Asia Daily: October 3, 2024
Singapore's disgraced former minister S. Iswaran jailed in landmark case. A Singapore court sentenced former transport minister S. Iswaran to 12 months in prison for receiving more than $300,000 in gifts and obstructing justice. Iswaran, who served in the cabinet for 13 years, pleaded guilty to charges of accepting gifts from businessmen with whom he had official dealings. This is the first time a former Singaporean cabinet minister has been jailed, in a case that has shocked the country known for its clean governance. Xinghui Kok, Reuters, October 3
China chip-packaging giant JCET takes over Shanghai plant of U.S. flash memory maker SanDisk. Jiangsu Changjiang Electronics Tech (JCET) has completed its acquisition of an 80% stake in SanDisk Semiconductor's Shanghai plant, solidifying its position in the global semiconductor value chain. The deal, valued at $624 million, was approved by China’s antitrust authority in August. SanDisk, a subsidiary of Western Digital, retains a 20% stake. This acquisition enhances JCET's footprint in data storage and strengthens ties with long-term client Western Digital. Zhou Xin, South China Morning Post, October 3
Cambodian maid is arrested and deported by Malaysia for criticizing Cambodia leaders on social media. Nuon Toeun, a Cambodian maid working in Malaysia, was deported after criticizing Cambodia’s government on social media. She was arrested by Malaysian authorities at Cambodia’s request and is now detained at Prey Sar prison in Phnom Penh, charged with incitement. If convicted, she faces up to five years in prison. Human rights groups have condemned the deportation as part of a broader regional trend of cracking down on political dissidents. Eileen Ng and Sopheng Cheng, AP News, October 3
North Korea's Kim Yo Jong mocks Seoul military parade, downplays capabilities. Kim Yo Jong, the influential sister of North Korean leader Kim Jong Un, criticized the military parade held in Seoul for Armed Forces Day, calling it a "clown show" in a statement released by state media KCNA. She dismissed the display of South Korea’s military strength, including a flyover by a U.S. B-1B bomber, and ridiculed South Korea’s new Hyunmoo-5 missile, describing the event as militarily ineffective. Her remarks reflect ongoing tensions between the Koreas. Hyunsu Yim, Reuters, October 3
“Duterte's lack of transparency led to lower ratings.” Vice President Sara Duterte’s approval rating fell by 9 percentage points, largely due to public dissatisfaction with her handling of ₱125 million in confidential funds. The lack of transparency in explaining how these funds were spent fueled concerns and criticisms. This decline in approval is seen as a direct result of her reluctance to disclose details about the allocation and use of the funds, according to political analysts. Red Mendoza, The Manila Times, October 3
Kazakhstan: Authorities employing various tactics to ensure ‘yes’ vote in nuke referendum. Ahead of Kazakhstan's October 6 referendum on constructing a nuclear power plant, authorities have escalated pressure on anti-nuclear activists, detaining at least 16 individuals and denying protest permits. Activists claim the government is attempting to suppress dissent to guarantee a favorable outcome. The referendum asks if citizens support building the plant near Lake Balkhash, with polling suggesting a narrow majority in favor. Critics accuse the government of employing repressive measures to ensure a "yes" vote. Almaz Kumenov, Eurasianet, October 3
S. Korean, U.S. navies hold joint drill in East Sea. South Korea and the United States completed a joint naval exercise in the East Sea to enhance operational interoperability, the South Korean Navy reported on Thursday. The two-day drill involved four naval vessels, including South Korea's ROKS Marado and the U.S. amphibious assault ship USS Boxer, which can carry about 40 aircraft, including F-35B stealth fighters. The exercise focused on improving combined operations to respond effectively to potential provocations. Yoo Jee-ho, Yonhap News Agency, October 3
Cambodia withdraws from development pact with Laos, Vietnam. Cambodian Prime Minister Hun Manet announced Cambodia’s withdrawal from the Cambodia-Laos-Vietnam Development Triangle Area (CLV-DTA) on September 20, citing concerns over national sovereignty and political opposition. The move came after domestic protests accusing the pact of giving Cambodian land to Vietnam. The CLV-DTA, established in 1999, aimed to promote regional economic cooperation and poverty reduction in border areas. Cambodia's departure raises uncertainty about the future of the partnership. Phonethida Sitthixay, The Laotian Times, October 2
Ong Beng Seng set to be charged on Oct 4 over Iswaran case. Singaporean tycoon Ong Beng Seng will be charged in connection with former transport minister S Iswaran's corruption case. Ong is expected to face charges under Singapore's Penal Code for abetting and obstructing justice. He allegedly provided Iswaran with valuable gifts, including tickets to the 2022 Singapore Grand Prix, and facilitated a private jet trip to Doha, prompting a corruption investigation. Ong remains out on S$800,000 bail. Lydia Lam, Channel News Asia, October 3
