Southeast Asia from Scott Circle: Getting Malaysia Right: Presidential Prerogative

Volume V | Issue 5 | March 6, 2014

The tone and substance of President Barack Obama’s historic visit to Malaysia in late April will have lasting impact not only on an important bilateral relationship, but on U.S. relations with the Association of Southeast Asian Nations (ASEAN) and many countries across the Indo-Pacific. The visit, although short, is long overdue. Getting it right in Malaysia is essential to demonstrate to Asia that the U.S. leader’s head and heart are behind his stated intent to “rebalance” to the region.

The visit was scheduled as an opportunity to follow through on meetings and discussions that were planned for last November, before the budget battle with Congress diverted the president’s plans. It will take place as Asia seeks tangible reassurances that the United States is prepared to adapt traditional models to the new levels of engagement and involvement required to keep pace with the region’s political and economic dynamism.

In addition to Kuala Lumpur, the trip will include stops in three of the United States’ five allies in the region: Japan, the Philippines, and South Korea. The visit to Malaysia will be the first by a U.S. president since Lyndon Johnson went to Kuala Lumpur in 1966. The fact that no president has visited since then has not been for lack of trying, in both Washington and Kuala Lumpur. History, timing, and politics have been allowed to intervene, demonstrating the lack of a consistent, hard-core commitment by the United States to deepen its partnerships with like-minded countries in ASEAN. That era has come to an end, and President Obama needs to say so.

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Biweekly Update

  • Thailand holds peaceful re-run elections in five provinces
  • United Nations opposes Myanmar census delay
  • Indonesia’s Riau province declares state of emergency as smog thickens

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Looking Ahead

  • Congress’s views on foreign policy and defense issues in Asia
  • Discussion on Indonesia’s upcoming elections
  • Discussion on the South China Sea and its role in future instability

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Getting Malaysia Right: Presidential Prerogative

By Ernest Z. Bower (@BowerCSIS), Senior Adviser and Sumitro Chair for Southeast Asia Studies (@SoutheastAsiaDC), CSIS

The tone and substance of President Barack Obama’s historic visit to Malaysia in late April will have lasting impact not only on an important bilateral relationship, but on U.S. relations with the Association of Southeast Asian Nations (ASEAN) and many countries across the Indo-Pacific. The visit, although short, is long overdue. Getting it right in Malaysia is essential to demonstrate to Asia that the U.S. leader’s head and heart are behind his stated intent to “rebalance” to the region.

The visit was scheduled as an opportunity to follow through on meetings and discussions that were planned for last November, before the budget battle with Congress diverted the president’s plans. It will take place as Asia seeks tangible reassurances that the United States is prepared to adapt traditional models to the new levels of engagement and involvement required to keep pace with the region’s political and economic dynamism.

In addition to Kuala Lumpur, the trip will include stops in three of the United States’ five allies in the region: Japan, the Philippines, and South Korea. The visit to Malaysia will be the first by a U.S. president since Lyndon Johnson went to Kuala Lumpur in 1966. The fact that no president has visited since then has not been for lack of trying, in both Washington and Kuala Lumpur. History, timing, and politics have been allowed to intervene, demonstrating the lack of a consistent, hard-core commitment by the United States to deepen its partnerships with like-minded countries in ASEAN. That era has come to an end, and President Obama needs to say so.

There are five things the White House should consider to make the Malaysia visit a success:

  1. Deliver two Asia speeches. First, at least a month before the president travels, he should talk directly to the American people about why he is making two major trips to Asia in 2014 and why Asia is fundamentally important to the U.S. economy and security. Second, he should deliver a speech in Malaysia explaining why the United States sees Asia as important to its future and outlining a new level of policy engagement. This engagement should include sending U.S. cabinet members to the region more frequently both to participate in ASEAN and East Asia Summit ministerial meetings and to make bilateral visits outside the ASEAN context. Malaysia will chair ASEAN in 2015, and the president’s remarks could help signal that its year at the helm will be an important one.
  2. Invite more Malaysians to study in the United States. The number of Malaysian students studying in the United States has ticked up to just under 7,000 in 2012–2013, from a low of barely 5,000 in 2006–2007. But it remains significantly below the more than 9,000 Malaysian students who studied in the United States in 1999–2000. Post-9/11 visa hurdles have been lowered and are no longer the primary reason for this situation, but doubts linger in the minds of Malaysian parents and students about whether the latter are truly welcome in the United States. An honest and heartfelt invitation from the president of the United States could help transform that mindset. Coupled with focused efforts by both governments to promote and support educational exchanges, the invitation could double the number of Malaysian students studying in the United States by 2020.

