Asia Daily: August 28, 2024
News
Yoon postpones dinner with PPP leaders amid differences over medical school quota increase. President Yoon Suk Yeol has postponed a dinner with the ruling People Power Party (PPP) leaders until after the Chuseok holiday due to differing views on increasing the medical school quota. The dinner, originally planned for Friday, was deferred to focus on livelihood issues. PPP leader Han Dong-hoon suggested deferring the quota increase to 2026, but the presidential office remains firm on its plan to raise admissions by 2,000 seats annually for five years. Lee Haye-ah, Yonhap News Agency, August 28
Intel official behind military secrets leak recruited by Chinese in 2017: military prosecutors A military intelligence official was indicted for allegedly leaking military secrets after being recruited by a suspected Chinese operative in 2017. The official reportedly sold classified information, including a list of undercover agents, and received around 160 million won for these leaks since May 2019. Military prosecutors noted the suspect took extensive measures to avoid detection and that the case remains under investigation. Chae Yun-hwan, Yonhap News Agency, August 28
Cheng Wen-tsan released on NT$28m bail. Former vice premier Cheng Wen-tsan was released on NT$28 million bail after being indicted on corruption charges. Cheng, along with four other suspects, was detained in Taoyuan for allegedly accepting bribes to facilitate an industrial project. Prosecutors recommended a 12-year sentence for Cheng, citing his involvement in corruption while serving as Taoyuan mayor. The investigation continues, with additional allegations pending. Taipei Times, August 28
Reactor in central Japan fails to pass post-Fukushima safety review. Japan's Nuclear Regulation Authority (NRA) has determined that the No. 2 reactor at the Tsuruga plant in Fukui Prefecture did not meet the necessary safety standards for restart due to concerns about a potential active fault beneath the unit. This marks the first instance of a reactor failing the post-Fukushima safety review since the NRA's establishment. Public comments will be sought on the assessment before a final decision is made. Kyodo News, August 28
Singapore to play bigger role in helping Chinese firms, partners mediate disputes in Belt and Road projects. Singapore is positioning itself as a hub for dispute resolution, particularly for Belt and Road Initiative projects involving Chinese firms. The Singapore International Mediation Centre (SIMC) recently signed a memorandum with the China International Contractors Association to handle more mediation cases. Mediation is seen as a quicker, less contentious alternative to litigation or arbitration. Chinese firms increasingly prefer Singapore for its professional mediation services, which promote amicable settlements and preserve business relationships. The Straits Times, August 28
Bangladesh’s interim government led by Yunus lifts ban on the Islamist Jamaat-e-Islami party. Nobel laureate Muhammad Yunus, leading Bangladesh's interim government, lifted the ban on the Islamist Jamaat-e-Islami party, previously imposed by ousted Prime Minister Sheikh Hasina, who labeled the party as "militant and terrorist." The ban's repeal allows the party to resume activities, though it still requires registration to contest elections. Jamaat-e-Islami has been barred from elections since 2013 due to constitutional violations. The interim government faces challenges in restoring stability amidst recent unrest and natural disasters. AP News, August 28
Chinese, US officials discuss new round of talks between Biden and Xi. High-level discussions in Beijing between China's top diplomat Wang Yi and U.S. national security adviser Jake Sullivan focused on scheduling future talks between Presidents Biden and Xi. The talks also addressed military communication, trade, Taiwan, and other contentious issues. China reiterated its stance on Taiwan and criticized U.S. tariffs, while the U.S. urged cooperation on fentanyl and AI safety. Discussions aim to ease tensions ahead of the U.S. presidential election. Reuters, August 28
BJP Bengal strike: Protesters block train tracks, buses in eastern India. Thousands of protesters, primarily BJP workers, blocked transport and shut down shops in West Bengal following the rape and murder of a trainee doctor. The protest was organized by the BJP, demanding justice and better safety for doctors. Chief Minister Mamata Banerjee expressed sympathy for victims and called for swift justice while urging doctors to end their strike. Indian President Droupadi Murmu condemned the crime, calling for an end to violence against women. Reuters, August 28
Swiss court convicts executives over $1.8 billion 1MDB scandal. The Swiss Federal Criminal Court convicted two executives, Patrick Mahony and Tarek Obaid, of embezzling $1.8 billion from Malaysia's 1MDB fund. They were sentenced to six and seven years, respectively, for fraud and money laundering. The scandal involved misleading 1MDB about their company's Saudi government backing and siphoning funds for personal gain. John Revill, Reuters, August 28
