News
India races to build power plants in region claimed by China. India plans to invest $1 billion to accelerate the construction of 12 hydropower stations in Arunachal Pradesh, a region also claimed by China. The federal finance ministry has approved up to 7.5 billion rupees ($89.85 million) in financial assistance for each project. The total funding for these projects is expected to be around 90 billion rupees. This initiative aims to expedite regulatory clearances and secure local support. The hydropower plans will be detailed in the 2024/2025 federal budget. This development comes amidst ongoing India-China tensions over border disputes. Sarita Chaganti Singh, Reuters, July 9
Parliamentary committee to hold hearing to address petition on Yoon's impeachment. A parliamentary committee decided to hold two hearings to address an online petition demanding the impeachment of President Yoon Suk Yeol. The legislation and judiciary committee plans to hold a hearing on July 26 and has requested that First Lady Kim Keon Hee attend as a witness. The petition, signed by over 1.3 million people, alleges inappropriate interference by the presidential office in a military investigation and illegal acceptance of a luxury gift by the First Lady. The committee, dominated by the Democratic Party, also approved a hearing on July 19 regarding the military investigation. Yi Wongju, Yonhap News Agency, July 9
Court declares Solomon Islands PM’s nomination time to election does not comply with Constitution, upheld election valid. The Solomon Islands High Court ruled that the nomination period before the Prime Minister's election did not comply with the mandatory four-day period stipulated in the Constitution. However, the court upheld the election as valid, rejecting claims that the Prime Minister's election was invalid due to this error. Chief Justice Sir Albert Palmer noted the Governor General's discretion in election matters. PINA, July 9
Charges dropped against Kishida, other LDP members in slush fund case. Japanese prosecutors have decided to drop charges against Prime Minister Kishida Fumio and several Liberal Democratic Party (LDP) members over a slush fund scandal. The investigation found that multiple LDP factions, including one previously led by the late Abe Shinzo, failed to fully report revenue from fundraising events. Despite the decision, opposition lawmakers criticized the probe for not fully addressing the issue and demanded further scrutiny. Kishida's approval ratings have hit record lows amid the scandal, which involved unreported funds totaling around 970 million yen ($6.5 million). Kyodo News, July 9
Over 200 UNDP projects implemented in Kazakhstan. Kazakhstan, supported by the United Nations Development Program (UNDP), has implemented over 200 projects worth more than $200 million. These initiatives include the development of small and medium businesses, green energy, agriculture, and ecotourism. Vice Prime Minister Nurlan Baibazarov emphasized the national priority of achieving the Sustainable Development Goals, with Kazakhstan preparing its third Voluntary National Review for the 2025 High-Level Political Forum in New York. Kazakhstan seeks to strengthen cooperation with UNDP for sustainable development. Allen Collinsworth, The Times of Central Asia, July 9
Japan's unused defense budget in FY 2023 totals 130 billion yen. Japan's Ministry of Defense reported that 130 billion yen ($910 million) of its fiscal year 2023 defense budget remained unused. This was due to delays in procurement and contract processes affecting various defense projects. The unused funds will be carried over to the next fiscal year to ensure the completion of delayed projects. The Ministry is focused on addressing these issues to improve budget execution and enhance military capabilities amid regional security challenges. Kyodo News, July 9
The few can beat the many, Taiwan president says ahead of annual war games. Taiwan President Lai Ching-te encouraged air force officers by citing historical examples of smaller militaries defeating larger ones, ahead of Taiwan's annual war games. Despite China's frequent military exercises around Taiwan to assert sovereignty claims, Lai emphasized that military power is not solely about equipment numbers but strategy and innovation. Taiwan's Han Kuang drills will simulate real combat, reflecting increased threats from China. Lai, rejecting Beijing's sovereignty claims, reiterated that Taiwan's people alone will decide their future. The five-day Han Kuang exercises begin on July 22, alongside Wan An civil defense drills. Ben Blanchard, Reuters, July 9
