KUALA LUMPUR — The International Monetary Fund (IMF) believes Asia’s fast-growing economies will “come to a standstill” due to the coronavirus pandemic, faring worse than during the 2008-9 global financial crisis or the 1997-98 Asian crash. The region will experience zero growth for the first time since the 1960s, said Chang Yong Rhee, director of the IMF’s Asia and Pacific Department, who forecast that the economic impact of the pandemic will be “severe, across the board, and unprecedented.” Speaking during a press conference live-streamed from Washington, Rhee said Asia faces “a crisis like no other” due to the pandemic, which has killed over 136,000 people worldwide and prompted governments to impose lockdowns that have hampered commerce. “Containment measures are severely affecting economies,” Rhee said.
Singapore reports first coronavirus deaths as case numbers rise across Southeast Asia – dpa international
KUALA LUMPUR — Prime Minister Lee Hsien Loong warned Singaporeans on Saturday to expect more deaths from the coronavirus outbreak after the city-state’s first fatalities were announced earlier in the day.
“As we get more COVID-19 cases, more patients will need ICU [intensive care unit] care, and we must brace ourselves for more losses,” Lee said in a Facebook post.
Earlier Health Minister Gan Kim Yong announced the deaths of a 75-year-old Singaporean woman and a 64-year-old Indonesian man who had been diagnosed with Covid-19, the respiratory disease caused by the new coronavirus. “We are deeply saddened by their passing,” Gan said, explaining that the woman had several medical conditions and was admitted to hospital a month ago with pneumonia.
Coronavirus means Ash Wednesday restrictions for Asia’s Catholics – dpa international
KUALA LUMPUR — Catholics in Southeast Asia will have to do without one of their most recognizable motifs due to the coronavirus outbreak. On February 26, the Christian holy day of Ash Wednesday this year, Catholics in Malaysia and the Philippines will have dry ash sprinkled onto their heads instead of the usual smearing of a damp grey-black ash cross. Archbishop Romulo Valles, president of the Catholic Bishops Conference of the Philippines, stated that the measures were motivated by “our concern for the well-being of our brothers and sisters” and the taking of the “utmost care and efforts towards the prevention of the spread of COVID-19.” The virus that has spread to around two dozen countries, has killed over 2,200 people, mostly in China, where the pandemic originated.
Indonesia sends warships to drive off Chinese boats – The Times
KUALA LUMPUR — Indonesia has sent an armada of warships and fishermen to waters around its northern Natuna Islands in response to recent incursions by dozens of Chinese fishing boats and coastguard ships. China’s sweeping claim to most of the South China Sea overlaps with Indonesian waters around the Natunas, with the latest flare-up prompting the usually soft-spoken Indonesian President Joko Widodo to bluntly assert that “Natuna is Indonesia” during a visit to the contested region last week. Beijing’s claim to the South China Sea, through which between US$3-5 billion worth of trade passes most years, extends 2000 kilometers from the Chinese mainland and has angered neighbouring countries, particularly Vietnam and the Philippines, whose own smaller claims around the sea overlap with Beijing’s.
Asia’s hidden economies point to harsh realities – Asia Times
PHNOM PENH — The deaths of 39 migrants found dead last month in the back of a truck in the United Kingdom were a grim and tragic reminder that, despite Asia’s world-beating growth rates, poverty and low pay continue to push people to risk their lives to work overseas. Vietnam’s gross domestic product (GDP) per capita has quintupled to US$2,563 over the last 15 years, buoyed by one of the world’s fastest growing economies, but all 39 dead were economic migrants who had left impoverished areas of central and northern Vietnam in search of more gainful employment abroad. As with elsewhere in Asia, these rural regions are dominated by the so-called informal economy, outside of the reach of government protection and regulation. Based on estimates published last year by the World Bank, 47% of all employment in the East Asia and Pacific Region is informal.
Low tax, low spend – Southeast Asia Globe
PHNOM PENH – Tax And Spend has rarely been part of the Southeast Asian governance lexicon. And judging by the region’s dismal tax-to-gross domestic product (GDP) ratios, it doesn’t look like that will be changing anytime soon. Newly published revenue statistics compiled by the Paris-based Organisation for Economic Co-operation and Development (OECD) show that the five biggest Southeast Asian economies have ratios of half or less than the 2017 OECD average of 34.2%, though most countries in the region showed small increases in revenues compared with the previous year. The OECD defines the tax-to-GDP ratio as “total tax revenue, including social security contributions, as a percentage of GDP”. While more prosperous countries in Southeast Asia’s vicinity such as Australia, Japan and New Zealand all come in around the 30% mark, Southeast Asia’s own numbers were much lower, with Indonesia at 11.5%, Malaysia on 13.6 and Singapore only slightly above on 14.1. This last number in particular seems surprisingly low given that Singapore’s economy more resembles higher-tax Western counterparts than its neighbours in Southeast Asia.
Duterte can do no wrong – UCA News
KUALA LUMPUR — While Philippine citizens disagree with the Duterte administration’s head-in-the-sand response to Chinese aggression in the disputed South China Sea, a substantial number still support his so-called drug war that has claimed thousands of lives. But there are serious public misgivings about the industrial-scale extrajudicial killings that could yet result in President Rodrigo Duterte being charged by international prosecutors. Last week several hundred protesters marked the third anniversary of a landmark international tribunal ruling in favor of the Philippines and against aspects of China’s expansive claims to the South China Sea. The same week survey by local polling outfit Social Weather Stations showed 87 percent backing for the proposition that the Philippines “should assert its right to the islands in the West Philippine Sea (the local name for the South China Sea) as stipulated in the 2016 decision of the Permanent Court of Arbitration (PCA). However President Duterte, who marked three years in office on June 30, has several times referred to an apparent threat by China to go to war should the Philippines assert its claims to the sea based on the court’s ruling, which China refused to recognize.
China rebuffs US criticism over South China Sea, threatens ‘fight to the end’ over Taiwan- Asia Times
SINGAPORE — China’s top security official articulated today (June 2) an uncompromising defense of his country’s stance on the contested South China Sea and threats to invade Taiwan in an anticipated address at a top security conference in Singapore. “Building facilities on one’s own territories is not militarization,” Lieutenant General Wei Fenghe said, responding to accusations that China has militarized islands in the sea as a means of taking effective control of what the US and others regard as international watersWei also warned of a “fight to the end” with the US in their escalating trade spat, and a “fight at all costs” for “reunification” with Taiwan, the island country China considers a renegade province. The US has recently upped its strategic support for the democratically-run Taiwan, much to Beijing’s chagrin.“No attempts to split China will succeed. Any interference in the Taiwan question is doomed to failure,” said Wei, dressed in his People’s Liberation Army (PLA) uniform.
Trash-talking over trash trade – Asia Times/RTÉ World Report
KUALA LUMPUR — The Philippines appears to have won its long-running and often heated dispute with Canada over 69 shipping containers brimming with Canadian waste left to rot at two Philippine ports since 2013.Ottawa announced on Wednesday (May 22) that it had hired a private company to take back the refuse, which the Philippines has said was wrongly classified as recyclable. Officials said the waste would be back on Canadian soil by June.Ottawa’s announcement came after the Philippines said it would ship the containers back to Canada after a May 15 deadline announced by Philippine President Rodrigo Duterte had lapsed.
Remittances to Asia bigger than GDPs of Vietnam and Myanmar combined – Asia Times
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.