strategies in food security:
TRANSCRIPT
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Volume IV | Issue 2| January 24, 2013
Southeast Asia from the Corner of 18th & K Streets
Inside This Issue
the week that was
• Government announces cease-re in Ka
State
• Japan’s prime minister visits Vietnam, T
Indonesia
• Philippines asks UN tribunal to rule on
maritime claims
looking ahead
• Discussion of water security in Asia
• CSIS Conference on the Asia Pacic in 2
• Panel on public-private partnerships in response
Strategies in Food Security: Thinking Seriously about Fish in Southeast Asiaelke larsen
January 24, 2013
Elke Larsen is the research assistant for the Sumitro Chair for
Southeast Asia Studies at the Center for Strategic and International Studies in Washington, D.C.
Sumitro Chair fo
Southeast Asia S
With an estimated one billion people going hungry every day, food security
is one of the most pressing issues the world will face this century. As an
integral part of the United States’ rebalance toward Asia, food security
policy needs to shift away from its historic focus on rice agriculture to
address the potential disaster faced by the region’s sheries. Fully 84
percent of global sheries are seriously overexploited—many are nearcollapse—and Southeast Asia is one of the regions where this trend is most
apparent.
Fisheries are integral to the way of life of many Southeast Asians. Perhaps
the best example of this is Indonesia, an archipelago of 17,000 islands
that is home to 240 million people and houses the “Amazon” of sheries
and coral reefs within its Exclusive Economic Zone (EEZ). Fish accounts for
only 5.2 percent of Indonesia’s GDP, but it provided 72 percent of its animal
protein consumption in 2011. It is also the primary source of livelihood for
coastal communities that have few other alternatives for employment.
Indonesia faces many serious threats to its sheries. The changing
global climate caused by increased carbon emissions has resulted in
the ocean absorbing more heat and becoming more acidic. These two
changes are expected to radically alter traditional sh habitats around
Indonesia. Currents circulating nutrients will change course and fragile
coral ecosystems are expected to shrink. Because of climatic changes and
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Strategies in Food Security: Thinking Seriously about Fish inSoutheast Asia (continued)
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Southeast Asia from the Corner of 18th & K Streets November 9, 2011 | 2
Two Models for Integrating Asia: A Must Win for President Obama (continued)
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Southeast Asia from the Corner of 18th & K Streets January 24, 2013 |
Strategies in Food Security: Thinking Seriously about Fish inSoutheast Asia (continued)
environmental degradation over the past four
decades, over 40 percent of coral reefs and
mangroves have been destroyed in the “coraltriangle” in which Indonesia is located.
Beyond that, overshing is driving Indonesian
sheries to the brink. Indonesia’s waters are
“open access,” attracting not only legal shing
vessels but also illegal, unregulated, and
unreported (IUU) vessels from distant nations.
IUU shing vessels are estimated to create a
minimum loss of $3 billion to the Indonesian
economy each year.
With little policing and a growing number
of industrial-scale shing vessels entering
Indonesian waters, sh are now being caught
faster than they can reproduce. Aquaculture
may seem like an obvious solution to this
problem, but unsustainable practices like feeding farmed sh with
meal made of wild sh and inefcient farming practices often increase
environmental degradation and the risk of disease in the sh themselves.
These problems are not unique to Indonesia. They are region-wideproblems that need region-wide action. There is growing awareness in
the U.S. government that the health of the region’s sh resources poses
a serious threat to the people of Southeast Asia. The United States has
responded by becoming one of the region’s strongest partners in the Coral
Triangle Initiative, which aims to protect coral reefs and sheries and work
toward climate change adaptation in Malaysia, Indonesia, the Philippines,
and other countries in the region.
A joint U.S.-Indonesian statement in September 2012 included a section
on supporting an Indonesian marine reserve and President Susilo
Bambang Yudhoyono’s vision of a “blue economy”—an environmentally
sustainable economy based on the ocean. The U.S. Agency for International
Development (USAID) and the National Oceanographic and Atmospheric
Administration are helping Indonesia with ocean surveillance and data
collection, climate change resilience, and shery enforcement and are
working with local communities to nd employment alternatives to the
shing industry.
A coral reef off the Maluku Islands,
Indonesia. Coral reefs provide a vital
habitat for Southeast Asian sheries but
face serious threats like climate change
and ocean acidication. http://www.ickr.
com/photos/terong/24180431/
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Southeast Asia from the Corner of 18th & K Streets January 24, 2013 | 3
Strategies in Food Security: Thinking Seriously about Fish inSoutheast Asia (continued)
Vietnamese shermen pull in their catch.
Fishermen from small coastal communities
compete with large industrial vessels
for sh. http://www.ickr.com/photos/
chrisschoenbohm/5040958699/
But more needs to be done in placing sheries management rmly at the
heart of Washington’s food security paradigm. This could include ensuring
that environmental considerations are included in trade agreements andgiven increased priority in intergovernmental organizations.
The United States is a major customer of Southeast Asian sheries and
it is paramount that the process of acquiring sh in the region becomes
more transparent. A system of sh import certication
should be implemented to ensure that the origin of
sh can be traced.