    In addition, the president should announce that the United States will work with ASEAN to launch a new initiative to reach a goal of 100,000 students from ASEAN studying in the United States by 2025, up from about 46,000 in 2011–2012.

  3. Bring strong TPP talking points. Asia wants to hear directly from President Obama that he is fully committed to completing the Trans-Pacific Partnership (TPP) negotiations and getting that agreement through Congress. An indication that the White House is seeking trade promotion authority, or at least a clear articulation of its strategy for getting congressional approval for TPP, is vital for this trip.

    Prime Minister Najib Razak and his cabinet are under massive political pressure from the opposition, led by Anwar Ibrahim, as well as from conservatives within their own party, led by former prime minister Mahathir Mohamad, to pull out of the TPP. Najib knows the economic reforms included in the agreement are critical for Malaysia’s competitiveness and its economic future, but without momentum created by the United States and leadership from Obama, Najib is left twisting in the political wind.

    It is important in this context to remember that the U.S.-Malaysia free trade agreement negotiations were cast aside in 2008 after two years of hard work due to political concerns in Malaysia about the agreement. This pattern, if repeated on the TPP, could leave Malaysia dangerously exposed and eventually divert U.S. trade and investment to other regional partners with which is the United States is able to conclude trade agreements.

  4. Recognize the strength of diversity. President Obama and Prime Minister Najib could convey a powerful message about the inherent power of humanity by appearing together with Special Olympics athletes who will play together, regardless of religion, ethnicity, economic status, or disability, in the inaugural Unified Football Cup in Malaysia in October.

    The United States and Malaysia share much in common in terms of history and composition. Both were blessed with a diverse melting pot of peoples from different ethnicities and religions. Forging national consensus among a diverse population is a challenge for all political leaders representing such constituents. The effort to empower people through good governance, celebrate diversity, and encourage collaboration is one of common interest. A great way to address such a critical but sensitive issue is through this kind of compassionate diplomacy.

  5. Embrace the work of the private sector. Malaysia understands business, growth, and entrepreneurial spirit. So does most of Asia. The region would respond well to a signal from the president of pride in the best practices of U.S. companies and nongovernment organizations. There are hundreds of examples, ranging from creative corporate engagement in education, clean energy, and health to leadership in innovation, digital futures, anticorruption efforts, and crime fighting. This is a very important theme to emphasize while in Malaysia. It will send a message to the rest of Asia and help convince the United States’ partners that the United States is playing as a team, with the government supporting business and business engaging deeply in Malaysia and the region.

The visit to Malaysia is special because it is so long overdue and because Malaysia lies at the heart of ASEAN. Its people are a testament to the blending of South and East Asia. Malaysia embodies the best hopes for Indo-Pacific collaboration and, at the same time, its quintessential challenges. Getting it right in Kuala Lumpur will require inspiration, a heartfelt and personal connection to what is important to Malaysians and their neighbors, and assurances, backed by action, that the United States is ready to kick off a new era of unambiguous partnership.

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Biweekly Update

Thailand

Thailand holds peaceful rerun elections in five provinces. Thailand held rerun elections on March 2 in five provinces where voting was disrupted by antigovernment protesters on February 2. There were no reports of violence, but the country's Election Commission reported a low 10 percent turnout. These elections will not fill enough seats to allow the formation of a new parliament. Makeup elections for other provinces where polling was disrupted had been planned for April, but have been suspended pending a court decision on procedures. Corruption cases against the prime minister and lawmakers could topple the caretaker government before more polls can be held.

