Category Archives: NEWS DIGEST

EXSE FOCUS

Developers Press Ahead With Dams, Despite Lao Order to Halt New Hydropower Projects –Radio Free Asia Developers of two proposed hydropower projects in Laos are pressing ahead with plans to build the mega-dams on the Mekong River, despite a recent order by the government to halt new dam investments following a deadly breach in July that killed 35 people and displaced thousands. A developer working on plans for the 770-megawatt Pak Lay hydropower project in northwestern Laos’ Xayaburi province told RFA’s Lao Service that developers are in the process of conducting a feasibility study and have not been informed by provincial authorities that they should stop their work.

What Malaysia’s ‘Mahathir doctrine’ means for China-US rivalry –South China Morning Post Since returning to power after his stunning election victory in May, 93-year-old Malaysian Prime Minister Mahathir Mohamad has made a series of comments reflective of weaker states’ views of the evolving Asian order in the Trump-Xi era. These include a firmer stance on the South China Sea disputes, Malaysia’s relations with the Asian powers (especially concerning the controversial China-backed infrastructure projects and Japan’s regional role), as well as the future of multilateral trading arrangements.

Malaysia shelves Belt and Road projects with China –Investvine Malaysia has cancelled two multi-billion dollar projects that were part of China’s ambitious Belt and Road project, with Prime Minister Mahathir Mohammad saying that Malaysia at the moment “cannot afford them.” Malaysia’s state news agency Bernama said Mahathir told Malaysian reporters during the final day of a visit to Beijing on August 21 that both Chinese President Xi Jinping and Premier Li Keqiang understood the reasons behind the cancellations and “accepted them.”

    Related: Malaysia cancels two big Chinese projects, fearing they will bankrupt the country –Washington Post

REGIONAL RELATIONS

Australia-Singapore Military Ties in Focus With Navy Chief Voyage –The Diplomat Last week, Australia’s new navy chief paid his first visit to Singapore in his current capacity. The development put the focus on the ongoing defense relationship between the two Asian states, amid wider domestic and regional changes at play and a series of upcoming events within bilateral ties more specifically. As I observed previously in these pages, Australia and Singapore have long had a strong defense relationship as part of their wider ties, which were elevated to the level of a comprehensive strategic partnership back in 2013.

Xi meets Malaysian PM, calling for better ties in new era –Xinhua  Chinese President Xi Jinping met with Malaysian Prime Minister Mahathir Mohamad in Beijing on Monday. Xi expressed his appreciation for the great importance Mahathir has attached to advancing ties between the two countries and his support for the China-proposed Belt and Road Initiative, as well as his contributions to accelerating regional cooperation within Asia. China is endeavoring to achieve its two centenary goals, meanwhile, Malaysia has embarked on its journey of building a new Malaysia, Xi noted, saying that bilateral ties stand at a new and pivotal point.

How to Improve U.S.-Indonesia Relations –CFR The Donald J. Trump administration has pursued a foreign policy toward Southeast Asia that has simultaneously courted and alienated countries in the region. The White House has taken a tougher approach to regional security, including increasing freedom of navigation patrols in the South China Sea and developing a regional concept, the “Free and Open Indo-Pacific,” which draws clearer lines against coercive behavior in regional waters and trade practices, especially by Beijing.

China train project runs roughshod over Laos –Asia Times Lao officials have told Samkhan Koomsanyalat that she and her family will have to leave their home in Phu Din Daeng village, nestled in a bucolic valley amid limestone cliffs, to make way for the Laos-China railway.“The government has told us we have to leave, but they haven’t told us how much they will pay us,” said Samkhan, who currently lives about eight kilometers outside of Vang Vieng town. “We will not move unless we are paid.” Now her once peaceful home is next to a giant construction site, near the planned Vang Vieng Railway Station.

Myanmar, Japan to build Aung San National Green Park in Yangon –Myanmar Times Japan and Myanmar will sign and an MOU to develop and international-standard mixed development project near the Kyaikkasan Stadium in Tamwe township, Yangon, Daw Khin San Hlaing, member of the National Economic Co-ordination Committee, told The Myanmar Times. On August 19, the government met with residents of Kyaikkasan to explain the project, which will include international-standard sports and recreational facilities as well as a business complex. The new Aung San National Green Park will involve Japan investing in the sports and recreational area, while Myanmar will focus on building the business complex, which will be developed over one third of the 100 acre Kyaikkasan sports area.

ASEAN–China Maritime Exercise CUES greater SCS stability –East Asia Forum In early August, Singapore hosted the table-top exercise for the inaugural ASEAN–China Maritime Exercise. This was a follow up to the ASEAN–China Defence Ministers’ Informal Meeting in February 2018, where the defence ministers agreed to launch the ASEAN–China Maritime Exercise in 2018. At the table-top exercise, ASEAN and China agreed to use the Code for Unplanned Encounters at Sea (CUES) as a basis for developing plans to respond to maritime incidents, including search-and-rescue and medical evacuation procedures.

Mahathir looks east. Abe doesn’t look him back. –EastbySoutheast  Just one month after his surprise victory against the scandal-ridden and increasingly-authoritarian incumbent Nazib Razak in May, the new Malaysian Prime Minister Dr.Mahathir bin Mohamad landed in Tokyo for his first foreign visit, where he chatted with Japanese Prime Minister Shinzo Abe. Since then, Mahathir has aggressively courted Japan for investment, aid, and loans, visiting Japan once more in August before even announcing the dates for his much-anticipated first official visit to Beijing.

SUSTAINABILITY AND RESOURCE MANAGEMENT  

‘Empty pocket season’: Dayak women farmers grapple with the impacts of oil palm plantations –Mongabay “When oil palm was given out by the district head I didn’t accept it. I am still angry at the oil palm companies,” says Monica Mensea. At 83, Mensea is the oldest woman in her village of Long Bentuk, a Dayak Medang indigenous community in East Kalimantan, a province in Indonesian Borneo. Though her body is weakening and her brown eyes are cloudy with cataracts, Mensea’s mind is as sharp as ever.

In Search of Maritime Grand Strategy: Thailand’s fisheries policy under the military rule –Mekong Eye  Thai governments, for decades, have never treated the problem of forced labors and other serious allegations against its billion-dollar fishing industry as its primary concerns. Worse still, since the coup in 2014 Thailand’s ruling junta has constantly faced the mounting pressure at home and abroad. Portrayed as a repressive authoritarian regime, the tasks for reconstituting the image of Thailand as well as resolving the junta’s crisis of legitimacy are of paramount importance, overshadowing the efforts to eliminate modern-day slavery in Thai fisheries.

Komodo protesters say no to development in the dragons’ den –Mongabay Locals and activists have denounced plans to build tourism infrastructure in Indonesia’s Komodo National Park, a string of sun-kissed islands best known for their resident giant lizards. Developers PT Segara Komodo Lestari (SKL) and PT Komodo Wildlife Ecotourism (KWE) have already pocketed building permits for the park’s three larger islands, Padar, Rinca and Komodo. The latter two are home to the Komodo dragon (Varanus komodoensis), the world’s largest living lizard and a threatened species on the IUCN Red List.

Seizing Opportunity In Southeast Asia’s Energy Market –Forbes There has been an almost never-ending stream of negative news about Southeast Asia’s energy market, once one of the globe’s most active. A decade of political unrest in Thailand, creeping nationalization in Indonesia, conflict in Myanmar’s Rakhine state, and territorial disputes in Vietnam’s offshore market coupled with low global energy prices and difficult operating environments have all discouraged foreign investment. This obscures the fact the market holds significant potential for foreign investors and operators – just not in the same way it once did.

CHINA

China shifts to Iranian tankers to keep oil flowing amid US sanctions: Report –CNBC Chinese buyers of Iranian oil are starting to shift their cargoes to vessels owned by National Iranian Tanker for nearly all of their imports to keep supply flowing amid the re-imposition of economic sanctions by the United States. The shift demonstrates that China, Iran’s biggest oil customer, wants to keep buying Iranian crude despite the sanctions, which were put back after the United States withdrew in May from a 2015 agreement to halt Iran’s nuclear program.

More than tariffs: China sees trade war as a new US containment tactic –South China Morning Post For nearly two weeks, China’s top leaders disappeared from public view as they gathered at a secluded beach resort in eastern Hebei province this month. Though the heavily guarded gathering in Beidaihe was secret, their agenda was likely dominated by the trade war with the United States – and the emerging view that the nations’ escalating tensions go beyond trade and economic disputes.

China Reconsiders LNG Tariff Threat –Radio Free Asia  China has sown confusion in international energy markets after reconsidering plans to slap tariffs on U.S. crude oil and liquefied natural gas (LNG). The conflicting signals on China’s energy imports reflect Beijing’s uncertainty about the risks of retaliatory measures as it tries to match tariffs imposed by the United States in the escalating trade war. The reversal also highlights China’s concern about its growing dependence on foreign oil and gas with imports of crude now nearing 70 percent of the country’s supplies.

El Salvador Recognizes China in Blow to Taiwan –New York Times El Salvador severed diplomatic relations with Taiwan on Tuesday and established ties with China, leaving only 17 nations that officially recognize the Taiwanese government. Latin America and the Caribbean have been an important bastion of support for Taiwan. Nine of the countries that maintain diplomatic ties are in the region. That has been eroding, however. Panama broke ties with Taiwan’s government in 2017, and the Dominican Republic did the same in May 2018.

Why countries might want out of China’s Belt and Road –Washington Post China has never spared any effort to portray its Belt and Road Initiative, a grand, trillion-dollar-plus global investment plan, as a positive vision for the world. Last year, China released cringeworthy videos featuring children who were, somewhat unrealistically, excited by the idea of infrastructure investment. “The future’s coming now,” a group of children sang in one clip. “The Belt and Road is how.” But not everyone is convinced that Belt and Road is such a great plan — either for China or the countries in which it’s investing.

China’s economic capital in the Philippines: Problems and prospects –EastbySoutheast Over the last two decades the improved bilateral relations between China and the Philippines led to the increased inflows of Chinese economic capital—as foreign direct investment (FDI) and aid—in the Philippines. I argue that China’s foreign aid, if managed correctly will immensely benefit the Philippines. During the Arroyo administration (2001-2010), the number of Chinese aid projects ranging from commercial and concessional loans to grants increased exponentially.

SOUTHEAST ASIA

Wissanu: Poll to happen May 25 at the latest –Bangkok Post Deputy Prime Minister Wissanu Krea-ngam says the general election will be held on Feb 24 at the earliest or May 5 at the latest. His comment came after the Election Commission (EC) announced on Saturday the poll would be held on Feb 24, according to its calculations. Mr Wissanu said on Monday no attempts had been made to delay the poll. “Up until now, there has been no factor that may delay or cancel the plan.” //If the election occurs after February 2019, this will be the 6^th time that Praytuth’s government has changed the election date.

What Maneuvering Around the 2019 Elections Says About Indonesian Democracy –CFR The past two weeks, both major contenders for the 2019 Indonesian presidential election took steps in advance of the contest next April, which almost surely will pit incumbent President Joko Widodo or Jokowi, against his rival from the last election, former lieutenant general and Gerindra party chief Prabowo Subianto. Jokowi picked his running mate, tapping Ma’ruf Amin, a cleric and head of Nahdlatul Ulama (NU), the mass movement that often claims it is the largest biggest Islamic organization in the world.

Vietnam Controls Inflation, Avoids Broader Economic Fallout –VOA Vietnam is trying to get a grip on inflation that might otherwise threaten its quick economic growth again as it did a decade ago, analysts and domestic media say. Consumer prices in June were 4.67 percent higher than in the same month last year following an increase of 3.29 percent in the first half of 2018, the Vietnamese General Statistics Office said. The legislature had set a target of no more than 4 percent. Prices of commodities, including crude oil, are contributing heavily to inflation, and a fuel tax proposed for October would exacerbate it, the VnExpress International news website said. Currency weakness, a rising middle class and credit growth are further raising prices.

Cambodian Opposition Leader Will Stay in Jail, Court Rules –New York Times Cambodia’s imprisoned opposition leader was denied bail by the Supreme Court on Wednesday, disappointing supporters who had hoped he might be freed now that the country’s widely criticized elections are over. Kem Sokha, leader of the outlawed Cambodia National Rescue Party, has been held without trial for nearly a year, accused of treason. He is in solitary confinement in a remote prison near the Vietnamese border. Several Cambodian activists and journalists have been released from prison in recent days, which led some supporters to hope that Mr. Kem Sokha would be next.

This week’s news digest was curated by Kevin Rutigliano.