Việt Nam ready to coordinate with Japan, CPTPP members in CPTPP implementation: PM. Prime Minister Phạm Minh Chính affirmed Việt Nam’s commitment to working with Japan and other Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) members to enhance the agreement's implementation. In a meeting with Japan’s Minister Yoshitaka Shindo, Chính emphasized cooperation in various sectors including technology, green growth, and education. Both leaders agreed on the importance of boosting bilateral ties and ensuring CPTPP's effectiveness. Vietnam News, July 9
N. Korea's military education delegation leaves for Russia amid deepening ties. A North Korean military education delegation has departed for Russia, marking the first public visit by a North Korean military official since Kim Jong-un and Vladimir Putin signed a pact for mutual military assistance. The delegation, including officials from Kim Il Sung Military University, aims to strengthen military cooperation. This trip follows the agreement to provide immediate military support if either nation is attacked. Lee Minji, Yonhap News Agency, July 9
Papua New Guinea minister facing domestic assault charge steps down. Opposition demands resignation. Papua New Guinea’s Petroleum Minister Jimmy Maladina has stepped down amid domestic assault charges in Australia. Opposition leader Douglas Tomuriesa urged Prime Minister James Marape to fire Maladina rather than allow a temporary step aside. Australian police arrested and charged a 58-year-old man after a domestic dispute in Sydney, widely reported to be Maladina. Marape announced Maladina's temporary step aside while appointing an acting minister. Maladina, on bail, is scheduled to appear in court Thursday. Charlotte Graham-McLay, AP News, July 9
Ex-MP loses appeal over B5m bribe demand. Former Pheu Thai MP Anurak Tangpanitanon has lost his appeal against a six-year prison sentence for demanding a 5-million-baht bribe from a senior civil servant. The Supreme Court's appeal panel upheld the original decision, citing a properly conducted investigation by the National Anti-Corruption Commission (NACC). Anurak was also stripped of his MP status, banned from running in elections or holding political positions for life, and prohibited from voting for 10 years. Wassayos Ngamkham, Bangkok Post, July 9
Myanmar junta rushing to hold Upper Mandalay as resistance moves south. The Myanmar junta is intensifying efforts to maintain control over Upper Mandalay in response to increasing resistance operations. Ethnic armed organizations and People's Defense Forces (PDFs) have launched coordinated attacks, causing significant losses for the junta, including troop casualties and damaged military outposts. Resistance groups have used drones and other tactics to target junta forces, leading to fierce clashes in regions like Sagaing and Tanintharyi. The conflict has resulted in widespread instability, forcing many residents to flee their homes. The Irrawaddy, July 9
Labour ministry, Japanese JBAC sign MoU to support technical, vocational training. The Ministry of Labour and Vocational Training and the Japanese Business Association of Cambodia (JBAC) signed a memorandum of understanding (MoU) to enhance technical and vocational training. The agreement focuses on internships, skills exchange, and capacity building to improve productivity, especially for youth from poor and vulnerable families. This collaboration aims to strengthen human resource development and provide practical work experience through internships at Japanese companies in Cambodia. Ry Sochan, The Phnom Penh Post, July 9
War cannot solve problems, India's PM Modi tells Russia's Putin. During a meeting with Russian President Vladimir Putin, Indian Prime Minister Narendra Modi emphasized that war is not a solution to conflicts. Modi, visiting Russia, urged for a peaceful resolution to the ongoing Ukraine war through dialogue and diplomacy. Putin acknowledged India's concerns and assured efforts to end the conflict soon. Modi's visit is significant as it is his first since Russia's invasion of Ukraine, showcasing India's diplomatic efforts to address the war while maintaining its relationship with Russia. Al Jazeera, July 9