Protest leader calls for televised debate with Yingluck while concluding Bangkok shutdown. Antigovernment protest leader Suthep Thaugsuban on February 27 called for a live, televised, one-on-one debate with Prime Minister Yingluck Shinawatra to solve the country’s political crisis. Yingluck rejected Suthep’s call the following day and said her government is ready for negotiations so long as they are in line with the constitution. Also on February 28, Suthep announced an end to a campaign to shut down Bangkok, which had begun on January 13. Protesters dismantled three of seven rally stages around the capital and moved all activities to Lumpini Park in the central part of the capital.

Spate of violence around antigovernment protest sites kills five, including four children. Five people, including four children, were killed in incidents near antigovernment protest sites on February 22 and 24. In the first attack, M79 grenades were launched at protesters in Trat province, near the Cambodian border. In the second, grenades were thrown at a rally site near a Bangkok shopping mall. More than 50 people were reportedly injured. Thailand’s ongoing political violence has killed 21 people and wounded more than 720 since November. No one has claimed responsibility or been arrested for the most recent attacks.

Army chief rules out intervention as security heightened in Bangkok. Royal Thai army chief Gen. Prayuth Chan-ocha said during a February 25 televised speech that the military will not intervene in Thailand’s political crisis. The announcement followed attacks on antigovernment protesters that left five people dead. Prayuth called on both sides to resolve the crisis peacefully and according to the constitution. Meanwhile, a representative of the military on February 27 announced that an extra 117 checkpoints would be installed in Bangkok to strengthen security in the city.

Government to sell $615 million of short-term debt to pay farmers. Thailand’s government plans to sell up to $615 million of short-term debt to fund a controversial rice-pledging scheme that pays farmers up to 50 percent above the market price for their rice, according to a February 26 Reuters report. The revenue from the sales will fund overdue payments to farmers, some of whom have been waiting for up to six months. Authorities hope the plan will appease farmers who have threatened to join antigovernment protesters in Bangkok calling for Yingluck to resign.

Myanmar

United Nations opposes census delay. The United Nations Population Fund on February 24 announced that delaying the start of any part of Myanmar’s planned census, including questions to identify religion and ethnicity, would be a waste of resources. The International Crisis Group has warned that the census, which is scheduled to kick off on March 30, could heighten ethnic tensions and lead to instability. Many of Myanmar’s ethnic groups, meanwhile, have criticized the government’s list of 135 official ethnicities as either incomplete or overly divisive.

Doctors Without Borders banned from operating in Rakhine state. The Myanmar government on March 2 partially rescinded a decision made two days earlier to ban Doctors Without Borders from the country, saying that the organization, known by its French acronym MSF, would only be banned in Rakhine state. Presidential spokesperson Ye Htut alleged that MSF brought in too many foreign workers, operated clinics without permission, and gave Rohingya patients favorable treatment over Rakhines. Tens of thousands rely on MSF for treatment in poverty and violence-stricken Rakhine state.

Report alleges government-sanctioned persecution of Rohingya. Bangkok-based Fortify Rights on February 25 released a report charging that Myanmar authorities are engaged in systematic persecution of Muslim Rohingya. The report cites interviews and leaked government documents detailing official restrictions dating back to 1993 on freedom of movement, marriage, childbirth, and access to healthcare and other daily necessities for Rohingya. The leaked documents outline only local government policies, although the report cites public statements by national authorities in support of the policies. The Myanmar government dismissed the report as outdated and inaccurate.

Legislation to protect national race and religion moving forward. President Thein Sein on February 25 recommended that the parliament take action on proposed legislation covering religious conversion, marriage, monogamy, and population control. The controversial legislation was proposed in July 2013 by the nongovernmental Central Nationality and Religion Safeguarding Association, which aims to protect Myanmar’s Buddhist majority from the perceived threat of rising Muslim influence in the country. Parliament speaker Shwe Mann has forwarded the bills to relevant government ministries for review and final drafting.

Speaker, opposition call for amending military veto on constitutional reform. Parliament speaker Shwe Mann on February 18 asked Myanmar’s parliamentary committee on constitutional reform to focus on Chapter 12 of the charter, which requires 75 percent support in parliament for major constitutional amendments. That article gives the military an effective veto because it controls a quarter of the seats in the parliament. Shwe Mann called the article a major obstacle to further reform.