Comment: China’s relations with Malaysia
Prime Minister of Malaysia Mahathir Mohamad’s recent decision to suspend several Belt and Road  projects in Malaysia is just the latest chapter in the colored history between China and Malaysia. After the foundation of modern Malaysia, China supported the Malaysian communist insurgency. After China ceased support to the insurgents, Malaysia established official relations with China in 1974. Since then Malaysia has become a key trade partner for China. However, for Malaysia there are tensions with China regarding the South China Sea dispute and growing anxiety about Chinese economic influence in the country.  Within Malaysia there is a large minority of ethnic Chinese in Malaysia, which currently makes up approximately 24% of the population.  Ethnic Chinese began settling in Malaysia during the 1400’s when the Sultanate of Malacca was a vassal state of the Ming Dynasty. ~Kevin Rutigliano

EXSE FOCUS

Clouds over massive Chinese infrastructure projects but China and Malaysia ‘can weather change’ –South China Morning Post Beijing’s ties with Kuala Lumpur can withstand change and uncertainty, China said on Wednesday, despite massive infrastructure projects hanging in the balance in Malaysia. In talks with Tun Daim Zainuddin, a special envoy of Malaysian Prime Minister Mahathir Mohamad, Chinese Foreign Minister Wang Yi said China would advance cooperation on the “Belt and Road Initiative”, a massive plan by Beijing to boost infrastructure links throughout Asia to Africa and Europe.

China’s Cooling Economy Spells Trouble Ahead for Global Growth –Bloomberg Confirmation that China’s economy is slowing amid an escalating trade war is a worrying omen for global growth. Data released since Friday has affirmed what’s been expected for some time: That an ongoing campaign to curtail credit is putting the brakes on the world’s second-largest economy. Given that China generates as much as a third of global growth, that’s adding to signs that the best world expansion in years is plateauing. //Countries that are relying upon Chinese loans could especially suffer during a Chinese economic downturn or a turndown in their own country.

‘Single-minded determination’: China’s global infrastructure spree rings alarm bells –Mongabay
As governments in Southeast Asia target economic growth through infrastructure development, China, the world’s second-largest economy, has emerged as a ready funder for some of the most ambitious and expensive projects. Regional leaders have been quick to seize the opportunity offered by Beijing, but environmental experts warn that many of these projects could cause irreversible environmental damage in highly biodiverse areas.

Thai soccer team opens up about dramatic cave rescue –CBS The 12 members of a soccer team and their coach rescued from a flooded cave in northern Thailand finally regained their full freedom on Wednesday, walking out of a hospital a week after they emerged from 18 days trapped underground. The Wild Boars team members, who range in age from 11 to 16, and their 25-year-old assistant coach spent at least eight days at the hospital in Chiang Rai being tested and treated for relatively minor ailments, given their ordeal.

Full Steam Ahead for Indonesia’s Low-Carbon Future –ADB Developing sustainable energy sources is critical to meet Indonesia’s increasing power demand. The country has 40% of the world’s geothermal resources. Development of these resources will help diversify the country’s energy mix to meet the demand and its commitment to reduce 30% of its carbon dioxide emissions by 2030.

REGIONAL RELATIONS

 US-Philippines Maritime Security Cooperation in the Spotlight with Expanded Exercise– The Diplomat
Last week, the United States and the Philippines carried out the latest iteration of a new maritime training activity between the two sides that has taken place under Philippine President Rodrigo Duterte. The interaction highlights the continuing cooperation between the two longtime treaty allies despite the challenges the relationship has faced thus far under Duterte.

Mahathir hosts Duterte in anti-terrorism push– Nikkei Asian Review Malaysian Prime Minister Mahathir Mohamad is stepping up diplomacy with Southeast Asian neighbors, inviting Philippine President Rodrigo Duterte to discuss anti-terrorism measures, a strategy that will test his ability to unite the region against China’s rise. Mahathir proposed Monday’s summit with Duterte, according to the Philippine side. The day before, the two leaders watched a boxing match featuring popular Philippine politician and professional boxer Manny Pacquiao — an unusual event for Mahathir, who is said to shun violent spectacles like that. //Cooperation between both of these countries is needed in order to reduce terrorism in the region because terrorist networks have transnational operations in both countries

Japan to provide peacekeeper training for ASEAN nations in bid to counter China’s growing presence –Japan Times  Japan will help train personnel in member states of the Association of Southeast Asian Nations taking part in U.N. peacekeeping operations, sources said Monday. The government has been providing training in Africa on how to operate heavy machinery, and plans to expand the program to cover ASEAN nations, according to the sources.

Maritime ‘blue economy’ key focus of India-Asean cooperation –The Straits Times Maritime cooperation has emerged as a key area of engagement between India and Asean as New Delhi steps up its links with South-east Asia under Prime Minister Narendra Modi’s Act East Policy. At the heart of this so-called “blue economy” lies the Indian government’s commitment to enhance connectivity between its north-eastern region and neighbouring Asean cities. Ms Preeti Saran, secretary (East) in India’s External Affairs Ministry, highlighted the importance New Delhi attaches to Asean-Indian cooperation in the maritime domain in her opening address at the 10th Delhi Dialogue on Thursday (July 19).

Related: India, ASEAN cooperation will be key facilitator for growth of Indo-Pacific region  –Times of India

The Quadrilateral conundrum: Can Asean be persuaded? –Khmer Times The revival of the ‘Indo-Pacific’ as a geostrategic region for the United States was perhaps less surprising than the revival of the Quadrilateral Security Dialogue, better known as the ‘Quad’, with Australia, India, Japan, and the US negotiating to restart the forum on the sidelines of the 2017 Asean Summit. The first Quad collapsed when China expressed opposition, and despite protestations that it was not a Chinese containment strategy, Australia dropped out.

 EU and ASEAN to restart FTA process: PM Lee –Channel NewsAsia  The European Union (EU) and ASEAN have agreed to restart the process of establishing a Free Trade Agreement (FTA) between them, said Singapore Prime Minister Lee Hsien Loong on Saturday (Jul 14). And as the ASEAN coordinator for ASEAN-EU relations after this August, he said that Singapore hopes to establish a framework to identify areas with potential to work out deals. Mr Lee was speaking to the media after attending France’s National Day Parade in Paris, where he was the guest of honour – the first Singaporean leader to receive the distinction.

US pledges $26.5M to Philippines for counterterrorism – Philippine Star The United States government has vowed to provide $26.5 million to assist the Philippines’ counterterrorism efforts. The US Embassy said that the assistance will be given to Philippine law enforcement agencies over the next two years. “The assistance will include training, equipment, and other support to build comprehensive law enforcement capacity within a rule of law framework to deny terrorist operations, funding, and movement,” the US Embassy said in a statement.  //The United States has given counter-terrorism aid to the Philippines since the War on Terror began in 2001.

SUSTAINABILITY AND RESOURCE MANAGEMENT

Southeast Asia’s Tigers Show Slight Revival But Remain Under Pressure– Radio Free Asia According to the best estimates, some 100,000 tigers used to roam through parts of Asia. But that was more than a century ago. Today, experts estimate that worldwide only some 3,800 tigers have survived in the wild. This marks a slight improvement for the big cats over a low point of some 3,200 five years ago. According to Ravi Velloor, a veteran editor at The Straits Times of Singapore, more than two thirds of tigers surviving in the wild can be found on the Indian subcontinent, where India and Nepal, he says, have recently made “impressive strides in conservation.”

The ‘billionaires’ waste recycling village is seriously polluted –Mekong Eye The air is full of the smell of burning plastic in Minh Khai hamlet in Nhu Quynh town of Van Lam district, Hung Yen province, called the ‘billionaires’ waste recycling village’. Soon after crossing the Hanoi-Hung Yen border, visitors enter the Hung Yen area. At the entrance gate to Minh Khai hamlet, a rusty signboard catches the eye. It says ‘Please don’t leave litter, build houses and grow plants on irrigation works.

From Cloud Seeding to Vehicle Curbs, Indonesia Fights Pollution Ahead of Asian Games –The Irrawaddy  As Indonesia prepares to host thousands of competitors and fans at next month’s Asian Games, pollution concerns have flared following a spell of unhealthy air in Jakarta and forest fire hotspots near the second venue, Palembang, in South Sumatra. Traffic congestion in Indonesia’s sprawling capital of 10 million consistently ranks among the world’s worst, and it has long struggled to boost air quality, regularly rated as unsafe by the World Health Organization (WHO).

Indonesia accelerates use of B30 biodiesel fuels –Jakarta Post The government plans to accelerate the use of fuel with 30 percent biodiesel content (B30 biofuel) in the transportation sector by next year from the initial plan of 2020, an official has said. The Energy and Mineral Resources Ministry’s renewable energy and energy conservation director general, Rida Mulyana, said the government had studied the use of B30, which was produced from palm oil as its raw material, as part of efforts to improve energy self-sufficiency.

CHINA

China challenges fairness of U.S. tariffs and asks World Trade Organization to intervene –Los Angeles Times  China on Monday presented itself as a bastion of international order and global rules on trade while announcing its filing of a World Trade Organization challenge against a threat of $200 billion more in tariffs by the United States. A Chinese government spokeswoman said fair trade called for international rules that were made collectively. The U.S., however, had helped shape WTO rules for its own benefit, she said.

China’s BRI Bet in the Middle East – The Diplomat During the China-Arab States Cooperation Forum (CASCF) held on July 10 in Beijing, China announced that it would loan several Arab countries in the Middle East $20 billion, adding aid packages worth over $100 million to the Palestinians, Yemen, Lebanon, Jordan, and Syria. The announcement, which came from President Xi Jinping in his opening remarks to the Forum, offered few details, but was heralded as financing for “economic reconstruction” in transportation infrastructure, oil and gas, finance, high-tech fields, the digital economy, and artificial intelligence (AI) projects, according to Chinese news sources.

China Looks to Stronger EU Trade Ties Against Threat of US Tariffs –VOA China bolstered ties with the European Union this week with more large markets in the pipeline to keep its exports healthy as the United States levies import tariffs, analysts say. At the 20th China-EU leaders’ meeting Monday in Beijing, Chinese President Xi Jinping said his country stands ready to promote bilateral economic development. Premier Li Keqiang noted at the summit China had recently cut import tariffs on autos, medicine and consumer goods from the EU.

China Is Winning in the South China Sea –Wall Street Journal Two years after an international tribunal rejected expansive Chinese claims to the South China Sea, Beijing is consolidating control over the area and its resources. While the U.S. defends the right to freedom of navigation, it has failed to support the rights of neighboring countries under the tribunal’s ruling. As a result, Southeast Asian countries are bowing to Beijing’s demands.

SOUTHEAST ASIA

How Worried Should Laos Be About Its Debt Problems? –The Diplomat Why is Thongloun Sisoulith so confident about Laos’ debt problems? The Lao prime minister, speaking recently to Nikkei Asian Review, said that he is “not concerned much about the burden of debt” that his country has taken on in recent years, much spent on infrastructure projects related to China’s Belt and Road Initiative (BRI) scheme. There are in fact no shortage of concerns – ones which Lao economists and politicians, including Thongloun himself, no doubt recognize. // Laos’ debt situation may get worse if there is an economic slowdown in the region.

Unstoppable worker outflow dims Cambodia’s future prospects –Nikkei Asian Review Despite Thailand’s latest effort to stem the flow of migrants, workers from Cambodia continue to cross the border, as they try to flee an economy that offers little reward for their work. The massive outflow is leaving another problem. The hollowed-out workforce back home could rob the Khmer economy of the productivity it needs to keep growing over the long term.

Strategy plans ‘ready in 60 days’ –Bangkok Post The six master plans to accompany the 20-year national strategy will be discussed and fleshed out in the next two months, according to a government source. The master plans cover six essential areas of national administration: security, national competitiveness, human resource development, social equality, quality of life enhancement and environment, and government sector improvements.

Cambodia and World Bank Join Forces to Improve Higher Education and Connectivity –The Financial
The government of Cambodia and the World Bank 0n July 13 signed agreements signaling the start of the implementation of two key investment projects, one seeking to improve higher education for industrial development, and the other one focused on enhancing road linkages from the economic center of the country—Phnom Penh—to the only deep-see port in Preah Sihanouk province. “I would like to commend and acknowledge the excellent cooperation between the World Bank and Royal government of Cambodia, as we work together in the spirit of mutual understanding to make it possible for the two projects to come to fruit,” said H.E. Dr. Aun Pornmoniroth, Senior Minister, Minister of Economy and Finance.

