[PREMIUM] Country Updates (23 Feb- 9 March)

Indonesia

• Indonesia eases domestic travel restrictions and reopens international travel to Bali
• Jokowi calls for ceasefire in Russia and Ukraine war

Indonesia has eased travel restrictions for domestic travel and international travellers can now enter Bali without the need for quarantine. Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan said the government was easing restrictions in Bali ahead of time due to the lower infection and fatality rates. From 7 March, vaccinated international travellers must take a PCR test two days before departure and upon arrival, travel insurance and proof of their hotel booking (minimum 4 days). Mr Pandjaitan said if the trial in Bali is successful, the model will be replicated throughout Indonesia.

As the war in Ukraine intensifies, President Joko Widodo called for a ceasefire and said the sovereignty and territorial integrity “must be respected by all parties.” In an interview with Nikkei, Jokowi said continued dialogue rather than economic sanctions is the way to solve the crisis. Other G20 members such as the UK and the US have imposed economic sanctions against Russia, but Indonesia has avoided taking a strong stance thus far. Indonesia holds the G20 chairmanship this year and there have been calls to reconsider Russia’s membership in the G20.

Sources: CNA; Straits Times; Nikkei Asia

Malaysia

• Malaysia set to fully reopen borders on 1 April
• Broad easing of COVID-19 curbs under the “Transition To Endemic Phase”
• Multicornered fight for all seats in critical Johor state election

Malaysia is set to reopen its borders to international travellers on 1 April 2022 as the country transit towards an endemic approach to dealing with COVID-19 infections. According to Prime Minister Ismail Sabri, fully vaccinated international travellers will no longer need to serve quarantine. Travellers are still required to take a COVID-19 test 2 days before arrival and a rapid test 24 hours within arrival in Malaysia. During the press conference, PM Sabri also announced that Malaysia will ease other movement curbs such as limits on operating hours for restaurants, interstate travel, restrictions in the workplace, capacity limits at events and places of worship from 1 April. Senior Defence Minister Hishammuddin Hussein said the government will reduce the existing COVID-19 curbs from 181 to just one (which has 10 guidelines) from April. The 10 guidelines include mask-wearing and use of the contact tracing app, MySejahtera.

Johor will have its 15th state election on 12 March, with multi-cornered contests in all 56 seats. Barisan Nasional and Perikatan Nasional, who are coalition partners at the federal level, will be competing head-on for all 56 seats. The Johor state assembly was dissolved in January by Johor Chief Minister Hasni Mohammad as the ruling party only had a slim majority. More than 2.59 million people are eligible to vote and this would be the first election held after the Undi18 took effect, which reduced the voting age to 18.

Sources: CNA; Bloomberg; Business Times; CNA (2); CNA (3)

Myanmar

• Military leadership revokes the citizenship of resistance leaders
• Travel restrictions imposed on Myanmar citizens
• US to invite a non-political representative from Myanmar to summit with ASEAN

Myanmar’s ruling military council has revoked the citizenship of 11 leaders of the opposition to military rule, 8 of whom are from the National Unity Government (NUG). Some have also been charged with high treason, which carries a potential death penalty, and other political offences. The military claimed these leaders have allegedly fled the country and harmed national interest and justified its decision for “termination of citizenship” by referring to the 1982 Myanmar citizenship law. It said that similar perpetrators will in time be identified and prosecuted. The junta-controlled Ministry of Immigration and Population also has imposed new travel restrictions on Myanmar citizens, making national registration cards (NRCs) necessary for people to travel or to stay anywhere apart from their homes from 1 April. Many have said that this is targeted at pro-democracy activists including student and anti-regime activists, and journalists who are on the run or in hiding to avoid being detained.

For an upcoming US-ASEAN summit on 28 and 29 March, the US has said that it will follow ASEAN’s lead and will invite a non-political representative from Myanmar to attend.

Source: CNA (1), CNA (2), The Irrawaddy

Thailand

• Songkran celebrations to continue but health and safety measures must be complied with
• Russia-Ukraine conflict has an impact on Thai tourism
• Tax rules relaxed for investments in digital assets and start-ups

Songkran celebrations and inter-provincial travel will be permitted in April this year after a two-year hiatus due to the pandemic. However, the government has stressed that the public must comply strictly with Covid-19 health and safety measures to prevent a further spike in cases.

As Thailand reopens, it has hopes that its tourism industry can recover quickly, however, the ongoing Russia-Ukraine conflict is starting to show its impact. Russia was the top source market for tourists in Phuket during early stages of its reopening but as of March 7, Russia has plunged to fourth place with 2,763 tourists. Reportedly, more than 6,000 Russian and Ukrainian tourists are unable to return home due to the pause in international flights. Russian long-stay guests have also helped boost the tourism industry with 6,500 Russians having applied for long-stay visas in Thailand last year and Thailand hopes to continue attracting high net-worth Russians to its shores.

To accelerate recovery and growth, Thailand’s cabinet has also announced the relaxation of tax rules for investments in digital assets, following a surge in cryptocurrency trading in the region and in the country. Digital assets have grown fast in Thailand, with trading accounts surging to about 2 million at the end of 2021 from just 170,000 at the start of the year. The new rules will allow traders to offset annual losses against gains for taxes due on crypto-currency investments, and exempt a value-added-tax of 7% for cryptocurrency trading on authorised exchanges. Tax breaks have also been approved for direct and indirect investments in startups.

Sources: Bangkok Post, CNA, Bangkok Post

Vietnam

• Lack of clarity for March 15 reopening to international touristis
• Vietnam abstains from UN resolution condemning Russia

Conflicting measures between Vietnam’s Ministry of Health and the Ministry of Culture, Sports and Tourism are putting a damper on plans for the country to reopen to international travel on March 15. The tourism ministry disagrees with the health ministry’s requirements for additional COVID-19 testing during the first few days upon arrival. Authorities have also not addressed the question of who might be granted visas on arrival. Furthermore, the tourism industry has lost 70-80% of its workers in 2020 due to the pandemic. Daily cases in Vietnam now exceed 100,000.

Vietnam abstained from a UN resolution condemning Russia’s invasion of Ukraine. Apart from Laos, it is the only other country in Southeast Asia to do so. Vietnam has had historic links to Russia with many high-ranking officials studying in Moscow. From 2000-2019, 84% of Vietnam’s weapons imports came from Russia. Meantime, the sanctions on Russia are hurting Vietnamese exports of coffee, catfish, pepper and other produce. The country will also face higher energy costs, a shortage of coal and rising inflation.

Sources: VNExpress, SCMP, VNExpress, Bloomberg