Currently, the Food and Drug Administration (FDA)
determines the origin of a product based on whereit is processed prior to arriving on U.S. shores. But
this creates a loophole under which the United States
can import illegally caught sh. For example, if sh is
illegally sourced in Indonesian waters but processed
in Thailand, it is labeled as a ‘Thai product” when it
reaches the U.S. consumer.
Creating a system of “catch certicates” like that
implemented by the European Union in 2008 could
help. However, many of the organizations offering
“sustainable seafood certications” are fakes. A U.S.-approved list of reliable certications would keep both U.S. importers and
consumers informed when they purchase seafood.
The United States should also seek to expand public-private partnerships.
The U.S. government and the private sector have shared interests in
sustainable seafood: the private sector does not want sh stocks to
become overexploited and is facing a consumer that is becoming more
concerned about sustainability. A possible model for such collaboration
is the Fishing and Living Initiative between USAID and Anova Food, the
United States’ largest distributor of sashimi-grade tuna. Through this
program, Anova purchases only pole-and-line caught tuna directly from
small coastal shing communities, thereby supporting sustainable shing
practices and the livelihoods of local shing communities.
Several systemic changes need to occur if these strategies are to be
effective. First, the U.S. private sector and consumer must actively drive
the demand for sustainably sourced seafood. There are some positive
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Strategies in Food Security: Thinking Seriously about Fish inSoutheast Asia (continued)
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Southeast Asia from the Corner of 18th & K Streets November 9, 2011 | 4
Two Models for Integrating Asia: A Must Win for President Obama (continued)
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Southeast Asia from the Corner of 18th & K Streets January 24, 2013 |
Strategies in Food Security: Thinking Seriously about Fish inSoutheast Asia (continued)
signs that the movement for sustainable seafood is slowly gaining
momentum: since Greenpeace introduced its seafood retailer scorecard
in 2008, roughly 80 percent of U.S. supermarkets have improved thesustainability of their seafood supplies.
Most seriously, Southeast Asian sheries are threatened by the lack of
regulations and policing in their EEZs. With the “open-access” model
already proving to be a recipe for disaster, the only logical alternative is
to limit access to EEZs. Regional cooperation may be the best answer to
managing migratory sh stocks.
One of the best existing models for this is the Parties to the Nauru
Agreement in the central Pacic that aims to limit shery accessthrough bilateral agreements. Such regional cooperation will fall short
of expectations, however, when it faces a lack of resources to enforce the
agreements, tenuous cooperation among members of the organization,
and corruption within its administration.
The threats faced by sheries in Southeast Asia cannot be overemphasized.
If the sheries collapse, not only will there be food shortages, but the
livelihood of millions of Southeast Asians will be destroyed. In the spirit
of the United States’ rebalance toward Asia, Washington’s food security
strategy must include protection of the region’s sheries. Otherwise, the
United States will miss an opportunity to help boost regional security inan area where it matters most. ■
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The Week That Was
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myanmar
• Government announces cease-re in Kachin State. Myanmar’sgovernment announced January 18 that its troops would implement a
unilateral cease-re starting the following day in the area around the
Kachin Independence Army’s (KIA) headquarters at Laiza in northern
Myanmar. The announcement came just hours after Myanmar’s parliament
passed a motion calling on both sides to end hostilities. Reports as of
January 22 indicated that clashes continued in the area but were less
severe than in recent weeks. Fighting between KIA and government
forces escalated sharply in December and January, with the government
employing air and artillery strikes. Shells, presumably from government
artillery, landed inside Laiza on January 14, killing three civilians and
injuring four others.
• Thein Sein releases reform blueprint. President Thein Sein released a
sweeping blueprint for future reforms during a donors’ conference in
Naypyidaw January 19–20. The ambitious document outlines reform the
Myanmar government hopes to implement by 2030, including nancial
sector reforms, transparency and good governance practices, and
targets for telecommunications penetration and education. Aid agencies,
diplomats, and multilateral organizations represented at the conference
signed a non-binding agreement to help support the reforms.
• Draconian public speech law repealed. President Thein Sein repealed
a law on January 16 that allowed authorities to hand out 20-year prison
sentences to those who criticized the government. The former military
junta enacted the law in 1996 and frequently used it to imprison dissidents.
Rights groups cautiously welcomed the repeal but called for further
reform to protect free speech. Reporters Without Borders (RSF) issued a
report January 17 on the state of media freedom in Myanmar following its
rst fact-nding mission to the country. The report welcomed the easing
of media restrictions to date, but called on the government to do more.
• Public tenders issued for telecoms, oil licenses. Myanmar’s governmentissued tenders for telecommunications and oil licenses on January 15
and 17, respectively. The tenders allow foreign investors to bid on two
telecoms licenses and 18 onshore oil and gas blocks. Both industries are
expected to prove protable, but the tender process will offer an important
opportunity to measure Myanmar’s openness to foreign investors. Large
Western oil and gas companies are expected to wait for more lucrative
offshore blocks to be offered before they begin bidding on Myanmar’s
hydrocarbon resources.
