Regional Round-up for Week of 11.01.19

EXSE FOCUS

Laos hydro project switched on along dried-out Mekong – Channel News Asia Xayaburi is online, one more project in Laos’ “battery of Asia” generation portfolio, but upstream drought casts doubt on both the profitability of Xayaburi as with its supposed environmentally-sustainable characteristics. // A multi-billion dollar hydro-electric power plant on the Mekong river in Laos was officially switched on Tuesday (Oct 29), as drone images of dried-up downstream areas stirred fresh outcry on one of the world’s great rivers. 

Southeast Asia may become a net importer of fossil fuels in th next few years, IEA warns – Reuters Increases in domestic demand for coal and exports to China and India could reduce surpluses, leading to coal imports and increased carbon emissions. 

Rising Seas Will Erase More Cities by 2050 New York Times Rising seas could affect three times more people by 2050 than previously thought, according to new research, threatening to all but erase some of the world’s great coastal cities. // As the world’s most vulnerable areas to climate change and rising waters, Southeast Asia will suffer severe consequences as many major cities such as Bangkok and Ho Chi Minh City will be submerged. 

REGIONAL RELATIONS

Why Indonesia’s the winner of the next China-Japan economic battle – South China Morning Post According to the proverb, when elephants fight it is the grass that suffers. Well, so much for that proverb. The case of Indonesia shows that being the rope in a tug of war between two economic giants – in its case China and Japan – can be a very lucrative position indeed.

Mahathir Mohamad gives green light to Malaysia-Singapore metro link South China Morning Post The 4.2km Rapid Transit System will connect Johor Bahru, the capital of the southern Malaysian state of Johor, with Singapore’s Woodlands district. Breakthrough on the project – suspended after Mahathir came to power – came after review that slashed cost from US$1.2 billion to US$755 million. 

Seoul can help to regulate Mekong’s flow Bangkok Post In 2017, South Korean President Moon Jae-in announced the “New Southern Policy”, which is aimed at deepening relations with Southeast Asia to the extent that four other major powers — the United States, China, Japan and Russia — have done.

SUSTAINABILITY AND RESOURCE MANAGEMENT

Controversial dam gets green light to flood a Philippine protected area – Mongabay The environment department has issued an environmental compliance certificate that allows the contested Kaliwa Dam project in the Sierra Madre mountain range to go ahead, part of a wider push to secure water supplies for Manila and surrounding areas. Yet its issuance comes despite a government-conducted environmental impact assessment showing that the dam’s reservoir alone will endanger endemic wildlife and plants, drive massive species migration, and pose risks to lowland agricultural and fishing communities with a history of flash flooding.

How Laos lost its tigers – Mongabay Scientists believe it’s most likely that the last tigers and leopards of Laos succumbed to snares, which are proliferating in astounding numbers across Southeast Asian protected areas. The Indochinese tiger now only survives in Thailand and Myanmar, and may be on the edge of extinction.

Palm oil giants double down on deforestation with new radar system Reuters Ten major companies that sell and use palm oil have teamed up on a new radar system to monitor forests across Malaysia and Indonesia more closely and speed up action to stop deforestation, a group leading the initiative said on Friday (Nov 1).

Cheaper solar power gains ground in southeast Asia Reuters Southeast Asia is accelerating plans to harness energy from the sun in coming years as the cost of generating electricity from some solar power projects has become more affordable than gas-fired plants, officials and analysts said.

CHINA 

ASEAN’s China Dilemma The Diplomat As the ASEAN summit begins, talks of South China Sea conflict, island-building, and other grievances with China take center stage in the discussion. As the author states, “China remains both an economic partner and a threat to the stability of the region“. // In a few days, the 35th ASEAN Summit will commence, with the participation of about 3,000 officials and journalists from Southeast Asian countries, China, South Korea, Japan, the United States, Australia, New Zealand, and India, among others.

China’s complicated relationship with Central Asia East Asia Forum Despite protests of bad working conditions, environmental damage, corruption, and political conflicts, Central Asian inhabitants watch incoming investment and infrastructure development as a boon for their economies. Learning mandarin and Chinese culture is trending with students, and the author claims that the region deserves attention from the US if it is to have diplomatic alternatives. // Both fearful and grateful, the region is a paradox for China at the beginning of its Belt and Road. Hardly a week goes by without a senior Chinese visitor appearing somewhere in Central Asia, revealing a long-term influence game that Beijing is winning.

