[PREMIUM]- Country Updates (27 May-9 June 2021)

Myanmar

Myanmar’s junta chief meets with ASEAN representatives (4 June)

Senior General Min Aung Hlaing met with Brunei’s Second Minister for Foreign Affairs Erywan Pehin Yusof and ASEAN Secretary-General Lim Jock in Naypyidaw on Friday, 4 June. The two sides are expected to have discussed the five points of consensus from the ASEAN summit in late April but neither side revealed any progress from the meeting on those issues. During the meeting, the ASEAN representatives also called for the release of political detainees.

In the wake of the meeting, Myanmar’s parallel National Unity Government (NUG) said it no longer has any expectation that ASEAN can help Myanmar, as it believed this meeting once again signalled that ASEAN is only willing to engage with the military regime. This was followed by 419 civil society groups from across Southeast Asia condemning ASEAN for its failure to formally engage with the NUG.

The issue of Myanmar was also raised in a meeting held in Chongqing between ASEAN foreign ministers and their Chinese counterpart, Wang Yi. Singapore’s Foreign Minister Vivian Balakrishnan said ASEAN was disappointed by the slow progress in the implementation of the five-point blueprint but added that ASEAN had no intention of interfering in Myanmar’s internal affairs as “in the end, only the people themselves within Myanmar can determine its future”. He said ASEAN stands ready to facilitate mediation. Indonesia’s Foreign Minister Retno Marsudi also said that in a separate conversation with Wang Yi, she had asked China to support ASEAN in following up on the five points of consensus. There has been no immediate comment from the Chinese foreign ministry.

Sources: Nikkei, SCMP, The Irrawaddy, Reuters

Myanmar students skip school amid boycott, fear of bombings (2 June)

Schools in Myanmar opened on 1 June for the first time since the military seized power. However, only approximately a quarter of Myanmar’s 12 million student population registered for the new school year likely due to fear of bombings. Bombings by both sides have reportedly become more frequent in the country. A statement by the junta said that between May 1 and 26, there have been 115 bombings or attempts and 18 arson attacks at educational establishments. To prevent attacks, security forces have been standing guard at schools and some have been deployed to escort students from their homes. Teachers similarly share the fear of being attacked and many travel to school in normal attire and change into their uniform once they arrive at school premises.

Since mid-May, the phrase “We’re not sending our children to school” has been trending on social media. On top of the fear of being bombed or attacked, many parents and students also believe that they should boycott schools, as a show of solidarity against the military regime and to honour students who have been killed in the protests and teachers who have been arrested due to their participation in the civil disobedience movement.

To ensure continued access to education, the National Unity Government has announced that it will be working on a mobile education project. It remains to be seen if the initiative can succeed given the internet restrictions imposed by the junta.

Sources: Straits Times, Reuters, CNA

Indonesia

Indonesia plans to jointly produce COVID-19 vaccines with China (7 June)

Indonesia plans to become a regional vaccine production hub, with the assistance of China. Both countries pledged to deepen COVID-19 cooperation during the inaugural high-level dialogue held in China. The meeting was co-chaired by Chinese Foreign Minister Wang Yi and Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut Pandjaitan. The Chinese Foreign Ministry said it would support the building of a regional vaccine production centre, encourage Chinese vaccine manufacturers to hold clinical trials in Indonesia, and jointly promote the equitable distribution of vaccines worldwide. Indonesia has made slow progress in its mass vaccination campaign, with only less than 5% of their population fully vaccinated. China has provided most of Indonesia’s vaccine doses to Indonesia.

Separately, the two leaders also signed a memorandum of understanding on maritime cooperation and highlighted the need for a code of conduct in the South China Sea. Wang and Luhut pledged to deepen their cooperation on China’s Belt and Road Initiative, specifically to complete the Jakarta-Bandung high speed rail on time. The project was delayed because of the pandemic, but President Jokowi said he hopes it would be completed by the end of 2022.

