Chinese media missing the mark on Myanmar

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While many have expressed disappointment with the limited attention from the West regarding Myanmar’s political crisis, it is especially surprising that Myanmar’s neighboring countries have not exhibited more interest. 

A perusal of Chinese newspapers – Myanmar’s most substantial neighbor – reveals scant coverage of the Myanmar population’s distress and the resistance forces opposing the military junta, the State Administration Council (SAC).

This media oversight is not a coincidence. Politically speaking, the Chinese government may be apprehensive of its citizens drawing parallels or being influenced by Myanmar’s democratic struggles, especially in an era where information spreads rapidly across digital platforms.

In a heavily censored information environment, Beijing is not interested in providing news coverage about the violence inflicted by the SAC on its citizens or footage of armed rebellions by ethnic armed organizations (EAOs) and the anti-military People’s Defense Forces. 

Despite the ongoing civil war, widespread resistance and associated violence, few in China are aware of what is going on in Myanmar. And even though Beijing has significant economic and strategic interests in Myanmar and has a strong preference for stability in the country, Chinese domestic media has been silent since the 2021 coup.

Much of China’s domestic population is not interested in learning about their neighboring countries. Despite China’s rapid ascent as a global powerhouse, there seems to be limited interest in the affairs of less affluent countries like Myanmar, perhaps except from those residing in Yunnan or areas directly bordering Myanmar. Attention is either focused domestically or oriented toward more developed nations in the West and East Asia.

Some of China’s neighboring countries, despite geographical proximity and historical ties, often find themselves overshadowed in public discourse, with their challenges and successes receiving less scrutiny from the average Chinese citizen. 

This has inadvertently marginalized the significance of Myanmar’s challenges, relegating them to the periphery of public discourse in China. It is an ironic situation, given the profound implications Myanmar’s stability and political changes hold for China. The woes of Myanmar – from its political upheaval to the struggles of its people – have limited resonance among the Chinese public.

But Myanmar has not disappeared from China’s domestic media coverage. The Chinese public’s primary interest in Myanmar revolves around its role as a hub for criminal networks involved in online scams.

These operations are often based in the border regions Myanmar shares with Thailand and China. These areas are marked by fragmented control among ethnic armed groups, militias and border guards and are exploited by criminal networks. 

They primarily target Chinese citizens but also those from other nearby countries, leading to significant financial losses and a surge in related crime. In response, the Chinese government has intensified its law enforcement efforts, either by collaborating with regional governments or directly intervening to combat these cross-border operations.

Myanmar has garnered a negative reputation in China, with some domestic media outlets portraying the country as a “living hell.” Reports often highlight how these criminal networks engage in scam operations, drug production and rampant human trafficking, describing accounts of the mistreatment and suffering of Chinese people. 

Some reports even sensationalize accounts of tourists being kidnapped from Thailand and smuggled across the border into Myanmar’s Kayin state.

Public outrage has compelled the Chinese government to adopt a more assertive stance concerning Myanmar’s internal matters. Beijing has pressured the SAC to cooperate in actions related to countering online scams. But Beijing recognizes that many territories where these scam operations are based are not under the SAC’s control.

China has also notably pressured some EAOs in Myanmar for cooperation. In September 2023, hundreds of criminals were repatriated from the Wa state across the Chinese border. At the same time, two Chinese courts have officially charged two leaders from the Wa state for involvement in scam operations. Reports suggest that more will be repatriated to China.

Amid the ongoing developments in Myanmar, China has primarily focused on matters that directly impact its own interests. The broader Chinese public seems either unaware or unengaged with Myanmar’s population and their concerns. 

This asymmetrical attention from China towards Myanmar warrants careful consideration in studies of the bilateral relationship between the two countries and in assessing the future of Chinese influence in Southeast Asia.

Enze Han is Associate Professor at the Department of Politics and Public Administration, University of Hong Kong.

