Choking on growth – Nikkei Asian Review

PHNOM PENH — The skyline of Phnom Penh is changing as fast as that of any Asian city. Yellow cranes gleam in the sun after late-afternoon squalls, towering alongside green-netted scaffolding wrapped around dozens of new high-rise apartment blocks going up across the city. These are, literally, the green shoots of a building boom that made up a sixth of Cambodia’s economic growth last year. They are a sign of a transformation underway in the capital as Cambodia tries to catch up with its more prosperous neighbors. But the rapid changes also highlight a challenge that has faced many cities across Asia in recent decades: with 200 million people having moved from countryside to city in East and Southeast Asia since 2010, how can cities manage large-scale urban growth in a way that facilitates economic growth without increasing pollution and traffic jams. In BKK1, an upmarket part of the city, “the roads are too narrow, the area is not ready for so much construction, many small builders don’t talk to the municipality, there is no coordination,” said Sebastian Uy, co-owner of real estate agency Le Grand Mekong Property.

Zika poses a threat to Asian economies – Nikkei Asian Review

SINGAPORE — More than 300 people have been diagnosed with the Zika virus in Singapore this year, while the figure for Thailand has reached 200. Though the numbers of Zika cases in other Asian countries remain in the single digits, outbreaks in these two trade and tourism hubs could take a heavy economic toll. Such impacts are already being felt in Latin America. The spread of Zika there has resulted in around 1,800 cases of microcephaly, and the World Bank estimates that Zika could result in losses of around $3.5 billion to Latin American economies, or 1% of gross domestic product in tourism-dependent ones. In Asia, the main impact is likely to be felt in Singapore, which will host a Formula One Grand Prix race from Sept. 16-18. The event attracts not only regional motor sports fans but also corporate guests attending business meetings during the race week. The current Zika outbreak is the first ever in the city-state. Though it has not sparked any panic yet, the rapid spread of infection has reminded many residents of the SARS crisis of 2003, which saw economic activity contract 4.2% in the second quarter of that year. China, Singapore’s biggest source of tourists, issued an alert on Sept. 7 urging visitors to Zika-affected countries to take precautions against mosquito bites.

Concern grows about Zika spreading in Asia – Nikkei Asian Review

JAKARTA — Concern is growing in Asia about the spread of the Zika virus, with a recent outbreak in Singapore followed by cases in Malaysia, the Philippines, Thailand and Vietnam. There is no vaccine or treatment for the virus, which usually causes only mild fever, rashes and red eyes in infected adults but can lead to a birth defect called microcephaly if a pregnant woman is infected. The spread of Zika in Latin America has led to about 1,800 cases of microcephaly and resulted in several prominent athletes refusing to participate in the recent Olympic Games held in Brazil. In February, the World Health Organization declared Zika, which can be spread sexually but is mostly mosquito-borne, a global public health emergency. In Asia, the threat of the virus spreading around the region is causing concern for hundreds of millions of people already on guard against dengue, malaria and other conditions spread by the same mosquitoes that carry Zika. With almost 300 Zika cases reported in recent weeks in Singapore, a trade hub and city-state that is home to significant migrant worker populations from across Asia, the fear is that Zika will spread rapidly throughout the densely populated region.

United we stagger – Nikkei Asian Review/FT

JAKARTA – Unlike the imposing and often inaccessible buildings of the European Union in Brussels, ASEAN’s low-rise offices sit in the shadow of a partly constructed overhead railway in the southern part of Indonesia’s traffic-clogged capital. Nine months after the group’s 10 members established the ASEAN Economic Community, which aims to promote the free movement of goods, services, capital and labor, the headquarters symbolizes both ASEAN’s aspirations and its limitations. The EU was previously known as the European Economic Community, but ASEAN’s adoption of the “community” moniker does not mean it will emulate Europe’s radical, sovereignty-pooling measures, such as a common currency, central bank and free movement of labor. “The appetite to surrender sovereignty simply is not there,” said Jayant Menon, lead economist at the Asian Development Bank in Manila. “I don’t see a single currency coming into play in ASEAN, and I don’t see that as a bad thing.”