Sources: SCMP; Straits Times

Indonesia launches “Work From Bali” initiative for civil servants as island set to reopen to tourist from July (29 May)

Indonesia’s Coordinating Ministry for Maritime and Investment Affairs has initiated a project to send 8,000 Jakarta-based civil servants to stay in Bali’s resort-enclave Nusa Dua. They hope to encourage spending, generate income and kick start economic recovery in Bali. 31% of Bali’s population has had at least one dose of vaccine and the province is keen to restart its tourist-dependent economy. However, experts question the actual economic impact if civil servants will be working most of the time. Furthermore, the project will work with a state-owned corporation’s luxury resort, creating the perception of neglecting local private hotels.

Preparation is also underway to open the island to tourists. COVID-free ‘green zones’ have been designated in the province, where tourists can visit while under stringent pandemic protocols. Yet concerns of introducing new variants and restrictions on international travel still exist. Nonetheless, locals have expressed the need to prioritise their livelihood. In 2020, Bali’s GDP shrank by 9.3%, becoming the worst-hit province in the country.

Source: ABC news; Bloomberg news; Nikkei Asia; TTG Asia

Malaysia

Malaysia rolls out new stimulus package to offset latest economic impact of lockdown (31 May)

Malaysia Prime Minister Muhyiddin Yassin announced an RM40 billion (US$9.7 billion) stimulus package for the economy to cushion the impact of the two weeks long nationwide lockdown. RM5 billion of the stimulus will be in the form of a direct fiscal stimulus. This is the third stimulus package announced this year. The “Pemerkasa Plus” budget includes RM2.1 billion in cash aid for lower-income households and a month of wage subsidies for 2.5 million workers from affected industries. RM1 billion is also allocated for the healthcare sector. MCO 3.0 only allows 17 economic sectors to operate, with a strict work-from-home mandate.

Muhyiddin emphasized that the government has limited fiscal capacity, but had to ensure a “balance between lives and livelihoods”. However, experts say that the stimulus package is too small to offer any boost to the economy. Malaysia’s GDP contracted by 5.6% in 2020 and declined by 0.5% in the first quarter of 2021.

Sources: Straits Times; CNA; Bloomberg

China’s incursion into Malaysian airspace adds to South China Sea disputes (31 May-7 June)

Malaysia’s air force intercepted 16 Chinese aircraft, which flew over the South China Sea, into Malaysian airspace. The Chinese aircraft were flying in “tactical formation” near the eastern state of Sarawak and were in “breach of Malaysian airspace and sovereignty”, according to Foreign Minister Hishammuddin Hussein. China has rejected Malaysia’s allegations and said its warplanes were conducting training in accordance with international law. Hishammuddin said he would lodge a complaint and bring up the issue with Chinese Foreign Minister, Wang Yi, during the ASEAN-China Summit.

China has multiple territorial disputes with Southeast Asian countries. As China strengthens its maritime presence, such incidents of airspace incursions have become more commonplace. Last year, a Chinese government ship was reported to be “tagging” a vessel operated by Malaysia’s Petronas in the South China Sea.

Sources: Nikkei Asia; SCMP; Bloomberg; CNA

Thailand

Thailand starts COVID-19 mass vaccinations, says it has enough supplies (7 June)

Hospitals in Thailand delayed vaccinations for nearly 40,000 people last week, citing limited supply. Across the country, locals have expressed frustration over the speed of vaccine rollout, especially as Thailand is presently experiencing its third and most severe wave of COVID-19. New and more infectious variants have reportedly been spreading in prisons, factories and other densely populated areas and the cumulative caseload has spiked from 29,000 cases at the start of April to more than 180,000 presently.

Hoping to ease the public’s concerns about supply shortages, on 7 June, Thailand started its long-awaited mass vaccination campaign with an aim to administer 6 million doses (a mix of AstraZeneca and Sinovac) this month. Reportedly, there had been some early hiccups as some vaccine centres registered more than their quota, leading to postponements.

