKR) politician Latheefa Beebi Koya as the new Malaysian Anti-Corruption Commission (MACC) Chief led to protests from civil society groups. He explained that it was his prerogative to choose the best candidate, and consulting his cabinet would only have constrained his choices. Bersih 2.0 has spoken out against his action, saying that the absolute appointment power held in the hands of the Prime Minister “does not bode well” for Malaysia’s democratic institutions. PKR President Anwar Ibrahim also said that Dr Mahathir needs to clarify Latheefa’s appointment in “proper forums” such as Cabinet or the Pakatan leadership council.

Sources: Malay Mail, The Star, Channel NewsAsia

Myanmar

Soldiers involved in Inn Dinn killings granted early release (27 May)

A Reuters report has revealed that seven soldiers jailed for the killing of 10 Rohingya men and boys in 2017 were released in November 2018, sparking international outrage. The seven soldiers were sentenced to 10 years’ imprisonment, and their case has been held up by Senior General Min Aung Hlaing as proof that action was being taken against members of the military who had committed crimes. It has since emerged that the seven soldiers had their sentences reduced to one year by the Senior General himself after a number of people, including some monks, submitted a petition on their behalf. The office of the President has clarified that the soldiers did not receive a presidential pardon, but were released in accordance to military justice, administered by the Tatmadaw.

Sources: Reuters, Irrawaddy, Irrawaddy

MOU between UNHCR, UNDP and Myanmar government extended one year (28 May)

The Officer of the UN High Commissioner for Refugees, the UN Development Programme and Myanmar’s Ministry of Labour, Immigration and Population have extended their tripartite MOU for an additional year. This MOU was first signed on 6 June 2018, and aimed to establish a framework for cooperation between the UN and the Myanmar government, in the interest of facilitating the “voluntary, safe, dignified and sustainable repatriation” of refugees currently resident in Bangladesh. The extension of this MOU comes off the back of a visit by UN High Commissioner for Refugees Filippo Grandi to Rakhine State earlier in the month.

Sources: UNDP, The Daily Star

Italy to lend Myanmar €30m for National Electrification Project initiatives in Chin State (28 May)

An interest-free loan agreement worth €30m (US$33.8m) has been signed between the governments of Italy and Myanmar for use in off-grid electrification projects in rural areas in Chin State. These projects, which are under Myanmar’s broad National Electrification Project, will be implemented by Myanmar’s Ministry of Agriculture, Livestock and Irrigation, and aims to bring electricity to approximately 96,500 households in 2019 villages in Chin State. The loan was granted with a grace period of 18 years, after which repayment is due to take place within ten years.

Sources: Myanmar Times

Ultranationalist monk U Wirathu declared a fugitive from the law (29 May – 6 Jun)

Firebrand monk U Wirathu has failed to appear in court after a warrant was issued for his arrest on the grounds of sedition on the 28^th of May, despite vowing to face the arrest. Yangon Region’s Western District Court has accordingly labelled the monk a fugitive from the law. The warrant for U Wirathu’s arrest was issued following the filing of a lawsuit by General Administration Department District Office Chief U San Min accusing him of sedition under Article 124(a) of the penal code, which governs attempts to incite disaffection against the government. U Wirathu is known for his xenophobic and nationalistic rhetoric, and has a history of making comments directly critical of the NLD, and Aung San Suu Kyi personally.

Sources: Irrawaddy, Myanmar Times, Channel NewsAsia

Toyota to establish assembly plant in Myanmar (30 May)

Toyota Motor Corp has announced that it will build a US$52.6m assembly plant for Hilux pick-up trucks in Myanmar. The plant will be located in the Thilawa Special Economic Zone, to the southeast of Yangon, and will produce approximately 2,500 vehicles a year from 2021 onwards. This announcement comes in response to the Myanmar government’s gradual raising of barriers to auto imports. Other auto manufacturers which have established local factories include Suzuki, Nissan and Ford.

Sources: Channel NewsAsia, Nikkei Asian Review

USDP vows to re-implement security laws if re-elected (3 Jun)

Union Solidarity and Development Party (USDP) Chairman U Than Htay has vowed that his party will restore security-related laws that have been abolished by the NLD if they return to power. Such laws would include the 1975 State Protection Law, the 1950 Emergency Provisions Act and laws requiring citizens to report overnight guests to authorities. The repeal of these laws formed a cornerstone of the NLD’s initial policy agenda. The USDP has asserted that their repeal has allowed for an uncontrollable influx of non-citizens, and weakened the ability of security forces to maintain order.

Sources: Irrawaddy

China and Myanmar identify core border development areas under CMEC framework (7 Jun)

Myanmar and Chinese officials have identified Muse and Chin Shwe Haw in Northern Shan State, and Kan Paik Ti in Kachin State, as core development regions for the China-Myanmar Border Economic Cooperation Zone (BECZ). The BECZ falls under the China-Myanmar Economic Corridor – a cornerstone initiative of the BRI in the region. Senior officials indicated that Myanmar’s Ministry of Commerce will call for applications for expressions of interest soon. Myanmar officials had noted recently that Myanmar had identified three pillars when considering BRI projects: “that Myanmar must be allowed to seek financing from international financial institutions to implement projects; that the government be allowed to invite international tenders, and that the proposed projects be chosen by Myanmar while creating mutual benefit for both sides.”