A Myanmar soldier overlooks a village in
Kachin State. The government of Myanmar
announced a cease-re agreement
with the Kachin Independence Army on
July 18. http://www.ickr.com/photos/
anevillemorgan/6912575940/
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Southeast Asia from the Corner of 18th & K Streets January 24, 2013 | 6
• Thousands ee homes amid escalating violence in Rakhine State. The
UN High Commissioner for Refugees (UNHCR) reported January 11 that
more than 2,000 Rohingya ed Myanmar’s Rakhine state or refugee camps
in Bangladesh by boat in the rst week of 2013. The agency estimated
that 13,000 people were smuggled out of the area by boat in 2012, with at
least 485 still missing or dead. The agency receives regular permission to
access those who arrive in Malaysia by boat and urged all Southeast Asian
governments to grant it the same access to possible refugees arriving
from Myanmar.
indonesia
• United States says Indonesian trade restrictions violate WTO
obligations. The United States on January 10 requested consultations
with Indonesia over allegedly restrictive import licensing requirements
on horticultural and animal products, arguing that the restrictions are
inconsistent with Indonesia’s World Trade Organization obligations.
Consultations began on January 22 and could lead to arbitration if not
settled within 60 days. The dispute is the latest response to Indonesia’s
long-running drive for food self-sufciency, which has led to sharp cuts in
imports and record spikes in domestic food prices.
• Supreme Court removes government mining regulations; Chevron
threatens to pull out investments. Indonesia’s Supreme Court claried
one of its 2012 rulings January 10, saying that it annulled government
regulations forbidding the export of unprocessed mineral ores andremoved federal authority to approve concessions for smelting projects.
The decision, which should benet local governments and mid-sized miners,
sties government efforts to reorganize the mining industry and boost
domestic ore-processing capacity. Separately, Chevron issued a warning on
January 11 that it might divest up to $3 billion of assets in Indonesia amid
continued legal and regulatory uncertainty in the mining and hydrocarbon
industries.
• Preliminary Komnas investigation reveals state hand in Poso
unrest. Indonesia’s National Commission on Human Rights (Komnas)
accused the military on January 16 of purposely manipulating the levelof tension in Poso, Central Sulawesi, in order to garner support for a
controversial national security bill. The accusation followed Komnas’s
preliminary investigation into the actions of security forces that have
been combatting terrorist activities in the area. Komnas said that local
authorities and security forces did not act on tip-offs until violence had
already broken out. The national security bill would allow the military
a greater role in addressing domestic national security threats, and is
considered by activists to be a setback for Indonesia’s democracy.
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Southeast Asia from the Corner of 18th & K Streets January 24, 2013 | 7
• Widespread oods bring Jakarta to a standstill. Jakarta governor Joko
Widodo declared a state of emergency January 17 as days of ooding
caused the deaths of 14 people and the evacuation of roughly 16,000 from
Jakarta, according to the National Disaster Mitigation Agency. The death
toll has since risen to 26. The Indonesian Employers Association estimates
that business losses due to supply disruption and absent workers will
likely approach $100 million. Jakarta contributes 10 percent of Indonesia’s
gross domestic product, but poor infrastructure and urban planning make
the capital vulnerable to seasonal ooding.
• Former Democrat Party ofcial convicted of graft. Former beauty
queen and Democrat Party deputy secretary-general Angelina Sondakh
was sentenced January 17 to four and a half years in prison for accepting
kickbacks during preparations for the 2011 Southeast Asia Games.
Angelina’s graft cost the state $3.6 million in losses. Meanwhile, PresidentSusilo Bambang Yudhoyono appointed Roy Suryo to replace Andi
Mallarangeng as youth and sports minister following the latter’s ouster
over related corruption charges. Angelina’s and Andi’s problems are just
the latest in a string of high-level corruption scandals involving Democrat
Party ofcials.
thailand
• Thailand to grant UN access to Myanmar migrants. The UN High
Commissioner for Refugees (UNHCR) said January 16 that Thai ofcials
agreed to grant it access to nearly 850 migrants seized in southernThailand. The migrants, many of whom are assumed to be persecuted
Rohingya from western Myanmar, were discovered in three separate raids
near the Thailand-Malaysia border in early January. UNHCR will provide
necessary assistance and determine whether the migrants are refugees
eeing escalating violence in Myanmar’s Rakhine State.
• Thailand, Malaysia sign pact to ease conict in southern Thailand. Thai
deputy prime minister Chalerm Yubamrung and Malaysian home minister
Hishammuddin Hussein pledged closer cooperation on transnational
issues that they said fuel the insurgency in southern Thailand, according
to a January 10 Malay Mail report. The agreement covers cross-bordercrime, illegal labor migration, extradition, information sharing, and a
proposed prisoner exchange. Hishammuddin noted that the prisoner
exchange could be the rst of its kind in Southeast Asia.
• Thailand increases minimum wage. Thailand ofcially boosted its
minimum wage to $10 per day on January 1. Prime Minister Yingluck
Shinawatra made the wage hike a major priority during her campaign
A horse carriage moves through Jakarta’s
inundated streets. Intense rain on January
17 ooded the Indonesian capital and
underscored Jakarta’s poor infrastructure.
http://www.ickr.com/photos/27520284@
N04/8395386612/sizes/m/in/photostream/
Rohingya refugees at a camp in Bangladesh.