First geospatial industry centre in Southeast Asia launches in Singapore –Channel NewsAsia Food delivery apps, ride-hailing firms and drone-flight programming platforms all have one thing in common: They use geospatial technology, which deals with location-based data. Firms that use such technology are now getting a leg up, as Southeast Asia’s first geospatial industry centre, GeoWorks, was launched in Singapore on Monday (Jul 16). Developed by the Singapore Land Authority (SLA), the 15,000 sq ft centre houses 22 international geotech start-ups, and aims to connect them with sectoral users and government agencies.

Government of Laos Responds to US Visa Restrictions –Laotian Times  The Government of Laos has issued a response to the recent visa restrictions placed upon a number of citizens of Laos, which has caused confusion among Lao communities. The Trump administration has ordered suspension of the issuance of visas to certain citizens of Laos after the country refused to take back its persons deported from the United States.

Southeast Asia’s widening inequalities –ASEAN Post  The richest one percent in Thailand controls 58 percent of the country’s wealth and the top 10 percent earned 35 times more than the bottom 10 percent. In Indonesia, the four richest men there have more wealth than the poorest 100 million people, and about 50 percent of the country’s wealth is in the hands of the top one percent. In Vietnam, 210 of the country’s super-rich earn more than enough in a year to lift 3.2 million people out of poverty.

YUNNAN

Yunnan to add more air routes to South, SE Asia –Xinhua Southwest China’s Yunnan Province plans to add 25 new air routes to Southeast Asia and South Asia before 2020 as part of an initiative to develop Yunnan into a regional air hub, the province’s development and reform commission said Monday. Of the 25 new routes, 17 are passenger air routes, linking Kunming, the provincial capital, to cities including Islamabad, Jakarta, and Haiphong. The other eight cargo routes will connect Kunming with cities such as Calcutta, Rangoon, and Ho Chi Minh City.

Yunnan once again pivot of Southeast Asia –Mekong Eye While geographical proximity is certainly an advantage, the Chinese government is actively capitalizing on it by increasing connectivities between Yunnan and neighboring countries, in order to turn its southern province into a gateway to a larger economic hinterland. The first kind of connectivity in this respect relates to economic integration initiatives that bring Yunnan province together with countries in not only Southeast Asia but also South Asia.//Yunnan indeed continues to play a critical role in China’s economic integration with Southeast Asia. In the mid-90s when the Asian Development Bank’s Greater Mekong Subregion (GMS) program took off, China’s Beijing government delegated much of the decision making power for China’s involvement in the GMS program to Yunnan provincial government departments. These officials and Yunnan’s academics began to envision ways in which Yunnan could be connected to mainland Southeast Asia given the lack of physical infrastructure linkages. They also began to act on how to utilize the physical space and borderlands of Yunnan to demonstrate China’s peaceful rise. The result of this action was mixed and colored with failures that contributed widely to a poor reputation of Chinese government stakeholders and private firms in mainland Southeast Asia. When Xi Jinping took power, he cleaned house in Yunnan’s provincial government to try and regain control of Yunnan’s relations with Southeast Asia. That didn’t work so he cleaned house once again and removed most policy making authority from Yunnan officials, giving it back to Beijing in a recentralization push. Today Yunnan decision makers are largely cast aside as Beijing is redressing its relational architecture with Southeast Asian countries. One manifestation of this is the Lancang Mekong Cooperation Mechanism launched in 2016. Yunnan’s stakeholders are now marginalized and left on the outside looking in. For two decades Yunnan has been a pivot of Southeast Asia – what’s worth watching is the ways in which Beijing now dictates relations with mainland Southeast Asia and how Yunnanese officials try to claw their way back into the game. ~Brian Eyler

This week’s news digest was curated by Kevin Rutigliano.

This week we discovered that five of the thirteen boys rescued from Tham Luang Cave were stateless migrants from parts of Myanmar. It might seem striking that children from both sides of the border get together to play on the same Thai soccer team, but in the Golden Triangle borders have always been relatively porous. Historically, many different ethnic groups have migrated across its borders including the Hmong, Lao, Shan and Wa peoples. People have always moved through this region with little regard for borders, which in the large scope are relatively new. Most came out of China, and the largest pushes happened when Chinese dynasties fell or at a time of major upheaval. In fact, Thai people passed through the area as they migrated from China over 1000 years ago before they settled in what is today called Thailand.

EXSE FOCUS

Mekong Delta faces a bleaker future than people realize  –VnExpress International

A combination of negative developments has put at serious risk the viability of Vietnam’s rice bowl as also the source of most of its seafood exports. With every passing year of environmental degradation, land loss in the Mekong Delta assumes progressively grave proportions.//Veteran Mekong Rich Cronin in a rare op-ed.

Unsung heroes return home as boys regain strength in hospital –Bangkok Post
Volunteers and officials who took part in the mission to save 12 young footballers and their coach have left behind an unforgettable legacy and returned home to warm welcomes from local residents, while the boys made thumbs-up gestures from their hospital beds.  Bird’s nest climbers returning home from Chiang Rai’s Mae Sai district arrived in Hat Yai district of Songkhla on Wednesday — and were greeted with a banner reading “Libong Heroes” and a welcoming party of officials at the airport.

                Related: Stateless and Poor, Some Boys in Thai Cave Had Already Beaten Long Odds –New York Times

NLA approves 20-year national strategy –Bangkok Post
The National Legislative Assembly has voted unanimously to approve the National Strategy, with binding effect over the next 20 years and penalties for non-compliance. After the 179-0 vote in favour on Friday, the strategy will be submitted for royal endorsement by the prime minister within 20 days. //When implemented, this will cement the Thai military’s already strong influence on Thai politics for the foreseeable future.

                Related: National strategy wins NLA backing –The Nation

REGIONAL RELATIONS

South Korea-Vietnam Navy Ties in the Spotlight –The Diplomat
This week, South Korea’s chief of naval operations paid a visit to Vietnam as part of a wider Asia trip. The trip once again spotlighted the growing security collaboration underway between Hanoi and Seoul as part of their wider strategic partnership, with consequences not just for bilateral ties but for the wider region as well.

Philippines enters social security partnership with Germany, Japan –Investvine
The Philippines, now has bilateral Social Security Agreements (SSAs) with Germany and Japan effective June 1 and August 1 of this year, respectively, ensuring the protection of social security rights for more than 230,000 Filipinos abroad, the official Philippines Information Agency of the government announced in a statement on July 6. Social Security System president and chief executive officer Emmanuel F. Dooc said that these bilateral SSAs, are aimed at reducing or eliminating nationality- and territory-based restrictions on social security, will benefit an estimated 47,214 Filipinos in Germany and 182,917 Filipinos in Japan, who are working or residing permanently in these two countries.

US, Vietnam to Cooperate on Freedom of Navigation in Disputed South China Sea –VOA
The U.S. top diplomat reaffirmed America’s commitment to a “free and open Indo-Pacific” region during his first trip to Vietnam, saying Washington and Hanoi will work together to uphold freedom of navigation and overflight in the South China Sea. U.S. Secretary of State Mike Pompeo concluded his first trip to Vietnam as the top U.S. diplomat on Monday. //The current growing resentment towards China in Vietnam could strengthen defense ties with the United States in the near future.

Japan Re-affirms its Support for Mekong Irrigation Facilities Improvement –MRC The government of Japan has re-affirmed its support to the Mekong River Commission in continuing activities under a project to improve irrigation facilities across the lower Mekong countries of Cambodia, Lao PDR, Thailand and Viet Nam, MRC CEO Pham Tuan Phan said. In a meeting, held on 5 July 2018 in Vientiane, between the CEO and representatives from the Japanese Ministry of Agriculture, Forestry and Fisheries, Japan offered its clear support to this project and its on-going associated activities which require US$1.4 million to implement.

Cambodia, Thailand end cross-border rail transport talks –Mekong Eye  Cambodia and Thailand on Friday concluded negotiations on the transport of goods and people by train across their shared border, with an official agreement expected to be signed in upcoming months. The ball is now on Thailand’s court, according to Cambodian officials, who said they are now waiting on their Thai counterparts to hold internal discussions before a final agreement on cross-border rail transport between the two countries can be signed.

US to Cease Issuing Visas to Laos Citizens Following Deportation Row –Laotian Times  The Trump administration has ordered suspension of the issuance of certain visas to citizens of Laos after the country refused to take back its persons deported from the United States. The US Department of Homeland Security made the announcement on Tuesday afternoon, saying it had ordered the State Department to sanction visas for Laos and Myanmar because the two countries “have denied or unreasonably delayed accepting their nationals ordered removed.” //The majority of Lao nationals the United States is deporting are Hmong who have little to no remaining ties to Laos.

China, Myanmar Agree 15-Point MoU on Economic Corridor –The Irrawaddy Chinese and Myanmar officials agreed a 15-point Memorandum of Understanding (MoU) on building a China-Myanmar Economic Corridor, part of China’s One Belt One Road Initiative, said U Min Zaw Oo, the director of the Directorate of Investment and Company Administration (DICA). “The agreements have been reached. The 15-point MoU is ready,” U Min Zaw Oo told The Irrawaddy.“We hope both countries will sign it this year,” he said. // This could potentially be problematic since the corridor runs through conflict zones in Myanmar.

SUSTAINABILITY AND RESOURCE MANAGEMENT

In ironic twist, drive for clean energy creates Asian coal boom –Nikkei Asian Review Coal, one of the world’s most polarizing commodities, has now become an Asian irony. Efforts to curb use of the so-called black diamond in the West have been a boon for coal companies in the East, more so now that the benchmark price for thermal coal exceeded $120 per ton in July, the highest since 2012. No one was surprised in March when Tambang Batubara Bukit Asam, one of Indonesia’s largest coal producer, posted a 123% year-on-year jump in net profit to 4.4 trillion rupiah( $325 million)  for the period ended December.

 Singapore to help ASEAN better tackle climate change with new programme –Channel NewsAsia There will be a slew of Singapore-led programmes from this year until 2020 as part of efforts to help ASEAN countries tackle climate change. Under the Climate Action Package (CAP) launched on Tuesday (Jul 10), Singapore will organise programmes to develop capacity in key areas such as disaster risk reduction, climate science, flood management and long-term mitigation and adaptation strategies.

Egat on the ropes –Bangkok Post The Electricity Generating Authority of Thailand (Egat) is showing signs of decline as the 49-year-old wholly owned state utility struggles to tighten costs and reorganise in the wake of market decentralization and private competition. The company, which had not reduced staff since being established, now says it is cutting payroll and red tape as it strives to escape the fate of CAT Telecom, another state entity that has seen its bottom line succumb to stiff competition.//Decentralization will likely lead to onboarding more private energy generation assets within Thailand – most of them renewable energy. 

How bad Southeast Asia’s deforestation effect is? –International Business Times After global warming, many would argue that deforestation is the second biggest threat when it comes to environmental concerns. However, it turns out that’s not the case after all, especially when it comes to Southeast Asia. Researchers have recently discovered that the rate of deforestation across the highlands of Southeast Asia since 2000 has been much higher than expected.

Vietnam anti-pollution program gets $23.3 million in new funding –VnExpress International Vietnam government has approved an allocation of VND535 billion ($23.3 million) for an ongoing five-year program to curb environmental pollution. The new state budget fund will identify and implement better treatment and handling methods for public utilities that heavily pollute the environment, pesticides-laden locations and grade II wastewater in urban areas, according a decision by Prime Minister Nguyen Xuan Phuc.

Transparency Concerns Raised About 7 Dam Projects in Southern Myanmar–The Irrawaddy Local residents are concerned about the lack of transparency surrounding seven proposed dam projects backed by international companies in southern Myanmar, some of which have already resulted in forced displacement, land confiscation and loss of crops without compensation, according to a report by the Karen Human Rights Group (KHRG). The seven projects are expected to have total capacity of 2,265 megawatts. Along with the local company Asia World, the major investors are from Thailand, Japan and Norway. Many of the proposed projects are designed primarily to export electricity to Thailand or China.

CHINA

China’s Belt-Road Initiative: Too Much of a Good Thing? –Asia Sentinel  China’s heavily-promoted Belt and Road Initiative (BRI), designed to ensure that all roads lead to Beijing on Beijing’s terms, is facing increasing headwinds across Asia and beyond as the leaders of countries involved have started to count the cost. In addition, China’s attempts at political and economic manipulation of smaller countries are becoming increasingly visible, making client countries suspicious as well. //With growing uneasiness about China’s influence in the region, some Southeast Asian countries will look to countries like Japan as an alternative option for infrastructure finance.

China releases 2020 action plan for air pollution –China Dialogue  China’s new plan for tackling air pollution (published on July 3) is more detailed and covers more cities than the one which expired at the end of 2017 – but it does not set tougher targets than those already in place. The earlier Air Pollution Action Plan, released in September 2013, may have been China’s most influential environmental policy of the past five years. It helped China to make significant improvements to air quality by setting PM2.5 targets for key regions, requiring significant reductions between 2013 and 2017 – of 15% in the Pearl River Delta, and of 33% in Beijing.