Myanmar hosts meeting of Bay of Bengal countries. Top officials from Bangladesh, Bhutan, India, Nepal, Sri Lanka, and Thailand convened in Naypyidaw on March 4 for the third meeting of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC). All the nations except Thailand were represented by their heads of government. Officials agreed to set up a permanent secretariat in Dhaka, establish a BIMSTEC center for weather and climate in India, and create a cultural industries commission and observatory. They also discussed an eventual BIMSTEC free trade area.

Indonesia

Riau province declares state of emergency as smog thickens. Annas Maamun, the governor of Riau province in central Sumatra, declared a state of emergency on February 26 in response to thick smog from more than 1,200 fires across nearly 15,000 acres of the province’s forests and farmland. Palm oil farmers clearing land through illegal slash-and-burn tactics cause heavy smog each year, but an abnormal dry spell in the region is exacerbating the problem. The Riau government has charged 40 people with arson and is dipping into emergency funds to combat the fires and mitigate health concerns from smoke inhalation.

Freeport warns of force majeure if export tax is not eased. U.S. mining giant Freeport McMoRan announced on February 28 that it may declare force majeure on contracts for copper sales if a recently enacted export tax is not eased soon. Declaring force majeure would temporarily free the company from its responsibility to fulfill sales contracts. The Indonesian government on February 24 indicated that it might ease the tax burden on mining firms that commit to building smelters in the country, but no official agreement has been reached with companies. Freeport has reduced copper production by half and suspended all copper exports since the tax was instituted on January 12.

Indonesia Investment Coordinating Board seeks to promote foreign investment. Indonesia Investment Coordinating Board chairman Mahendra Siregar said February 28 that the board plans to visit China, Europe, Japan, South Korea, and the United States to drum up investor interest in central and east Java industrial zones. Indonesia hopes to attract foreign investors, especially from Japan, who are looking to diversify because of Thailand’s ongoing political crisis and Malaysia’s rising wages, according to a March 4 Jakarta Globe report.

Five missing after Papua New Guinea military allegedly sets fire to Indonesian fishing boat. Five Indonesian fishermen are missing after members of Papua New Guinea’s military allegedly intercepted their boat near the two countries’ maritime border on February 11 and forced them, plus the other five fishermen aboard, into the water several miles from shore before setting their boat on fire. Five of the 10 fisherman were able to swim to shore in Indonesia’s Papua province. The Indonesian military is conducting searches for the missing fishermen and the government of Papua New Guinea is investigating the incident.

Philippines

Vice president forms new political party. Vice President Jejomar Binay on March 2 announced that he is leaving his longtime party, the Democratic Party of the Philippines-People’s Power, to form a new political party to carry him as its presidential candidate in the 2016 elections. Binay is the front-runner in recent polls to succeed President Benigno Aquino when his constitutionally mandated single term ends. Binay’s new party will be formally launched on June 12, to coincide with the Philippines’ independence day.

House moves forward on charter change to allow foreign ownership. The Philippine House of Representatives standing committee on constitutional amendments on March 3 approved a proposal to amend the constitution to ease restrictions on foreign ownership of land and businesses. House Speaker Feliciano Belmonte Jr., the principal author of the resolution, said that the proposed amendment would encourage greater foreign investment in the Philippines and help achieve President Benigno Aquino's goal of inclusive economic growth. The amendment must now be approved by the full House and Senate, after which it faces a national referendum.

Philippines, Indonesia agree on maritime boundaries. Secretary of Foreign Affairs Albert del Rosario and his Indonesian counterpart, Marty Natalegawa, on February 24 agreed to a provisional maritime boundary line between Indonesia’s Pulau Miangas and the Philippines’ Sarangani Islands in the Pacific Ocean. The agreement is expected to be signed by the leaders of both countries during Indonesian president Susilo Bambang Yudhoyono’s visit to Manila in May. The agreement follows a treaty on February 5 that gives Filipino fishing vessels access to international waters via passage through Indonesia's exclusive economic zone.