Indonesia's anti-graft body plans to query president's son about private jet trip. Indonesia's anti-corruption agency intends to question Kaesang Pangarep, President Joko Widodo's youngest son, regarding his recent use of a private jet and the trip's funding. This follows public outcry over potential impropriety and the suspension of legislation that critics claimed would favor Jokowi's family. The anti-graft body is investigating whether the trip involved improper gifts tied to Jokowi's position. Reuters, August 28
Analysis & Opinion
Maid in Australia: When International Relations and Industrial Law Collide. Two recent Australian court cases involving domestic workers employed by diplomats have challenged the limits of diplomatic immunity. The cases featured diplomats from Sri Lanka and India who were accused of exploiting workers, resulting in financial rulings against them. The courts determined that diplomatic immunity did not protect these actions, which violated local labor laws. The incidents highlight potential diplomatic tensions and the need for stronger enforcement of worker rights. Daniel Flitton, Lowy Institute, August 28
Avalanche Alert: China May Dump Dollars When Fed Eases Rates. Chinese companies may sell up to $1 trillion in dollar assets as the U.S. Federal Reserve begins to cut interest rates, according to economist Stephen Jen of Eurizon SLJ Capital. This potential "avalanche" of capital repatriation could strengthen the yuan and disrupt global currency markets. Jen warns that the dollar's decline might spur a significant economic shift as Chinese companies offload their dollar holdings. William Pesek, Asia Times, August 28
Diplomatic Wrangling Hotting Up Around Ukraine. Diplomatic efforts are intensifying amid the Ukraine conflict, with key visits by Indian Prime Minister Modi to Ukraine and Chinese Premier Li Qiang to Russia. Modi's visit reflects India's complex geopolitical stance, balancing relations with Russia, China, and the West. Meanwhile, China's diplomatic engagement with Russia signals continued support. These maneuvers indicate ongoing international negotiations without a clear path to peace. Stefan Wolff, Asia Times, August 28.
Why Malaysian Voters and Civil Society Are Turning on Anwar Ibrahim. Growing disillusionment with Malaysian Prime Minister Anwar Ibrahim's government is evident among voters and civil society groups. Critics, including the Bersih coalition, argue that his administration has failed to deliver promised reforms, particularly on economic and corruption issues. This dissatisfaction is compounded by perceived weaknesses in grassroots political movements and the lack of viable political alternatives. Anwar's current coalition dynamics and Malaysia's political landscape further hinder his reform agenda. Han Jun Lim, East Asia Forum, August 28
Navigating the Economic Shifts of Yen Depreciation in Japan. The depreciation of the yen has raised import costs, burdening consumers and businesses, while benefiting exporters and tourism. Multinationals repatriating profits and the semiconductor sector see gains. The yen's weakness poses both challenges and opportunities for Japan, demanding careful economic management to maintain stability and growth. Willem Thorbecke, East Asia Forum, August 28
Bangladesh Must Navigate the Reality of Infrastructure as a Weapon of Foreign Interference. Bangladesh faces challenges as major powers use infrastructure projects as tools for influence. India's dam activities affect Bangladesh's water management, while China's investments under the Belt and Road Initiative create dependencies. The U.S. also leverages infrastructure for strategic goals, adding to the geopolitical tensions in the region. Bangladesh must carefully balance these relationships to safeguard its sovereignty and interests. Anil Wasif, The Diplomat, August 28
Malaysia and the South China Sea Dispute: A Sea Change Under Prime Minister Anwar? Malaysia's approach to the South China Sea dispute remains consistent under Prime Minister Anwar Ibrahim. The government continues to assert territorial claims, maintain economic ties with China, and support ASEAN-China negotiations, despite perceptions of a pro-China shift. Anwar's administration has not compromised on sovereignty issues, and Malaysia's strategy balances national interests with diplomatic relations. Ian Storey, Fulcrum, August 28
Can National Parties Outshine Local Champions in Sabah? National parties maintain significant influence in Sabah due to their ability to offer political stability and development. Local parties face challenges in outshining national counterparts, such as UMNO and PKR, because of Sabah’s reliance on federal support and the pragmatic preferences of its voters. The political landscape in Sabah, characterized by fluid alliances and federal-state dynamics, makes it difficult for local parties to become dominant players. Arnold Puyok, Fulcrum, August 28