China tells the U.S. to stop hurting itself in the trade war –Washington Post Another day, another round of tariffs. After President Trump unveiled a new list of Chinese goods the United States plans to slap with import duties — this time worth a staggering $200 billion — Beijing punched back with a somberly worded warning.  “The behavior of the U.S. is hurting China, hurting the world, and hurting itself,” the Ministry of Commerce said Wednesday in a statement.

Is China Using Force or Coercion in the South China Sea? –The Diplomat Tensions in the South China Sea have steadily increased in recent years in light of China’s enhanced island building activities, conducted to make room for what is now a string of fully fledged military bases, equipped with airstrips, electronic warfare equipment, and long-range anti-ship and anti-air missiles. The defense ministers of Australia, Japan, and the United States issued a joint statement on June 3, 2018, conveying their governments’ “strong opposition to the use of force or coercion as well as unilateral action to alter the status quo, and to the use of disputed features for military purposes in the South China Sea.”

Are arms exports a tool of Chinese foreign policy? –East Asia Forum At the 19th Chinese Communist Party Congress in October 2017, President Xi Jinping reaffirmed China’s ambition to complete the modernisation of the People’s Liberation Army (PLA) by the middle of the 21st century. This has involved two decades of deepening civil–military integration as well as more recent reform of China’s defence and technological industrial base, the introduction of competition between Chinese state-owned defence enterprises and further integration of the private defence manufacturing sector.

SOUTHEAST ASIA

Anti-China Protests hint at Vietnam’s growing unrest with ruling party –Southeast Asia Globe When Vietnam was rocked by nationwide protests over a controversial bill on special economic zones (SEZs), locals took it to the streets of major cities and the provinces affected by the zones. Protesters clashed with police, and in Binh Thuan province, demonstrators attacked administrative buildings and set cars on fire. What caused such frustration was not the prospect of having more SEZs in the country, but the high likelihood that Chinese companies will be among the first to enjoy the suggested 99-year land lease rule.

Billions allocated to small, medium enterprise promotion –Vientiane Times   More than 2,715.8 billion kip will be sourced and allocated for the promotion of small and medium enterprises (SME) to facilitate better access to finance to grow their businesses. In this regard, the government will allocate 200 billion kip from the state budget. The remaining more than 2,515.8 billion kip (US$300 million) will be sourced from elsewhere following a resolution of the National Assembly (NA).

Indonesia: work starts on Chinese-funded high-speed railway –Southeast Asia Globe Work has begun on Indonesia’s long-anticipated high-speed railroad, a $5 billion project that will – when completed – become the first high-speed rail in Southeast Asia. Funded by loans from Chinese banks and overseen by China Railway Corporation, the 142km rail line is one of dozens of Chinese-funded infrastructure projects being undertaken in the region. The agreement to build a rail line to connect the Indonesian capital of Jakarta with West Java’s capital of Bandung was originally cemented in 2015. //Japan was originally the front runner to develop this railway, but China was awarded the project in 2015.

Mission accomplished: All Tham Luang survivors safely rescued –Thai PBS The five remaining survivors of the Wild Boards soccer team have been safely brought out of Tham Luang cave, ending three days of high-risk rescue operation that has captivated the world. “The 12 Wild Boars and the coach have safely emerged from the cave,” the Thai Navy SEAL declared on its official Facebook page. The five last survivors are on their way to joining their 8 team mates who are recovering at Chiang Rai hospital where they are being kept in an isolation ward.

As Vote Nears, Cambodia’s Leader Has Opponents, but No Competition –New York Times It’s election season in Cambodia, and the fireflies are out. Cambodians use that term — “ampil ampik,” in the Khmer language — to refer to little-known political parties that flash onto the scene shortly before an election, then fade back into obscurity. Twenty parties, some just a few months old, will be on the ballot when national elections are held this month.

Najib Has Been Arrested—Now What? –Council on Foreign Relations Earlier this month, the Malaysian government arrested former Prime Minister Najib tun Razak on charges of corruption and criminal breaches of trust, in allegations related to the 1MDB state fund scandal. The charges were brought swiftly; the new Malaysian government has been in office less than two months, after winning elections in May that turned in part on voter anger at the perceived high levels of graft in Najib’s administration.

Indonesia to set up new economic centers outside of heartland Java –Investvine Indonesia will extend its portfolio of economic growth centers beyond the economic heartland of Java, national development planning minister Bambang Brodjonegoro said, adding that the government was committed to creating those centers in its effort to reducing economic disparities between Java and other regions. Bambang said that 60 per cent of the country’s economy was based in Java, 20 per cent in Sumatra and the remaining 20 per cent in other regions.

YUNNAN

“Canteens” ease tensions between elephants and humans –Xinhua Environmental workers in southwest China’s Yunnan Province have opened a number of “canteens” for wild Asian elephants to reduce conflicts between villagers and the endangered animal. This year, staff from Xishuangbanna National Nature Reserve have created a total of around 100 hectares of the elephant’s favorite food, such as bamboo and paper mulberry, in three different sites.

This week’s news digest was curated by Kevin Rutigliano. @krutigliano95

For updates on cave rescue efforts in Thailand check the Guardian’s coverage here. This is a Mekong story folks with the cave about 30km from Mekong’s shores in the Golden Triangle. The Mekong’s monsoon season is making all sorts of trouble for rescue efforts.

This Week in Southeast Asian History

During this week in Southeast Asian history, Ho Chi Minh, leader of the Viet Minh, met with Chinese Premier Zhou Enlai on the Sino-Vietnamese border from  July 3-5, 1954 to discuss the strategic situation in Southeast Asia. This helped build a partnership that lasted through America’s war in Vietnam until July 3, 1978 when China cut off its economic aid to Vietnam because of tensions between Vietnam and Chinese ally Cambodia.

EXSE FOCUS

Experts from Thailand, China clash over the damming of Mekong – The Nation CHINESE experts who insist that hydropower projects on the Mekong River will benefit all stakeholders met opposition yesterday when a Thai academic argued that locals lose more than they gain since dams impact heavily on every aspect of their lives. Academics and experts from China told a seminar on “The Sustainable Development of Water Resources” at Chulalongkorn University that hydropower development on the Mekong mainstream is sustainable and would bring overall benefits to all residents of the river basin.//China seems to believe engineering approaches can keep the Mekong’s robust environmental flows alive. If that were true, then we might find fish passages and sediment flushing gates on China’s Mekong dams in Yunnan province – unfortunately someone forgot to include them in the designs. 

ASEAN, China agree to pursue South China Sea code consultations –Philippine Star Senior officials from the Association of Southeast Asian Nations and China have agreed to move forward with consultations on the proposed Code of Conduct in the South China Sea (COC). The officials recently met in China’s Hunan province for the 15th Senior Official’s Meeting on the Implementation of the Declaration of Conduct of Parties (DOC) in the South China Sea. The Chinese government said that consultations on the COC will be based on the established framework so as to come up with a unified draft document. //Essentially an agreement to attempt to negotiate an agreement. Any substantive code of conduct will most likely not be agreed to in the near future.

Malaysia 1MDB: Ex-Prime Minister Najib arrested by anti-corruption officials – BBC Mr Najib, who has long been plagued by allegations of corruption, has been accused of pocketing $700m (£517m) from state development fund 1MDB. Billions of dollars are unaccounted for from the fund, set up by Mr Najib. He has been under investigation since his shock election loss in May. Mr Najib denies wrongdoing. According to a statement by the 1MDB special task force, Mr Najib was arrested at 14:35 local time (06:35 GMT) at his house in relation to matters dealing with SRC, a subsidiary of 1MDB.

Najib slapped with three counts of charges –Thai PBS Former prime minister of Malaysia Najib Razak was this morning charged with three counts of criminal breach of trust and one count of abuse of power for graft, Malaysian media reported. Under the Malaysian Anti-Corruption Commission Act 2009, Najib was charged with criminal breach of trust involving RM27 (220 million baht), RM5 million and RM10 million in SRC International Sdn Bhd, a former subsidiary of 1MDB, the state fund which is at the centre of a major scrutiny, according to The New Straits Times.

Related: Former Malaysian prime minister Najib Razak arrested in corruption probe – Washington Post
Related: Najib Fighting for Freedom After Arrest in Malaysia 1MDB Probe –Bloomberg

Jokowi inaugurates first Indonesian wind farm in Sulawesi – Jakarta Post President Joko “Jokowi” Widodo on Monday inaugurated the 100-hectare Sidrap Wind Farm in Sindereng Rappang regency, South Sulawesi, the first wind power project in the country and the largest of its kind in Southeast Asia. The Sidrap Wind Farm, which will produce 75 megawatts (MW) of electricity and can power up to 70,000 households, is part of the 35,000 MW electricity program. //This is the first of several wind farms to be built in Indonesia.

Cambodia, Lao PDR to formalise a new bilateral cooperation framework on fisheries management –MRC
In order to cement the four-year-long bilateral efforts to address cross-border fisheries issues along the Cambodia-Laos border, the two countries have agreed to formalise a bilateral fisheries management body that would oversee collaborative activities to curb illegal fishing practices and increase fish stock in the Mekong-Sekong basin. The discussions took place in Pakse today at a workshop where fisheries experts from the two countries gathered to finalise a joint transboundary fisheries management plan and its implementation framework that address common fisheries issues such as illegal gear use and lack of law enforcement.

REGIONAL RELATIONS

South Korea’s Moon Jae-in to speak in Singapore on vision for peace on Korean Peninsula – Channel NewsAsia
South Korean President Moon Jae-in will visit Singapore from Jul 11 to 13, the Blue House announced on Monday (Jul 2). He will give a speech on his vision and policies for permanent peace on the Korean Peninsula as well as cooperation with Asian countries in the region.

Regional media raises cooperation, tourism promotion to new level –Vientiane Times

Media organisations from the six Mekong-Lancang River countries have signed cooperation agreements to promote mutual benefits from media cooperation, enhance promotion for regional tourism and the development of new media.  Under the theme “Cooperation in the Mekong-Lancang Community for a bright future”, the 2018 Mekong-Lancang Cooperation Media Summit, which officially launched in Vientiane, brought together numerous of representatives of sub-regional media organisations to discuss about the future framework of media cooperation and other relevant fields.

What Does Mahathir’s Visit Mean for Indonesia-Malaysia Relations? –The Diplomat Last week, Malaysian Prime Minister Mahathir Mohammad paid a two-day visit to Indonesia, the second overseas visit for the country’s longest-serving premier who just retook office in early May following a shock election victory. Though the visit saw the two countries praise the significance of bilateral ties and float a number of proposals, the initial encounter was unsurprisingly short on substance.

Deputy PM Hue active in Brazil to boost relations –Nhan Dan Online Vietnamese Deputy Prime Minister Vuong Dinh Hue met with President of Brazil Michel Temer and held working sessions with the host’s ministers during his official visit to the South American country from July 2-3 with the aim of boosting bilateral relations. At the meeting with the Brazilian President, Deputy PM Hue affirmed that Vietnam appreciates the role and position of Brazil in the international arena and attaches importance to its ties with the Latin American country, saying that the comprehensive partnership between the two has achieved important progress.

South Korean FM promotes ties to Thailand in visit with Prayut – The Nation South Korean Foreign Minister Kang Kyung-wha on Monday visited Thailand to promote South Korea’s New Southern Policy, aimed to step up the country’s ties with Asean countries on par with that it has with major powers. The policy includes seeking geopolitical support in the wake of robust developments over the Korean Peninsula and forging economic ties with Thailand, which lasted year shared trade valued at US$11.7 billion (Bt388 billion) with the republic. //Increased investment from countries like Korea can help Southeast Asia become less dependent on Chinese aid.

Thailand joins EU efforts for WTO action on global system –Bangkok Post Thailand has teamed up with the EU to push the World Trade Organization (WTO) into greater engagement for handling protectionist and retaliatory issues to curb a possible trade war. Auramon Supthaweethum director-general of the Trade Negotiations Department, said the latest meeting of the Thai-EU trade and investment working panel held on July 2-3 in Bangkok found both sides agreeing to ask the WTO to play a more active role in promoting the multilateral trade system.

 SUSTAINABILITY AND RESOURCE MANAGEMENT

What’s worse than palm oil for the environment? Other vegetable oils – Asian Correspondent Indonesia and Malaysia are the world’s biggest producers of palm oil, accounting for a combined 90 percent of global supply. However, the expansion of oil palm estates, particularly in Indonesia, has long been criticised for driving deforestation across much of the islands of Sumatra and Borneo, as well as stoking social conflicts over land and other resources with forest and indigenous communities.

