PHNOM PENH – Cambodia appears to be the latest beneficiary of the US-China trade war, joining the already exhaustively profiled Vietnam among the countries enjoying increased exports to the US as tariffed Chinese goods open the door for other cheap suppliers. Latest US government data show annual imports from Cambodia rising significantly since the start of the year, with the US$1.8 billion registered from January-May a roughly 20% increase on the same period last year. Like Vietnam, Cambodia has duty-free access to American markets under the Generalized System of Preferences, a trade program designed to promote economic growth in the developing world. Trade represented 125% of Cambodia’s gross domestic product (GDP) in 2017, according to the World Bank. In 2018, the bulk of Cambodia’s goods exports to the US were clothing and footwear, with the Office of the US Trade Representative listing the top four sectors as knit apparel ($1.8 billion), woven apparel ($628 million), leather products ($390 million), and footwear ($329 million). Cambodia’s 2018 trade surplus with the US was $3.4 billion — which, though relatively-small compared with Vietnam’s near-$40 billion for the same year — will continue to rise this year as Cambodia’s exports to the US surge. Parsing the numbers for a direct trade war link is not as clear-cut as it may seem, however, with both Vietnam – where trade represented 188% of GDP in 2018 – and Cambodia expanding their commerce with the US since before the start of the tariff war.
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 — In contrast to Malaysia’s electoral earthquake in May, which resulted in the first opposition win since independence, last Sunday’s elections in Cambodia produced a predictable landslide victory for Prime Minister Hun Sen, in power since 1985. His Cambodian People’s Party claims to have won all 125 seats available, prompting Mu Sochea, an exiled opposition leader, to tell media in Jakarta that election day “marked the death of democracy in Cambodia.” The view from Malaysia: “Millions of Cambodians were denied a genuine choice, as the CPP’s victory was guaranteed even before the first ballot was cast,” said Charles Santiago, a member of the Democratic Action Party, which is now part of the new Mahathir Mohamad-led governing coalition, in a statement released on Monday.
SIEM REAP — For an art production house based in North Korea, whose usual stock-in-trade is nationalist-communist propaganda, constructing a museum in Cambodia to celebrate the grandeur of the Khmer Empire might seem a surprising project. While North Korea may be on the verge of a rapprochement with the U.S. ahead of the proposed meeting between its dictator Kim Jong Un and President Donald Trump, recent sanctions imposed on the country in response to its missile tests could raise questions about the status of the Angkor Panorama Museum, which opened in late 2015 at a cost of $24 million and sits on the doorstep of the vast Angkor temple complex. When the United Nations Security Council enacted sanctions against North Korea in 2017 in response to its missile tests, it said that states “shall prohibit, by their nationals or in their territories, the opening, maintenance, and operation of all joint ventures or cooperative entities, new and existing, with DPRK entities or individuals.” That suggests Cambodia, other than requesting an opt-out from the council, would be required to close the North Korean-built museum or ensure that it is now fully locally owned. “Cambodia is required by UNSC sanctions measures to close the joint venture or request an exemption,” said William Newcomb of the U.S.-Korea Institute at Johns Hopkins University.
JAKARTA/SINGAPORE — A year ago two young female migrant workers in Indonesia, including 26 year old Indonesian Siti Nurbaya, were cast at the center of an international murder mystery when they were arrested by police for their alleged role in the audacious, Le Carré-esque assassination by poisoning of Kim Jong Nam, the half-brother of North Korean leader Kim Jong Un, which was carried out despite the usual bustling morning crowd at Kuala Lumpur’s international airport. Preying on the women’s perceived vulnerability as relatively-poor migrant workers at the margins of society, defense lawyers contend that North Korean agents duped their clients into unwittingly carrying out the murder by bluffing they were being recruited for a series of made for TV pranks. As the trial of Nurbaya and her alleged accomplice from Vietnam rolled on last month in Shah Alam near Kuala Lumpur, another case was emerging that highlighted the perils facing migrants in Malaysia. Adelina Sao died in a Penang hospital on February 11 after she was found with head injuries and infected wounds on her limbs, succumbing after two years in Malaysia as one of around 400,000 foreign maids working in the country.