Air freight rates in Singapore set to continue rising amid worldwide port congestion. Port congestion worldwide has led to a significant rise in air freight rates, with companies in Singapore now paying up to 50% more to ship goods by air. Local firms are switching from sea to air freight to avoid shipping delays, increasing demand for air cargo. Logistic providers report a 20% uptick in such requests, driven by peak delivery seasons and ongoing disruptions. This trend is expected to persist, exacerbating costs for businesses reliant on timely deliveries. Nadirah Zaidi and Louisa Tang, Channel News Asia, July 9
Long Form
The broad Asia‑Pacific ambition for Britain under Labour. Labour’s victory has shifted UK foreign policy towards reengagement with the Asia-Pacific. Prime Minister Keir Starmer aims to rebuild Britain’s credibility, while Foreign Secretary David Lammy emphasizes “progressive realism.” The UK is committed to AUKUS, the CPTPP, and addressing climate change with Australia. Despite domestic challenges, Britain seeks to strengthen multilateral ties, particularly with the G20, NATO, and the UN, signaling renewed international diplomacy. Claire Yorke, Lowy Institute, July 9
Vietnam’s recent challenges shouldn’t deter savvy investors. Despite political instability, Vietnam remains attractive to investors due to its extensive trade agreements and strategic autonomy from China. Newly appointed President To Lam and Prime Minister Pham Minh Chinh, though politically competitive, both aim to boost foreign investment. Investors must navigate the bureaucracy and political tensions but can expect high risk-adjusted returns, especially in sectors like health, energy, and consumer products. Robert Law, Lowy Institute, July 10
Tokyo Voters Make Their Choice. Tokyo Governor Yuriko Koike won her third term in the recent election, signaling continued support for her leadership. Despite competition from Renhō, who emphasized making Tokyo more livable, and Ishimaru Shinji, who focused on Japan’s demographic challenges, Koike maintained her popularity. The Liberal Democratic Party faced setbacks, losing several Tokyo Assembly seats. Koike plans to address gender equality and support for families and the elderly. Sheila A. Smith, Council on Foreign Relations, July 9
Can Beijing Reset Expectations at the Third Plenum? The upcoming Third Plenum of the Communist Party’s Central Committee, set for July 15-18, aims to address China's economic challenges and reform priorities. Key issues include fiscal reform, land reform, unifying national markets, and industrial innovation. The meeting is crucial for Beijing to reset both domestic and international expectations regarding its economic direction and policy effectiveness. Despite significant structural challenges, the Plenum is unlikely to produce immediate breakthroughs, focusing instead on long-term strategic adjustments. Logan Wright, Daniel H. Rosen, Allen Feng, Matthew Mingey, and Rogan Quinn, Rhodium Group, July 9
Gender is reshaping South Korea's electoral landscape. Gender issues have become a significant factor in South Korea's political scene, influencing voter behavior and party strategies. The younger male demographic has increasingly adopted conservative views, often blaming feminism for economic and social challenges. This has contributed to electoral successes for conservative candidates, who have capitalized on male voters' frustrations over perceived inequalities and economic anxieties. As the country faces demographic and economic challenges, the role of gender in politics is expected to remain a pivotal issue in upcoming elections. Youngmi Kim, East Asia Forum, July 9
The Luzon Economic Corridor as the United States’ Southeast Asian Litmus Test. The Luzon Economic Corridor, launched at the U.S.-Japan-Philippines trilateral summit, is a initiative under the U.S. Partnership for Global Infrastructure and Investment (PGII). This project aims to boost economic ties among the three nations and counter China's Belt and Road Initiative. The corridor includes major infrastructure projects such as the Subic-Clark railway, expansion of Clark International Airport, and the Clark National Food Hub. Success in these projects could enhance U.S. economic influence in Southeast Asia and support Philippine President Ferdinand Marcos Jr.'s infrastructure goals amid fiscal constraints. Alvin Camba and Ryan Seay, East Asia Forum, July 10