Thai police recently discovered nearly
850 recently arrived migrants from
Myanmar, many of whom are believed to beRohingya refugees. http://www.ickr.com/
photos/54809689@N07/5803630865/
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Southeast Asia from the Corner of 18th & K Streets January 24, 2013 | 8
A temporary checkpoint in the Philippines.
Military and police checkpoints have been
set up across the country to check for
rearms in vehicles. http://www.ickr.com/
photos/click_bang/5038825230/
for ofce. Critics warn that the popular move will undermine Thailand’s
regional competitiveness, especially as the economies of neighboring
Cambodia and Myanmar grow. Proponents argue that Thailand’s low
ination can accommodate the wage hike and that increased disposable
income among laborers will boost economic growth.
• Activist’s conviction broadens scope of lèse-majesté laws. A Thai court
convicted Somyot Prueksakasemsuk, former editor of the Voice of Thaksin
magazine, to 10 years in prison on January 23 for running two articles
considered critical of the Thai monarchy. Somyot edited but did not author
the articles. His conviction came six days after a court sentenced “red
shirt” activist Yossawarit Chuklom, also known as Jeng Dokchik, to two
years in prison for insulting the king. The charges stem from a speech
Yossawarit gave during an antigovernment rally in March 2010 during
which he placed his hands over his mouth, as if being muzzled. Yossawaritmade the gesture while listing the names of those who supported the
government of then-prime minister Abhisit Vejjajiva, and the court ruled
that it was obvious he was referring to the king. Critics have lambasted the
rulings, saying that they broaden the interpretation of Thailand’s already
wide-ranging lèse-majesté laws.
the philippines
• Nationwide gun ban enforced ahead of midterm elections. The Philippine
Commission on Elections (COMELEC) imposed a 150-day nationwide gun
ban from January 13 to May 13, when the country will hold congressionaland local elections. The ban, which prohibits the carrying of rearms in
public, is a result of the Philippines’ history of poll violence. President
Benigno Aquino said that, in addition to promoting peaceful elections, the
ban is meant to reinforce law and order after a series of widely publicized
shootings.
• Emmanuel Bautista named military chief. President Benigno Aquino
appointed Lt. Gen. Emmanuel Bautista the chief of staff of the Armed
Forces of the Philippines effective January 20. Bautista is the son of a
general killed by Moro rebels in 1977. The incoming military chief says
he wants to tackle communist insurgents and render their struggle“irrelevant” during his term. Bautista is credited with spearheading the
creation of the government’s national security strategy, the Internal Peace
and Security Plan (IPSP) Bayanihan.
• Supreme Court begins cybercrime law hearings. The Supreme Court
of the Philippines began hearing oral arguments January 15 on the
constitutionality of the Cybercrime Protection Act of 2012. The act, which
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Southeast Asia from the Corner of 18th & K Streets January 24, 2013 | 9
aims to protect individuals from cyber-bullying and sex trafcking, is seen
by much of the public as a threat to freedom of expression. It introduces
an extremely broad denition of online libel, which has angered journalists
and political activists, and makes it easier for authorities to obtain
personal information online.
• Philippines jumps in ranking of the freest economies worldwide. The
Philippines moved up 10 spots in the Heritage Foundation’s 2013 Index of
Economic Reform, reecting the country’s improving investment climate
and booming economy. The Philippines ranked as the world’s 97th freest
economy of 177 countries. The government’s anticorruption efforts and
legislative reforms were cited as reasons for the improved rank.
• Japan to provide Philippines with ships, equipment, and training. Japan’s
foreign minister Fumio Kishida and his Philippine counterpart Albert delRosario reached an agreement during the former’s January 9–10 visit
to Manila for Japan to fund the acquisition of 10 multi-role response
vessels, a communications system, and joint training for the Philippine
Coast Guard. Fumio met with President Benigno Aquino to discuss the
Philippines-Japan Strategic Partnership and then held talks on the South
China Sea disputes with del Rosario.
vietnam
• Japan’s prime minister visits Vietnam, Thailand, Indonesia. Japan’s new
prime minister Shinzo Abe met with his Vietnamese counterpart NguyenTan Dung in Hanoi on January 16 before continuing on to Thailand and
Indonesia during the rst overseas trip of his administration. Abe was
forced to end his trip early after a January 18 meeting with Indonesian
president Susilo Bambang Yudhoyono, but called his trip to Southeast Asia
the start of Japan’s new strategic diplomacy toward the region. Abe capped
the trip with the release of a ve-point plan for engaging ASEAN.
• Vietnam sentences 14 activists for subversion. A Vietnamese court on
January 9 sentenced 14 activists, including bloggers and students, to up
to 13 years in prison for subversion. The activists were arrested in 2010
on accusations of working with the U.S.-based exile group Viet Tan to try
to overthrow the government. The sentencing drew sharp criticism from
human rights groups and the international community.