House rejects People's Party liquor liberalisation bill. Thailand’s House of Representatives voted down a bill by the Move Forward Party (formerly People's Party) aimed at liberalizing alcohol production, which would have allowed small-scale distillers more freedom. The bill, rejected by a 237-137 vote, faced opposition over safety concerns and preference for state control. More conservative bills from the Pheu Thai and United Thai Nation Party were passed instead. Aekarach Sattaburuth, Bangkok Post, October 3
Japan irked by Russia's denial of alleged Sept. airspace breach. Chief Cabinet Secretary Yoshimasa Hayashi expressed strong dissatisfaction with Russia's denial of an airspace violation near Hokkaido on Sept. 23. Moscow rejected Japan’s protest, claiming it could not confirm that an IL-38 patrol plane had flown over Japanese waters. Japan reported three intrusions, each lasting 30 seconds to a minute, prompting its Air Self-Defense Force to fire a signal flare. Tensions between Japan and Russia have escalated since the Ukraine invasion, and similar airspace violations by China have also been reported. Kyodo News, October 3
U.S. bans Chinese steel and food-additives firms over Xinjiang human rights. The United States has banned imports from two Chinese companies, Baowu Group Xinjiang Bayi Iron and Steel and Changzhou Guanghui Food Ingredients, due to alleged human rights violations involving Uygur forced labor in Xinjiang. This move adds these firms to the Uygur Forced Labour Prevention Act (UFLPA) entity list, with restrictions taking effect on October 3. Homeland Security noted these are the first steel and aspartame companies to be blacklisted under UFLPA, which targets forced labor across multiple sectors. Bochen Han, South China Morning Post, October 3
Malaysian and Pakistani prime ministers agree to boost trade and economic ties. During talks in Islamabad, Malaysian Prime Minister Anwar Ibrahim and Pakistan’s Shehbaz Sharif committed to enhancing bilateral trade and economic relations. They discussed cooperation across sectors like energy, agriculture, and tourism, aiming to remove trade barriers and address the trade imbalance. Bilateral trade reached $1.5 billion in fiscal year 2023-2024. This move comes as Pakistan seeks to expand economic ties after securing a $7 billion loan from the IMF. Author, AP News, October 3
Top leader witnesses exchange of Vietnam-Ireland cooperation agreements. During a state visit to Ireland, Party General Secretary To Lam oversaw the signing of multiple cooperation agreements between Vietnam and Ireland. The deals include partnerships in education, scientific research, and digital transformation. Notable agreements were signed between Vietnam National University, Hanoi, and University College Dublin, as well as between tech giant FPT Corporation and Irish firms in artificial intelligence and digital infrastructure. The agreements aim to boost collaboration across key sectors. Vietnam News, October 3
China to bring Tanzania-Zambia railway back to full speed with US$1 billion boost. China has pledged over $1 billion to revitalize the aging Tanzania-Zambia Railway (Tazara), marking a strategic move to enhance transportation for Zambia’s copper and the Democratic Republic of the Congo's minerals. The rehabilitation plan includes upgrading tracks, adding locomotives, and transferring operations to China Civil Engineering Construction Corporation for 30 years. The timing coincides with U.S. and EU efforts to expand their influence in Africa’s infrastructure development. Jevans Nyabiage, South China Morning Post, October 3
Ishiba Cabinet gets relatively low approval rating of 46%. Prime Minister Shigeru Ishiba’s new Cabinet received a 46% approval rating, the second lowest for a newly inaugurated administration since 2001. Disapproval stood at 30%, second only to the Taro Aso Cabinet's 36%. Younger voters, particularly those aged 18 to 29, and unaffiliated voters expressed lower support. The survey, conducted by The Asahi Shimbun, also showed 64% of respondents felt no change in their impression of the ruling Liberal Democratic Party despite Ishiba’s leadership. The Asahi Shimbun, October 3
5 Chinese nationals charged with covering up midnight visit to Michigan military site. U.S. authorities have charged five Chinese nationals, former University of Michigan students, with conspiracy and obstruction for attempting to hide their midnight visit to Camp Grayling, a military site in Michigan. The charges stem from efforts to mislead investigators and erase photos from their devices following the incident in August 2023. The FBI cited similar cases of Chinese students photographing U.S. defense sites. None of the accused are currently in custody. Ed White, AP News, October 2
