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Tag: Association of Southeast Asian Nations

  • Malaysia's Capital A paves way for merger of AirAsia's operations globally

    Malaysia's Capital A paves way for merger of AirAsia's operations globally

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    Malaysia’s Capital A Berhad CAPI.KL said on Monday it intends to sell its aviation business to long-haul unit AirAsia X Bhd AIRX.KL, with a goal of consolidating both its long and short-haul operations under a single AirAsia brand.

    Nicky Almasy | Moment | Getty Images

    Malaysia’s Capital A Berhad said on Monday it intends to sell its aviation business to long-haul unit AirAsia X Bhd, with a goal of consolidating both its long and short-haul operations under a single AirAsia brand.

    The proposed deal, which is subject to a final agreement being signed and to approvals from shareholders and courts, involves the sale of AirAsia Berhad and AirAsia Aviation Group Ltd, which includes AirAsia units in Thailand, Indonesia, Philippines, and Cambodia, Group Chief Executive Tony Fernandes told reporters without disclosing any deal value.

    Full details of the deal would be announced “in the next two weeks”, he told reporters at AirAsia’s 2024 outlook briefing.

    “Eventually AirAsia X and AirAsia will be merged into one airline… my dream is for it to be one ASEAN airline,” Fernandes said, referring to the 10-member Association of Southeast Asian Nations.

    AirAsia was founded in 2001 with two aircraft and has since become one of Asia’s largest budget airline operator with a fleet of some 200 planes serving markets including Southeast Asia and China.

    Both Capital A and AirAsia X were hard hit by pandemic travel restrictions and classified by Malaysia’s stock exchange as PN17, or financially distressed. Such firms may be de-listed from the exchange if they fail to stabilize their finances within a set time frame.

    AirAsia X was removed from the classification in November, after undertaking measures to improve its financial position.

    Fernandes said the group’s airlines will likely return to full pre-pandemic capacity by the end of the first quarter. He said they have 400 planes on order and Airbus will start delivering new A321 aircraft by the second quarter of 2025.

    We are confident that by separating the aviation business from Capital A, the non-aviation businesses within the group, which we feel are currently undervalued by the market, will also be recognized for their intrinsic value and potential.

    Tony Fernandes

    Group Chief Executive of Capital A Berhad

    It also hopes to add routes to Europe, South America and Africa by the end of this year.

    Fernandes, who told the briefing that he intends to retire within five years, said the airline sale would help Capital A raise funds and focus on its non-aviation business, which include payments firm BigPay, logistics arm Teleport, and online travel agency airasia MOVE.

    “We are confident that by separating the aviation business from Capital A, the non-aviation businesses within the group, which we feel are currently undervalued by the market, will also be recognized for their intrinsic value and potential,” he said in a separate statement.

    Capital A plans to present a PN17 regularization plan by June 30, after the completion of the aviation disposal, he said.

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  • Southeast Asia’s first luxury hotel made from retired buses opens in Singapore — take a look inside

    Southeast Asia’s first luxury hotel made from retired buses opens in Singapore — take a look inside

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    The resort hotel has 20 rooms which will be open for stays from Dec. 1, 2023.

    Source: The Bus Collective

    It only costs a dollar to ride a Singapore bus — but 398 Singapore dollars to sleep in one.

    The Bus Collective is Southeast Asia’s first resort hotel to repurpose decommissioned public buses into luxury hotel rooms.

    The project renovated 20 buses that were once owned by SBS Transit, Singapore’s public transport operator, giving them a renewed purpose within the hospitality sector.

    The resort hotel officially opens on Dec. 1 and bookings are now available on its website.

    A look into the resort

    The Bus Collective is located in Changi Village, Singapore — occupying 8,600 square meters of land.

    The Queen Victoria room.

    Source: The Bus Collective

    The property sits near local attractions like the Changi Village Hawker Centre, Changi East Boardwalk, and Changi Chapel & Museum.

    The resort hotel has seven distinct room categories, each with different in-room amenities. Nightly room rates start at SG$398 ($296) and some rooms even come with a bathtub and king-sized bed. 

    Some rooms include amenities like a bathtub, a flat screen television and a minibar.

    Source: The Bus Collective

    Among the different room types, the Pioneer North room has handrails in the toilet and shower area, built to meet the needs of senior guests, a representative from the resort hotel told CNBC.

    Alternatively, the Hamilton Place room is designed to be wheelchair accessible, equipped with an external accessible restroom and a ramp leading up to the room’s entrance, she added.

    Some of the hotel rooms come equipped with entrance ramps for wheelchair accessibility.

    Source: The Bus Collective

    Each room covers 45 square meters and can accommodate three to four guests, the resort’s website showed. Although these retired buses have been entirely refurbished, some features such as the steering wheel, driver seat and windows have been preserved. 