• Vietnam objects to U.S. investigation of shrimp exporters. The
Vietnamese government on January 19 aired its disapproval of a recently
launched U.S. investigation into subsidies for shrimp exporters in seven
Japanese prime minister Shinzo Abe
decided to make a visit to Vietnam,Thailand, and Indonesia the rst overseas
trip of his new administration. http://www.
ickr.com/photos/prachatai/8310034708/ /
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Southeast Asia from the Corner of 18th & K Streets January 24, 2013 | 10
countries, including Vietnam, Thailand, Indonesia, and Malaysia. The
Department of Commerce’s International Trade Administration (ITA)
launched the investigation due to claims by U.S. shrimp harvesters and
producers that subsidized imports have depressed prices and hurt the
U.S. economy. The ITA says it will determine by February 11 whether foreign
subsidies have been harmful to the U.S. shrimp industry and require
further action.
• Vietnamese stocks start the year with unexpected surge. Vietnam’s
stock market rose 11 percent between January 1 and January 11, starting
the new year strong after a rocky 2012. The government has relaxed
rules on the stock market in order to attract investors and kick-start the
economy in 2013. The Vietnamese State Securities Commission has pushed
for reduced taxes on securities trading and the privatization of state-
owned companies to create more shares on the market. A sharp declinein ination and a strengthening of the currency have accompanied the
improvements in the stock market.
malaysia
• Opposition’s rally draws thousands as Najib’s popularity falls. About
45,000 people joined a January 12 rally in Kuala Lumpur that pulled
together supporters of the opposition Pakatan Rakyat coalition and
various nongovernmental organizations to demand greater transparency
in the coming election. The opposition rally followed the January 10
release of polling data showing support for Prime Minister Najib Razakslipping. Najib’s popularity sank to 63 percent in December 2012—its lowest
level since August 2011—according to the Merdeka Center for Opinion
Research.
• Malaysia launches initiative to help start-up investors. Malaysia’s
Cradle Fund, an agency within the Ministry of Finance, has launched
the Malaysian Business Angel Network (MBAN) to help boost start-up
investment in the country, according to a January 18 report by MIS Asia.
The network will accredit and educate angel investors, who provide funding
for start-ups, and formalize rules for such investment. MBAN follows
other recent initiatives by Prime Minister Najib Razak to encourageentrepreneurship in Malaysia, including tax breaks for start-up investors
announced on September 28, 2012.
• Palm oil exports decline; government maintains zero crude palm oil
export tax. Malaysia’s palm oil exports fell to approximately 230,000 tons
in the rst 15 days of January, compared to more than 790,000 tons for
the same period in December 2012, according to a January 15 Bloomberg
Thousands attended the opposition’s
January 12 rally in Kuala Lumpur demanding electoral reform. http://www.
ickr.com/photos/xshamx/8379222514/
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Southeast Asia from the Corner of 18th & K Streets January 24, 2013 | 11
report. Plantation Industries and Commodities Minister Bernard Dompok
announced the same day that the government will maintain a zero percent
export tax for crude grade palm oil in February. He said that the effects of
the zero percent tax rate in January have not kicked in, while competitor
Indonesia has boosted its palm oil exports.
• Malaysia’s nuclear ambitions delayed. Mohamad ZamZam Jaafar,
chief executive of Malaysia Nuclear Power Corp., said January 15 that a
feasibility study for the construction of two nuclear power plants would
be delayed six months and may not be ready until late 2014. ZamZam
attributed the delay to the public’s reactions to the 2011 Fukushima
nuclear disaster in Japan and the ongoing ght over Lynas Corp.’s rare
earths processing plant in Kuantan. The Malaysian government announced
in May 2012 that it would build two nuclear plants in order to meet rising
energy demand.
• Police free 20 Indonesian maids held captive. Malaysian police freed 20
captive Indonesian maids on January 20 and arrested three suspects at
a maid agency in Kuantan. The maids, all of whom had entered Malaysia
illegally, were held captive by the agency after being dismissed by their
employers. Police freed 105 Indonesian maids on December 1 who were held
in similar conditions in Bandar Baru Klang, Selangor State. The Indonesian
Embassy in Malaysia said that roughly 100 Indonesian maids entered
Malaysia legally in 2012, while approximately 20,000 did so illegally.
south china sea
• Philippines asks UN tribunal to rule on China’s maritime claims.
Philippine foreign secretary Albert del Rosario announced on January
22 that Manila had submitted a motion to the United Nations asking for
an arbitration tribunal to rule on the legality of Beijing’s South China
Sea claims. The brief led by the Philippines argues that China’s “9-dash
line” claim violates the UN Convention on the Law of the Sea, as does its
occupation of several submerged features in the Spratly Islands. China’s
embassy in Manila responded to the announcement with a statement
reiterating its claim to “indisputable sovereignty” over the islands and
adjacent waters of the South China Sea.
• Chevron to explore in two oil and gas blocks in the South China Sea. U.S.
oil giant Chevron signed production sharing contracts on January 17 with
China National Offshore Oil Corporation (CNOOC) for two exploration
blocks in the northern South China Sea. Chevron will own and operate the
two blocks, which are not claimed by any of the Southeast Asian claimants.
The terms of the contracts allow Chevron to conduct 3-D seismic data
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Southeast Asia from the Corner of 18th & K Streets January 24, 2013 | 12
One of the contested Spratly islands in
the South China Sea. Brunei has made
the pursuit of a binding code of conduct
in the South China Sea its top priority
as ASEAN chair. http://www.ickr.com/
photos/60082435@N05/7412705900/
surveys and give CNOOC the right to participate in any commercial
discoveries with up to a 51 percent stake.