Yoon to embark on three-nation Southeast Asian trip next week. South Korean President Yoon Suk Yeol will visit the Philippines, Singapore, and Laos from Sunday as part of a six-day trip to attend ASEAN-related meetings and hold bilateral talks. He will meet Philippine President Ferdinand Marcos Jr. to discuss economic cooperation, and Singaporean Prime Minister Lawrence Wong to explore collaborations in AI, digital technology, and energy. Yoon will also attend the ASEAN Plus Three summit and seek to elevate South Korea's relations with ASEAN to a comprehensive strategic partnership. Kim Eun-jung, Yonhap News Agency, October 3
Nikkei ends nearly 2% higher as yen sinks on Ishiba's dovish remarks. Japan's Nikkei stock index rose nearly 2% on Thursday, bolstered by a sharp drop in the yen following remarks by new Prime Minister Shigeru Ishiba. After meeting with Bank of Japan Governor Kazuo Ueda, Ishiba suggested that the current environment is unsuitable for interest rate hikes, leading the yen to fall to 147.25 against the dollar, its lowest in over a month. Exporter stocks surged, and easing concerns over potential capital gains tax hikes also contributed to market gains. Kyodo News, October 3
Condemnation grows after China fires test rocket into central Pacific. Pacific leaders have expressed growing outrage following China's test-firing of a nuclear-capable missile into the central Pacific. The missile landed near Kiribati’s exclusive economic zone, sparking regional concerns about geopolitical tensions. Fiji's President Ratu Wiliame Katonivere condemned the test at the United Nations, urging respect for Pacific sovereignty. Questions remain about whether Kiribati, which has close ties with China, agreed to the test. PINA, October 3
A Trump win splits the East Asian triangle. China’s leadership is wary of a potential Trump victory, seeing his unpredictability as detrimental to their strategic ambitions. While initially exploiting Trump's transactional nature, Beijing now fears his chaotic policies could undermine their goals in Taiwan and the South China Sea. Japan, though historically aligned with Republicans, has warmed to Trump due to his tough stance on China, while South Korea remains ambivalent, focusing more on North Korean threats. Both nations recognize the risks Trump’s erratic behavior poses. Richard McGregor, Lowy Institute, October 4
Parting the waters: India v Pakistan. India has requested a modification of the Indus Water Treaty, citing demographic changes, energy needs, and security concerns in Kashmir. The treaty, which has historically managed water-sharing between India and Pakistan, is now under strain as both nations face climate challenges and growing water demands. India argues the treaty disproportionately benefits Pakistan, while Pakistan remains heavily dependent on the Indus basin. Both sides must reconsider the treaty’s terms to address future environmental and political stresses. Ambika Vishwanath and Ruth Gamble, Lowy Institute, October 3
Vietnam wants a slice of the booming chip market. Vietnam is aiming to expand its role in the global semiconductor industry by moving beyond chip assembly and packaging into more advanced areas like design and manufacturing. Despite efforts, challenges such as limited infrastructure and skilled labor have hindered progress. However, the country remains attractive due to low labor costs and its proximity to China. Investments from global companies like Samsung further strengthen Vietnam’s position as a growing player in the chip market. Gagandeep Kaur, Fierce Electronics, October 3
Deepfakes and Korean Society: Navigating Risks and Dilemmas. South Korea faces growing challenges with the rise of deepfakes, especially their use in malicious content, such as pornography and political manipulation. The government has enacted legislation to curb deepfake misuse, including criminalizing the creation of sexual deepfakes and regulating their use in elections. However, concerns about privacy, enforcement, and international cooperation persist as technology advances. Policymakers must balance regulation with protecting digital rights. Terrence Matsuo, Korea Economic Institute, October 3
Why ASEAN should not be a US-China battleground. ASEAN should not be reduced to a battleground for US-China rivalry. Southeast Asian nations seek economic and security partnerships from multiple countries, balancing relations with both superpowers while maintaining autonomy. Washington's zero-sum framing of its role risks alienating ASEAN members, who prioritize sovereignty and cooperation with multiple global partners, including China. The US must avoid coercion and focus on shared interests like economic growth, military cooperation, and cybersecurity. Natalie Sambhi, Brookings, October 3
China's Dollar Dilemma. China is facing a dilemma as it manages its substantial holdings of U.S. dollars. Despite efforts to diversify away from the dollar to mitigate risks, the lack of viable alternatives and the need to stabilize its currency against market volatility compel China to maintain large dollar reserves. The ongoing geopolitical tensions and economic pressures complicate China's ability to fully decouple from the dollar-dominated global financial system. Zhou Xiaochuan, Carnegie Endowment for International Peace, October 2