    The driver’s seat, steering wheel and windows have been retained as part of the room’s design.

    Source: The Bus Collective

    Recreational activities are not available on the property, but The Bus Collective will be organizing guided tours which guests can book at the resort hotel’s experience center, the representative said.

    One of the tours offered is a biking trip around Pulau Ubin — an island off the coast of Singapore. This tour is priced at SG$99 per person and includes a two-way ferry transfer to and from the island. Other experiences include a guided food tour and sailing at Changi Sailing Club.

    The inspiration behind the project

    The Bus Collective was founded by WTS Travel & Tours, a Singaporean travel agency, along with its partners LHN Group, a real estate management services group, and Sky Win Holding, an investment holding group headquartered in Singapore. 

    The renovation process of the decommissioned buses.

    Source: The Bus Collective

    WTS Travel and partners wanted to showcase how tourism, nature and environmentalism can come together and be a “catalyst for creating unique and exciting new experiences,” Micker Sia, managing director of WTS Travel told CNBC. 

    He added that the project aims to “establish a precedent for eco-conscious practices in construction and hospitality … setting a new standard for sustainable luxury.” 

    Although The Bus Collective only operates in Singapore currently, Sia told CNBC it could expand in the future. “We are definitely open to exploring opportunities for growth and innovation in the future … and we believe it has the potential to resonate with audiences in other locations within the Asia Pacific region,” Sia said.

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  • ‘We want to explore regionally’ if MOU with HSBC is successful: WeLab CEO

    ‘We want to explore regionally’ if MOU with HSBC is successful: WeLab CEO

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  • Southeast Asia moves closer to economic unity with new regional payments system

    Southeast Asia moves closer to economic unity with new regional payments system

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    Indonesian President Joko Widodo makes a speech during the Association of Southeast Asian Nations (ASEAN) Foreign Minister’s Meeting in Jakarta, Indonesia on July 14, 2023.

    Murat Gok | Anadolu Agency | Getty Images

    A new regional cross-border payment system recently implemented by Southeast Asian nations could deepen financial integration among participants, bringing the ASEAN bloc closer to its goal of economic cohesion.

    The program, which allows residents to pay for goods and services in local currencies using a QR code, is now active in Indonesia, Malaysia, Thailand and Singapore. The Philippines is expected to join soon.

    That’s according to each country’s respective central bank.

    The move comes after the five Southeast Asian countries signed an official agreement late last year. At the recent ASEAN summit in May, leaders also reiterated their commitment to the project, pledging to work on a road map to expand regional payment links to all ten ASEAN members.

    The scheme is aimed at supporting and facilitating cross-border trade settlements, investment, remittance and other economic activities with the goal of implementing an inclusive financial ecosystem around Southeast Asia.

    Analysts say retail industries will particularly benefit amid an expected rise in consumer spending, which could in turn strengthen tourism.

    Regional connectivity is considered crucial to reduce the region’s reliance on external currencies like the U.S. dollar for cross-border transactions, particularly among businesses. The greenback’s strength in recent years has resulted in weaker ASEAN currencies, which hurts those economies since the majority of the bloc’s members are net energy and food importers. 

    “The system will forgo the U.S. dollar or the Chinese renminbi as intermediary,” said Nico Han, a Southeast Asia analyst at Diplomat Risk Intelligence, the consulting and analysis division of current affairs magazine The Diplomat.

    A unified cross-border digital payment system will “foster a sense of regionalism and ASEAN-centrality in managing international affairs,” he added. “This move becomes even more crucial in light of escalating tensions among major global powers.”

    How it works

    By connecting QR code payment systems, funds can be sent from one digital wallet to another.

    These digital wallets effectively act as bank accounts but they can also be linked to accounts with formal financial institutions.

    For instance, Malaysian tourists in Singapore can make a payment with Malaysian ringgit funds in their Malaysian digital wallet when making a transaction. Or, a Malaysian worker in Singapore can send Singapore dollar funds in a Singaporean digital wallet to a recipient’s wallet in Malaysia. 

    Fees and exchange rates will be determined by mutual agreement between the central banks themselves.

    For now, a region-wide system like this doesn’t exist in other parts of the world but down the road, the Bank of International Settlements, based in Switzerland, hopes to connect retail payment systems across the world using QR codes and mobile phone numbers.

    “The ASEAN central banks’ effort is innovative and novel,” said Satoru Yamadera, advisor at the Asian Development Bank’s Economic Research and Development Impact Department.

    “In other regions like Europe, retail payment connection via credit and debit cards is more popular while China is well-known for advanced QR code payment, but they are not connected like the ASEAN QR codes,” he continued.

    Economic benefits

    QR payments don’t impose fees on cardholders and merchants. They also boast of better conversion rates than those set by private payment processors like Visa or American Express.