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Now's the time for Japan to join AUKUS

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In a report on the Indo-Pacific Tilt, the UK House of Commons Foreign Affairs Committee stated that there would be greater technology and security benefits if Japan joined its Strand B, or Pillar 2, cooperation in the development of advanced military technologies and increased interoperability between AUKUS members’ armed forces.

The committee’s report calls for the United Kingdom to propose to Australia and the United States that Japan, along with South Korea, participate in an AUKUS technical defense cooperation agreement focused solely on Strand B activities.

Strand B designates cooperation in advanced technology areas, including undersea capabilities, quantum technologies, artificial intelligence, advanced cyber, hypersonic weapons, electronic warfare, innovation and information sharing.

These advanced capabilities are critical in reinforcing the integrated deterrence capabilities of the United States’ Indo-Pacific allies, including Japan.

Since Japan already has a defense cooperation framework for joint research and development with the United States, the United Kingdom, and Australia, there is a foundation for AUKUS-Japan cooperation. But cooperation based on the current frameworks is project-based, with an emphasis on basic technologies rather than a list of priority capabilities, unlike AUKUS. 

For example, most of the joint research with the United States involves technologies directly related to equipment, such as next-generation amphibious technology and modular hybrid electric drive vehicle systems. Based on this background, Japan could considerably benefit from participating in AUKUS Pillar 2.

The AUKUS nuclear submarine deal is making ripples across the Indo-Pacific. Image: US Embassy in China

The Japanese government stated in the National Defense Strategy 2022 that leveraging cutting-edge technologies for defense has become critical. Japan, which has high technological capabilities, needs to cooperate with its allies and mobilize their technological capabilities to prepare for a long-term race for technological leadership. 

Because advantages in critical and emerging technologies covered by Pillar 2 of AUKUS will directly translate into military advantages, having access to these technologies will deter potential adversaries in the Indo-Pacific.

Given Japan’s declining economic power, its future science and technology investment will likely also decline. Japan can acquire critical and emerging technologies more efficiently by closely collaborating with allies and partners. Cooperation through an expanded AUKUS Pillar 2 agreement would allow its members to complement each other’s capability gaps and leverage economies of scale.

Most importantly, it will promote the internationalization of Japan’s defense industry. For a long time, the Japanese defense industry’s only client was the Japanese Ministry of Defense and Self-Defense Forces.

But they are undergoing major changes, relaxing the restrictions on defense equipment transfer and promoting exports. Strengthening ties between the defense industries of Japan and AUKUS members is a good opportunity to improve the Japanese industry’s competitiveness. 

In Japan, investment in critical and emerging technologies has been driven by civilian usage. In 2020, defense-related procurement from domestic manufacturers made up less than 1% of Japan’s total industrial production value.

The Japanese defense industry must become more internationally oriented. Although joint research and development takes time, the expanded AUKUS group can create an opportunity for Japanese defense manufacturers to learn the marketing and sales know-how of defense equipment from AUKUS partners.

But before it can join AUKUS, there are challenges Japan needs to overcome. The most critical issue is the lack of an adequate security clearance system. 

The Act on the Protection of Specially Designated Secrets, the only existing law on information security in Japan, limits the scope of information that can be classified as state secrets to four areas: diplomacy, defense, prevention of espionage, and prevention of terrorism. 

It does not cover information in economic and technological fields, and without a security clearance system in these areas, Japanese manufacturers will struggle to access classified information in joint developments. Japan needs a security clearance system before it joins AUKUS.

Additionally, Japan is striving to become a major arms exporter like the United States and the United Kingdom, so there are concerns about potential conflicts of interest. The heart of AUKUS is reminiscent of Japan’s efforts to sell its conventionally-powered submarines in 2015. 

But considering the lead time to acquire effective deterrence capabilities in the critical theatre of the Indo-Pacific, this is not the time for commercial clashes. Japan should accept the division of labor within the extended AUKUS framework.

Given the military-oriented nature of AUKUS, Japan joining AUKUS would signal to China that it is part of the “integrated deterrence” network the United States promotes.