• Brunei to pursue binding code of conduct as ASEAN
chair. Brunei foreign ministry ofcials reported on January
17 that the country’s top priority as 2013 ASEAN chair is
to pursue a binding code of conduct among the claimants
in the South China Sea. Brunei, the Philippines, Vietnam,
Malaysia, China, and Taiwan all claim sovereignty over the
contested territories. Past efforts to negotiate a binding
code of conduct involving ASEAN and China have failed
as Beijing refuses to negotiate with ASEAN as a bloc.
Cambodia’s 2012 chairmanship of ASEAN was marred by
sharp regional discord over the disputes.
• Philex seeking partnership with CNOOC in South China Sea. Philippines-
based Philex Petroleum announced on January 17 that it is in discussions
with China National Offshore Oil Corporation (CNOOC) to jointly explore
for oil and gas in the South China Sea’s Reed Bank. Philex chairman
Manuel Pangilinan said a partnership with China is the only way to move
forward with a planned gas project in Reed Bank. Philex was supposed to
begin exploration in October 2012, but was forced to abandon its business
plan and timetable amid Chinese objections.
singapore
• Four candidates registered for Punggol East by-election. Four candidates
will run in the January 26 by-election to ll a parliamentary seat in
Singapore’s Punggol East district. The ruling People’s Action Party (PAP)
along with the Reform Party, Singapore Democratic Alliance, and Workers’
Party had registered by the January 16 deadline. The Singapore Democratic
Party pulled out of the race a day earlier to avoid further splintering the
opposition. The by-election will serve as an important barometer of the
PAP’s popularity following its loss in a 2012 by-election and its shrinking
margin of victory during the 2011 national elections.
• UNLV to close Singapore campus. The University of Nevada, Las Vegas
(UNLV) has decided not to renew its partnership with the Singapore
Institute of Technology (SIT) when it ends in 2015, according to a January
15 Las Vegas Sun report. SIT is Singapore’s newest public university and
provides polytechnic graduates with degrees from partner institutions
in Australia, the United Kingdom, and the United States. UNLV plans to
pursue a partnership with a university in Macau instead.
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Southeast Asia from the Corner of 18th & K Streets January 24, 2013 | 13
Condominiums in Singapore. The city-
state’s aggressive measures to curb
property speculation are expected to
curtail economic growth. http://www.ickr.
com/photos/rubenerd/3147216633/sizes/m/
in/photostream/
• Parliament passes amended Computer Misuse Act. Singapore’s
parliament passed an amended Computer Misuse Act on January 14 that
empowers the government to take preemptive measures against cyber-
attacks. The act also makes noncompliance with a government order
related to cybercrime an offense punishable by 10 years in jail and more
than $40,000 in nes. Singapore’s Ministry of Home Affairs originally
announced plans to amend the law in November 2012.
• Measures to cool property market take effect. A series of regulations
aimed at cooling Singapore’s overheated property market went into
effect January 12. Foreigners who buy property in Singapore must now
pay 18 percent property taxes, while permanent residents’ rates rose
to 8 percent. The government also banned permanent residents from
subletting their public housing properties. Singaporean citizens’ property
taxes remain unchanged, but they must pay more for additional properties.Analysts warn that the government’s measures will slow economic growth,
according to a January 14 report by the Wall Street Journal .
• Halimah Yacob becomes the rst woman speaker in Singapore
parliament. Members of Singapore’s parliament elected Halimah Yacob as
the new speaker on January 14, making her the rst woman to hold the post.
Prime Minister Lee Hsien Loong nominated Halimah on January 8 to ll
the post vacated when Michael Palmer resigned due to a scandal involving
an extramarital affair. Halimah resigned as the minister of state for social
and family development in order to become speaker.
cambodia
• Khmer Rouge trial suspended as two defendants hospitalized. Former
Khmer Rouge leaders Nuon Chea, 86, and Khieu Samphan, 81, were
hospitalized in early January, prompting the UN-backed Extraordinary
Chambers in the Courts of Cambodia (ECCC) to suspend their trial. Both
stand accused of war crimes committed during the Khmer Rouge’s brutal
rule of Cambodia in the 1970s. Nuon Chea and Kieu Samphan, along with
Ieng Sary, 80 and also in poor health, were charged with genocide in 2009
but the trial has faced frequent interruptions. Court monitors have urged
the ECCC to separate the defendants’ proceedings to avoid further delays.