Cambodia, China sign MoUs on environmental protection, biodiversity conservation –Xinhua Cambodia and China have signed three Memorandums of Understanding (MoUs) on environmental protection and biodiversity conservation. The MoU included the establishment of the Cambodia-China Environmental Cooperation Center Preparatory Office, the donation of wastewater treatment equipment, and the pilot cooperation on biodiversity and ecosystem conservation.

Transboundary EIAs could reduce conflict over river projects –The Third Pole In the Mekong river basin, massive infrastructure projects – dams, road, high-speed rail and ports – are under construction. While these projects will improve connectivity between countries, harmful environmental impacts need to be minimised. National level environmental impacts assessments that ignore cross border impacts are likely to create conflict between countries, thus undermining the objective of improved connectivity.

Southeast Asian forest loss much greater than expected, with negative implications for climate –Mekong Eye
Researchers using satellite imaging have found much greater than expected deforestation since 2000 in the highlands of Southeast Asia, a critically important world ecosystem. The findings are important because they raise questions about key assumptions made in projections of global climate change as well as concerns about environmental conditions in Southeast Asia in the future.

CHINA

How China Can Make the Most of Its Solar Energy Boom –The Diplomat The successes and shortcomings of solar energy market growth in China highlight the potential advantages, but also the inherent risks, of top-down, government-fueled growth initiatives. How the central government manages current issues in the power sector will play an influential role in determining the future of the solar market?

China presses Europe for anti-U.S. alliance on trade –Reuters  China is putting pressure on the European Union to issue a strong joint statement against President Donald Trump’s trade policies at a summit later this month but is facing resistance, European officials said. In meetings in Brussels, Berlin and Beijing, senior Chinese officials, including Vice Premier Liu He and the Chinese government’s top diplomat, State Councillor Wang Yi, have proposed an alliance between the two economic powers and offered to open more of the Chinese market in a gesture of goodwill.

SNUBBED IN WORLD’S BIGGEST WAR GAME, WILL BEIJING MAKE WAVES IN SOUTH CHINA SEA? –South China Morning Post  The resource-rich Spratly and Paracel archipelagos may be the main sticking points in the South China Sea territorial dispute, and this week the world’s two major powers were shadowboxing over the issue thousands of kilometres away in Beijing and the Western Pacific. On the Chinese side, the fresh missive came from President Xi Jinping as he warned the visiting US Secretary of Defence James Mattis that while Beijing – a claimant to the contested waters – was committed to peace, it would not yield “an inch” of ancestral territory.

Japan’s China Deals Are Pure Pragmatism –Foreign Policy Several analysts have recently argued that unpredictable and blunt foreign-policy moves by the United States under President Donald Trump have prompted Japan — America’s most important East Asian ally — to move toward China. An article in the Wall Street Journal was headlined “Trump Trade Fight Brings Japan and China Together,” dubbing them “strange bedfellows.”

Are recyclers ready for the coming glut of lithium-ion batteries? –China Dialogue By 2020, demand for lithium-ion batteries from the automotive sector is expected to overtake that of consumer electronics. By far the biggest driver of this increase is China, which plans to sell 35 million electric vehicles by 2025. Consider that in 2017 the entire global fleet of electric vehicles totalled just 3.7 million according to the International Energy Agency.

China’s ethanol push in doubt as U.S. trade dispute widens –Reuters China’s ambitious push to use biofuel in cars nationwide by 2020 is in doubt amid concerns about supplies of raw material such as corn, complicated by an escalating trade dispute with Washington, producers and analysts say. In September last year, the government outlined radical plans to roll out the use of ethanol in gasoline nationally by 2020, in part to digest its huge corn stocks.

SOUTHEAST ASIA

Indonesia’s Regional Elections: A Look at West Java and North Sumatra –The Diplomat Indonesia’s simultaneous regional elections are no easy feat. Some 150 million voters will elect governors, mayors, and district heads across the country with the Election Commission (KPU) aiming for upward of 77 percent turnout.

Philippine economy under the spotlight in Duterte’s third year –Nikkei Asian Review President Rodrigo Duterte, who began his third year in office on Saturday, has touted the Philippines’ improved public security with his widely publicized crackdown on drugs. But his ambitious infrastructure program has made little headway as his strongman approach is discouraging foreign investment.

Cambodia restores rail connection to Thailand after 45 years –Investine Cambodia on July 4 reopened the final stretch of a railway running from the capital Phnom Penh to the border with neighbouring Thailand in Poipet, the first time the line has been operational in 45 years. The Asian Development Bank provided $13 million in 2009 to rebuild the missing link on the Western line which aims to slash travel time between the two countries and boost trade.

Spending cuts mulled to minimize budgetary tensions –Vientiane Times The government is contemplating a cut in budget expenditure to maintain financial liquidity following a revenue shortfall during the past four months of this year. Measures to reduce spending could be imposed, particularly in sectors and areas which expect to see a revenue deficit by the end of this year. The cabinet’s monthly meeting, chaired by Prime Minister Thongloun Sisoulith last week, highlighted the need to use the national budget effectively and efficiently, ensuring transparency and accountability in financial transactions. // Laos previously said it was not concerned about its debt. Suddenly Laos is starting to show some fiscal restraint.

Malaysia’s Belt and Road railway project suspended –Straits Times The project owner of Malaysia’s US$20 billion (S$27 billion) East Coast Rail Link has told its main Chinese contractor to suspend work, both companies said yesterday, raising uncertainty about the future of part of China’s Belt and Road plan. The 688km link would connect the South China Sea off the east coast of Peninsula Malaysia with shipping routes in the west and is a major part of China’s infrastructure push across Asia and beyond. //Is this part of a trend that will spread to other countries in the region?

Related: Chinese engineering firm told to suspend US$20 billion East Coast Railway Link in Malaysia –South China Morning Post

Cambodia’s New Online Media Directive Criticized as ‘Censorship’ –VOA  A group of non-governmental organizations (NGOs) has criticized a Cambodian government working group set up to monitor and “control” online news. A statement signed by 117 NGOs condemns the creation of the group. It was formed through a “prakas” — a declaration issued by a government minister.

YUNNAN

New railway links Chinese tourist cities –Xinhua A new rail line went into operation in southwest China’s Yunnan Province Sunday, linking capital Kunming with Dali, a tourist city known for its scenery. The first bullet train left Kunming Railway Station at 8:12 a.m. The 328-km line allows trains to run at 200 km per hour, according to China Railway Kunming Group. The construction took more than five years. Travel time between Kunming and Dali has been cut from over five hours to less than two hours.//Eventually this rail line is to stretch into Myanmar.

This week’s news digest was curated by Kevin Rutigliano.

EXSE FOCUS

Pak Lay Dam to Displace Residents in More Than 20 Villages in Northwestern Laos–Radio Free Asia At least 1,000 families from 20-some villages in northwestern Laos’ Xayaburi province will be forced to relocate if infrastructure officials move ahead with plans to build a fourth hydropower dam on the Lower Mekong River, a provincial official said Monday. The Pak Lay hydropower project is located downstream of the Xayaburi dam, which is now in the final stages of completion. It will be built approximately 100 kilometers (62 miles) from the Thai border.// The Mekong River Commission will soon kick off the local   consultation process in Laos for this project – most important question to ask is – who’s gonna buy this power?

Southeast Asia’s largest solar project to be built in Vietnam–VnExpress InternationalThe $420 million project, a Thailand-Vietnam joint venture, is set to open for commercial use in June 2019. Vietnamese construction firm Xuan Cau and Thailand conglomerate B.Grimm have teamed up to build Southeast Asia’s largest solar power plant in TayNinh Province.//Who needs Pak Lay Dam in 2029 when two of these solar projects will do the trick? And can be ready for operation in less than two years….

 Taiwan‘s New Southbound Policy Meets the US Free and Open Indo-Pacific Strategy–The Diplomat Taiwan’s NSP has potential convergences with the United States’ Free and Open Indo Pacific (FOIP) strategy. By aligning with FOIP, Taiwan has an opportunity to gain an important seat at the multilateral and international table, one that may help to preserve its autonomy and territorial sovereignty, but may also lead to the island functioning as a bargaining chip for U.S. counterbalances against China. // The Taiwanese government should acknowledge the potential risks of too much alignment with the US’s strategy as China may apply more preasure on Taiwan.

The Belt and Road Bubble Is Starting to Burst– Foreign Policy In a sense, the Sicomines resources-for-infrastructure agreement in the Democratic Republic of the Congo has been just another underperforming deal in a country with no shortage of them. But it is also more than that — namely, a window into the flaws at the heart of Chinese international economic policy, which is already costing its economy dearly.

REGIONAL RELATIONS

 New joint patrol starts on Mekong River–XinhuaNet A new round of joint patrols on the Mekong River with law enforcement personnel from China, Laos, Myanmar, and Thailand started Tuesday, the 71st mission since 2011, to make the border river safer. Ships set sail from Guanlei Port in Xishuangbanna, southwest China’s Yunnan Province, with patrols covering a total of 256 kilometers, according to Yunnan border police.//China is sending four brown water ships up and down the river to make it “safer” – many speculate the patrols also provide cover for the trafficking of drugs, people, and endangered wildlife throughout the Golden Triangle.

Japan Says Will Support Asean Connectivity– Jakarta Globe Japan is keen to support the Association of Southeast Asian Nations, or Asean, in realizing its vision for centrality, unity and connectivity, a Japanese official said on Tuesday (26/06). “We’d like to support Asean’s centrality, unity and also connectivity – that’s the most important point, because Asean is now focusing on connectivity,” Japan’s ambassador to Asean, Kazuo Sunaga, said.

China in Vogue, But Vietnam Still Hun Sen’s Lifeline– The Diplomat If the secret to notoriety in Cambodia’s fast-vanishing pro-opposition news media has long been to publish stories critical of Vietnam, the unwritten rule of the tightly government-controlled television news media has been to steer as wide as possible of them. With every terrestrial station owned either by top officials from the ruling Cambodian People’s Party (CPP) or their allies, it’s a norm that those looking to stay in the good graces of leaders installed by Hanoi in January 1979 have done their best to heed.

Japan to help develop Indonesian islands in South China Sea–South China Morning Post Japan said Monday it will provide 2.5 billion yen (US$23 million) in aid to Indonesia for the development of fishery facilities on remote islands, at a time when China’s clout in the region is increasing.The signing of a document on the aid was witnessed by Japanese Foreign Minister Taro Kono and his Indonesian counterpart RetnoMarsudi in Jakarta, who discussed issues ranging from economic cooperation and maritime security to anti-terrorism measures.

Top Generals From Cambodia, Thailand Meet to Discuss Border Security–VOA Enhancing cross-border security topped the agenda at a meeting between high ranking military officials from Cambodia and Thailand last week. Gen. Pol Saroeun, the Cambodian commander-in-chief, met with Gen. Thanchaiyan Srisuwan, head of the Thai military, on Friday at the Royal Cambodian Armed Forces headquarters in Phnom Penh. //Will this reduce cross border crime and prevent potential border conflicts between Thailand and Cambodia?

Japan to help Vietnam get a better grasp of land prices–Nikkei Asian Review Japan hopes to pave the way for its companies in Vietnam and other Asian markets by exporting techniques for real estate appraisal, creating opportunities by fostering urbanization and financial industries. Vietnam’s northern coastal city of Haiphong will consider introducing the methods this summer with specialists commissioned by Japan’s land ministry.

Indonesia to enhance economic partnership with Tunisia: Minister– Jakarta Post Trade Minister Enggartiasto Lukita led an Indonesian trade mission to Tunisia to try and enhance the economic partnership between the two countries. The trade mission organized a business forum to foster trade, investment and an economic partnership between Indonesia and Tunisia. The forum was attended by Tunisian Trade Minister Omar Behi and various businesspeople.

Singapore takes over command of multi-national counter-piracy task force–The Straits Times The Singapore Armed Forces (SAF) has taken over the command of a multinational counter-piracy task force – Combined Task Force (CTF) 151 – from the Japanese Maritime Self-Defence Force. A change of command ceremony was held on Thursday (June 28) at the Naval Support Activity, Bahrain.

 SUSTAINABILITY AND RESOURCE MANAGEMENT

Southeast Asian countries zero in on marine protection in Bali meeting– Jakarta Post
Delegates from Southeast Asian countries are sharing their experiences in implementing marine environment protection conventions set by the International Maritime Organization (IMO) in a three-day high level meeting in Bali. The first high-level regional meeting of the Marine Environmental Protection of the Southeast Asian Seas Project (MEPSEAS Project), an IMO program that aims to increase protection of the marine environment in Southeast Asia, was opened in Seminyak on Monday.

