JAKARTA — Rising incomes mean that Asians are increasingly likely to get drunk at least once a month, according to new data underpinning a report on global drinking habits published this week in The Lancet, a British medical journal. Since 1990, so-called “heavy episodic drinking” has increased significantly in China, Thailand, Timor Leste and Vietnam. Tiny Bhutan, source of the concept of “gross national happiness,” coined by the country’s king in 1972 as an alternative to the standard economic yardsticks of gross national product or income per capita, is more often drowning its sorrows.
JAKARTA — As alcohol consumption rises across Asia, Indonesians, including local Catholics, appear to be oblivious to the region’s growing taste for a tipple, but Catholics elsewhere in Asia appear to be drinking more as incomes rise. New research published by The Lancet medical journal suggests Asia is the world’s booze growth market, as consumption is either leveling off or dropping in most other places. The report found that from 1990-2017, consumption increased by 104 percent across Southeast Asia and 54 percent in Western Pacific, going by to geographical regions designated by the World Health Organization (WHO). Some 79 percent of Indonesians are teetotalers, down from 84 percent in 1990, the data showed. This compares to over 90 percent of people who abstain from drinking for life in Afghanistan, Bangladesh and Pakistan, where Catholic charity Caritas has been working to help those young people who do fall prey to drug and alcohol addiction. “Muslim countries consume way less alcohol (than non-Muslim nations), and consequently (they have) substantially less of a problem drinking,” said Dr Jürgen Rehm from the University of Toronto, one of the authors of the report.
JAKARTA — As oil prices fluctuate and markets brace for the impact of the end of a US sanctions waiver on fuel purchases from Iran, Asia’s energy companies are making deals closer to home as bigger global players pull away from the region. Southeast Asia has already seen up to US$2.8 billion in mergers and acquisition (M&A) deals so far this year, according to Wood Mackenzie, a United Kingdom-based consultancy. Those deals have been led by US-based Murphy Oil selling its Malaysia operations to PTTEP, a subsidiary of Thailand’s national energy company, for $2.1 billion. Wood Mackenzie predicts that up to $14 billion of energy assets could change hands in the region this year if, as expected, more M&A deals like the Murphy-PTTEP deal are completed. Big deals such as the Murphy-PTTEP sale represent a significant jump, given that a typical Southeast Asian oil and gas M&A deal over the past five years has been worth a mere $111.6 million, according to S&P Global Market Intelligence data. Total annual energy deal values in Asia have ranged between $5.4 billion and $8.7 billion in the past four years, according to Wood Mackenzie data. Wood Mackenzie’s Andrew Harwood said that he expects buyers to be “Southeast Asian NOCs [national oil companies] and smaller regional players” with back-up from “some of the mid-tier IOCs [international oil companies] that retain Southeast Asian ambitions.”
KUALA LUMPUR — New economic data shows that foreign remittances sent to Asian countries hit US$300 billion for the first time last year, underscoring the ever-rising importance overseas work for the region’s laborers despite world-beating economic growth rates. Freshly released World Bank statistics put the total amount of remittances for 2018 to countries in South Asia, Central Asia, Southeast Asia, East Asia and the Pacific at $299.6 billion, a sum that does not include what are believed to be substantial informal flows of money sent home by regional migrants. Globally and in Asia, remittance figures are growing year by year, despite heady 6-7% gross domestic product (GDP) growth in countries such as the Philippines, a nation which has around 10 million of its citizens working abroad across various vocations. The 2018 amount of regional remittances was around $25 billion greater than in 2017 and $125 billion more than in 2008. Worldwide, remittance flows now account for more than foreign direct investment to middle and low income countries excluding China, the World Bank data shows.
JAKARTA — As hundreds of millions of Asians enjoy higher living standards in the move from lower to middle class, a warning of the trend’s sustainability came this month from Europe, where middle class expansion has stalled. The Organization for Economic Co-operation and Development (OECD), a Paris-based club that includes most of the world’s wealthiest nations, reported that many of its member states have “seen their standard of living stagnate or decline, while higher income groups have continued to accumulate income and wealth.” The middle class crisis in the West means disappointment for those who hoped that standards of living would continue to improve, as was the case for their forbears during the four or five decades after World II. But more recent times have seen the top 10% of earners’ share of total wealth rocket to nearly half the national average — findings contained in a new OECD report, Under Pressure: The Squeezed Middle Class, that in turn paints a grim picture for the third of member state populations described as “economically vulnerable.”