The USS Carl Vinson aircraft carrier with Japan Maritime Self-Defense Force destroyers conducting an exercise in the Philippine Sea in February 2018. Photo: US Navy via AFP
The USS Carl Vinson aircraft carrier with Japan Maritime Self-Defense Force destroyers conducting an exercise in the Philippine Sea in February 2018. Photo: US Navy

Considering that China, Japan, and South Korea are working together to revitalize the dialogue channel through the Japan-China-South Korea trilateral summit, policymakers in Tokyo may feel that the timing is inappropriate.

But the security environment in East Asia is more dire than ever, and technology implementation takes years, especially the critical and emerging technologies that define future victories. The United States has also expressed a positive attitude toward the expansion of AUKUS’ Pillar 2 membership. 

Japan cannot afford to delay its efforts to strengthen its defense industrial base with these technologies. Now is the time to accelerate discussions on Japan’s participation in AUKUS.

Rena Sasaki is a PhD student at the School of Advanced International Studies, Johns Hopkins University and a Fellow of the Pacific Forum’s Next Generation Young Leaders Program.

This article was originally published by East Asia Forum and is republished under a Creative Commons license.

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US yielding its submarine warfare edge over China

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China’s rapid advancements in submarine technology and detection capabilities are challenging the US’s long-established dominance in undersea warfare and posing a threat to its crucial submarine operations in the Pacific.

The Wall Street Journal (WSJ) reported that recent developments indicate a narrowing gap in submarine capabilities between the two rivals, with significant implications for US military planning including for a potential Chinese invasion of Taiwan.

In one example, a new Chinese nuclear-powered attack submarine was recently observed with a pump-jet propulsion system, a noise-reducing technology previously seen only on the latest US submarines, the WSJ reports says.

Satellite images have also revealed larger hull sections at China’s submarine manufacturing base at Huludao, suggesting increased production capabilities.

The WSJ says that China has enhanced its ability to detect enemy submarines, constructing an underwater sensor network known as the “Underwater Great Wall” in strategic regions like the South China Sea and near Guam.

The report suggests that the sonar network, improved patrol aircraft and helicopters equipped to collect sonar information have significantly bolstered China’s submarine detection capabilities.

The USS Connecticut submarine is easier for China to detect. Photo: Twitter Screengrab

The US has responded by deploying more naval resources to the Pacific and increasing coordination with allies. However, experts have argued that the US needs new strategies and resources to address China’s evolving undersea threat.

In particular, they mention the need for more patrol aircraft and attack submarines to track and potentially target quieter Chinese submarines.

WSJ says the changing undersea dynamics are relevant to a potential Chinese invasion of Taiwan. It notes that US submarines would be crucial and potentially decisive in such a scenario, but improved Chinese capabilities could complicate and undermine their operations.

At the same time, the US faces challenges in maintaining its current fleet size due to retirements and low production rates, highlighting the need for strategic adjustments in the face of a more capable Chinese submarine force.

Aside from pump jet propulsion and increased submarine production capability, Asia Times has reported on China’s recent submarine technology advancements.

Asia Times reported in September that Chinese researchers have developed a groundbreaking terahertz-based submarine detection technology, marking a significant advance in underwater warfare capabilities. The technology has the potential to challenge significantly US submarine operations.

The new detection device operates in the terahertz frequency range between microwave and infrared radiation and can identify minute surface vibrations, as small as 10 nanometers, created by low-frequency sound sources in the open sea.

These vibrations can locate submarines and gather intelligence for analyzing noise signatures to determine a submarine’s model. The technology, which could be incorporated into underwater drones, represents a considerable leap in identifying and potentially countering stealthy US submarine operations.

Furthermore, Asia Times reported in August that Chinese researchers have used computer modeling to identify the tiny bubbles produced by nuclear submarines, which previously went nearly undetected.

They discovered that the extremely low frequency (ELF) signals generated by these bubbles are much stronger than the sensitivities of current advanced magnetic anomaly detectors.