    Micro enterprises as well as small- and medium-sized businesses, or SMBs will emerge as winners from regional payment connectivity, experts say. According to the Asian Development Bank, such companies account for over 90% of businesses in Southeast Asia.

    “SMBs can avoid the expenses associated with maintaining a physical point-of-sale system or paying interchange fees to card companies,” explained Han from Diplomat Risk Intelligence.

    Marginalized individuals from low-income backgrounds also stand to benefit. As the payment system works via digital wallets and doesn’t require a traditional bank account, it can be used by the unbanked population.

    “The system has the potential to improve financial literacy and wellbeing for the underbanked population,” Han noted.

    Chinese tourist numbers in Thailand are down but they are spending more, hospitality company says

    ASEAN’s new system will also enable merchants and consumers to build a robust payment history, and provide valuable data for credit scoring, said Nicholas Lee, lead Asia tech analyst at Global Counsel, a public policy advisory firm.

    “That’s particularly advantageous for unbanked and underbanked segments of the population, who traditionally lack access to such credit assessment data.”

    Moreover, “increased non-cash transactions would allow policymakers to capture transaction data and trade flow more effectively, assuming these data are accessible,” said Lee.

    “This, in turn, could lead to better economic forecasting and policymaking.”

    Currency pressure ahead

    While strengthening payment connectivity within the region has the potential to reduce payment friction and accelerate digital transition, it could inadvertently put pressure on certain currencies, particularly the Singapore dollar.

    “The potential scenario of the [Singapore dollar] emerging as a de facto reserve currency within the region poses a challenge that ASEAN states will need to confront,” said Lee.

    We see the biggest opportunities in Indonesia, says Dubai-based supply chain firm

    “With the [Singapore dollar’s] strength and stability, both international and regional businesses may opt to hold more of their working capital in [Singapore dollars], relying on the new payment network for efficient currency conversion,” he explained. 

    If that happens, it could weaken the purchasing power of other currencies in the region and result in higher imported inflation if central banks don’t intervene.

    In such a scenario, authorities may feel the need to impose capital restrictions in order to protect their respective currencies, which could undermine the very purpose of establishing a regional payment network.

    Regulations pose another challenge.

    Central banks will have to address security and fraud issues, plus undertake the task of educating the public to embrace the new payment system, said Han.

    “These factors can collectively contribute to a time-consuming process,” he warned.

    This kind of coordinated action will require strong political will from regional leaders and it remains to be seen if ASEAN members can come together to successfully implement such an ambitious venture.

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  • ASEAN leaders to tackle regional crises at tropical resort

    ASEAN leaders to tackle regional crises at tropical resort

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    LABUAN BAJO, Indonesia (AP) — A picturesque tourist destination will host crisis-weary Southeast Asian leaders with sun-splashed tropical islands, turquoise waters brimming with corals and manta rays, seafood feasts, and a hillside savannah crawling with Komodo dragons.

    The sunshiny setting is a stark contrast to the seriousness of their agenda.

    Indonesian President Joko Widodo picked the far-flung, rustic harbor town of Labuan Bajo as a laidback venue to discuss an agenda rife with contentious issues. These include the continuing bloody civil strife in Myanmar and the escalating territorial conflicts in the South China Sea between fellow leaders of the Association of Southeast Asian Nations.

    The 10-nation regional bloc and its member states will meet for three days starting Tuesday, with the growing rivalry between the United States and China as a backdrop.

    U.S. President Joe Biden has been reinforcing an arc of alliances in the Indo-Pacific region to better counter China over Taiwan and the long-seething territorial conflicts in the strategic South China Sea which involve four ASEAN members: Brunei, Malaysia, the Philippines and Vietnam. Indonesia, this year’s ASEAN chair, has also confronted Chinese fishing fleets and coast guard that have strayed into what Jakarta says was its internationally recognized exclusive economic zone in the gas-rich Natuna Sea.

    Widodo, who’s in his final year on the world stage as he reaches the end of his two-term limit, said ASEAN aims to collaborate with any country to solve problems through dialogue.

    That includes Myanmar where, two years after the military power grab that forced out Aung San Suu Kyi’s administration and sparked a bloody civil strife, ASEAN has failed to rein in the violence in its member state. A five-point peace plan by ASEAN leaders and the top Myanmar general, which calls for an immediate stop to killings and other violence and the start of a national dialogue, has been disregarded by Myanmar’s ruling military.

    ASEAN stopped inviting Myanmar’s military leaders to its semiannual summits and would only allow non-political representatives to attend. Myanmar has protested the move.

