PHNOM PENH — With no end in sight to the so-called trade war raging between the US and China, the European Union (EU) sees a chance to act as the guardian of free trade and hold its own against the two giants. But as the bloc gets increasingly bogged down in spats with individual Southeast Asian countries, prospects for a wider regional trade relationship look increasingly precarious. With Cambodia’s eligibility for preferential market access to the EU coming under question and with the likelihood growing that Myanmar could be put under similar scrutiny, the EU appears to be hedging against any consequent damage to its relations with Southeast Asia by seeking free trade agreements and closer defence ties with some of the region’s countries. While for now Cambodia can export duty-free to the 28-country, 513 million-population European Union market, this week saw the end of the “monitoring and engagement” phase of a review of that access, potentially putting $5 billion worth of Cambodian garment exports at risk. A European Commission spokesperson said in an August 12 email that “over the next six months, the Commission and the European External Action Service will analyse all the evidence collected”.
KUALA LUMPUR — The United States has kept Malaysia on its watch list of countries that do not meet minimum efforts for the elimination of human trafficking. The 2019 Trafficking in Persons (TIP) report, launched on June 20 by U.S. Secretary of State Mike Pompeo, said Malaysia’s government had not demonstrated overall increasing efforts compared with the previous year. But the report noted that Malaysia’s year-old government led by Prime Minister Mahathir Mohamad had initiated an official Royal Commission of Inquiry into the mass graves of human trafficking victims at Wang Kelian near the border with Thailand. “In general, the situation has not changed in any significant way,” said Dobby Chew of human rights group Suara Rakyat Malaysia.
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.
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 — Governments across Asia are seeking to bring millions of informal workers into regulated employment, and stem a major economic drag on the world’s fastest-growing region. Bangladesh, Indonesia and China have taken steps this month that could help formalize employment for a vast pool of workers that are struggling on the margins of their economies, many as self-employed merchants or agricultural laborers. The World Bank estimates that informal workers make up 47% of jobs in the East Asia and Pacific region, with the figure rising to between 60% and 80% in lower income countries such as Myanmar and Laos. The government in Dhaka last week signed a $250 million deal with the institution aimed at supporting efforts “to create large-scale, better-paid and inclusive jobs.”
JAKARTA — Myanmar attracted the most foreign direct investment of any of the world’s so-called “least developed countries” in 2017, even as the nation’s reputation plummeted over its forced expulsion of tens of thousands of Rohingya Muslims. The $4.3 billion worth of realized FDI that went into the resource-rich Southeast Asian country put it on top of the global economy’s bottom division of 47 nations, according to a report by the United Nations Conference on Trade and Development. Myanmar edged out second-place Ethiopia, with Asian neighbors Cambodia and Bangladesh taking third and fifth spots. Even so the nations remain far behind Association of Southeast Asian Nations peers such as Indonesia and Vietnam.
JAKARTA — The sight of commuters, their faces hidden behind masks, zipping around on the back of motorcycle taxis is common across Asia. The bikes weave through gridlock in cities like Jakarta and Bangkok, getting the passengers to work on time. The masks, sometimes worn by both driver and passenger, hint that the air they breathe might not be the cleanest. Judging from World Health Organization figures released on Wednesday, covering 4,300 cities across 108 countries, the commuters have the right idea. Of an estimated 7 million deaths worldwide per year from air pollution, just over two-thirds take place in Asia, which is home to slightly less than 60% of the global population. Breaking the numbers down further, the 10 countries in the WHO’s “South-east Asia” region account for about a quarter of the world’s population but suffer around 2.4 million, or 34%, of all air pollution deaths.
YANGON — Kyaw Soe Win, who was jailed from 1992 to 1998, now leads AAPP(B)’s work with ex-prisoners suffering mental health problems. “Friends, colleagues provided the photos to us,” he said of the hundreds of images, some grainy, faded, black and white, and dating to the 1960s. Inside the museum is a plastic table-top model of Insein, crafted by Htin Aung, another former political prisoner who works with Kyaw Soe Win. The display occupies the middle of the room alongside smaller examples of art and craft works by ex-detainees, as well as rusted shackles worn by prisoners forced to work in chain gangs in remote areas.
RANGOON — One of Burma’s thousands of former political prisoners, Bo Kyi fled to Thailand after he was freed from jail in 1997. He then spent the best part of 2 decades keeping track of and lobbying for the release of others jailed in his homeland for opposing the country’s former military dictatorship. His Assistance Association for Political Prisoners (Burma), or AAPP, opened an office in Rangoon, after Burma, officially known as Myanmar, after the army surprisingly handed power to a civilian government in 2011. The high point of that transition came in 2015 when the National League for Democracy, the party led by Aung San Suu Kyi, probably the world’s best known political prisoner since Nelson Mandela, won parliamentary elections. But now, three weeks after the AAPP opened a museum in Yangon commemorating those jailed fighting for democracy, Bo Kyi is angry. “We have a hybrid regime, we do not have democratic government, we still have political prisoners,” he said.