Court throws out parts of Cybercrime Law but upholds libel section. The Philippine Supreme Court on February 18 ruled several parts of a 2012 cybercrime law unconstitutional, including a provision that authorizes the Department of Justice to restrict or block access to suspected computer data. But the court upheld a controversial provision that criminalizes online libel, despite petitions that the provision unjustly limits freedom of speech. President Benigno Aquino defended the Supreme Court’s decision, saying that it is meant to protect, not infringe on, people’s rights.

Malaysia

Najib, Aquino discuss military relations and Moro peace talks. Prime Minister Najib Razak met Philippine president Benigno Aquino during the latter’s first official visit to Kuala Lumpur on February 27–28. Najib proposed the establishment of a hotline between the two countries’ security forces to prevent a repeat of the 2013 standoff in Sabah between Malaysian troops and militants from the Philippines’ Sulu Archipelago. Aquino invited Najib to visit Manila sometime in March to witness the signing of a comprehensive agreement between the Philippine government and the Moro Islamic Liberation Front, which Kuala Lumpur helped broker.

Chinese developer to invest $3.25 billion in Malaysia. China’s state-owned Greenland Holding Group announced on March 2 that it plans to invest $3.25 billion in two property projects in Malaysia. Greenland will build residential apartments and hotels in the southern Malaysian state of Johor, near Singapore, with a combined floor area of nearly 25 million square feet. Greenland is one of several Chinese developers expanding into Malaysia in recent years to cater to Chinese homebuyers looking for overseas properties.

Drought leads to water rationing for millions. About 2.2 million residents in Kuala Lumpur and neighboring Selangor state will experience water shortages until March 31, according to Malaysia’s Bernama news agency. The government began rationing water on March 2 after a two-month dry spell reduced all of Selangor’s and Kuala Lumpur’s reservoirs to critical levels. Another 50,000 households in the southern state of Johor are also undergoing rationing.

Opposition lawmaker found guilty of sedition. A Malaysian court on February 28 found Democratic Action Party chairperson Karpal Singh guilty of sedition for insulting the sultan of Perak state in 2009 during a dispute over the sultan’s removal of the northern state’s chief minister. The veteran opposition leader faces up to three years in prison. Prime Minister Najib Razak pledged to abolish Malaysia’s Sedition Act in 2012, but the government has not made good on that promise.

Vietnam

Obama approves U.S.–Vietnam civilian nuclear cooperation. President Barack Obama on February 24 approved the so-called 123 agreement to allow cooperation between the United States and Vietnam on civilian nuclear projects. The agreement allows U.S. companies to sell civil nuclear equipment to Vietnam, but does not allow the latter to produce its own nuclear fuel. Congress has 90 days to review the agreement before it goes into effect. Russia and Japan have existing plans to help Vietnam build nuclear power plants.

Prime minister approves list of SOEs to undergo restructuring in 2014. Prime Minister Nguyen Tan Dung on February 24 approved a list of more than 400 state-owned enterprises (SOEs) to undergo restructuring as part of a broader plan by the government to build foreign investor confidence and boost economic efficiency. The SOEs listed are set to undergo restructuring in 2014-2015 and will open up to partial foreign investment during this period. SOEs hold most of Vietnam’s bad debt and are enshrined in the constitution as leaders of the economy.

Vietnam to merge its two stock exchanges. The Vietnamese government has announced plans to merge its two stock exchanges, according to a February 24 Reuters article. Under the plan, the Hanoi and Ho Chi Minh stock exchanges will be merged in 2015 as a single state-owned company. The government plans to partially privatize the exchange in 2020, with private enterprises allowed to own a 10-25 percent stake in it.

Dissident assaulted before meeting with Australian officials. Vietnamese dissident Nguyen Bac Truyen said February 26 that he and his wife were attacked prior to a meeting on human rights with Australian embassy officials in Hanoi. Truyen and his wife were on their way to the meeting when four men dragged them from a taxi and physically assaulted them. Truyen, who spent over three years in prison for allegedly spreading antistate propaganda, suspects the men who assaulted him have connections to state security.