    In an additional concern involving Myanmar, Indonesian officials said Sunday that 20 of their nationals, who were trafficked into Myanmar and forced to perform cyber scams, had been freed from Myanmar’s Myawaddy township and brought to the Thai border over the weekend. During the summit, ASEAN leaders planned to express their concern over such human trafficking schemes in a joint statement, a draft copy of which was obtained by The Associated Press.

    Indonesian Foreign Minister Retno Marsudi said her country, as ASEAN chair, has tackled the Myanmar crisis in a non-adversarial way.

    “Colleagues certainly know that in the early stages of its leadership, Indonesia decided to take a non-megaphone diplomacy approach,” Marsudi said. “The aim is to provide space for the parties to build trust and for the parties to be more open in communicating.”

    Widodo’s choice of a seaside venue with stunning sunrises and sunsets and the sound of birds chirping all day complements that approach.

    The Indonesian leader also hoped the high-profile ASEAN summit would put Labuan Bajo and outlying islands, dotted with white-sand beaches and even a rare pink-sand beach, under the global tourism spotlight.

    “This is a very good moment for us to host the ASEAN summit and showcase Labuan Bajo to the world,” said Indonesian President Joko Widodo, who flew in Sunday with his wife to a red-carpet welcome flanked by military honor guards and dancing villagers with flower-filled headwear.

    But there are a few hitches.

    The far-flung fishing town with only three traffic lights and about 6,000 residents is acutely short of hotels for ASEAN’s swarm of diplomats, delegates and journalists. Many had to arrange to share rooms.

    Unlike the more popular Bali resort island or the bustling concrete jungle of a capital Jakarta, which has hosted international conclaves in upscale hotels and convention centers, Labuan Bajo is a far smaller town that a visitor could cross from end to end with a brisk two-hour walk. There are no public buses, and villagers mostly move around by walking, riding scooters or driving private cars.

    A small team of local technicians with hard hats were flown in to lay cables and expand internet connections at the venues on short notice.

    On Sunday, Labuan Bajo’s small airport was jampacked with visitors. Teams of diplomats and journalists arrived to welcome streamers announcing the upbeat summit motto, “ASEAN Matters: Epicentrum of Growth.”

    Outside the airport named after the Komodo dragons, traffic quickly built up under the brutal noontime sun.

    When the sun rose Monday morning, workers were still cementing some roadsides around the venues — a day before the summit opening.

    Andre Kurniawan, who works at a dive center in Labuan Bajo, said the infrastructure developments would be a boon for Labuan Bajo villagers. “We were isolated from some areas before and now they are open and the areas are getting better. I hope that Labuan Bajo can be a better tourist town in the future,” he said.

    Azril Azahari, chair of an association of Indonesian academic experts on tourism, told the AP that Labuan Bajo was not ready and apparently was chosen to host the summit on short notice. “The hotel facilities and the lodging have become a problem. There is a ship being used for accommodation and it’s not a lodging ship,” he said.

    Welcoming visitors to her coffee shop ahead of the summit, Suti Ana said even though it wasn’t the best time for Labuan Bajo to host, ASEAN would boost local businesses. “But we cannot wait, so this is the time,” she said.

    Choosing the small port town was not a bad idea, Azril said, if it came with adequate planning and government investments in infrastructure.

    Located on the western tip of Flores island in southern Indonesia, Labuan Bajo, aside from its beaches and diving and snorkeling spots, has been better known as the gateway to the Komodo National Park — a UNESCO World Heritage site and the only place in the world where Komodo dragons, the world’s largest lizards, are found in the wild.

    Environmentalists and tourism analysts fear that a wider public interest could put further stress on the already endangered Komodo dragons. Only about 3,300 were known to exist as of 2022.

    “If more people come, sooner or later the Komodo dragons cannot breed in peace, this can be a problem,” Azahari said, citing longstanding fears that the Komodos could face extinction without full protection.

    Despite the odds, Indonesian officials said they would do everything to successfully and safely host the ASEAN summit in Labuan Bajo.

    “If there’s any commotion along the way, that will be a big stain on the nation’s dignity,” Edistasius Endi, the regent of Labuan Najo’s West Manggarai district, said in a statement.

    ___

    Associated Press journalists Jim Gomez and Achmad Ibrahim contributed to this report.

    ___

    Find more of AP’s Asia-Pacific coverage at https://apnews.com/hub/asia-pacific

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  • Calls to move away from the U.S. dollar are growing — but the greenback is still king

    Calls to move away from the U.S. dollar are growing — but the greenback is still king

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    Calls to move away from relying on the U.S. dollar for trade are growing.

    More and more countries — from Brazil to Southeast Asian nations — are calling for trade to be carried out in other currencies besides the U.S. dollar.

    The U.S. dollar has been king in global trade for decades — not just because the U.S. is the world’s largest economy, but also because oil, a key commodity needed by all economies big and small, is priced in the greenback. Most commodities are also priced and traded in U.S. dollars.