MANILA — Cambodia’s Supreme Court has ordered the break-up of the main opposition Cambodian National Rescue Party over allegations that it aimed to topple the government. The ruling was widely expected, including by the CNRP, which did not send lawyers to contest the case. The court is headed by a judge who is a member of the ruling Cambodian People’s Party. The decision means that Prime Minister Hun Sen, in office since 1985, will face little opposition in national elections scheduled for July 2018. The CNRP came close to matching CPP in national elections in 2013, winning 44.46% of the popular vote. There was a similar outcome in local elections earlier this year.
KUALA LUMPUR — Businesses in Southeast Asia are increasingly counting the cost of land grabs, more than half of which result in delayed projects and nearly three-quarters of which lead to lawsuits, according to a wide-ranging research report. Out of a sample of 51 major land disputes surveyed across the region, all but 6 remain unresolved, meaning that Southeast Asia is the region most prone to land conflict in the world. That is according to research published Tuesday by UK-based consultancy TMP Systems and the Rights and Resources Initiative, a global coalition of land rights activists funded in part by the British and Norwegian governments. That 88% of land disputes in Southeast Asia are not resolved puts the region above the 61% global average, according to the research, which covers land disputes dating from 2001.
JAKARTA — Official crackdowns on emigrants in Malaysia and Thailand have cast further doubt on over prospects that member countries of the Association of Southeast Asian Nations can finalize a long discussed deal on migrant workers’ rights. In June and July around 100,000 mostly Myanmar migrant workers fled Thailand after the military government in Bangkok announced hefty new fines for undocumented workers and their employers. Then, starting July 1, Malaysia made a series of arrests of alleged undocumented migrant workers, affecting more than 3,000 workers and around 60 employers accused of giving work to illegals. These tough actions — though a reprise of previous years’ crackdowns — come as the region’s governments mull proposed enhancements to the 2007 ASEAN Declaration on the Protection and Promotion of the Rights of Migrant Workers, signed in Cebu in the central Philippines during one of Manila’s past tenures as the group’s chair. Two years after the Cebu declaration, ASEAN countries started moves toward a set of region-wide legal norms, but progress has been slow. With Manila again chairing ASEAN this year, there has been a renewed push to address migrant rights — an important social and political issue in the Philippines.
JAKARTA — As Asia’s economies grow and its cities modernize, the region’s voracious appetite for construction materials has driven demand for sand — alongside illegal trade of the commodity — to unprecedented levels. With rapid urbanization and infrastructure expansion, some countries are mining surrounding seas and their river and lake beds at a pace that could have grave implications for the environment. Along with gravel, cement and water, sand is needed to make up the trillions of tons of concrete used so far in laying Asia’s new roads and constructing tens of thousands of urban buildings. Around a third of the world’s land area is classed as desert, but, rounded and smoothed by the heat and wind, desert sand grains are useless for construction. Sand also makes for a bulky, heavy cargo and the high transportation costs mean that sand is usually dug up or dredged relatively close to where it ends up being used. “International trade is limited, unless the two countries in question are close neighbors,” said Zoe Biller, an industry analyst
PHNOM PENH — As he described his search for funding for Khmerload, a digital media company touted as Cambodia’s version of BuzzFeed, chief executive Vichet In recounted an arduous struggle. “We sent an email to 10 [venture capitalists] — no reply. We talked to a few investors — there was no interest. They couldn’t believe we could do an expansion to another country.” Finally, U.S.-based investor 500 Startups, which describes itself as “a global venture capital seed fund,” came up with $200,000, cash that could help the company expand beyond Cambodia and Myanmar, where Myanmarload was launched in 2016. The websites churn out the kind of entertainment and celebrity gossip that was the foundation for the global success of U.S.-based BuzzFeed, a website that mixes entertainment, news and so-called viral content The 500 Startups deal, announced in March, was the first time a Silicon Valley venture capital fund had put its money into a Cambodian “startup,” a term for a newly-established business that nowadays usually refers to a tech, online or smartphone-related enterprise.