Cambodia

Electoral reform committee officially meets for first time. Representatives from the opposition Cambodia National Rescue Party (CNRP) and ruling Cambodian People’s Party held the first official meeting of a joint electoral reform committee on March 3 in an effort to end a months-long political standoff. The committee agreed to reform the existing voter registration list and also discussed the reform of electoral institutions, election dispute resolution mechanisms, and equal media access for all political parties. A CNRP spokesperson said a planned national consultation on electoral reform involving nongovernmental organizations and other stakeholders is yet to be scheduled.

Government ends ban on public protests. Cambodian authorities on February 26 announced an end to a ban on public demonstrations that had been in place since early January. The government had suspended the right to public assembly following a deadly clash between military police and striking garment workers in Phnom Penh. The end of the ban came as the opposition Cambodia National Rescue Party announced that it will stage new antigovernment protests. An official said organizers will still need to ask permission from local officials before staging a demonstration.

Australia asks Cambodia to resettle asylum seekers. Australian foreign minister Julie Bishop asked the Cambodian government on February 22 to consider resettling asylum seekers detained by the Australian navy. Cambodian officials said they would consider the proposal. Australia currently has agreements with Papua New Guinea and Nauru to house intercepted asylum seekers. Bishop was in Phnom Penh on an official visit from February 21 to 23.

Garment workers boycott overtime. Eighteen unions across different industries in Cambodia encouraged workers to refuse to work overtime starting February 24 as part of a new strategy to demand higher wages. The group also plans to hold a public forum in Phnom Penh on March 8, despite having their request to do so rejected by the authorities, and to launch a nationwide garment workers strike on March 12. Workers are demanding a minimum monthly wage increase and the immediate release of 21 workers arrested during strikes in January.

Singapore

Singapore to expand liquefied natural gas industry. Second Minister for Trade and Industry S. Iswaran announced February 25 that Singapore plans to expand its liquefied natural gas (LNG) industry by increasing terminal capacity and allowing more access to its domestic market. The expansion will allow 9 million metric tons of LNG to pass through Singapore’s Jurong terminal each year, up from 6 million metric tons now, according to a February 25 Channel NewsAsia article. The move is part of Singapore’s broader goal to become a regional hub for LNG trading and pricing.

Citigroup downplays long-term risk of high property values. Michael Zink, head of Citigroup Bank Southeast Asia, on February 20 downplayed concerns about a property bubble in Singapore’s expensive real estate market. He said that Citigroup does not see the city-state’s high property values as dangerous because the majority of Singaporeans have already paid off their mortgages. Real estate values in Singapore rose rapidly for most of 2013, prompting fears of a bubble.

Australian oil and gas service provider to buy Jaya Holdings assets for $495 million. Australia-based oil and gas marine services provider Mermaid Marine agreed on February 23 to pay $495 million for all the assets of Singapore’s Jaya Holdings related to energy shipping services. The acquisition includes 27 vessels and shipyards in Indonesia and Singapore. It will help boost Mermaid Marine’s operations throughout East and Southeast Asia, according to a February 24 Bloomberg article.

Trans-Pacific Partnership

Ministerial meeting wraps up in Singapore. Trade ministers from the 12 members of the Trans-Pacific Partnership (TPP) negotiations concluded a four-day meeting in Singapore on February 25, failing to make significant progress on long-standing sticking points. Meetings between the Japanese and U.S. delegations did not deliver a breakthrough on agricultural and automotive industry tariffs. Ministers agreed to soften language in the TPP chapter on state-owned enterprises. United States Trade Representative Michael Froman said no dates have been set for the next round of negotiations.

South China Sea

Philippines, Malaysia, Vietnam discuss South China Sea. Officials from the Philippines, Malaysia, and Vietnam met in Manila on February 18 to coordinate policy regarding Chinese activities in the South China Sea. Fellow claimant Brunei failed to send representatives to the meeting, despite originally agreeing to attend, according to the Philippine Star. Officials reportedly agreed to reject China's nine-dash-line claim, push for an early conclusion to negotiations for a binding code of conduct, and ask Brunei to join a follow-up meeting in Kuala Lumpur in March.