    But since the Federal Reserve embarked on a journey of aggressive rate hikes to fight domestic inflation, many central banks around the world have raised interest rates to stem capital outflows and a sharp depreciation of their own currencies.

    “By diversifying their holdings reserves into a more multi-currency sort of portfolio, perhaps they can reduce that pressure on their external sectors,” said Cedric Chehab from Fitch Solutions.

    To be clear, the U.S. dollar remains dominant in global forex reserves even though its share in central banks’ foreign exchange reserves has dropped from more than 70% in 1999, IMF data shows.

    The U.S. dollar accounted for 58.36% of global foreign exchange reserves in the fourth quarter last year, according to data from the IMF’s Currency Composition of Foreign Exchange Reserves (COFER). Comparatively, the euro is a distant second, accounting for about 20.5% of global forex reserves while the Chinese yuan accounted for just 2.7% in the same period.

    China is one of the most active players in this push given its dominant position in global trade right now, and as the world’s second largest economy.

    Based on CNBC’s calculation of IMF’s data on 2022 direction of trade, mainland China was the largest trading partner to 61 countries when combining both imports and exports. In comparison, the U.S. was the largest trading partner to 30 countries.

    “As China’s economic might continues to rise, that means that it’ll exert more influence in global financial institutions and trade etc,” Chehab told CNBC last week.

    China — long among the top 2 foreign holders of U.S. Treasurys — has been steadily reducing its holdings of U.S. Treasury securities.

    Mainland China held nearly $849 billion of U.S. Treasurys as of February this year, the latest data from the U.S. Treasury department showed. That’s at a 12-year low, according to historic data.

    Changing dynamics

    Brazil is rebuilding ties with China, former Brazilian diplomat says

    Economic benefits

    The de-dollarization trend is a reflection that U.S. growth is no longer the only story that matters

    Meanwhile, growth of non-U.S. economic blocs also encourage these economies to push for wider use of their currencies. The IMF estimates that Asia could contribute more than 70% to global growth this year.

    “U.S. growth might slow, but U.S. growth isn’t what it’s all about anymore. There is a whole non-U.S. block that’s growing,” said Tinker. “I think there is going to be a re-internationalization of flows.”

    Geopolitical concerns

    Geopolitical risks have also accelerated the trend to move away from U.S. dollar.

    “Political risk is really helping introduce a lot of uncertainty and variability around how much of a safe haven that U.S. dollar really is,” said Galvin Chia from NatWest Markets told “Street Signs Asia” earlier.

    Tinker said what accelerated the calls for de-dollarization was the U.S. decision to freeze Russia’s foreign currency reserves after Moscow invaded Ukraine in February 2022.

    The yuan has reportedly replaced the U.S. dollar as the most traded currency in Russia, according to Bloomberg.

    So far, the U.S. and its western allies have frozen more than $300 billion of Russia’s foreign currency reserves and slapped multiple rounds of sanctions on Moscow and the country’s oligarchs. This forced Russia to switch trade to other currencies and increase gold in its reserves.

    “Now you find that if you disagree with U.S. foreign policy, you risk having those confiscated or frozen. You’ve got to have alternative place to put those assets,” Tinker said. In the Middle East, major oil exporter Saudi Arabia has reportedly signaled it’s open to trade in other currencies other than the greenback

    Although analysts don’t anticipate a complete break away from dollar-denominated oil trade over the short-term, “I think what they’re saying more is, well, there’s another player in town, and we want to look at how we trade with them on a bilateral basis using yuan,” said Chehab.   

    Dollar is still king

    Despite the slow erosion of its hegemony, analysts say the U.S. dollar is not expected be dethroned in the near future — simply because there aren’t any alternatives right now.

    Euro is somewhat an imperfect fiscal and monetary union, the Japanese yen, which is another reserve currency, has all sorts of structural challenges in terms of the high debt loads,” Chehab told CNBC.

    The Chinese yuan also falls short, Chehab said.

    “If you look at the yuan reserves as a share of total reserves, it’s only about 2.5% of total reserves, and China still has current account restrictions,” Chehab said. “That means that it’s going to take a long time for any other currency, any single currency to really usurp the dollar from that perspective.”

    Data from IMF shows that as of the fourth quarter of 2022, more than 58% of global reserves are held in U.S. dollar — that’s more than double the share of the euro, the second most-held currency in the world.

    The international reserve system “is still a U.S.-reserve dominated system,” said NatWest’s Chia.

    “So long as that commands the majority, so long as you don’t have another currency system or economy that’s willing to step up to that international reach, convertibility and free floating and the responsibility of a reserve currency, it’s hard to say dollar will be displaced over the next 3 to 5 years. unless someone steps up.”