These bubbles form due to shifts in kinetic and potential energy as a submarine cruises, leading to turbulence and an electromagnetic signature through the magnetohydrodynamic (MHD) effect.

Non-acoustic detection techniques have been known for decades but are only now becoming practical due to advancements in computing power. Improving sensor resolution, processing power and machine autonomy will expand the range of detectable signals, enabling the distinction of previously indistinguishable signals.

Russia may also boost China’s submarine technology, with China possibly building its next-generation submarines with the help of Russian technical expertise.

In October, Asia Times reported on China’s possible collaboration with Russia in building its Type 096 nuclear ballistic missile submarine (SSBN), which is expected to be operational within the decade.

The Type 096 may benefit from Russian technological assistance, particularly in enhancing its stealth capabilities. The Type 096 is anticipated to match state-of-the-art Russian submarines in stealth, sensors and weaponry, significantly complicating US and allied efforts to monitor and track China’s submarines in Pacific theaters.

The Type 096’s development may be influenced by Russia’s advanced submarine technology, especially in areas like quieting and nuclear propulsion.

China and Russia are cooperating on a next-generation nuclear submarine design. Image: Twitter Screengrab

Russia assisted previously with China’s Type 093 nuclear attack submarine (SSN), which makes it plausible that the Type 096 will be no exception.

The collaboration can be part of the “no limits” strategic partnership between the two nations, with China benefiting from Russia’s expertise and Russia depending more on China due to Western sanctions.

The partnership may also extend to the supply of highly enriched uranium from Russia’s state-owned nuclear company Rosatom to China. This uranium could be used for nuclear weapons or as fuel for China’s nuclear submarines.

Submarines are poised to be the capital ships of a potential US-China conflict over Taiwan. In a March 2023 article for the US Naval Institute, Mike Sweeney mentions that submarines, rather than aircraft carriers, will dominate future naval warfare.

Sweeney says surface vessels would be too vulnerable against land-based aircraft, anti-ship missiles and submarines, thus making undersea warfare more pivotal.

Regarding China’s underwater warfare capabilities, he argues that China’s naval modernization has yet to catch up with the US in nuclear submarine technology. He argues that China’s antisubmarine warfare capabilities have historically been underinvested in.

He says China still needs to enhance its undersea warfare capabilities to become a global naval power. At the same time, Sweeney acknowledges that the US Navy’s submarine forces face limitations in the Pacific due to numerical constraints, maintenance cycles, and global commitments.

He notes a shift towards funding Columbia-class SSBNs could potentially impact the availability of other submarine types such as the Virginia-class SSN and the unique capabilities of Ohio-class cruise missile nuclear submarines (SSGN).

He suggests that to improve US undersea warfare capabilities vis-a-vis China, the US Navy should consider diverting some Columbia-class SSBNs to conventional roles or introduce SSGN derivatives earlier than scheduled.

Sweeney notes that the transition to submarine-based naval power is necessary for maintaining US superiority in the current strategic landscape, similar to the US Navy’s past shift in emphasis from battleships to aircraft carriers.

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MSIG Singapore launches anti-scam solution PingTM for comprehensive cyber protection

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Number of scam cases rose by 64.5% in the first half of 2023
Partnership aims to tackle digital fraud and enhance online safety 

MSIG announced its collaboration with Dedoco and Embed Global to drive the industry’s anti-scam efforts. The tripartite partnership aims to combat the prevalent issue of digital frauds and safeguard customers’…Continue Reading

Does modern science already allow us to manage weather?

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As winter settles over New Delhi, cold air sinks, trapping pollution in the city. Smoke from seasonal fires stemming from farming practices in India’s north further reduces the city’s air quality, which typically ranks the worst in the world.

New Delhi’s government has sought prior solutions to easing pollution, including traffic restrictions and air-filtration towers. But in 2023, it has turned to the controversial practice of cloud-seeding to try to increase rainfall and improve air quality for the first time.

