Today Trends

Author: Guanie Lim, GRIPS In August 2023, East Malaysia’s Sarawak state government appointed a nine-member board of guardians to serve on the newly minted Sarawak Sovereign Wealth Future Fund . It is the inaugural sovereign wealth fund (SWF) of the resource-rich Malaysian state, following national legislation in 2021 that has progressively granted more autonomy to Sarawak and neighbouring Sabah. While there is limited information available about this SWF, data suggests it has had some positive effects. Importantly, the Sarawak Sovereign Wealth Future Fund appears to be structured in a way that will enable it to flourish. The board of guardians, chaired by former Federal Court judge Sulong Matjeraie, are all distinguished experts in their respective fields. Together, there is a balanced mix of stakeholders from both the public and private sectors with extensive experience in Malaysia and abroad. The SWF will subscribe to international best practices, particularly the Generally Acc

Author: He-Ling Shi, Monash University China and the rest of the world seem to be living in two different universes. China is cutting interest rates to avoid deflation while everybody else is fighting inflation. China’s economy has been hit by a series of bad news. Data released by the National Bureau of Statistics of China indicated a year-on-year decrease of 0.3 per cent in the Consumer Price Index (CPI) for July 2023 and a year-on-year decrease of 4.4 per cent in the Producer Price Index (PPI). This marked the first simultaneous annualised decline in China’s CPI and PPI since November 2020. Economic data shows that indicators for consumer spending, industrial production and public and private investments in July 2023 were all significantly lower than expected. Credit growth weakened, exports declined and the People’s Bank of China unexpectedly lowered several key interest rates — including the medium-term lending facility (MLF) — for the second time in three months. But Chinese

Author: Nabiel Arzyan, CReco Consulting Over the past two decades, China has been an engine of economic growth capable of hoisting demand for commodities. Between 2001–2012, China’s average economic growth reached double-digits and the international market experienced a commodity boom. Indonesia’s economy gained momentum during the boom, leading to expanded growth and increased exports of commodities. But the situation has begun to change in recent years. The ongoing slowdown of China’s economy — affected by COVID-19 and the downturn of its domestic property market — is likely to have a significant impact due to lower demand for commodities. China imports over 70 per cent of global iron ore, 72 per cent of aluminium and over 60 per cent of copper. From the demand-side, China’s economic dynamics inevitably affect commodity prices in international markets. After a decline in COVID-19 cases, there was hope that China would experience an economic rebound and return to pre-pandemic l

Author: Eugene Mark, RSIS A new European Union (EU) regulation was introduced in June 2023 to prevent the importation of commodities linked to deforestation with the goal of curbing forest loss, land degradation and biodiversity loss. The EU Deforestation Regulation (EUDR) will apply to commodities including palm oil and other derivative products. The regulation is perceived by countries including Indonesia and Malaysia as a protectionist measure under the guise of environmental sustainability. There are concerns that the EUDR may lead to the exclusion of smaller producers , who make up a large part of the commodity production in developing countries. As crucial palm oil producing countries, Indonesia and Malaysia are calling the EUDR ‘discriminatory’ and Malaysia is even looking to double palm oil exports to China in the face of EU restrictions. Still, both countries have established a task force with the European Union to implement the EUDR. The EUDR’s regulatory requirement

Author: Sharon Seah, ISEAS–Yusof Ishak Institute In 1973, Japan decided to start informal relations with the Association of Southeast Asian Nations (ASEAN) before formalising with the convening of the ASEAN–Japan Forum in 1977. Former Japanese prime minister Takeo Fukuda articulated Japan’s foreign policy shift towards the region in 1977 during a stopover in the Philippines. The Fukuda Doctrine would eventually become a cornerstone in Japan’s relationship with Southeast Asia, based on three important principles. They included a commitment by Japan to peace and its pacifist role, the development of people-to-people connections and cooperation for peace and prosperity. The success of the Fukuda Doctrine can be measured in the tangible benefits from ASEAN–Japan cooperation today. Japan enjoys positive political and economic relations with every country in Southeast Asia and has bilateral economic partnership agreements with seven of Southeast Asia’s eleven countries. It is a key tra

Author: Sachin Chaturvedi, RIS The September 2023 New Delhi G20 Summit marked the beginning of the end of the Indian G20 presidency and Indonesia’s role in the troika, presenting an opportunity to evaluate their leadership in global governance. Indonesia assumed the G20 presidency in December 2021, followed by India in December 2022. Both G20 presidencies had clear marks of their respective leaders. The pacifist demeanour of Indonesian President Joko Widodo was reflected in his handing of the Ukraine conflict and his role during G20 negotiations. At the 2022 Bali summit, Indian Prime Minister Narendra Modi emphasised diplomacy and collective resolve to address the ongoing tensions in Ukraine and actively engaged Russia and Ukraine throughout the Indian presidency. During what has been called the most difficult G20 ever, Indonesia held its ground on Russia, refusing to withdraw Russian President Vladimir Putin’s invitation but condemning Russia at the summit. Under Widodo’s leaders

Author: Jose Ma Luis Montesclaros, NTU Much criticism has been levelled against India’s July 2023 decision to ‘ ban ’ non-basmati rice exports, which previously made up a third of its milled rice exports. Critics have further argued that the move by India, as the world’s largest rice exporter, could damage its claim to lead the Global South , falling far from its promises to address global food challenges under its 2023 G20 presidency . India’s export bans can also be seen as irresponsible if driven not primarily by domestic food security, but rather by political reasons. Ahead of the March 2024 elections, there is a need to appease India’s urban middle class by reducing mounting food prices. The Indian government has not yet normalised its rice trade, with the situation worsening by the month. In 2023 , New Delhi imposed further constraints on parboiled rice, which accounts for 42 per cent of India’s milled rice exports. Rice prices have since spiralled to levels similar to the 2

Author: Kearrin Sims, James Cook University Indian Prime Minister Narendra Modi opened the 2023 G20 Summit in New Delhi by stating that ‘India’s G20 presidency has become a symbol of inclusion … it has become a People’s G20’. This rhetoric gels well with the repeated adage that India is the world’s largest democracy and a bulwark of political freedom against expanding Chinese authoritarianism. In reality, Modi’s leadership has advanced a politics of occlusion, implementing wide-ranging policies that erode political freedoms and silence advocates of inclusivity. To see this politics of occlusion at work, one need look no further than the eviction of beggars and hiding of slums that took place in the lead up to the G20 summit. There also exists a more longstanding pattern of property destruction and forced evictions of Muslim communities , which has increased under Modi and his Bharatiya Janata Party’s (BJP) promotion of Hindu nationalism. The inauguration of a new parliament build

Author: Tu Nguyen, University of Adelaide Vietnam is revising its social insurance law to discourage employees from withdrawing their social insurance premiums early and giving up their pensions. There is concern that the proposed changes might cause discontent among factory workers, many of whom have resorted to withdrawing social insurance premiums to overcome financial hardship. By law, both employers and employees must contribute to employees’ social insurance premiums, which pays for pensions and other benefits such as maternity leave. One of the conditions in which employees can claim their social insurance premium as a lump sum is when they quit their job and stop contributing to the social insurance fund for one year. Since the 2010s, increasing numbers of employees have lodged claims for the lump sum payment under this condition. As the pension is a key pillar of social insurance, more people choosing to opt out of the system will put a greater burden on the state to pr