    CNBC’s Joanna Tan and Monica Pitrelli contributed to this report.

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  • ASEAN ministers urge reduced violence, dialogue in Myanmar

    ASEAN ministers urge reduced violence, dialogue in Myanmar

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    JAKARTA, Indonesia (AP) — Southeast Asian foreign ministers urged Myanmar’s military rulers on Friday to reduce violence and allow unhindered delivery of humanitarian aid to pave the way for a national dialogue aimed at ending the country’s worsening crisis.

    Meeting in Indonesia’s capital, the ministers from the Association of Southeast Asian Nations also granted observer status to East Timor, Asia’s newest nation, ahead of it becoming the regional bloc’s 11th member.

    Myanmar is an ASEAN member, but its foreign minister was excluded from Friday’s annual ministers’ retreat because of his country’s failure to implement a five-step consensus on restoring peace forged in 2021 between ASEAN and Myanmar’s military leader, Senior Gen. Min Aung Hlaing.

    Indonesian Foreign Minister Retno Marsudi, who hosted Friday’s meetings, said the ministers agreed that an inclusive national dialogue “is key to finding a peaceful resolution to the situation in Myanmar,” and that reducing violence and providing humanitarian assistance are “paramount for building trust and confidence.”

    She said the lack of progress in Myanmar “tests our credibility” as a group, and that ASEAN’s efforts toward peace would be coordinated with those of other countries and the United Nations.

    Myanmar’s military leader promised in the five-point agreement to allow a special ASEAN envoy to meet with jailed ousted leader Aung San Suu Kyi and others to foster a dialogue aimed at easing the crisis, set off by the military’s seizure of power two years ago. But Myanmar refused to let an ASEAN envoy meet with Suu Kyi last year, resulting in Min Aung Hlaing’s exclusion from an ASEAN summit last November.

    The increasing violence in Myanmar since the military takeover loomed large over the foreign ministers’ meetings, even as Indonesia, this year’s ASEAN chair, sought to dampen concerns that the crisis will overshadow other issues and hold the bloc “hostage.”

    In her opening remarks, Marsudi said the ministers were meeting in the midst of immense global challenges in which the Indo-Pacific region is not immune, including geopolitical, food, energy, financial and ecological crises, as well as major power rivalries that could spill over and potentially destabilize the region.

    The ministers warmly applauded the East Timor delegation as it participated in an ASEAN ministerial meeting for the first time.

    “It is a crucial steppingstone in our long journey to join the big family of the ASEAN community,” East Timor Foreign Minister Adaljiza Magno said,

    ASEAN agreed in principle to admit East Timor as the group’s 11th member at last November’s ASEAN summit.

    East Timor applied for full membership in ASEAN in 2011, but some members feared its poverty would be a burden and slow efforts to achieve an ASEAN Economic Community.

    The U.N. estimates that nearly half of East Timor’s population lives below the extreme poverty line of $1.90 a day, and that 42 of every 1,000 babies die before their fifth birthday because of malnutrition.

    The former Portuguese colony was occupied by Indonesia for a quarter-century and gained independence after a U.N.-sponsored referendum in 1999. Indonesia’s military responded with scorched-earth attacks that devastated East Timor.

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  • UN council adopts resolution urging end to Myanmar violence

    UN council adopts resolution urging end to Myanmar violence

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    UNITED NATIONS — The U.N. Security Council approved its first-ever resolution on Myanmar on Wednesday, demanding an immediate end to violence in the Southeast Asian nation and urging its military rulers to release all “arbitrarily detained” prisoners including ousted leader Aung San Suu Kyi and to restore democratic institutions.

    The resolution reiterated the call by the 15-member council for the country’s opposing parties to pursue dialogue and reconciliation and urged all sides “to respect human rights, fundamental freedoms and the rule of law.”

    The council vote was 12-0 with three abstentions, China, Russia and India.

    Britain’s U.N. Ambassador Barbara Woodward, whose country sponsored the resolution, said it is the first adopted by the U.N.’s most powerful body since the country, formerly known as Burma, joined the United Nations in 1948.

    It is the result of the military overturning the results of a democratic election and seizing power on Feb. 1, 2021, plunging the country into a series of cascading crises with “negative consequences for the region and its stability,” she said.

    “Today we’ve sent a firm message to the military, that there should be a no doubt we expect this resolution to be implemented in full,” Woodward said. “We stand with the people of Myanmar. It is time for the junta to return the country to them.”

    U.S. Secretary of State Antony J. Blinken applauded the adoption of the resolution as an important step but said the Council had more work to do “to advance a just solution” to the crisis.

    “The Security Council should leverage this opportunity to seek additional ways to promote a return to the path of democracy, advance accountability for the regime’s actions, and support ASEAN’s efforts to achieve meaningful implementation of the Five Point Consensus,” he said in a statement, referring to the Association of Southeast Asian Nations’ plan to restore peace and stability.