While the effectiveness of cloud-seeding remains a debate, that hasn’t deterred more than 50 countries from investing millions annually in weather modification initiatives. Mexico recently stepped up its cloud-seeding efforts to combat drought, having begun its first program in 2020, while Indonesia has used cloud–seeding to try to fill up dams and prevent flammable vegetation from drying in anticipation of this year’s fire season.

The roots of weather manipulation trace back to 1946, when US scientists Vincent J Schaefer and Irving Langmuir dispersed dry-ice particles into a cloud, which caused ice crystals and visible snowfall. Since then, the US government has deployed cloud-seeding programs, primarily in western states like Montana, Wyoming and Nevada, to try to increase rain and snowfall.

This technology also caught the eye of the private sphere. Vail Ski Resort in Colorado has used Western Weather Consultants to deploy generators on mountaintops to induce snowfall since 1975, with dozens more operating in the region.

Since 1997, the West Texas Weather Modification Association has worked to increase rainfall over southwestern Texas. The UK’s Oliver’s Travels meanwhile offers cloud-seeding services to ensure clear weather for weddings in France.

Other uses

The principal use of this technology has been to enhance precipitation, but other uses have been explored. From 1962 to 1983, a US government initiative called Project Stormfury tried to weaken tropical cyclones with no real success, while attempts through other programs to limit the effects of storm-to-ground lightning also proved inadequate.

However, Project Cold Wand saw more successful experimentation with fog dissipation techniques in the early 1970s, while US airlines have also used fog dissipation technology for decades.

The Kremlin has also long experimented with this technology. After the 1986 Chernobyl nuclear disaster, the Soviet Union used cloud-seeding to increase rain in the region to wash radioactive particles from the air and prevent them from reaching Moscow. Now, Russia employs this technology to clear skies for its annual Victory Day Parade in Moscow, while hail suppression technology has also been used by Russia to protect crops and property.

Other governments have also dedicated significant resources to cloud-seeding for decades. Since 1951, France’s Association to Suppress Atmospheric Plagues has grown to an extensive nationwide program, while Thailand’s Royal Rainmaking Project has been active since 1969.

In recent years, cloud-seeding has grown increasingly popular in the water-stricken Middle East and parts of Africa. Morocco, Ethiopia, Iran and Saudi Arabia all have national programs, while several more countries are considering it.

China at forefront

However, China has established itself as a leader in weather modification over the last two decades. China’s “weather army” employs almost 50,000 people, thousands of rocket launchers and cannons, and dozens of planes, largely through the China Meteorological Association Weather Modification Center.

In 2006, cloud-seeding was used to clean sand off Beijing after a severe sandstorm. Two years later, cloud-seeding was used to reduce pollution and pave the way for sunny weather before the 2008 Summer Olympics, practices that were repeated for the 2022 Winter Olympics in Beijing.

China’s cloud-seeding is not just limited to its capital city, with most Chinese cities employing their own programs. Additionally, the Yangtze River basin, currently in severe drought, saw 241 flights and 15,000 rocket launches between June and November 2022, alleged to have resulted in “8.56 billion metric tons of additional rainfall” according to Chinese government sources.

Most supporters estimate that successful cloud-seeding can result in a 10-30% increase in precipitation, but doubts persist over these figures. It also remains difficult to document increases in rainfall and accurately decide where precipitation will fall. In light of these limitations (as well as the questionable economic viability of weather modification), Israel halted its 50-year cloud-seeding program in 2021.

Weaponizing weather

Since the inception of cloud-seeding technology, however, there has been concern over its potential for weaponization. In 1957, the US president’s advisory committee on weather control warned that weather manipulation could develop more destructive weapons than nuclear bombs.

During the Vietnam War, the US government’s cloud-seeding Project Popeye spent millions of dollars between 1967 and 1972 to extend Vietnam’s monsoon season in an attempt to flood the Ho Chi Minh Trail and disrupt the North Vietnamese Army’s supply lines. The Soviet Union is also suspected of using cloud-seeding to increase rainfall in Afghanistan during the Soviet-Afghan War to turn areas into mud and disrupt the movements of the mujahideen.