New Caledonia on the Brink of Civil War. Recent violence in New Caledonia has escalated due to proposed changes to the territory’s electoral laws, which would allow long-term French residents to vote in provincial elections. This is seen as undermining the political representation of the indigenous Kanak population, who have been pushing for independence. The unrest has resulted in destruction, casualties, and the deployment of thousands of French troops to maintain order. Economic issues, particularly in the struggling nickel industry, and deep-seated socio-political tensions further exacerbate the crisis. Ann-Sophie Levidis, East Asia Forum, July 9
Why the Panchen Lama Matters. The 11th Panchen Lama, Chokyi Gyalpo, is a controversial figure due to his selection by the Chinese government and the disappearance of the Dalai Lama's chosen candidate. Despite criticisms, his recognition could greatly impact Sino-Tibetan relations. The Panchen Lama's cooperation with the Chinese government and his potential acceptance by the Dalai Lama could improve conditions for Tibetans and protect their cultural heritage. Antonio Terrone, The Diplomat, July 9
Sri Lanka’s Debt Restructuring Deal: Economic Relief or Creditor Windfall? Sri Lanka's recent debt restructuring agreement aims to provide economic relief amidst its financial crisis. The deal includes extending payment periods and reducing interest rates. However, critics argue it disproportionately benefits creditors at the expense of Sri Lanka's long-term recovery. The success of this restructuring will depend on effective governance, economic reforms, and continued support from international financial institutions. Rathindra Kuruwita, The Diplomat, July 9
The Russia-North Korea Military Alliance: Reducing Its Negative Fallout. The newly signed military pact between Russia and North Korea has heightened tensions on the Korean Peninsula. The alliance could embolden Kim Jong Un to provoke South Korea, risking escalation into broader conflict. To mitigate these risks, Moscow must reassure Seoul, avoid aiding North Korea’s nuclear program, and consider abrogating the pact if Pyongyang takes excessive risks. Cooperation from Beijing and diplomatic efforts by Seoul, Washington, and Tokyo are crucial for stability. Jongsoo Lee, The Diplomat, July 9
Central Asia’s Post-Ukraine Future. The prolonged war in Ukraine has disrupted Central Asia's geopolitical layout, challenging the region's balancing act between Russia, China, and the West. While Russia remains a significant influence, China has emerged as a crucial partner, replacing Russia as the top trading partner for many Central Asian countries. The war has prompted these nations to diversify their foreign relations and economic ties, though they must navigate the complexities of not appearing overtly aligned against Russia while fostering international cooperation. Ahmad Tariq Noorzadeh, The Diplomat, July 9
India's climate crisis: new coal mining spreads as heatwaves drain hydro dams. India faces a severe climate crisis as expanding coal mining exacerbates environmental degradation while heatwaves deplete hydroelectric power sources. The increased reliance on coal stems from the urgent need to meet energy demands despite its environmental impact. Hydro dams, vital for sustainable energy, are struggling due to rising temperatures and reduced water levels. This dual challenge highlights the urgent need for India to balance energy needs with climate action to ensure long-term sustainability. Priyanka Shankar and Valeria Mongelli, Nikkei Asia, July 10
Pakistan's rooftop solar boom shines spotlight on power crisis. Amid chronic power shortages, Pakistan is witnessing a surge in rooftop solar installations. Homeowners and businesses are increasingly turning to solar energy to mitigate the impact of frequent blackouts and rising electricity costs. This shift towards solar power shows the country's struggle with an unreliable power grid and its dependence on costly fossil fuel imports. The growing solar market reflects a broader trend of seeking sustainable energy solutions to address the ongoing energy crisis. Adnan Aamir, Nikkei Asia, July 9
BOJ needs to remove the straitjacket of its hard 2% inflation target. The Bank of Japan (BOJ) is urged to reconsider its rigid 2% inflation target, which has constrained its monetary policy. The current target limits flexibility in responding to economic changes and could lead to unintended consequences. A more adaptable approach, considering broader economic indicators, may enhance the BOJ's effectiveness in achieving sustainable economic growth and stability. Masaaki Shirakawa, Nikkei Asia, July 10