    U.N. spokesman Stephane Dujarric said Secretary-General Antonio Guterres remains “extremely concerned” about the deteriorating humanitarian situation and human rights in Myanmar. “We welcome this strong message from the Security Council,” he told AP.

    For five decades Myanmar had languished under strict military rule that led to international isolation and sanctions. As the generals loosened their grip, culminating in Suu Kyi’s rise to leadership in 2015 elections and moves toward democracy, the international community responded by lifting most sanctions and pouring investment into the country.

    That ended with the military takeover on the day Parliament was to reconvene following November 2020 elections which Suu Kyi’s National League for Democracy party won overwhelmingly — an outcome the military claims without evidence was based on fraud.

    The takeover was met with massive public opposition, which has since turned into armed resistance that some U.N. experts have characterized as civil war.

    Last month, the Assistance Association for Political Prisoners, a rights monitoring organization, said over 16,000 people had been detained on political charges in Myanmar since the army takeover. Of those arrested, more than 13,000 were still in detention. The association said at least 2,465 civilians had been killed since the 2021 takeover, although the number is thought to be far higher.

    Much of the international community, including Myanmar’s fellow ASEAN members, have expressed frustration at the generals’ hard line in resisting reform. Myanmar’s rulers agreed to ASEAN’s plan in April 2021 but have made little effort to implement it.

    The plan calls for the immediate cessation of violence, a dialogue among all concerned parties, mediation of the dialogue process by an ASEAN special envoy, provision of humanitarian aid through ASEAN channels and a visit to Myanmar by the association’s special envoy to meet all concerned parties. Current U.N. special envoy Noeleen Heyzer and ASEAN special envoy Prak Sokhonn, a Cambodian minister, have both visited Myanmar but neither was allowed to meet Suu Kyi.

    The resolution “acknowledges ASEAN’s central role in helping to find a peaceful solution to the crisis in Myanmar” and encourages the international community to support ASEAN’s efforts, including in implementing the five-point consensus.

    Noting that Myanmar’s military committed to supporting the five-point consensus, the U.N. resolution calls for immediate action to implement it and urges all parties in Myanmar to work on starting a dialogue aimed at peacefully resolving the crisis. It also underlines the need “for a peaceful, genuine and inclusive process to de-escalate violence and reach a sustainable political resolution.”

    The resolution also expresses “deep concern” at the ongoing state of emergency imposed by the military, the arrest of Suu Kyi and former president Win Myint who should be released immediately, and at “the increasingly large numbers of internally displaced persons and dramatic increase in humanitarian need.” It reiterates the council’s condemnation of the execution of activists in July.

    Elaine Pearson, Asia director at Human Rights Watch, said: “The Security Council resolution is a momentous step on behalf of the people of Myanmar, opening the door toward holding Myanmar’s brutal generals to account.”

    But Tom Andrews, the independent U.N. special investigator on Myanmar, tweeted that as well-meaning as the resolution is, “without consequences” in the resolution “these important sentiments will not stop the junta from attacking and destroying the lives of the 54 million in Myanmar.”

    Since the Security Council won’t authorize action against the military, he said, “those nations who support the people of Myanmar must immediately step forward with coordinated action to end the carnage.”

    Britain’s Woodward said the resolution was the result of many weeks of consultations with members of the council and ASEAN and key regional partners. Diplomats said the final negotiations were between Britain and China, Myanmar’s neighbor and ally.

    Louis Charbonneau, Human Rights Watch’s U.N. director, said: “China and Russia’s abstentions signal that even the junta’s few friends have lost interest in sticking out their necks to defend its atrocities.”

    China’s U.N. Ambassador Zhang Jun said he abstained because the resolution’s “tone still lacks balance.”

    Stressing that China’s “policy of friendship towards Myanmar is for all its people,” he said “there is no quick fix” to the current crisis which requires all parties and factions to pursue dialogue and achieve political reconciliation.

    “Neither democratic transition nor national reconciliation can be achieved overnight, and both require time, patience, and pragmatism,” Zhang said. He urged the international community to listen to ASEAN’s views and allow time for ASEAN to build consensus.

    On another Myanmar issue, the resolution underscored the need to address the crisis in Rakhine state and to create conditions for the return of Rohingya Muslims who were chased out of the Buddhist-majority country and now live as refugees in neighboring Bangladesh and elsewhere.

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  • Biden working on ties with Southeast Asia in shadow of China

    Biden working on ties with Southeast Asia in shadow of China

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    PHNOM PENH, Cambodia — President Joe Biden is formally kicking off his participation at a conference of southeast Asian nations on Saturday, looking to emphasize the United States’ commitment in the region where a looming China is also working to expand its influence.