China’s scrap plastic ban saddles neighbors with piles of problems–Nikkei Asian Review The world is awash with scrap plastic, six months after No. 1 importer China closed its doors to the recyclable materials on environmental grounds. The ripple effects are hitting the shores of Southeast Asia’s emerging countries, which have seen a surge in plastic shipments — not all of them legal. //This causes environmental problems in Thailand and is now forcing the Thai government to consider possible actions to take to solve this problem. See below

 Thailand bans scrap plastic imports– Plastics Recycling Update The government of Thailand has banned all scrap plastic from entering its ports, amid a major increase in shipments to the country and others in Southeast Asia. According to a June 24 news release, Thailand’s Department of Industrial Works “has issued a prohibition on further imports of electronic and plastic waste effective immediately, and will be proposing to the Ministry of Industry to issue an indefinite ban on these imports in the near future. Total imports of these wastes into Thailand have already surpassed the totals from 2017.

MRC, JICA Launch a Joint Study on Mekong Forest Conservation for Better Basin Management–MRC
The Mekong River Commission (MRC) and Japan International Cooperation Agency (JICA) have launched a joint study on forest conservation and river basin management in the lower Mekong basin as part of their effort to better manage and conserve the environmental health of the basin. The launch was announced at a kick-off meeting held today in Vientiane, Lao PDR, where the MRC and JICA signed the project’s memorandum of cooperation in the presence of 40 officials from both sides.

Achieving universal electricity access in Cambodia–The ASEAN Post Countries like Indonesia, the Philippines, Myanmar and Cambodia have lower electrification rates compared to the rest of the region, with 95 percent of those without electricity in the region concentrated in these four countries. In Southeast Asia as a whole, Cambodia has one of the lowest electrification rates. Currently, Cambodia’s electrification rate is just 60 percent, with only 62 percent of villages and 53 percent of households having access to grid quality electricity in the country.

Aim for sustainable future, says UN–Khmer Times The United Nations Environment Program has urged Cambodia to focus more on sustainable development, while it also applauded the conservation achievements in the country.

Yangon could consume 3,000 MW of electricity by 2021-22–Myanmar Times Yangon Region is expected to require 3,000MW of electricity by 2021-22, Daw Su Hlaing Wint, assistant manager of the Yangon Electricity Supply Corporation (YESC) said at the Electricity and Energy Expo in Yangon on June 22. That’s the amount of electricity currently being generated across Myanmar, of which Yangon now consumes just over half at 1,548MW.

CHINA

China steelmakers shift focus to south-east Asia– Financial Times Chinese companies have invested billions of dollars in planned steel and coal projects as they chase new markets by shifting production to south-east Asia.In the past four years, Chinese steel companies have funded 32m tonnes of annual capacity in new steel projects in Indonesia and Malaysia, according to a Financial Times calculation, equivalent to more than 40 per cent of steel consumption in 2016 by the 10 Association of Southeast Asian Nations member states.

China hits back at US investment rules– BBC The Chinese government has criticised a US move to expand the powers of its foreign investment watchdog. The government is worried that the move means the US will use national security concerns unfairly in order to restrict Chinese investments.

China’s coal heartland to put emissions caps on industry as part of battle against pollution–South China Morning Post The major coal producing province of Shanxi in northern China will impose special emissions restrictions on big industrial sectors by October as part of its bid to curb smog, a local environmental official said. Shanxi, together with neighbouring Shaanxi, is set to be included in China’s new three-year action plan to curb air pollution, with emissions in the two provinces second only to the smog-prone Beijing-Tianjin-Hebei industrial region.

The AIIB needs to deliver governance to match its rhetoric– ChinaDialogue When the bankers descend on Mumbai next week for the third annual general meeting of the Asian Infrastructure Investment Bank (AIIB), many will ask whether the world’s newest multilateral development bank has lived up to its promises since it was founded in 2015.

Focus on cities could cut China’s emissions by 30pct- researchers– Reuters China could slash its climate-changing emissions by 30 percent if all its cities cleaned up pollution from their dirtiest power plants and factories, researchers said on Wednesday. The world’s biggest emitter of greenhouse gases needs to focus on its urban areas in order to meet national-level targets under the international Paris Agreement to curb global warming, according to scientists at the University of East Anglia (UEA).

Japan to help China tackle air pollution– NHK Japan’s environment minister and his Chinese counterpart have agreed to work together to tackle air pollution in China. Masaharu Nakagawa met with Li Ganjie on Saturday in the eastern Chinese city of Suzhou. Their discussions were held the day before a trilateral meeting of environment ministers that South Korea’s environment chief will also attend.

SOUTHEAST ASIA

Regime signals polls could be delayed until May– Bangkok PostThe 2019 general election will likely be held by May 5 next year, Deputy Prime Minister WissanuKrea-ngam after a pre-poll meeting at the Army Club between politicians and the regime.Politicians appeared satisfied as they emerged after the discussion on Monday afternoon, citing “positive signs: even though the poll date and the political activities ban have yet to be resolved. //Second election delay in the past 6 months, which will increase the political tension already present in Thailand.

Overcoming the outages: how to keep the lights on in Myanmar– Southeast Asia Globe
Tales abound in Myanmar of surgeries completed using light from cell phones and cars crashing immediately after the lights go out. About 41% of Myanmar people are without access to electricity at all, according to the International Energy Agency (IEA).

Anti-Chinese protests in Vietnam fuelled by fears at home carry risk– South China Morning Post
Anti-government protesters in Vietnam who are using historic wariness towards ethnic Chinese as a cover for their frustrations are treading a damaging path. The nations are working together on the shared development offered by the “Belt and Road Initiative”, but the demonstrations stir unjustified anger and resentment.

Acceleration propelling mega-project development, PM tells legislators–Vientiane Times
Mega-development projects with construction underway are being accelerated in an effort to bolster economic growth, Prime Minister Thongloun Sisoulith told the National Assembly (NA) recently. Presenting the socio-economic development report to the ongoing 5th Ordinary Session of the NA’s 8th legislature, the nation’s Head of the Government said action is being intensified to realise the benefits of mega infrastructure projects.

Vietnam to host first UN peacekeeping course in Southeast Asia–VN ExpressVietnam has been selected as the first destination for the United Nations Peacekeeping training course in the Southeast Asian region.The United Nations announced the decision after making an evaluation that facilities in the country meet international standards.

Malaysia to review national service programme– Channel NewsAsia Malaysia will review its national service programme, which was compulsory for randomly selected batches of 18-year-old Malaysians before it was reintroduced in 2016 as a voluntary programme. In an interview with Channel NewsAsia, Defence Minister Mohamad Sabu said he will hold a meeting on the matter on Thursday (Jun 28), and a review of the entire national service programme will be raised in the Cabinet.

New partnership to build Cambodia’s biggest data centre–Khmer Times A new joint venture of local and international companies will result in the creation of the biggest data centre in the country, boosting the Kingdom’s capabilities to provide digital and cloud services.

Laos faces structural issues despite robust expansion–The Nation Laos is still grappling with several challenges and pending issues impeding macroeconomic development despite robust expansion of the country’s economy when compared to regional peers.

YUNNAN 

Province-wide dragnet targets illegal ivory trade–GoKunming A wide-ranging law enforcement sweep of Yunnan border areas ended recently with the confiscation of an enormous amount of ivory. The operation targeted illegally imported rare animal products, with a focus on those coming from elephants. Police and local media outlets are extremely confident in the anti-trafficking measures, declaring that the ivory trade in Yunnan has “essentially been eliminated”, media outlet Yunnan Net reports.

This week’s news digest was curated by Chen-Sheng Hong and Kevin Rutigliano. Chen-Sheng is moving on to greener pastures and we wish him the best!

EXSE FOCUS

Thai energy review could lead to suspension of Mekong dam–The Third Pole A major energy review by Thailand has delayed the launch of a controversial dam on the Mekong. This could lead to further questions about future hydropower projects along the river. Brian Eyler, director of the Stimson Center’s Southeast Asia programme, said that, “the prospects for the Pak Beng dam to move ahead as originally planned are unlikely given EGAT’s adjustments to a renewable energy transition.”

Renewable energy goal raised to 30%–The Nation Siri, in announcing the target for green-sourced energy, said the drafting of a proposal for a 300-megawatt biomass project in the three southernmost provinces expedited – for completion within two months – before it is forwarded to the National Energy Policy Council (NEPC).

Lao PDR Submits Notification on the Pak Lay Hydropower Project to MRC for Prior Consultation– MRC  The Mekong River Commission Secretariat has received an official notification from the Lao Government that it will undertake the formal process of prior consultation on its Pak Lay hydropower project in the Pak Lay area in the Lao PDR’s northern province of Xayaburi. The run-of-river dam will operate continuously year-round and produce 770 megawatts of electricity. //Still unknown which off-taker market will buy the power generated from this dam…

ACMECS leaders adopt 5-year plan–Bangkok Post The leaders of five Mekong River basin countries on Saturday adopted a five-year master plan focused on improving transport infrastructure, harmonising trade and investment rules, and human resources development.

  Related: Five-nation meeting plays to diverse strengths–Bangkok Post 

     Related:  Thailand Proposes New Fund for Southeast Asian Sub-region–Radio Free Asia

Truly wielding power: How China wants to create the world’s first global electricity grid–OZY Deep in a tangle of planning bureaucracies in western Beijing, the future of a country nearly 3,000 kilometers away is under discussion. Xie Qiuye, president of China’s Electric Power Planning & Engineering Institute, has been charged with developing an electricity plan for Laos, a nation struggling with a glut of the energy supplied by Chinese-built dams on the Mekong river.

Trump, Kim Begin New Phase of Diplomacy–WSJ President Donald Trump launched a high-stakes diplomatic effort to rid North Korea of its nuclear weapons, betting that a friendlier approach with North Korea’s Kim Jong Un—including a surprise promise to halt military exercises with South Korea—would work better than intimidation.

   Related: Winners and losers from the Trump-Kim summit–The Washington Post

    Related: Trump to Suspend Military Exercise on Korean Peninsula–NYT

    Related: The Trump-Kim Summit: The View From Japan–The Diplomat

    Related: Southeast Asia’s choice: what the Singapore summit means for the region– Southeast Asia Globe

Related: The North Korea Summit Gave Trump a Genuine Victory. But China May Benefit Most–TIME

REGIONAL RELATIONS

ASEM takes action in response to climate change–Nhan Dan The Asia-Europe Meeting (ASEM) Conference on’ Climate Action to Achieving the Sustainable Development Goals – Ways Forward’ took place in the Mekong Delta city of Can Tho, on June 19. Discussions focused on development amid climate change, the combination between climate action and sustainable development goals, and measures to boost Asia-Europe climate partnerships toward sustainable development.

ASEAN and the New South China Sea Reality–The Diplomat China is stepping up its efforts to achieve the effective control and militarization of the South China Sea. In mid-May, the People’s Liberation Army announced that it had landed bombers, including an H-6K, on Woody Island, part of the Paracel Islands, over which China has taken effective control.

Malaysia and Australia: New Focus on an Old Scandal– The Diplomat The election of Mahathir Mohamad and the PakatanHarapan (PH) coalition he helped lead last month in Malaysia was a new day for voters who have been governed by the same party since independence. For Australia, however, it also raised the prospect of the days prior to NajibRazak’s leadership of the Southeast Asian state, which were characterized by periods of tension and at times antagonism.

Prayut meets May in London– Bangkok Post Small groups welcomed and protested against the visit as Theresa May urged free and fair elections, as Gen Prayut promised them ‘early next year.Gen Prayut has said his visit is not political, and he seeks only to enhance trade and encourage European investment.

Japan injects 23b kip to promote education in Laos– Vientiane Times The government of Japan recently provided more than 23 billion kip (JPY 310 million) through the Japanese Grant Aid for Human Resource Development Scholarship (JDS) for education assistance in Laos.The scholarship funds will be provided to government officials across the country to upgrade their knowledge and promote the education of future Lao leaders.

 Related: Workers from Laos to upgrade skills in Japan–The Nations

UK to help Malaysia recover assets, rebuild finances– Channel NewsAsia The United Kingdom on Wednesday (Jun 13) expressed its willingness to help Malaysia recover illegal assets in its country.British High Commissioner to Malaysia Vicki Treadell said this after meeting with MrDaimZainuddin, the chairman of the Council of Eminent Persons. She also said that the UK would support the Malaysian government in rebuilding its finances.

