Government debt in emerging Asian economies hit 50% of gross domestic product in the third quarter of last year, according to estimates by the Institute of International Finance, in a trend that suggests a regional shift away from fiscal conservatism. “Entering a financial crisis with a weak fiscal position worsens the depth and duration of the ensuing recession, particularly in emerging-market economies, because fiscal policy tends to be procyclical in these cases,” said Vitor Gaspar, director of the International Monetary Fund’s Fiscal Affairs Department. While government debt in emerging Asia is creeping up, it remains low compared with Japan’s 223.1% of GDP and 100.8% in the U.S. “The relatively low public debt gives the region more buffer against a potential global downturn, enabling policymakers to use expansionary fiscal policy to support demand,” said Frederic Neumann, co-head of Asian economic research at HSBC.
SINGAPORE — “Yes, hello, fruits?” Shouting above the din, vendor Sini Mohamad leans forward into a conga line of office workers edging between dozens of lavishly provisioned stalls in Singapore’s Tekka Market. It is lunchtime, and crowds throng the market as dozens of hawker stalls dish out noodles, rice and curries. Most ignore Mohamad’s appeals. But he keeps at it, alongside stallholders selling meat, fish, vegetables and spices. The lunchtime crowd offers a fleeting chance for butchers and grocers to persuade passers-by to do a bit of grocery shopping before they head back to work, their palettes whetted by the aromas of spices and herbs clinging to the steamy market air.
SINGAPORE — In an era of business buzzwords like “unicorn” and “fintech,” a commercial model built on spitting into a tube might not seem the most propitious idea. But Asia’s nascent DNA testing sector is likely to expand as related technology becomes more affordable and as scientific research advances. Behind the trend is the region’s growing affluence. As tens of millions of people move from the countryside to cities across Asia, so-called “lifestyle” conditions such as diabetes and heart disease become more commonplace as people eat more processed food and replace physically-taxing employment such as farming with sedentary office work. Peering into a person’s DNA can yield insights about susceptibility to particular health conditions or diseases — and a growing consumer awareness of such advances is driving much of the DNA sector’s Asian growth, note companies involved in testing.
SINGAPORE — It was tame enough weighed against his usual invective, but by itself Philippine President Rodrigo Duterte’s account of a conversation he had with his Chinese counterpart, Xi Jinping, was startling. During a meeting between the two leaders in Beijing in May 2017, the subject turned to whether the Philippines would drill for oil in a part of the South China Sea claimed by both countries. Duterte said he was given a blunt warning by China’s president. “[Xi’s] response to me [was], ‘We’re friends, we don’t want to quarrel with you, we want to maintain the presence of warm relationship, but if you force the issue, we’ll go to war,” Duterte recounted.
SINGAPORE — China has long bristled at the U.S. Navy’s “freedom of navigation operations” in the South China Sea, which challenge Beijing’s territorial claims in the disputed waters. So when Zhao Xiaozhuo, a senior colonel in the Chinese army, found himself with a chance to complain about them directly to U.S. Secretary of Defense James Mattis recently, he took it. The U.S. operations are a “violation of the law of the People’s Republic of China, of territorial waters,” Zhao told Mattis during a conference in Singapore on June 2. Mattis defended the naval operations by citing a 2016 international tribunal decision that dismissed China’s expansive “nine-dash line” claim to much of the sea.
SINGAPORE– After U.S. Defense Secretary Jim Mattis accused China of “intimidation” and “coercion” in the disputed South China Sea on Saturday, a Chinese general responded by saying that “countries accusing China” are the ones causing tension in the region. In an early morning speech in Singapore, Mattis said that “China’s policy in the South China Sea stands in stark contrast to the openness our strategy promises, it calls into question China’s broader goals.” Mattis was speaking at the Shangri-La Dialogue, an annual military conference staged by the International Institute for Strategic Studies, a British research organization. Responding later the same day, Lt. Gen. He Lei, head of the Chinese delegation attending the conference, said “China has resolve and capability to defend its sovereignty.”
SINGAPORE — With the US and China squaring up over trade, getting the 16-country Regional Comprehensive Economic Partnership (RCEP) signed by the end of the year seems increasingly important for the 10 member states of the Association of Southeast Asian Nations (ASEAN). That urgency has been sharpened by US withdrawal from the Trans-Pacific Partnership (TPP), now an 11-country deal rebranded as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) after being signed in Chile in March. Singapore’s prime minister clearly wanted to get a message across when hosting the ASEAN summit at the weekend. “The fact is that we do not have a TPP,” Lee Hsien Loong told journalists after the meeting. “We have a Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which has made it more urgent that we proceed with this [RCEP].”
SINGAPORE — With the U.S. government pledging to resume manned missions to the Moon, and eventually send a mission to Mars, Cold War-style competition over space exploration is re-emerging — between China and the U.S. this time. China hopes to make its first manned lunar landing within 15 years, around six decades after the last American walked on the moon in 1972. But China is not as far behind as those dates suggest. It hopes to make the first-ever landing on the dark side of the Moon by the end of 2018. This feat eluded the U.S. and Soviet Union during the heyday of their Space Race from the late 1950s to the mid-1970s. Other Asian counties, notably Japan and India, have their own space programs. But China appears to be leading the way.
SINGAPORE — If China and the United States continue their charge into a full-on trade war, few regions will be as vulnerable to the resulting economic turbulence as Southeast Asia. That’s why the 10 governments of the Assn. of Southeast Asian Nations meeting in Singapore this week are hashing out ideas about how the region can duck any shrapnel if the world’s two biggest economies keep firing protectionist salvos at each other. “Considering that China and the U.S. are ASEAN’s first and third trading partner respectively, the early exchange of blows between Washington and Beijing would be watched nervously across all ASEAN capitals,” said Tang Siew Mun, head of the ASEAN Studies Centre at the ISEAS-Yusof Ishak Institute, a Singapore-based research organization.
SINGAPORE — The recent exposé of how polling firm Cambridge Analytica mined Facebook for information on voters was focused mainly on the United States. But the investigation, which aired on the UK’s Channel 4 last month, has caused ructions in Malaysia after Mark Turnbull, a Cambridge Analytica executive, was filmed bragging that they helped the governing coalition retain power in the country’s last elections in 201, apparently by using social media to profile voters and deliver campaign messages. “We’ve done it in Mexico, we’ve done it in Malaysia and now we’re going to Brazil,” Turnbull said. With another election due anytime between now and August, Malaysia’s opposition predictably seized on that claim. The government in turn said it had nothing to answer for, blaming Mukhriz Mahathir, a former ally turned opposition member, for personally hiring Cambridge Analytica.