    Biden’s efforts at the Association of Southeast Asian Nations summit are meant to lay the groundwork ahead of his highly anticipated meeting with Chinese President Xi Jinping — the first face-to-face encounter of Biden’s presidency with a leader whose nation the U.S. now considers its most potent economic and military rival.

    The two leaders will meet on Monday at the Group of 20 summit that brings together leaders from the world’s largest economies, which is held this year in Indonesia on the island of Bali.

    Traveling to Phnom Penh earlier Saturday, national security adviser Jake Sullivan said Biden will raise issues such as freedom of navigation and illegal and unregulated fishing by China with the ASEAN leaders — aimed at demonstrating U.S. assertiveness against Beijing.

    Freedom of navigation refers to a dispute involving the South China Sea — where the United States says it can sail and fly wherever international law allows and China believes such missions are destabilizing. Sullivan said the U.S. has a key role to play as a stabilizing force in the region and in prevention of any one nation from engaging in “sustained intimidation and coercion that would be fundamentally adverse to the nations of ASEAN and other countries.”

    “There’s a real demand signal for that,” Sullivan told reporters aboard Air Force One on Saturday. Referring to the People’s Republic of China, Sullivan continued: “I think the PRC may not love that fact, but they certainly acknowledge it and understand it.”

    One new initiative related to those efforts that Biden will discuss later Saturday focuses on maritime awareness — specifically using radio frequencies from commercial satellites to better track dark shipping and illegal fishing, Sullivan said.

    Biden’s visit to Cambodia — the second ever by a U.S. president — continues his administration’s push to demonstrate its investments in the south Pacific, which was highlighted earlier this year when the White House hosted an ASEAN summit in Washington, the first of its kind. He also tapped one of his senior aides, Yohannes Abraham, as the official envoy to the 10-country bloc that makes up ASEAN, another way the White House has highlighted that commitment.

    ASEAN this year is elevating the U.S. to a “comprehensive strategic partnership” status — a largely symbolic enhancement of their relationship but one that puts Washington on the same level as China, which was granted the distinction last year.

    Biden will begin his day in Phnom Penh by meeting with Hun Sen, the prime minister of Cambodia, the host for the regional summit. He’ll then speak at the annual U.S.-ASEAN summit and participate in the traditional family photo with southeast Asian leaders, and attend a gala dinner hosted by a parallel summit in Cambodia focusing on east Asia.

    Another topic Biden will raise is Myanmar, where the military junta overthrew the ruling government in February 2021 and arrested its democratically elected leader, Aung San Suu Kyi. While in Phnom Penh, the president will discuss with other leaders how they can “coordinate more closely to continue to impose costs and raise pressure” on the military, Sullivan said, as it continues to repress people of Myanmar, which had steadily headed toward a democratic form of governance before the coup.

    Biden will participate in East Asia summit meetings on Sunday, including a gathering with the leaders of South Korea and Japan, before leaving for the G-20 summit in Bali.

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  • UN Secretary-General: World has failed strife-torn Myanmar

    UN Secretary-General: World has failed strife-torn Myanmar

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    United Nations Secretary-General Antonio Guterres says the world has failed Myanmar, and is expressing hope the Association of Southeast Asian Nations will be able to pressure the member state to comply with its plan for peace over the next year

    PHNOM PENH, Cambodia — United Nations Secretary-General Antonio Guterres said Saturday that the world had failed Myanmar, and expressed hope the Association of Southeast Asian Nations would be able to pressure the member state to comply with its plan for peace over the next year.

    ASEAN leaders at the group’s ongoing summit in Phnom Penh agreed on a plan Friday that largely puts the onus on Indonesia when it takes over the group’s rotating chair in 2023 to develop measurable indicators and a timeline for Myanmar to implement the so-called five-point consensus for peace.

    Indonesia has been one of the ASEAN countries most outspoken about the need to do more to address the situation in Myanmar, and Guterres told reporters he felt “the Indonesian government will be able to push forward the agenda in a positive way.”

    The ASEAN decision announced Friday includes asking the U.N. and other “external partners” for assistance in supporting the group’s efforts. Guterres said he hoped the U.N. special envoy for Myanmar, Noeleen Heyzer, would cooperate closely with her ASEAN counterpart to bring about an end to the “dramatic violations of human rights” in the country.

    “Everybody has failed in relation to Myanmar,” Guterres said. “The international community as a whole has failed, and the U.N. is part of the international community.”

    ASEAN’s peace plan calls for the immediate cessation of violence, a dialogue among all parties, mediation by an ASEAN special envoy, provision of humanitarian aid and a visit to Myanmar by the special envoy to meet all sides.

    Myanmar’s government initially agreed to the plan but has made little effort to implement it.

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