Vietnam, Japan enjoy sound strategic relations: Deputy PM–Nhan Dan Deputy Prime Minister Truong Hoa Binh expressed his delight at the strong development of the Vietnam-Japan extensive strategic partnership while meeting with Japanese Prime Minister Shinzo Abe and Speaker of the House of Representatives Tadamori Oshima in Tokyo on June 11.

Related: State visit gives boost to Vietna-Japan relations–VietnamNet

SUSTAINABILITY AND RESOURCE MANAGEMENT

Chinese-backed hydroelectric dam robs Cambodian villagers of homes and livelihoods–South China Morning Post Holdouts of Cambodia’s Lower Sesan II Dam hoping for an eleventh-hour lifeline to maintain ties with their Phnong ethnic roots

Vietnam‘s renewable energy yet to get wind in its sails–VnExpress The target of 800 and 6,000 megawatts of wind power by 2020 and 2030 looks beyond reach. Vietnam is far away from realizing its short and medium term wind power goals, with no ready solution in sight to several impediments, experts say.

Mekong Delta land erosion set to worsen, residents warned–VnExpress The land erosion problem in Vietnam’s Mekong Delta has assumed drastic proportions, officials warned the region’s residents at a meeting held on Monday. The ministry said there were 562 erosion locations with total length of 786 kilometers. This included 55 “critically dangerous” locations that are 173 kilometers long, 140 “dangerous” locations 97 kilometers long, and 367 “normal” erosion spots 516 kilometers long.

An Environmental Report Card for Southeast Asia– The Diplomat While evaluating every environmental issue that has arisen in every country is unfeasible; it is possible to conduct a general overview of what has happened so far in 2018. How are forests, oceans, mangroves, and wildlife faring in the region so far in 2018?

Climate change to slash Cambodia’s productivity–Khmer Times Even if current levels of spending on climate change adaptation are maintained, rising temperatures in the Kingdom will continue to impact economic performance, reducing the country’s GDP by almost 10 percent by the year 2050, a report released Tuesday has found.

Temporary closure not enough to restore Thailand’s Maya Bay–Mekong Eye Starting this month, the tiny and stunningly scenic Maya Bay off Thailand’s Andaman coast, made famous by Leonardo DiCaprio’s 2000 film The Beach, is closed to visitors. Two decades of being Thailand’s top tourist attraction has overwhelmed the island’s ecology.

Thailand becoming ‘garbage bin of world’–The Nation EXPERTS on waste management and environmental protection are warning that Thailand could become the garbage bin of the world, as the government’s policies to promote the waste-to-energy industry have already resulted in plastic waste imports to the Kingdom.

         Related: E-waste shunned by China piles up in Thailand-Bangkok Post

                   Related: Trash-filled turtle highlights ocean crisis-Bangkok Post

Related:  Calls for review of Thailand’s importation of electronic trash– Thai PBS

                   Related:  Wake up to the problem of electronic waste, Myanmar urged–Myanmar Times

How to Promote Investments in Natural Capital in the Greater Mekong Subregion–Development Asia Natural capital has been a key contributor to the Greater Mekong Subregion’s rapid economic growth over the past 3 decades or so. However, the subregion’s key natural capital stocks are in a state of decline. This is evident by the degradation of arable land; considerable losses in forests, wetlands, and mangroves; and many species of fauna and flora becoming endangered or even extinct.

Forest database key for Vietnam–Vietnam News Vietnamese people can control their own forest resources, ensure food security and diversify their income by using Management Information System for Forest Sector  in Vietnam (FORMIS). Hà Công Tuấn, Deputy Minister of Agriculture and Rural Development made the statement at the forum on information and forest resources database held in Hà Nội on Wednesday by Việt Nam Administration of Forestry (VNFOREST) under the Ministry of Agriculture and Rural Development with the support from the FORMIS phase two project.

CHINA

Why China’s New Cambodia Military Boost Matters– The Diplomat This week, Cambodia revealed that China had given it yet another round of military assistance as part of a visit by its defense minister to the Southeast Asian state. The move represents just the latest effort by both sides to boost their defense ties in 2018 as they commemorate 60 years of their bilateral relations and Cambodia moves toward elections next month, which represents a major test for the ruling party.

Alibaba opens its regional office in Malaysia–New Strait Times Alibaba Group Holdings Ltd (Alibaba) the world’s leading e-commerce company based in China, has opened its first Southeast Asia office here, part of the company’s strong commitment in increasing digital economy in Malaysia and the region.

   Related: Alibaba and Malaysia: A win-win relationship-The ASEAN Post

Free Power From Freeways? China Is Testing Roads Paved With Solar Panels–NYT On a smoggy afternoon, huge log carriers and oil tankers thundered down a highway and hurtled around a curve at the bottom of a hill. Only a single, unreinforced guardrail stood between the traffic and a ravine. The route could make for tough driving under any conditions. But experts are watching it for one feature in particular: The highway curve is paved with solar panels.

Laos ‘not concerned’ about debt from China’s Belt and Road–Nikkei Asian Review Laos is unconcerned about the potential debt burden from a Chinese-led high-speed rail project, its prime minister said on Tuesday, describing the terms of the construction agreement as “favorable” to one of Southeast Asia’s poorest countries.

        Related: Thailand plans regional alternative to Belt and Road-Asian Correspondent

How China Lost Sight of Malaysia’s Changes – The Diplomat  Nonagenarian Prime Minister Mahathir Mohamad wasted no time in making a much anticipated move, dispatching Finance Minister Lim Guan Eng to renegotiate some of the “unequal treaties” with China. His move has been compared to steps by the then-new Sirisena administration in Sri Lanka to scale back massive deals with China made under the previous government. // Chinese investments have been affected by political changes before, such as when Chinese investment in Sudan was lost when Sudan split into two countries.

One of China’s poorest provinces wants to be a tech hub–The Economist Such space-age fantasy appears incongruous in Guizhou. The mountainous region is one of China’s poorest provinces (see map). More than 4m of its 35m inhabitants live on less than $1.90 a day, according to the government. In 2016 less than 45% of them used the internet. Five years ago, however, Guizhou started selling itself as a good place for big companies to store vast reservoirs of data. Now it is experiencing a tech boom.

Thousands of Seized Logs Smuggled to China, Lawmaker Says–The Irrawaddy Up to 2,000 logs cut from champac and pine trees weighing over 1,300 tons seized by authorities in Kachin State’s Chipwi and Tsawlaw townships have been smuggled to China since late May, according to a Union lawmaker.

China’s clean skies battle expands, clouding economic outlook–Channel NewsAsia  The frontlines of China’s war on pollution are moving beyond smog-prone Beijing and surrounding cities, driven by an effort to improve air and water quality across the country.

China to launch broader environmental inspections this month–Reuters China will expand environmental inspections to more cities and regions in a new round of checks from this month to April next year, the Ministry of Ecology and Environment (MEE) said in a statement on Friday, part of a three-year anti-pollution plan.

SOUTHEAST ASIA

What is the Cambodia-Lao PDR-Vietnam Development Triangle Area?–Back in March, the Prime Ministers of three neighbouring countries Cambodia, Lao PDR and Vietnam (CLV) met and endorsed an action plan to connect CLV economies until 2030. The three leaders committed themselves to building “integrated, sustainable and prosperous CLV economies” which would be located in the larger regional plan of the ASEAN Community Vision 2025.

New law sets public debt at not more than 25 percent of revenue– Vientiane Times The government will be the only authority to determine the size of public debt, which must not be over 25 percent of annual state revenue. A debate by National Assembly (NA) members yesterday made this stipulation concerning the Law on Public Debt. // This is an important step for Laos, since its debt has been growing rapidly. This law can potentially bring Laos’ debt growth under control if implemented properly.

Prawit orders end to imports of hazardous waste– Bangkok Post  Deputy Prime Minister PrawitWongsuwon has ordered authorities to find ways to end the importation of hazardous and electronic waste. Lt Gen KhongcheepTantrawanit, the defence spokesman, said Gen Prawit issued the order at a meeting of the committee on the reform of national administration.

Deputy PMs to meet political parties next week– Bangkok Post Deputy Prime Minister PrawitWonsuwon said on Wednesday that he, Deputy Prime Minister WissanuKrea-ngam and the Election Commission planned to meet representatives of political parties next week to discusspolitical activities. He said the meeting would happen while Prime Minister Prayut Chan-o-cha was abroad. // Once the political activities ban is lifted, then Thailand can begin the election process. This will significantly improve Thailand’s relations with the EU and the United States.

Thailand plans regional alternative to Belt and Road– Asian Correspondant THAILAND plans to create a regional fund along with several of its neighbors in order to reduce reliance on Chinese investment in Southeast Asia.The Nikkei Asian Review reported earlier this month that Bangkok hopes to launch the fund “as soon as possible”, which would help fund infrastructure and development projects in Thailand, Cambodia, Laos, Burma (Myanmar) and Vietnam. // If successful, this initiative will lend some foreign policy flexibility for the region.

Laos stresses the need to borrow as West raises debt alarm– Nikkei Asian Review As the only landlocked country in Southeast Asia and one of the least developed ones in the region, Laos seems to have different priorities on growth that are driving it pile on even more debt.Prime Minister ThonglounSisoulith believes adding debt beyond a warning level is necessary for the country to grow and compete internationally as an economy, despite growing wariness among Western donor nations and multinational financial institutions.  // Nearly half of Laos’ debt is owned by China. If the China’s economy slows down, it could potentially cripple the Lao economy.

Heat on Vietnam car barriers rises–Bangkok Post The commerce and industry ministries are escalating demands that the Vietnamese government eliminate non-tariff barriers on cars imported from Thailand, as Thai car shipments to Vietnam have stalled for over six months. // Thailand is Southeast Asia’s largest automotive producer. A lowering of trade barriers in Vietnam would lead to the growth of the automotive industry in Thailand. Lowering of similar trade barriers in Southeast Asia would be beneficial to economic growth in the region.

YUNNAN

Guizhou explosion closes key Yunnan petrochemical pipeline–GoKunming A natural gas pipeline exploded in the late hours of June 10 in Shazi (沙子), Guizhou province, Xinhua reports. Responding emergency crews completed search and rescue operations after the ensuing blaze was extinguished, but the cause of the accident is still under investigation.

TAIWAN

Going Global: Taiwan Start-ups Aim for Southeast Asia Growth–The News Lens EZTable is one of dozens of Taiwanese tech startups expanding globally after achieving success at home. Southeast Asia is their top destination, but some are expanding to Japan, Korea, and Hong Kong as well. They’re a new breed of Taiwanese tech firm: software-driven, youthful, and multilingual. // Compared to the past, Taiwanese tech start-ups expand their investment globally instead of focusing on domestic market. Southeast Asia is now a hotspot for Taiwanese tech start-ups.

This week’s news digest was curated by Kevin Rutigliano and Chen-Sheng Hong.

EXSE FOCUS

Power capacity reserve to be raised–Bangkok Post Thailand’s 15% electricity generation capacity reserve will be increased following a recent power outage in the Northeast, says Energy Minister Siri Jirapongphan.//Mixed signals from Thailand’s Energy Ministry which is currently revising its power plan with an original goal of REDUCING Thailand’s power capacity reserve. This means more energy generation projects – but will they fall in Thailand or across borders in Laos and Myanmar….

Thai firm signs Laos power deal–The Nation Ratchaburi Electricity Generating Holding Public Company Limited (Ratch) is ready for expansion into the 340 megawatt (MW) Xekong hydroelectric power project in Laos in a joint investment with the government in Vientiane.//These dams are on the mainstream of the Xekong river, the longest remaining free flowing river in the Mekong basin. Since there is zero transparency on Mekong tributary damming, no one saw this coming – even those who are fighting hard to keep the Sekong dam free.

Southeast Asia’s ongoing struggle against alarming levels of plastic pollution–Southeast Asia Globe Five trillion plastic bags are used worldwide every year and global plastic production is projected to nearly double in the next ten to 15 years, according to a United Nations Environment Program (UNEP) report. Meanwhile, a 2015 study by Ocean Conservancy found that 8 million tons of plastic is dumped into the world’s oceans every day, with more than half coming from China, Indonesia, the Philippines, Thailand and Vietnam, making these countries responsible for up to 60 % of the waste.

Related: Dead whale sparks marine fears in Thailand–South China Morning Post

Related: Drastic plastic: Vietnam beach awash with tide of blue waste–Reuters

Related: Cambodia’s plastic problem–The Phnom Penh Post

At Shangri-La summit, two views of a new Indo-Pacific order–Asia Times This year’s Shangri-La Dialogue (SLD), an annual security summit staged in Singapore, marked the formal coming of age of the “Indo-Pacific theater” and accordingly India’s emergence as a new pillar of the region’s security architecture.