To further reassure its population of approximately 69 million, the health ministry has announced that it is due to receive an additional 3.42 million doses from AstraZeneca after mid-June, some of which are expected to be locally made. The country also expects to enter into contracts for 20 million doses of the Pfizer-BioNTech vaccine and 5 million doses of the Johnson & Johnson vaccine. 10 million doses of Moderna vaccines have already been ordered and it has been reported that private hospitals will offer two shots of the Moderna vaccine for 3,800 baht (US$121.91) after October.

Sources: Nikkei, Guardian, CNA

Phuket will open to international tourists on 1 July (4 June)

In need of a tourism boost for the economy, the Thai government’s economic task force has approved the opening of Phuket to vaccinated tourists in a pilot project on 1 July. This is despite Thailand currently battling its most severe wave of infections. Fully vaccinated tourists will be allowed to enter Phuket without having to serve quarantine. Still, the plan hinges on the government’s efforts to vaccinate 70% of the island’s residents. It appears that they are on track as 50% of the Phuket population have already been vaccinated.

Due to the pandemic, Thailand’s tourism industry suffered. Through this initiative, the government hopes to attract more than 100,000 to Phuket in the third quarter of this year. If the pilot scheme goes well, the scheme is expected to be expanded to other tourist hotspots in Thailand, such as Bangkok, Pattaya, Phang-nga, Koh Samui, Krabi, Pattaya, Buriram, Cha-am and Hua Hin.

Sources: CNA, CNN, Nikkei Asia

Vietnam

Vietnam COVID-19 cases continue to rise at industrial parks; variant claims refuted by WHO (3 June – ongoing)

Vietnam’s current and most serious ‘fourth wave’ now exceeds 6000 COVID-19 cases. The largest sources of infections continue to be found at industrial park clusters in the provinces of Bac Giang and Bac Ninh. Major tech suppliers such as Apple and Samsung have their factories located in these industrial parks. The government has encouraged corporations to contribute to the vaccination of its works to prevent further disruption of production.

The next largest cluster is in Ho Chi Minh City with cases linked to a Christian congregation in Go Vap District, discovered on 26 May. Social distancing measures have been put in place for two weeks since the start of June. The policy titled ‘Directive 15’ suspends social events, bans gatherings of 20 people or more and requires a minimum distance of two meters between people in public places. Within Go Vap District, ‘Directive 16’ has been imposed. It does not allow gatherings of more than two people in public and people should only leave the house for emergencies or essential work.

On 29 May Vietnam’s Health Minister announced that the government has discovered a new COVID-19 variant that combines characteristics of the Alpha variant (first found in the UK) and the Delta variant (first discovered in India). However, on 3 June the WHO said there was no new variant according to their own definitions.

Predictions for Vietnam’s GDP growth this year remain at 6-7% but the current outbreak could affect expectations. Trade numbers have been strong with Vietnam’s total trade value of goods up 33.5% on year in the first five months of 2021.

Sources: VNExpress, Reuters, Nikkei Asian Review, Bloomberg

Vietnam sets up national COVID-19 vaccine fund (5 June)

Vietnam has set up a US$1.1 billion fund to help cover the cost of its vaccination programme. The country plans to import 120 million doses while producing the last 30 million themselves – either from home-grown research or by obtaining permission to produce Russia’s Sputnik V. Beyond the state budget, the Finance Ministry widened funding sources via text-to-donate options for voluntary individuals, and publicised bank accounts for support from businesses. Vietnam’s banking industry and foreign companies from South Korea, Japan and Taiwan are also listed as donors.

So far, only about 1% of Vietnam’s population has received the first vaccination dose. The country is struggling to speed up its vaccination program and sought donations from the US and Japan. Vietnam has been working on developing its own vaccines and its NanoCovax vaccine will enter phase-3 trials soon.

Sources: Nikkei Asia; VNExpress; VietnamPlus, Channel NewsAsia