[PREMIUM]: Country updates (13-25 May 2021)

Myanmar

Myanmar junta scraps retirement age for leaders (20 May)

A directive has revealed that Senior General Min Aung Hlaing, who is due to turn 65 in two months’ time, has indefinitely extended his tenure as Commander-in-Chief just days after the military seized power on 1 February. The age limit of 65 has been scrapped for the Senior General and his deputy without an indication of any new age limit. This means that Min Aung Hlaing can remain in his post until he decides to voluntarily step down. Observers say that even before the coup, there were signs that Min Aung Hlaing was positioning himself to remain as the army chief. For example, by intentionally side-lining prospective rivals from among those closer to him in age and influence, choosing instead to appoint officers who were many years his junior to senior military posts.

Sources:The Irrawaddy, Myanmar Now

US and allies impose fresh sanctions on Myanmar (17 May)

In addition to existing sanctions, the United States, United Kingdom and Canada have imposed new sanctions targeting Myanmar’s junta. The US sanctions list included four members of the governing State Administrative Council (SAC) and nine other officials the Treasury said were key members of Myanmar’s military government, including the governor of the central bank and the chairman of the military-appointed electoral body, the Union Election Commission. The move appeared to be the first time the US is targeting civilian officials who are working with the military, although some of them are retired military officers. The sanctions mean that any US assets of those sanctioned would be frozen and Americans are barred from dealing with them.

In a similar vein, Canada has announced its imposition of additional sanctions on individuals and entities tied to the military while Britain has imposed sanctions against state-owned enterprise Myanmar Gems Enterprise which has already been included in earlier US sanctions.

Sources: Straits Times, Today Online

Thailand

Thailand extends State of Emergency as Covid-19 cases and deaths soar (21 May)

Thailand will extend a nationwide State of Emergency for another two months to tackle its deadliest wave of the COVID-19 pandemic. Notably, the decree has been in place since March last year. The current and third wave of infections has resulted in dozens of clusters, a quadrupled case count in just seven weeks, and deaths jumping sevenfold. Two mutations, including the more infectious variant first identified in India and the B1351 variant from South Africa have been discovered in the country as well. So far, Thailand has administered 2.5 million shots and its pace of vaccinations has been slow due to limited supply of jabs.

Due to the latest outbreak hurting consumption and tourism, Thailand’s economy shrank in the first quarter. However, the fall was less than expected, helped by stronger non-agricultural output and exports. The country’s National Economic and Social Development Council (NESDC) now expects exports to rise 10.3% this year, up from an earlier forecast of 5.8%. However, the NESDC has also announced this week that it expects the economy to expand between 1.5 to 2.5% this year, less than the 2.5 to 3.5% forecast in February. Just half a million foreign tourists are also expected this year, down from an earlier forecast of 3.2 million arrivals. This can be contrasted to the nearly 40 million foreign visitors before the pandemic in 2019.

Sources: Straits Times, CNA (1), CNA (2), Business Times, The Diplomat

Slow vaccine roll out in Thailand pushes citizens to find vaccinations overseas (19 May)

Concerns over vaccination plans in Thailand have caused citizens to seek “vaccine tourism”, or travelling out of the country to get their vaccine. Travel agencies now offer vaccine tours to the US, with travel packages starting at US$2,300 per person. Russia is also an alternative destination for those interested in receiving the Sputnik V vaccine. While vaccine tours are an alternative way to become vaccinated, it is only accessible to those who can afford it.

Prime Minister Prayut Chan-ocha has assured the public that the government is able to obtain sufficient COVID-19 vaccine doses for the Thai population. However, data from the health ministry shows that daily vaccination rates are far from what is required. Thailand needs to vaccinate about 220,000 people a day to reach its herd immunity target of 70% of the population vaccinated this year. Currently it only vaccinates less than 100,000 people a day.

Sources: CNA, Reuters

Indonesia

Gojek and Tokopedia announce Indonesia’s ‘largest ever’ merger (17 May)

Indonesia’s two largest startups- e-commerce firm Tokopedia and ride-hailing company Gojek, have announced a merger. The new entity, GoTo Group, will create an $18 billion food delivery, ride-hailing and e-commerce group, which will be the largest privately held technology start-up in Southeast Asia. Both GoJek and Tokopedia will continue to operate as separate businesses, with GoTo as the holding company. Gojek’s financial arm, rebranded as GoTo Financial, will also be housed under the holding company.

While Indonesia remains GoTo’s largest market, the company plans to make further inroads in other ASEAN countries. GoTo is preparing to list in Indonesia and the US later this year, targeting a public market valuation of up to $40 billion according to sources. The merger pits GoTo against well-funded regional rivals- Grab and Sea- backed by Japan’s SoftBank and China’s Tencent, respectively. Both Softbank and Tencent would benefit from the merger as investors in Tokopedia and Gojek respectively. Alibaba, Facebook, Visa and Google are amongst other investors that have backed the deal.

Sources: Nikkei Asia, CNA; SCMP; FT

Indonesian troops crackdown on separatists in Papua (21 May)

Tensions are escalating in Indonesia’s eastern province of Papua following the killing of the province’s intelligence chief by rebel groups in late April. The Indonesian government has since intensified a military crackdown and Papua separatists have been labelled as “terrorists” by Jakarta. Rebel groups have killed two patrolling soldiers in Dekai district in Yahukimo regency, according to Chief security Minister Mahfud. Since the killing of Papua’s intelligence agency chief, at least three soldiers and nine rebels have been killed in attacks.