• Economy to grow 6.7 percent, but IMF warns of overheating. The World
Bank predicts that the Cambodian economy will grow 6.7 percent in 2013,
owing to strong exports and private investment. If realized, it would be
the second-highest growth rate in Southeast Asia, behind only Laos. The
International Monetary Fund, meanwhile, cautioned that Cambodia’s recent
real estate boom and repeated interest rate cuts, while spurring growth,
Former Khmer Rouge leader Nuon Chea
testies before a UN-backed tribunal
in December 2011. Nuon Chea and
codefendant Khieu Samphan were both
hospitalized in early January, prompting
the United Nations to postpone their
trial. http://www.ickr.com/photos/
krtribunal/6458550577/ /
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Southeast Asia from the Corner of 18th & K Streets January 24, 2013 | 14
ASEAN members’ political rights and civil
liberties aggregate scores according to
Freedom House’s Freedom in the World
report. http://www.freedomhouse.org/sites/
default/les/FIW%202013%20Booklet%20
-%20for%20Web.pdf
could lead to a credit bust. The country’s credit-to-GDP ratio of 37 percent
stands well above the median for most low-income countries.
• ADB, Cambodia sign agreement for $230 million in development
assistance. The Asian Development Bank (ADB) agreed on January 17
to provide $230 million in loans to Cambodia. The assistance package
will target six areas of growth and poverty relief—education, drought
management, decentralization of service delivery, economic diversication,
electricity infrastructure, and economic competitiveness in the country’s
southern corridor.
• Chinese investment in Cambodia skyrockets. China has become
Cambodia’s largest investor, according to a January 16 Voice of America report. China invested $8.8 billion in Cambodia between 1994 and 2011,
primarily in real estate and hydropower initiatives. More recent investment
pledges, including a railroad, steel plant, and seaport, total another $11
billion. South Korea is Cambodia’s second-largest investor, followed by
Malaysia, the United Kingdom, and the United States.
asean
• ASEAN Freedom in World rankings. Myanmar jumped 12 ranks in
Freedom House’s 2013 Freedom in the World report, released on January 16,
though it retained its “not free” designation. Most other ASEAN countriessaw little change in their overall political rights and civil liberties scores.
Indonesia remained the only Southeast Asian country listed as “free,”
while the Philippines, Thailand, Singapore, and Malaysia remain “partly
free.” Each of the ASEAN members’ 2011 and 2012 scores are available in the
accompanying chart.
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Southeast Asia from the Corner of 18th & K Streets January 24, 2013 | 15
• ASEAN-EU committee promotes regional connectivity. The ASEAN-
European Union Joint Cooperation Committee (JCC) met January 17,
emphasizing the importance of boosting regional connectivity through
the ASEAN Regional Integration Support by the EU (ARISE) project. The
group discussed other topics as well, and ASEAN secretary-general Le
Luong Minh and EU ambassador Julian Wilson signed a $4 million grant
contract to enhance the operational capacity of the ASEAN Secretariat.
The committee will meet again in Hanoi in March.
laos
• Laos explains case of missing activist to UN, ASEAN delegation. Lao
ambassador to the United Nations Yong Chanthalangsy responded to
queries on January 4 about missing agronomist Sombath Somphone,
claiming that he was never taken into police custody and may have
disappeared because of a personal conict. A delegation of ASEAN
parliamentarians also pressured the Lao government to explain Sombath’s
disappearance in greater detail during a January 13–15 visit to the country.
Philippine lawmaker Walden Bello called for a speedy investigation into
Sombath’s whereabouts.
• Myanmar, Laos agree to build Mekong bridge. Laos and Myanmar agreed
on January 15 to a long-awaited plan to build a friendship bridge across
the Mekong River. The project, which was originally announced in March
2012, will link Luang Namtha Province in Laos with Myanmar’s Shan State.
Logistical details have not yet been released to the public, but the projectis tentatively scheduled for completion in 2018.
brunei
• Brunei looks to boost solar energy use with feed-in tariff. The energy
department of Brunei’s Prime Minister’s Ofce announced on January 16
that it will enact a feed-in tariff system to incentivize owners of renewable
energy generators who produce excess electricity for their homes to sell
the excess to the grid. The tariff is part of Brunei’s Energy Efciency
and Conservation campaign, which is designed to increase domestic
participation in renewable energy production, as well as create 1,600 jobsin 2013.
timor-leste
• Gang leader’s visit angers Timorese. Timor-Leste’s armed forces chief
Major General Lere Anan Timur threatened on January 8 to arrest Rozario
Marcal, known as Hercules, if the Timorese-Indonesian gangster visits
Timor-Leste again. Hercules, a notorious former gang leader with links
A stretch of the Mekong River in the
Golden Triangle, where Laos, Myanmar, and Thailand meet. Laos and Myanmar have
agreed to build a friendship bridge across
the Mekong. http://www.ickr.com/photos/
tahitipix/209648791/
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Southeast Asia from the Corner of 18th & K Streets January 24, 2013 | 16
to the Indonesian military, visited Timor-Leste during the rst week of
January. Anan Timur said that Hercules has no role in an independent
Timor-Leste and that his visit symbolized the old conicts between Timor-
Leste and Indonesia. Anan Timur’s threat drew objections from members
of Indonesia’s parliament and Timor-Leste–born Indonesians.