Sources: Myanmar Times, Irrawaddy

Thailand

Prem Tinsulanonda passes away at age 98 (26 May)

Former Prime Minister Prem Tinsulanonda passed away at age 98 on the 26^th of May. A valued aide and close confidante of the late king Bhumibol Adulyadej, Prem was known as an extremely influential power broker whose influence was invaluable in cementing ties between the monarchy and military. The former Prime Minister’s influence and high esteem persisted until his death, as indicated by the fact that he was briefly appointed regent after the previous king’s death, and proceeded to preside over the new King Vajiralongkorn’s recent betrothal to the newly invested Queen Suthida.

Sources: Channel NewsAsia

Thailand’s CP group secures contract to build Airport high-speed link (29 May)

Thailand’s Charoen Pokphand group secured cabinet approval for the contract to build a high-speed rail link connecting Bangkok’s Don Mueang and Suvarnabhumi airports to the U-Tapao airport in Rayon Province. CP group will be undertaking the project with technical assistance from China Railway Construction. The project is estimated to cost a total of 224.5bn baht (US$7.04bn). CP group expects to ink the deal with the State Railway of Thailand as soon as mid-June, and aims to begin operations in 2024. This long-delayed project will be the first project under the Eastern Economic Corridor initiative to begin construction.

Sources: Nikkei Asian Review

Airport City project to be developed at Suvarnabhumi Airport (1 Jun)

Airports of Thailand PLC has announced its intention to develop an “Airport City” project at Bangkok’s Suvarnabhumi Airport, at the cost of 11bn baht (US$351m). Airports of Thailand intends for the project to develop under a public-private partnership scheme, and cover approximately 355 acres in its Zone A, and 285 acres in its Zone B. Airports of Thailand CFO Pattanapong Suwannachat indicated that China’s Alibaba Group had expressed interest in investing in warehouse facilities for its e-commerce businesses in Thailand and the wider region. Mr Pattanapong suggested that the project could be launched within the next four or five years.

Sources: Bangkok Post

Future Forward Party seeks suspension of 30 MPs on grounds of media shareholding (4 Jun)

The Future Forward Party (FFP) has requested that the Constitutional Court suspend 30 Members of Parliament – 27 from Phalang Pracharat and one each from three smaller parties – on the grounds that they hold shares of media companies. This is a response to the Constitutional Court’s decision to suspend FFP leader Thanathorn Juangroongruangkit on the basis of his reportedly having owned shares in a media company when he applied to run for parliament – an assertion he denies. Proprietorship or shareholding in media companies is not allowed for Thai MPs, under Section 42(3) of the MPs Election Act.

Sources: Bangkok Post

General Prayut Chan-o-cha re-elected Prime Minister (5 Jun)

General Prayut Chan-o-cha was re-elected Prime Minister after a vigorous 10-hour parliamentary debate, winning by a wide margin of 500 to 244 with three abstentions. His rival for the prime ministership was Thanathorn Juangroongruangkit, the popular head of the Future Forward Party, who was nominated by the Pheu Thai-led seven party anti-junta coalition. General Prayut’s Phalang Pracharat Party (PPRP) had been in negotiations with both Anutin Charnvirakul’s Bhumjaithai party and Jurin Laksanawisit’s Democrat party. Both parties command sizeable voting blocs and eventually aligned themselves with PPRP in the vote on the 5^th of June, having reportedly been satisfied during negotiations for cabinet positions.

Sources: Bangkok Post, The Nation, Channel NewsAsia

Thai private sector calls for stimulus package (6 Jun)

Thailand’s Joint Standing Committee on Commerce, Industry and Banking (JSCCIB), which represents and lobbies for Thailand’s private sector, is planning to request that the government launch an economic stimulus package, with an emphasis on tax incentives, to encourage consumer demand. Citing political delays that have held back the disbursement of the 2020 fiscal budget, senior members of the JSCCIB have suggested that the need for economic stimulus has grown urgent – especially given external circumstances such as the US-China Trade War.

Sources: Bangkok Post

PPRP reportedly moving to renege on cabinet promises to allies (7 Jun)

It has been reported that PPRP will be retaining control of several ‘A-list’ cabinet positions despite promises made in the run up to the recent prime ministerial election, that they would be offered to Democrat and Bhumjaithai parties. It had previously been determined that the Democrat Party had been promised the agriculture, commerce and social development portfolios while Bhumjaithai had been offered the Transport portfolio. However, PPRP MP Somsak Thepsuthin asserted that PPRP needed to retain control of key ministries in order to fulfil its campaign pledges. Democrat leader Jurin Laksanawisit has indicated that he is confident that PM Prayut, in whose hands the final decision lies, will honour deals made.

Sources: Bangkok Post, The Nation