Philippines protests China’s use of water cannons on fishermen. The Philippine government on February 25 summoned China’s top envoy to Manila over allegations that a Chinese surveillance ship fired water cannons at Philippine fishing vessels near Scarborough Shoal, which China seized in May 2012. Armed Forces of the Philippines chief of staff Gen. Emmanuel Bautista on February 24 warned that Philippine troops would come to the aid of fishermen if military force were used against them. China dismissed the Philippine protest and called its sovereignty in the area “indisputable.”

Philippines to acquire radar from Israel. Philippine security officials in late January signed an agreement to acquire three air-search radar systems from Israel for over $58 million, according to a February 4 Philippine Star article. The radar installations are expected to arrive by 2016. Meanwhile, Israel has vowed to lend the Philippines another radar for “immediate stop-gap solutions.” The acquisition is meant to boost the Philippines’ monitoring activities in the South China Sea, but the country will need four additional radar systems to provide full national coverage.

ASEAN

ASEAN officials propose rice federation focused on market stability and food security. Ministers of agriculture and industry leaders from the five mainland ASEAN states met in Yangon on February 22–23 and finalized a proposal to establish an ASEAN Rice Federation to ensure regional food security, avoid price volatility in the global market, cooperate in improving technology, and better the lives of rice farmers. The proposal will be presented during the annual ASEAN Ministers on Agriculture and Forestry meeting in August.

ASEAN economic ministers discuss economic integration. ASEAN economic ministers met in Singapore on February 27 for their annual retreat and agreed to seek greater cooperation between small and medium-sized enterprises in the region and to develop a regional framework for public-private partnerships. They also agreed to strengthen public awareness of the ASEAN Economic Community, scheduled to take effect at the end of 2015, and its impact on local businesses. The officials also discussed progress toward the Regional Comprehensive Economic Partnership between ASEAN and eight other Asia-Pacific nations.

Laos

Laos, Singapore agree to tax, education cooperation. Prime Minister Thongsing Thammavong and his Singaporean counterpart, Lee Hsien Loong, inked agreements on tax and education cooperation during the former’s visit to Singapore on February 20–21. The two leaders signed an agreement to avoid double taxation and another for Singapore to provide Laos with technical and vocational training. Thongsing’s visit marked the 40th anniversary of diplomatic ties between the two countries.

Luang Prabang ranks as a leading global tourist destination. Readers of Wanderlust, a leading British travel magazine, voted Luang Prabang one of the top cities in the world to visit in 2014, according to a February 22 Vientiane Times report. Luang Prabang placed second out of 768 cities. It is home to centuries-old Buddhist temples and monasteries. The city has seen tourist arrivals increase each year since 1995, when the United Nations Educational, Scientific, and Cultural Organization declared it a World Heritage Site.

European Union pledges $3.2 million for unexploded ordnance clearance. The European Union will provide more than $3.2 million in aid to assist vulnerable populations living in areas with unexploded ordnance in Laos, according to a February 28 Vientiane Times article. The funding will be channeled through the nongovernmental organizations Handicap International, Mines Advisory Group, Danish Church Aid, and the United Nations Development Program. The unexploded ordnance dates to the U.S. war in Laos that ended in 1973.

Brunei

Underwater fiber-optic cable scheduled to be completed this year. The vice chairman of a regional grouping called the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area said February 25 that a submarine fiber-optic cable connecting Brunei to its ASEAN neighbors will be completed in 2014. The official told the Brunei Times that the cable is intended to boost connectivity between participating states and is part of a broader plan that includes increasing ferry and flight connections.

Burger King expands operations in Brunei. U.S.-based Burger King opened its first restaurant in Brunei in the business district of Bandar Seri Begawan on February 25 and plans to establish two more locations in Brunei in 2014. The fast-food giant is the latest U.S. franchise to enter Brunei, where it is being operated by Sinofood Express. The grand opening of the Bandar Seri Begawan location was extremely busy, according to a February 25 Brunei Times article.