Warning signs are flashing over India's financial excesses. Concerns are growing about India's financial sector due to excessive lending and rising debt levels. Analysts warn that the rapid credit expansion could lead to asset bubbles and financial instability. The government's heavy borrowing and private sector leverage pose risks to economic health, necessitating regulatory vigilance and prudent fiscal policies to mitigate potential crises. Karan Mehrishi, Nikkei Asia, July 9
Kim Il Sung solved ‘succession problem,’ North Korea says 30 years after death. North Korea commemorated the 30th anniversary of Kim Il Sung’s death with large-scale events led by Kim Jong Un, emphasizing the importance of hereditary rule. State media highlighted Kim Il Sung's legacy in establishing a stable succession plan, reinforcing the legitimacy of Kim Jong Un's leadership and future family rule. The ceremonies included visits to Kim Il Sung’s mausoleum and a concert, aiming to strengthen the regime's image domestically and internationally. Colin Zwirko, NK News, July 9
North Korean hackers put Japan in crosshairs with new phishing attacks. The North Korean cybercrime group Kimsuky has expanded its operations to target Japanese organizations through phishing attacks, posing as a security and diplomatic organization. This campaign, observed by the Japan Computer Emergency Response Team Coordination Center (JPCERT/CC), stressing increasing cyber threats from North Korea aimed at stealing sensitive information related to Japan's foreign policy. Shreyas Reddy, NK News, July 10
How North Korea could steal from China’s playbook to assert its maritime claims. North Korea might adopt China's strategies to assert its maritime claims over the Northern Limit Line in the Yellow Sea. This could involve using "gray zone" tactics like air and sea incursions, cyberattacks, and deploying fishing fleets to exert pressure without escalating to open conflict. Such actions would challenge South Korea and regional stability while testing the international community's response. Peter Ward, NK News, July 9
South Korea’s ambitious foreign policy risks overextension and inconsistency. President Yoon Suk-yeol's strategy aims to establish South Korea as a "Global Pivotal State," focusing on liberal democracy, human rights, and the rule of law. However, this approach might lead to overextension and inconsistency, especially with potential domestic political shifts. Yoon's policy contrasts with the previous administration’s North Korea-focused agenda and seeks a broader global role. Sooyoung Oh, Korea Pro, July 9
Yoon’s warning: Russia-North Korea ties threaten peace in Europe and Asia. South Korean President Yoon Suk-yeol has expressed concern over the military cooperation between Russia and North Korea, describing it as a significant threat to peace in both Europe and Asia. He emphasized South Korea's intent to strengthen NATO cooperation, including joint cyber defense training, in response to these developments. Yoon also highlighted Russia's violation of U.N. sanctions and warned of negative repercussions for ROK-Russia relations. Korea Pro, July 9
Southeast Asia and BRICS: Fear of Missing Out. Five Southeast Asian countries are considering joining BRICS, seeking economic benefits and alternatives to the Western-dominated order. Malaysia, Thailand, Laos, Cambodia, and Myanmar show interest due to BRICS' potential to offer better trade access and favorable lending terms. However, concerns arise about over-reliance on China and the impact on ASEAN’s unity. The region's interest in BRICS reflects a desire to diversify international relations and economic partnerships. Sharon Seah, Fulcrum, July 9
Just Energy Transition Partnerships (JETPs) in Indonesia and Vietnam: Implications for Southeast Asia. Indonesia and Vietnam's implementation of JETPs faces challenges like financing gaps, complex political-economic bureaucracy, and social impacts. Despite these obstacles, JETPs offer opportunities for renewable energy development and inclusive growth. The partnerships can enhance trade within ASEAN, support rural development, and balance China's influence in renewable investments. Effective governance and international cooperation are crucial for successful energy transitions in these countries. Melinda Martinus, Fulcrum, July 9