strategies in food security:

19
7/29/2019 Strategies in Food Security: http://slidepdf.com/reader/full/strategies-in-food-security 1/19  1800 k street nw, washington dc 20006 | t. 202.775.3211 | f. 202.775.3199 | www.csis.org 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 Asia elke 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 near collapse—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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Page 1: Strategies in Food Security:

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 1800 k street nw, washington dc 20006 | t. 202.775.3211 | f. 202.775.3199 | www.csis.org

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)

 1800 k street nw, washington dc 20006 | t. 202.775.3211 | f. 202.775.3199 | www.csis.org

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)

 1800 k street nw, washington dc 20006 | t. 202.775.3211 | f. 202.775.3199 | www.csis.org

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)

 1800 k street nw, washington dc 20006 | t. 202.775.3211 | f. 202.775.3199 | www.csis.org

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)

 1800 k street nw, washington dc 20006 | t. 202.775.3211 | f. 202.775.3199 | www.csis.org

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,

follow the CSIS Chair for Southeast Asia Studies:

  On Facebook at http://www.facebook.com/CSISSoutheastAsia

  On Twitter at @SoutheastAsiaDC.

On our blog, cogitASIA at http://cogitASIA.com

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