But public concern in the US over the weaponization of weather prompted the signing of the National Weather Modification Policy Act of 1976, and the US, along with other countries, signed the Convention on the Prohibition of Military or Any Other Hostile Use of Environmental Modification Technique (CONMED) in 1977 that requires signatories refrain from militarizing weather modification.

Nonetheless, concern remains over how current technology and practices could ignite conflicts. Iranian officials accused Israel and the United Arab Emirates of “working to make Iranian clouds not rain” in 2018, while China’s expansive plans for its cloud-seeding operations have also brought concern from India.

Alternative methods of weather manipulation are also under way. In 1996, a US Air Force report titled “Weather as a Force Multiplier: Owning the Weather in 2025” discussed how the advancement of surveillance technologies could see clouds made of smart particles deployed to generate “intelligent fog.”

There have also been projects designed to trigger lightning within clouds, which could complicate operations for the United States’ heralded F-35 plane, which cannot fly within 25 nautical miles of a thunderstorm.

Outside militarization initiatives, new weather modification projects are also on the horizon.

Proposals to add nutrients to the ocean to encourage phytoplankton growth and increase carbon absorption, or ocean fertilization, are increasingly discussed. Sea and cloud brightening projects to reflect sunlight and reduce global warming are also becoming mainstream ideas, despite ongoing uncertainty about their destructive potential or ineffective results.

As weather modification technology continues to develop, we should be wary of further privatization and militarization. Cloud-seeding privatization, for instance, has become increasingly globalized. Based in Fargo, North Dakota, Weather Modification Inc provides cloud-seeding services to India. Switzerland’s Meteo Systems has been active in the UAE for more than a decade.

With dozens of countries and companies now offering cloud-seeding services, policymakers should design and enforce new regulations for weather modification. While agreements and institutions like CONMED and the World Meteorological Organization Expert Team on Weather Modification play important roles, the stage now is crowded with various actors vying for a larger role in applying the technology.

Global coordination should be seen as a necessary undertaking to avoid the potentially catastrophic effects of manipulating the weather. Before governments and companies embark on large-scale efforts to alter the weather, additional regulation in anticipation of future technologies can serve as a protective measure to avoid environmental crises and mitigate the rise of conspiracy theories.

This article was produced by Globetrotter, which provided it to Asia Times.

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Emerging digital technology, alternative data and financial inclusion in Cambodia - Southeast Asia Globe

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Securing a loan can be a life-changing event, allowing people to access the capital necessary to start a business, buy a home, and invest in their future. But for Cambodia’s large underbanked and unbanked population, difficulty in accessing financial services, and an absence of the financial data used to assess creditworthiness, can make getting a loan challenging. According to the National Bank of Cambodia, only 59 percent of the adult population have access to formal financial services, leaving 41 percent either accessing informal financial services or no financial services at all.

However, developments in Cambodia’s lending landscape offer cause for optimism. The explosion in Cambodia’s fintech ecosystem, paired with the growing potential of alternative-data credit frameworks, could provide a path towards financial inclusion for those previously left out of the conversation.

Acccording to Ms. Phal-Chalm Theany, Secretary General of the Association of Banks in Cambodia, “Alternative data has tremendous potential for contributing to financial inclusion by complementing traditional financial data that banks have. They range from information on mobile wallet transactions to information on user behavior on digital platforms that can be utilized for risk assessment of individuals and MSMEs.” 

Most financial institutions use debt repayment history and bank and credit files to determine the creditworthiness of potential borrowers. Driven by digitalisation and developments in technologies such as data analytics and machine learning, alternative credit scoring is based on any form of non-traditional information that can provide insights into the ability and propensity of borrowers to pay back loans. Telecom and utility payment histories, as well as digital footprints and mobile data, can all be utilised to assess creditworthiness within these frameworks.

Banks in Cambodia are increasingly looking to tap alternative data for serving the unbanked and underbanked.