The US and China draw strategic triangles in Northeast Asia. The United States and China are shaping competing strategic triangles in Northeast Asia, involving key regional players like Japan, South Korea, and North Korea. While the US continues to reinforce alliances with Japan and South Korea, China focuses on leveraging its influence with North Korea and building economic ties across the region. These evolving relationships are creating new tensions and reshaping the security architecture, as each superpower seeks to strengthen its position without triggering direct conflict. The dynamic interactions are likely to impact regional stability and global geopolitics in the years to come. Jieun Baek, East Asia Forum, October 4
Fifth time’s the charm for Japan’s new prime minister. Japan's new prime minister takes office amid economic and political challenges, with hopes of stabilizing the nation's leadership after years of frequent changes. This is the fifth attempt by the ruling Liberal Democratic Party to find a leader capable of addressing key issues, including economic stagnation, demographic decline, and geopolitical tensions with neighboring countries. The prime minister's ability to build consensus and pursue necessary reforms will be critical to restoring confidence in Japan's governance. Willy Jou, East Asia Forum, October 3
Japan elects a new leader: Is anyone missing Kishida already? Shigeru Ishiba has been elected as Japan’s new prime minister, succeeding Fumio Kishida. Ishiba’s election signals a continuation of traditional leadership within the Liberal Democratic Party, but his cabinet lacks fresh faces or transformative appeal. Despite calling for a snap election on October 27, Ishiba faces challenges, including managing the economy and addressing public dissatisfaction. His expertise in defense issues might be outdated, and early approval ratings are middling. Yuki Tatsumi, Stimson Center, October 2
On Our Good Leg, We Rise: Fighting to Heal on Myanmar’s Front Lines. Amid Myanmar's ongoing conflict, the Sunshine Care Center in Mae Sot, Thailand, provides critical care to injured anti-junta fighters and civilians. Led by "Ah Naw," the center supports physical and emotional recovery for those severely wounded, many of whom face long-term rehabilitation. The facility operates with limited resources but remains a beacon of hope for displaced individuals, symbolizing resilience and solidarity in the face of war. Hannah Oo and Than Oo, The Diplomat, October 3
A stimulus is good, but China still faces a hard slog. China's recent economic stimulus measures have boosted market optimism, but the road to sustained recovery remains challenging. The Chinese government has implemented policies such as monetary easing, fiscal expansion, and support for homebuyers. However, for lasting success, clear long-term goals are needed beyond short-term market reactions. China must navigate structural economic issues and geopolitical tensions to ensure sustained growth. Daniel Moss, The Japan Times, October 3
The China-Russia relationship once derided, now looks to endure. China and Russia's alliance has strengthened despite initial doubts about its durability, particularly after Russia's invasion of Ukraine. Their growing military cooperation, including joint exercises, underscores the depth of this partnership. Geopolitical dynamics continue to align the two powers, with shared interests in countering Western influence. Although future challenges may arise, their relationship is likely to endure due to these strategic considerations. Brad Glosserman, The Japan Times, October 2
Political will sorely lacking in Thai educational reform. Thailand's education system continues to struggle due to a lack of political will. Frequent leadership changes, outdated curricula, and inconsistent reforms have hindered progress. Although innovative policies like educational "sandboxes" offer potential, they face political obstacles. Without sustained attention and genuine commitment from the government, efforts to improve the quality of education are unlikely to succeed. Mathis Lohatepanont, Fulcrum, October 4
Malaysia’s Corporate Renewable Energy Supply Scheme (CRESS): A Step Forward but with Challenges. Malaysia’s Corporate Renewable Energy Supply Scheme (CRESS) enables large corporations to buy renewable energy directly from independent power producers, aiming to meet ambitious sustainability targets. However, challenges include limited participation from SMEs and concerns about grid infrastructure upgrades. The System Access Charge (SAC) also poses financial hurdles for intermittent renewable energy producers. Addressing these issues is critical for CRESS to drive meaningful progress in Malaysia's renewable energy transition. Renard Siew, Fulcrum, October 3