mekong river
• Cambodia, Vietnam object to Xayaburi dam during Mekong River
Commission meeting. Cambodian and Vietnamese ofcials attending a
recent Mekong River Commission (MRC) meeting raised objections to
the consultation process Laos undertook before approving construction
of the Xayaburi mega-dam, according to a January 18 Voice of America
report. Vietnam requested a 10-year moratorium on new dams along the
mainstream Mekong. Laos restarted construction of the dam in late
2012, saying that it had completed preliminary consultations and impact
assessments. All new dams along the mainstream Mekong require MRC
consensus under a 1995 agreement. ■
Thai villagers protest the construction of
the Xayaburi dam. Cambodia and Vietnam
voiced their objections to the dam during
a recent Mekong River Commission
meeting. http://www.ickr.com/photos/
internationalrivers/8156968020/
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Looking Ahead
1800 k street nw, washington dc 20006 | t. 202.775.3211 | f. 202.775.3199 | www.csis.org
• Discussion of water security in Asia. The Asia Society and the Brookings
Institution’s India Project will host a discussion January 24 on water
security in Asia, with particular focus on the impact of water scarcity onIndia and China. Brahma Chellane of the Center for Policy Research in New
Delhi and Jennifer Turner of the China Environment Forum at the Woodrow
Wilson Center will discuss cross-border water conicts, energy and food
security, and other challenges to water security in the region. The event
will take place from 3:30 p.m. to 5:00 p.m. in the Saul/Zilkha Rooms of the
Brookings Institution, 1775 Massachusetts Ave., N.W. Please RSVP here.
• Dialogue on journalism and shing in the Philippines. The Environmental
Change and Security Program at the Woodrow Wilson Center will host a
dialogue January 28 on the nexus of journalism and the shing industry
in the Philippines. Sam Eaton, a reporter with Homeland Productions,
and Imelda Abano, president of the Philippine Network of Environmental
Journalists, will discuss the environmental, food security, and health
dimensions of the Philippine shing industry, and the challenges
journalists face covering these issues. The event will be held from 12:00
p.m. to 2:00 p.m. in the 5th Floor Conference Room at the Woodrow Wilson
International Center for Scholars, 1300 Pennsylvania Ave., N.W. Please RSVP
with name and afliation here.
• Conference on the Asia Pacic in 2013. CSIS will host a conference
January 29 on what 2013 holds for the Asia Pacic in the areas of politics,security, and trade. Senior experts from CSIS’s Freeman Chair in China
Studies, Japan Chair, Korea Chair, Sumitro Chair for Southeast Asia Studies,
Wadhwani Chair in U.S.-India Policy Studies, and William E. Simon Chair in
Political Economy will offer their insights and analysis during a series of
panel discussions. The conference will take place from 8:00 a.m. to 12:00
p.m. in the CSIS B1 Conference Facility, 1800 K St., N.W. Please click here to
RSVP, or follow the event live on Twitter, #Asiapalooza.
• Panel discussion assessing ASEAN performance in 2012. The ASEAN
Studies Center at American University will host a panel discussion January
31 to review ASEAN’s performance in 2012. The Asia Foundation’s JohnBrandon, Seton Hall University’s Catharin Dalpino, Ben Dolven of the
Congressional Research Service, and the CSIS Sumitro Chair for Southeast
Asia Studies’ Murray Hiebert will discuss Cambodia’s chairmanship of
ASEAN, the South China Sea, and other developments. The event will take
place from 2:30 p.m. to 4:00 p.m. in the Hughes Formal Lounge at American
University, 4400 Massachusetts Ave., N.W. Please RSVP to Nadia Bulkin at
the ASEAN Studies Center.
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Southeast Asia from the Corner of 18th & K Streets January 24, 2013 | 18
• Panel on public-private partnerships in disaster response. CSIS
and the Irene W. and C. B. Pennington Foundation will host a
discussion January 30 on the role of public-private partnerships
in disaster preparedness and response. Panelists will include
Walmart’s Mark Cooper, PricewaterhouseCoopers’ Oz Ozturk,
FEMA’s Dan Stoneking, and the New York City Ofce of Emergency
Management’s Ira Tannenbaum. Registration will begin at 5:30 p.m.,
and the event will run from 6:00 p.m. to 8:00 p.m. in the CSIS B1
Conference Facility, 1800 K St., N.W. Please click here to RSVP. ■
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This newsletter is published by the Sumitro Chair for Southeast Asia Studies at theCenter for Strategic and International Studies (CSIS) in Washington, D.C., a pri-
vate, tax-exempt institution focusing on international public policy issues. CSIS’s
research is nonpartisan and nonproprietary. CSIS does not take specifc policy po -
sitions; accordingly, all views, positions, and conclusions expressed in this publica-
tion should be understood to be solely those of the author(s).
© 2013 by the Center for Strategic and International Studies. All rights reserved.
For more details on our programs and to follow CSIS with real-time updates,
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Thank you for your interest in U.S. policy in Southeast Asia and the CSIS
Sumitro Chair for Southeast Asia Studies. Join the conversation!
southeast asia from the corner of 18th & k streets
CSIS Sumitro Chair for Southeast Asia Studies contributors:
Ernest Bower, Senior Adviser and Chair
Murray Hiebert, Senior Fellow and Deputy Director
Gregory Poling, Research AssociateKathleen Rustici, Research Associate
Elke Larsen, Research Assistant
Jennifer Frentasia, Researcher
Phoebe De Padua, Researcher
Amy Killian, Researcher
Jeremiah Magpile, Researcher