Widening waistlines spell opportunity – Nikkei Asian Review

SINGAPORE – With “Western-style” ailments such as obesity and diabetes on the increase in Asia, health-related businesses are ramping up their efforts to keep those diseases at bay. Asia’s spending on health care has been soaring. By 2017, the region’s expenditure will reach $2.1 trillion, 24% of the global total, according to a report by The Economist Intelligence Unit. “As incomes rise, education levels also improve, creating much greater awareness of health issues,” the report said. But as Asians earn more, they are becoming not only better educated but also more susceptible to so-called “lifestyle” diseases — afflictions the World Health Organization classes as “noncommunicable” and “chronic.” Chronic maladies such as heart disease and diabetes are the No. 1 killers in Southeast Asia, accounting for 62% of all deaths, according to the WHO. Growing Asian affluence and the spread of fast-food chains have led to increasingly unhealthy eating habits, as foods high in fat, salt and sugar are consumed in greater amounts. This, in turn, has caused a spike in conditions previously more common in Western countries. Malaysia-based IHH Healthcare is among the hospital operators responding to the region’s growing medical needs. “Rapid growth, rapid rise in affluence and the development of the middle income group, these are all very favorable factors for the health care industry,” said Tan See Leng, IHH’s managing director and CEO, speaking at the FT-Nikkei Asia300 Forum in Hong Kong on April 25.

Myanmar emigrants in Singapore eye their homeland – Nikkei Asian Review

SINGAPORE — It was no more than a glance, but Aye Aye Win’s respectful mid-sentence nod toward her 83-year-old father said as much as anything else about why she wants to remain in Singapore after three decades in the city-state, away from her family in Myanmar. The old man, Maung Htay, had been in Singapore “for a few weeks” to get medical treatment that Aye Aye Win said was out of his reach at home — a legacy of decades of meager health spending by Myanmar’s long-ruling military junta She runs a small shop in Peninsula Plaza, a vibrant commercial complex that is the center of Myanmar life in Singapore. Women, their cheeks painted with cream-colored thanaka — a Myanmar cosmetic made from tree bark — perch on high stools behind shop counters selling cellphones. Other shops selling longyi — a Myanmar version of the sarong — sit alongside restaurants dishing up Myanmar staples such as tea-leaf salad and mohinga, a popular curried fish and noodle soup. “I plan to stay here, though I know a lot of people who are going back,” said Aye Aye Win

China slowdown a worry for Southeast Asia – Nikkei Asian Review

SINGAPORE — While China’s economy continues to grow much faster than those of Japan and most Western countries, according to official figures, the country’s mix of slowing imports, wobbly stock markets and a weakening currency is a growing concern for Southeast Asian countries that have grown increasingly dependent on trade with Asia’s largest economy. China’s official 7% annual rate of growth in gross domestic product in 2015 is the lowest in a quarter century, down from the 7.4% posted in 2014. It leaves Southeast Asian countries vulnerable to slowing Chinese growth, six years after Beijing signed a landmark trade agreement with the 10-country Association of Southeast Asian Nations. As China’s economy expanded to become the world’s second biggest, trade between Southeast Asia and China grew, as the latter sought raw materials for massive infrastructure and city building. However, since riding out the 2008 financial crisis that brought several Western economies close to ruin, China has slowly tried to shift the basis of economic growth from investment to domestic consumption. As a result, China’s demand for commodities has declined. Jia Qingguo, Dean of International Studies at Peking University, said that “the Chinese economy and the Southeast Asian economies are integrated, and the slowdown in the Chinese economy will affect Southeast Asia in a negative way.”

With IS losing ground, Indonesia fears attacks by returning fighters – Nikkei Asian Review

SINGAPORE — The Indonesian government remains concerned about the threat posed by the self-described Islamic State, despite the group’s recent territorial losses in Iraq and Syria including the ceding of the key city of Ramadi to the Iraqi army in late December. “Indonesia is very vulnerable,” said Dewi Fortuna Anwar, an adviser to Indonesian Vice President Jusuf Kalla, airing Jakarta’s fears that Indonesian members of IS could return home to carry out terrorist attacks. “We are exploring the role played by religious leaders to develop counter narratives,” Anwar said, discussing the ideological appeal of the extremist group to hundreds of Indonesians thought to have traveled to Iraq and Syria in recent years. Anwar was speaking in Singapore at a regional forum organized by the Institute of Southeast Asian Studies.

Britain seeks far-flung business opportunities – Nikkei Asian Review

JAKARTA – Meeting Indonesian President Joko Widodo on Monday to discuss mutual trade and investment prospects, UK Prime Minister David Cameron told media that “we [the U.K. and Indonesia] are natural business partners and there is much more we can do.” In return for considering British investments, Indonesia wants greater access to the U.K. and to the wider European market for its exports, which are mostly commodities such as palm oil, rubber, coal, coffee, copper, oil and natural gas. “The lower tariff [is] needed on Indonesian [primary] products like wood, clothing, coffee and fisheries,” Widodo said after meeting Cameron, adding that British applications for investment in Indonesian infrastructure would be considered.