Timor-Leste

Timor-Leste’s natural gas reserves lower than expected. Australian energy company Santos released new estimates on February 21 indicating that oil and gas reserves in the Bayu-Undan field off Timor-Leste’s coast are a fifth lower than expected. Timorese officials have indicated that production from Bayu-Undan and the smaller Kitan oil field have already peaked. About 90 percent of Timor-Leste’s national revenue comes from offshore oil and gas, and officials are increasingly concerned that other industries are not developing quickly enough to make up expected losses when oil and gas production slows.

ICJ orders Australia to seal documents seized from Timor-Leste’s lawyer. The International Court of Justice (ICJ) on March 3 ordered Australia to seal documents seized in a December 2013 raid on the offices of Timor-Leste’s Canberra-based lawyer in its arbitration case over a resource-sharing agreement concerning oil and gas fields in the Timor Sea. The court said Australia cannot use the documents in the arbitration case, but also rejected Timor-Leste’s demand that they be returned. The court further ruled that Australia cannot obstruct communications between the Timorese government and its lawyers in the arbitration case or any future negotiations over maritime boundaries. Australia’s attorney general, George Brandis, said Canberra will comply.

APEC

Hong Kong replaced as APEC host over demonstration fears. Fears of a potential mass protest prompted Chinese officials to move the planned location for an Asia-Pacific Economic Cooperation (APEC) finance ministers meeting in September from Hong Kong to Beijing, according to a February 25 Channel News Asia article. Pro-democracy activists are demanding electoral reform in Hong Kong, a semiautonomous state with partial democracy. The Hong Kong government issued a statement saying the venue change was intended to improve logistics and coordination for the APEC Leaders’ Meeting in November.

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Looking Ahead

Congress’s views on foreign policy and defense issues in Asia. The Heritage Foundation will host a discussion March 11 on major Asia-Pacific policy and defense concerns for Congress, including the role of China, trade, and defense cooperation with U.S. allies. Speakers will include key congressional staff members. The event will take place from 2:00 p.m. to 3:30 p.m. at the Lehrman Auditorium, 214 Massachusetts Ave., NW. Please click here for more information and to RSVP.

Conference on critical issues in 21st-century Asia. The Asia Foundation will host four panel discussions on March 12 about development issues in Asia, focusing on civic participation in South Asia, rights and inclusion in Southeast Asia, women’s roles in Asia, and Asian approaches to development. Panelists will include 18 Asia Foundation country representatives and other experts. The event will take place from 8:00 a.m. to 2:00 p.m. at the Asia Foundation, 1779 Massachusetts Ave., NW. Please RSVP to elizabeth.matthews@asiafoundation.org.

Discussion on Indonesia’s upcoming elections. The Asia Foundation and the United States-Indonesia Society will cohost a discussion on March 12 with Sandra Hamid, the Asia Foundation’s representative in Indonesia. She will discuss the country’s upcoming legislative and presidential elections and offer insight into recent developments. The event will take place at the Asia Foundation, 1779 Massachusetts Ave., NW. Please contact elizabeth.matthews@asiafoundation.org for more information and to RSVP.

Discussion on the South China Sea and its role in future instability. The Center for a New American Security will host a book launch on March 25 for Robert Kaplan’s Asia’s Cauldron: The South China Sea and the End of a Stable Pacific. Kaplan will discuss the nations involved in the South China Sea disputes, the United States’ interests in the region, and China’s rising involvement. The event will take place from 5:00 p.m. to 7:30 p.m. at the Willard Intercontinental Hotel, 1401 Pennsylvania Ave., NW. For more information and to RSVP, please click here.

Exploring the long-term view of the U.S. rebalance to Asia. The Institute of Policy Studies will host an event March 26 on the U.S. rebalance to Asia, focusing on long-term challenges such as climate change, demographic shifts, and the evolution of technology as factors that the rebalance has overlooked. Panelists will include Lawrence Wilkerson, a former chief of staff to the U.S. secretary of state, Alexis Dudden of the University of Connecticut, and Daniel Garrett of the Asia Institute. The event will take place from 12:00 p.m. to 1:30 p.m. at 1112 16th St., NW, Suite 600. To RSVP, e-mail Netfa Freeman at netfa@ips-dc.org.

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