China to ease foreign investments curbs, won’t force tech transfers The Straits Times “We will move faster to open up the financial industry,” said Mr Wang, eliminating all restrictions on the scope of business for foreign banks, securities companies and fund managers. // China will eliminate all restrictions on foreign investments not included in its self-styled “negative lists”, a vice-commerce minister said on Tuesday (Oct 29), and also will “neither explicitly nor implicitly” force foreign investors and companies to transfer technologies.

China’s ocean waste surges 27 per cent in 2018 The Straits Times China dumped a total of 200.7 million cubic metres of waste into its coastal waters in 2018, a 27 per cent rise on the previous year and and the highest level in at least a decade, the country’s environment ministry said on Tuesday (Oct 29). The majority of the waste was dumped in the delta regions of the Yangtze and Pearl rivers, both major industrial zones on China’s eastern coast, the Ministry of Ecology and Environment (MEE) said.

Manila, Beijing Establish Joint Body for Energy Exploration in South China Sea Radio Free Asia Manila and Beijing have formed a joint inter-governmental body to coordinate an exploration deal for tapping energy resources in the South China Sea, Philippine officials announced Wednesday, in a move that President Rodrigo Duterte earlier had said could ease tensions in the disputed waters.

As Myanmar embraces China, can it reap the rewards? South China Morning Post Myanmar pulled the plug on its controversial Beijing-backed Myitsone dam project in 2011 but has since opened the floodgates to cooperation on other large-scale infrastructure. Now a major part of China’s Belt and Road Initiative, the task for officials is to win over a sceptical public, and make sure the benefits trickle down to all. 

SOUTHEAST ASIA

Govt: Cause of Polluted Water in Myanmar’s Karen State Still Unclear – The Irrawaddy When murky water was flowing into lakes, rumors spread that the contaminated water came from a nearby coal-powered cement plant. // The Karen State government is still investigating why contaminated water is flowing into lakes that provide drinking water for villages near the state capital of Hpa-an, according to state Minister of Social Affairs U Saw Bo Bo.

Essex truck deaths: why are so many Chinese and Vietnamese being trafficked to the UK? South China Morning Post The discovery of 39 migrants found dead in a refrigerated car draws attention to the plight of trafficked victims as young as 15 working in marijuana farms, brothels, and nail salons. // The discovery of the frozen bodies of 39 trafficked migrants in a refrigerated truck in an industrial park on the Thames Estuary last week has shone the spotlight on a rise in the number of people being trafficked to the UK from China and Vietnam.

Thailand Seeks US Talks After Trade Privileges Loss – The Diplomat The search for discussions comes after the loss of preferential trade privileges on a range of Thai exports including seafood. // Thailand plans to seek talks with the United States on a decision to end preferential trade privileges on a range of Thai exports including seafood, officials said Monday.

Who is Laos’ first special economic zone benefitting? – China Dialogue When Savan-Seno special economic zone (SEZ) was set up by the Laos government in 2003 it was expected to boost the economy and become a model for future schemes. But years later, the country’s first SEZ is still incomplete, and people who have long lived in the area are in conflict with developers and the government over compensation.

As Malaysia aims to reduce its reliance on foreign workers, key industries fear labor shortages Bloomberg Malaysia is trying to overcome its reliance on low-skilled foreign workers as it tries to move up the economic ladder. But that’s hurting some key industries in the country.

Why Jokowi wants to move the Indonesian capital East Asia Forum When Indonesian President Joko ‘Jokowi’ Widodo announced earlier this year that he intended to relocate the nation’s capital from Jakarta to Kalimantan the claim was met with widespread scepticism. Jakarta is a polluted, congested and over-crowded city that is literally sinking into the ocean under the weight of numerous policy failures.

Cambodian oil: the dream that refuses to die Nikkei Asian Review Block A — Cambodia’s most promising oil concession — is the dream that refuses to die. The concession’s Apsara field, if fully tapped, would help diversify an economy heavily reliant on garment exports — and increasingly Chinese investment.