Related: Five things to watch for at the Shangri-La Dialogue in Singapore–South China Morning Post

     Related: Japan and the Shangri-La Dialogue–The Diplomat 

Thailand to launch Mekong regional fund to reduce China dependence–Nikkei Asian Review Thailand is taking the lead in creating a regional fund with its neighbors, Cambodia, Laos, Myanmar and Vietnam, to back infrastructure and other development projects and to lessen reliance on Chinese investment.

Malaysia Moves to Rebalance Relationship With China–VOA Malaysia and China are looking to re-balance ties as the new government of Prime Minister Mahathir Mohammad seeks to renegotiate billions of dollars of Chinese backed infrastructure spending, with the goal of reducing the country’s national debt.

Related: New Malaysian government steps back from spending Chinese projects –The Washington Post

REGIONAL RELATIONS

With ports, ships and promises, India asserts role in Southeast Asia–Reuters Almost lost in the din of the upcoming U.S-North Korea summit and fresh tension between Washington and Beijing last week, India cemented its diplomatic and security ties across Southeast Asia in a clear challenge to China.

Indonesia, Mozambique start PTA negotiations: Official–Xinhua Indonesia and Mozambique have started negotiations on the Preferential Trade Agreement (PTA), an official leading the Indonesian delegation said on Tuesday. Bilateral Negotiation Director at the Trade Ministry Ni Made Ayu Marhini said the two sides have approved most of the articles to establish the PTA during the initial round of the negotiation held in the Mozambique capital of Maputo from May 31 to June 1.

Why UK-ASEAN Trade Ties Are Thriving–The Diplomat Southeast Asia is a vital cog in the movement of goods and is essential for international trade to flourish. As such, ASEAN matters to Britain and is a key component in the UK’s drive to increase trade with countries around the world.

Vietnam seeks Italy’s experiences in environmental protection–Nhan Dan The Ministry of Natural Resources and Environment of Vietnam (MONRE) signed a Memorandum of Understanding (MoU) with the Ministry of the Environment and Protection of Land and Sea of Italy (MEPLS) on June 5 in Hanoi to agree cooperation between the two ministries.

India to set up   medical college, hospital in Cambodia, Laos, Myanmar and Vietnam region, says Suresh Prabhu–Financial Express India has decided to set up a medical college and hospital in Cambodia as part of its plan to strengthen economic ties with CLMV region, Commerce and Industry Minister Suresh Prabhu said. To promote investments, the government has created a project development fund to facilitate Indian investment in the four countries – Cambodia, Laos, Myanmar and Vietnam (CLMV).

Japanese investment in Myanmar soars to all-time high–Japan Times Japanese investment in Myanmar reached an all-time high of about $1.48 billion in fiscal 2017 following the nation’s transition from military to civilian rule in 2011, boosted by large-scale commercial complex and steel manufacturing projects.

Vietnam is following China in its economic development–VOA Vietnam is imitating China in its efforts to grow economically and lags its larger neighbor only by about a decade, experts say. The two communist countries, though political rivals, have built up their state-controlled economies on job creation through factory work for export.

Australia and Vietnam open ‘friendship bridge’ in the Mekong Delta–Vietnam Net The Cao Lanh Bridge and its inter-connecting roads which were built by a joint funding partnership between the Vietnamese Government, the Australian Government and the Asian Development Bank (ADB), as part of the Central Mekong Delta Region Connectivity Project, is expected to benefit more than five million people in the Mekong Delta region through improved access to markets and services. An estimated 170,000 people will cross the bridge each day.

SUSTAINABILITY AND RESOURCE MANAGEMENT

Japan plans biomass energy project for Cambodia–Khmer Times A Japan-led project for the local agriculture sector now under discussion aims to recycle rice husks to generate power in a bid to reduce the environmental footprint of the industry and provide additional revenue streams for agricultural communities.

Illegal timber still flowing: EIA–Khmer Times More than one million cubic metres of illegal timber has flowed unhindered from protected areas in Cambodia’s northeast provinces to Vietnam as the latter continues its role as a serial illegal timber trade offender, according to a report issued by the Environmental Investigation Agency.

The real cost of Myanmar’s electricity–Myanmar Times Myanmar has some of the lowest electricity rates in the world. However, connecting and supplying power to the millions of people who will drive Myanmar’s development is a huge endeavour, one that requires the commitment of tremendous financial resources from the state, companies and international donors. But as important is the public’s awareness of what it costs to build and supply the electric backbone of the country.

Vietnam sets out green ambitions with bold targets for solar, rare earth–Reuters Vietnam plans to more than triple the amount of electricity it produces from renewable sources and push for a 26 percent increase in household solar energy usage by 2030, Prime Minister Nguyen Xuan Phuc told Reuters in an interview.

B Grimm puts cash behind biggest solar plant in region–The Nation B Grimm Power president Preeyanart Soontornwata said the total investment for the plant – with a planned generating capacity of 420 megawatts – will be around US$430 million. The company would hold no more than 55 per cent of the joint venture, Preeyanart said.

Thailand new dumping ground for world’s high-tech trash, police say–Channel NewsAsia Thailand is a new dumping ground for scrap electronics from around the world, said police and environmentalists, the latest country to feel the impact of China’s crackdown on imports of high-tech trash.
     Related: Smuggling of hazardous waste comes to light–The Nation 

                  Related: Investment rush is harming environment–Bangkok Post 

Rural Poor Squeezed by Land Concessions in Mekong Region: Report–The Irrawaddy Magazine Companies acquired concessions amounting to the size of a small European country, while rural residents of Southeast Asia’s Mekong region saw their landholdings shrink or disappear over the past two decades, according to researchers.

Why hospitals in Asia need to be ‘climate-smart’–Eco-Business Hospitals in Asia must become climate-smart in an era of extreme weather patterns, or risk being unable to fulfill their missions of providing healthcare when they are most needed, say experts.//As Myanmar, the Philippines, Vietnam, and Thailand are the four out of the ten countries that most affected by climate change risk, the governments of these nations need to consider how to integrate the concept of ‘climate-smart’ to its hospital system.

Solar-powered irrigation pumps could help Philippines’ attain rice self-sufficiency–Gulf News Philippines Agriculture Secretary Manny Pinol said solar-powered irrigation pumps could hold the key to making the Philippines self-sufficient in rice production. The Solar-Powered Irrigation System (SPIS), which has been adopted by the Department of Agriculture as one of its Flagship Projects, could ensure the country get a sufficient rice supply for the next 20 years.// The idea of solar-power irrigation pumps may also help other Southeast Asia countries to ensure their food security and promote renewable energy development.

Six Mekong nations call for accelerated action to eliminate malaria before 2030– Asia Pacific Leaders Mekong Alliance  The governments of Cambodia, China, the Lao People’s Democratic Republic, Myanmar, Thailand and Viet Nam have together called for accelerated action to eliminate malaria in the Greater Mekong Subregion (GMS) by 2030.// Malaria is a serious problem in Southeast Asia and poses threats to people’s lives. It is critical for the governments of Southeast Asia countries to work with international organizations to get sufficient support to eliminate malaria.

Vietnam building roadmap on greenhouse gas emissions mitigation–VietnamNet Nguyen Duc Ngu from the Center for Meteorology, Hydrology and Environment emphasized that the draft decree clearly says it is not based on the Environment Protection Law or the national strategy on natural resource and environmental protection, but on Vietnam’s commitments within the framework of the Paris Agreement on Climate Change.

CHINA

China eyes its next prize–The interpreter There is another prize in Beijing’s sights, an artery that runs straight through mainland Southeast Asia. The mighty Mekong River, which starts in China (known there as Lancang), and connects Myanmar, Thailand, Laos, Vietnam, and Cambodia, is a crucial lifeline that nourishes some 60 million people along its banks.

China’s green Belt and Road tested at the Russian border–ChinaDialogue Facing growing demand for wood and shortages in domestic supply, Chinese authorities are pushing for greater imports from Russia, ignoring the fact that its neighbour will cease to be a reliable supplier within a decade.

Facebook Gave Data Access to Chinese Firm Flagged by U.S. Intelligence–NYT Facebook has data-sharing partnerships with at least four Chinese electronics companies, including a manufacturing giant that has a close relationship with China’s government, the social media company said on Tuesday.

Related: Facebook confirms data-sharing agreement with Chinese firms-BBC

Pollutionwatch: Air contamination drops by 30% in China–The guardian Beijing is slowly shedding its image as the world’s most polluted city. In 2013, it ranked as the 40th worst city for the particulate PM2.5 in the World Health Organisation global database. Four years on, thanks in part to a crackdown on polluters, it stands in 187th place.

Beyond Tech Transfer: The Challenge of Chinese Tech Expanding Abroad–The Diplomat Over the last two years, Chinese outward investment has been become the subject of much controversy abroad, especially following the country’s buying spree in 2016. This shift has been particularly visible in the tech sector, where developed countries are becoming increasingly concerned by Chinese attitudes toward intellectual property (IP) and the prospect that China may very soon match their technological capabilities. 

China’s environmental cleanup hits once-thriving scrap trade–Nikkei Asian Review Old cardboard paper and other scrap material is piling up in Japan, with nowhere to go as China has toughened restrictions on polluting processors.

China says to end ‘one size fits all’ environmental policies–Channel NewsAsia  China plans to end its “one size fits all” approach to fighting pollution, the environment ministry said on Monday (May 28), as it tries to devise more nuanced policies that match local conditions and minimise economic disruption.

China regions vow to step up pollution crackdown after central government probes–Reuters Eight Chinese regions have promised to beef up anti-pollution curbs, vowing fresh cuts in smog, cleaner water and soil and tighter scrutiny over government officials after Beijing-led probes uncovered thousands of violations.

SOUTHEAST ASIA 

Indonesia’s Looming Energy Challenges–The Diplomat In less than a year, Indonesians will head to the polls for presidential and legislative elections. In public discussions, the energy sector is seen as one of the most influential sectors in determining the present government’s performance, due to the country’s tremendous potentials in fossil fuels and renewable resources. However, with the possible changes brought by the upcoming political year, a change of priorities may affect Indonesia’s energy development.

Thailand’s last untouched Mekong tributary–The Nation THE LOWER Songkram River basin is the latest site in Thailand under the global spotlight as a crucial ecological resource, the WWF-Thailand said ahead of World Environment Day today.

Singpore Prepares for the AI Revolution–The Diplomat As global interest in artificial intelligence (AI) grows, Singapore wants to establish itself as a global hotspot for AI research and entrepreneurship. The city-state’s leaders see a big opportunity to leverage AI to grow their economy and improve the lives of their citizens.

Waste treatment delayed in Vietnam–Vietnam News Poor infrastructure investment in waste treatment has kept Viet Nam in the list of five countries who together discharge more solid waste, particularly plastic, into the ocean than the rest of the world combined. The other four countries are China, Indonesia, Thailand and the Philippines.

Why Southeast Asia is perfectly placed to embrace large-scale fish farming–Southeast Asia Globe The market is there, the physical conditions are near perfect and there is a great potential for growth. So why does Southeast Asian marine aquaculture still consist mainly of small family fish farms and not large-scale projects targeting local as well as export markets?

Poverty in Indonesia becomes urban problem–Investvine Indonesia’s national development planning ministry is targeting a national poverty rate next year of 8.5 per cent to 9.5 per cent, down from the poverty level at the end of 2017 of 10.12 per cent of the population. // Indonesia needs to consider developing separate policies to deal with poverty problem in different areas or islands. 

YUNNAN

Alumina giant Chalco inks massive metals deal as China pushes ahead with supply-side reforms–South China Sea Post The Aluminum Corporation of China (Chalco), the world’s second-largest alumina producer, plans to merge its copper mining unit with Yunnan Metallurgical Group, which has total assets of nearly 90 billion yuan (US$14.17 billion), in what would be the country’s biggest industry consolidation deal in the non-ferrous metals sector.

TAIWAN  

Taiwan: Tsai Ing-wen at the halfway mark–The interpreter The fruits of Tsai’s NSP have been confined predominantly to the realm of people-to-people exchanges. There is a robust budget to support the NSP – NT$7.26 billion (US$241 million) in 2018 – but how this money pays for flagship innovation, agriculture, and medical cooperation projects, or whether such investment will buoy Taiwan’s economic growth of 2.89%, remains to be seen. Taiwan’s socioeconomic engagement with Southeast Asia is further complicated by the reality that many prospective partners are existing recipients of Chinese economic or development aid. // It is difficult for Taiwan to compete with China on economic or development aid. Taiwanese government needs to strengthen Taiwan’s advantages, especially innovation and talented industries to attract the other countries which are targeted by the ‘New Southbound policy.’