KUALA LUMPUR — The spread of online political rumors, false content and hoaxes has fact-checkers working overtime ahead of elections in Thailand, India, Indonesia and the Philippines. In February, a video first seen last year resurfaced on social media of Grace Poe, a Philippine politician, allegedly backing the blocking of Facebook in the country, where freedom of speech is ingrained in the constitution and the number of social media users is 76 million, much higher than the 61.8 million people who are registered to vote. But the video, which was posted by an account supporting President Rodrigo Duterte, who defeated Poe and other candidates in 2016 presidential elections, excluded some vital comments by the senator, who will defend her seat in May’s midterm elections. “Can you block a particular company like Facebook from being accessed in the Philippines? I know they do this in China,” Poe was shown saying in the video, which had omitted the preceding comments to the question she posed: “Not that we’re going to do this — I’ll be the first to disagree if they do.” The misleading video was flagged by Vera Files, a fact-checking organization that is part of an elections-focused collaboration called Tsek.ph and which includes some of the Philippines’ main newspapers, television stations and media academics.
SINGAPORE — Candidates running in a slew of elections across Asia this year are taking to Twitter and other social media platforms to share slogans, pitch policies, rankle rivals and rouse crowds ahead of campaign rallies. For the last decade or so, elections have typically been depicted as social media-driven contests where the hashtag outranks the hustings when it comes to canvassing votes, particularly from smartphone-dependent millennials. While social media environments differ depending on the country, the importance of Twitter and Facebook might be overstated. Although some Asian candidates boast a huge social media presence, many of their followers appear to be fake or dormant, and the proportion of those who engage with posts is relatively low. Thailand, Indonesia, India are all holding general or presidential elections in the first half of this year, Australia is likely to vote in May, around the time the Philippines holds midterm polls. The three Southeast Asian countries are among the world’s five most internet-addicted, according to We Are Social’s 2019 global survey. Using the online Twitter analysis tool Sparktoro, which works by taking a representative sample of followers — along the lines of an opinion survey — it appears Indonesian President Joko Widodo has over 5.1 million fake followers. That equates to more than 47% of his total follower base.
BANGKOK — The arrest last week of a high-profile journalist in the Philippines and a gag order against a Thai television station are the latest reminders that Southeast Asia’s press freedoms rest on the whims of governments. But after investors poured a record $145 billion into the region last year, there is little reason to think they will be deterred by the latest clampdowns. Last year’s inflow, recently reported by the United Nations Conference on Trade and Development, included an unprecedented sum for Vietnam, a one-party communist state. As usual, around half of the money went via Singapore, which has been ruled by the People’s Action Party since independence in 1965 and where reporting is stymied by prolific use of the courts against foreign critics of the ruling elites. “In general, if we compare to other factors — political stability, infrastructure, predictability of rules — [press freedom] is not a decisive factor” in investment moves, said Miha Hribernik, head of Asia politics research at Verisk Maplecoft. Nonetheless, a free press can at least inform business decisions, according to Ebb Hinchliffe, Executive Director of American Chamber of Commerce of the Philippines, and John D. Forbes, Senior Adviser to the chamber. “A responsible free press is more useful and important than a censored one for the purpose of being informed,” they said in an email.
JAKARTA — Southeast Asia is bucking the global trend of falling direct foreign investment, as the low-cost fast-growing region solidifies its position as an attractive location for multinationals. James Dyson’s recent decision to relocate the headquarters of his eponymous technology business to Singapore is not about Brexit, the company said. Rather, the British tycoon said he is looking to a region that continues to exhibit solid growth — “future proofing” as his chief executive termed it. The move follows an October announcement that Dyson — famous for its vacuum cleaners — will make electric vehicles in Singapore, citing the city-state’s proximity to “high-growth markets” in emerging Asia, where annual gross domestic product could grow by 6.1% between now and 2023, according to the Organization for Economic Cooperation and Development. Asia received a third of global investment in 2018 and accounted for nearly all the year’s investment growth, according to the United Nations Conference on Trade and Development. This is despite global foreign direct investment (FDI) declining 19% in 2018. Japanese retailer Aeon opened a second large mall in Cambodia in June as part of its regional expansion plans, which this year will include new shopping centers in Hanoi and Bogor, Indonesia. “As for South East countries, generally speaking, they have been showing rapid economic growth and will keep their pace in future, too,” an Aeon Asia spokesperson said.
JAKARTA — When Mahathir Mohamad’s Alliance of Hope coalition surprised the world — and perhaps even themselves — by winning last May’s parliamentary vote in Malaysia, it was not just the first-ever opposition election win in the country’s history. Some saw it as the result of the first “WhatsApp election,” where the platform’s encrypted private messaging provided a sanctuary for citizens to discuss politics away from the raucous finger-pointing of social media platforms such as Twitter and Facebook. WhatsApp “offered security in that messages would come from ‘trusted’ contacts and thus be more ‘believable'” than open services such as Facebook or Twitter, said Serina Abdul Rahman, whose election research for the Singapore-based ISEAS-Yusok Ishak Institute took her to rural areas in the south and north of Malaysia. Apprehension over commenting publicly was likely heightened by Prime Minister Najib Razak’s anti-fake news law, which was announced ahead of the elections. Some saw the law as a tool for Najib to avoid public discussion of corruption allegations related to the scandal-riddled sovereign wealth fund, 1MDB.