A new task force, Operation Nemangkawi, has been set up by Indonesian authorities to tackle violence in Papua. The task force will take a two prong-approach of arresting armed separatists and a “softer” approach of consultations with the religious and community groups. Human rights groups argue that there have been abuses on both sides.

Papuan separatists have been fighting for independence, claiming its former colonial power, the Netherlands, promised Papua would be independent before it was annexed by Indonesia in 1963. Indonesia says Papua is its territory after a 1969 vote supervised by the United Nations. Separatists say the vote was not reflective of their aspirations.

Sources: Reuters; Jakarta Post; ABC News; The Diplomat

Malaysia

Malaysia further tightens MCO restrictions but avoids full lockdown (11-23 May)

The Malaysian government has further tightened Movement Control Order (MCO) restrictions amid a spike in COVID-19 cases. This is the third major nationwide shutdown from the onset of the pandemic. Dubbed MCO 3.0, shops and restaurants are to operate for shorter hours, and more employees are expected to work from home, with 80% of civil servants and 40% of the private sector staff required to work from home. The stricter measures follow a ban on dining-in at restaurants from 12 May. MCO 3.0 is expected to end on 7 June.

Despite the restrictions, COVID-19 cases have surged in recent weeks, with over 6,000 new cases daily. However, Malaysia has avoided imposing a full lockdown to prevent the economy from collapsing, according to Prime Minister Muhyiddin Yassin. He noted that when Malaysia imposed a strict lockdown with the first MCO,the economy almost collapsed back then, with the country losing US$579 million per day. The government has rolled out US$82 billion worth of economic assistance.

Sources: Straits Times; CNA; Straits Times (2); CNA (2); CNA (3)

Opposition in Malaysia criticises government’s slow vaccine rollout (10-23 May)

Healthcare experts and the opposition have criticised the government’s slow vaccine rollout plan. About 10.6% of the population has received at least one dose and only 3% of the population have been fully inoculated. This is still a long way from the target of 80% by December 2021. Due to the limited supply of vaccines, Pakatan Harapan has called for the government to think about using the “delayed 2nd dose vaccination strategy”.  Increasingly, more governments believe this strategy would be more effective in reducing the number of COVID-19 infections amid supply shortages. Research shows that delaying the second dose led to a much stronger antibody response.

Malaysia will be receiving 3.52 million doses from Pfizer-BioNtech, Sinovac and AstraZeneca in May. Pharmaniaga LifeScience, a local pharmaceutical company, signed an agreement with Sinovac Biotech to package and distribute 14 million doses of the vaccine. However, Pharmaniaga was unable to get their facilities operating quickly. It is now seeking ways to increase its production capacity to supply up to 4 million doses per month by August. To further supplement the supply, Malaysia will be importing more doses.

Sources: Straits Times; Malay Mail; Malay Mail (2)

Vietnam

 Vietnam’s authorities work to stem COVID-19 outbreak at industrial parks (20 May – Ongoing)

Vietnam is experiencing its most severe outbreak of COVID-19. The national tally of cumulative COVID-19 cases has exceeded 5,000 with over 40 COVID-19 deaths. The epicentres of this ‘fourth wave’ are found in the north provinces of Bac Ninh and Bac Giang where clusters have formed at industrial parks. Infections have been discovered at the facilities of Samsung, Canon and Foxconn with some facilities having to be temporarily shut down.

As of the morning of 25 May 2021, Bac Giang recorded 1,069 cases followed by Bac Ninh with 507 patients, Hanoi with 308, Da Nang with 152, and Vinh Phuc Province with 89. The country’s vaccination program has been progressing but at a slow pace.

Meantime, Vietnam’s capital, Hanoi, has had to implement stricter measures to contain the virus. Beginning from Tuesday May 25, all restaurants, cafes and hair salons will be closed. Medical declarations are needed for those returning from other cities. Exercise and public gatherings outdoors have been halted.

Vietnam still held its parliament election on 23 May despite the outbreak. 69 million registered voters went to the polls to choose the next 500-seat National Assembly as well as members of the people’s councils at provincial and district levels.

Sources: VN Express, Reuters, TuoiTre, Vietnam News

Ratings agencies see positive outlook for Vietnam (April-May)

According to the Ministry of Finance, Vietnam is the only country to have its credit rating improved this year. S&P Global Ratings this month raised Vietnam’s economic outlook to “positive” from “stable”. The ratings agency lauded the government’s efforts to attract foreign investment and commended the country’s stable exports and strong domestic demand. Positive moves were also seen in terms of fiscal policy and public debt with increased efficiency and flexibility. Moody’s and Fitch Ratings had also raised Vietnam’s outlook to positive in mid-March and early April respectively, but this was before the fourth wave of COVID-19 struck the country.

Sources: Vietnam News, Business Times

U.S. says tires from Vietnam unfairly subsidized (24 May)

The U.S. Commerce Department announced on 24 May that car and light truck tires from Vietnam are being unfairly subsidized due to a currency undervaluation. According to the U.S. the currency conversion resulted in tires being subsidized at a rate ranging from 6.23% to 7.89%. This is the first of its kind of announcement by the U.S. commerce department

Sources: Reuters