“Data in Cambodia is still very much fragmented and held across multiple organizations and institutions,” said Mr. Mach Chan, CEO of Phillip Bank in Cambodia. “Many people do not have formal loans from financial institutions. This makes it challenging to predict their repayment capacities. If Phillip Bank can easily assess aggregated alternative data, we can better assess a borrower’s creditworthiness based on their social and behavioral indicators, and spending patterns and habits. This allows us to form a more complete picture of the borrower’s risk profile, with opportunities to offer cheaper loans to less risky customers, regardless of whether they are banked. Additionally, many SMEs are not formally registered making lending a challenge. If banks can access the payments data of these MSMEs, the financial Industry will be more confident to support the needs of these businesses.”

Across Southeast Asia, governments, banks and key stakeholders are becoming increasingly interested in the potential of alternative data as a tool to expand the scope and accessibility of financial services.

A Southeast Asia-focused report published by the World Bank Group in 2021 highlights four new data types that have emerged as part of the evolving digital ecosystem, and which can aid credit decision-making: mobile operator and app-based data, digital payments, e-commerce data and enterprise-tech (business-performance) data. Such alternative data has also been highlighted by the Asian Development Bank as one of the key areas for driving financial inclusion in Southeast Asia. 

Across the region, governments, banks and key stakeholders are becoming increasingly interested in the potential of alternative data as a tool to expand the scope and accessibility of financial services.

In December 2022, the National Credit Bureau of Thailand announced the plan to launch a non-credit data centre by consolidating such data into NCB’s existing credit database with initial application of utility payment data from Electricity and Water Utilities.

In Indonesia, Experian collaborated with a telecom company to uplift financial inclusion by using data from telco to provide advanced credit assessment to empower unbanked and underbanked.

In the Philippines, Credit Information Centre (CIC) is working on an open policy to enable accessing entities to utilize credit bureau data with alternative data to come up with a complete picture of a borrower’s credit profile.

In the context of Cambodia, utility bill payment and telco payment data can serve as important sources of alternative credit data. Moreover, with rapid digitalization along with adoption of digital payments, there should be enormous potential to tap a wide array of alternative data on payments and digital footprints. Around the world, such data have served as key drivers for digital financial inclusion. 

With a rise in digital financial service providers, digital payment catalysts and e-commerce in Cambodia, massive amounts of alternative data are already generated at present. Given this scenario, it is important to have an organized ecosystem to collect, process and utilize such alternative credit data.

On the regulatory front, the National Bank of Cambodia revised the prakas on credit reporting in 2020, enabling Credit Bureau Cambodia (CBC) to collect alternative data along with traditional credit data to support financial institutions to strengthen credit risk assessment capabilities.  

CBC was established in 2012 with the support of the National Bank of Cambodia, the Association of Banks   in Cambodia and other key stakeholders in the sector to manage a fair and transparent credit market in support of the nation’s economic development. Since then, CBC has become the leading body providing financial information in the country. Although currently CBC only manages traditional data reported by member banks and financial institutions, it is preparing an ambitious roadmap to collaborate with multiple sectors in the country. Its plan is to establish a comprehensive alternative credit data ecosystem that can work together with the traditional credit data ecosystem for social and economic benefits to Cambodians.

“I would say Cambodia stands a decade ahead of other emerging market economies because of the Credit Bureau and the lending environment,” explained Gordon Peters, co-founder and CEO of fintech firm Boost, which harnesses popular social media platform such as Facebook and Telegram to enable access to finance. “CBC has done a great job of collecting, collating and sharing data on the financial lives of customers,” he said. “I think that is a huge unlock.”

For Peters and company, CBC establishes a level of legitimacy and security that has benefited Cambodia’s financial sector and allowed his firm to fill a gap in the ecosystem. Banks and financial institutions have a high degree of confidence and trust in the role of CBC as a key financial data infrastructure in the country. For a company that already manages credit history data of more than 7 million individuals and businesses, expanding the capabilities to manage alternative data reporting system looks plausible.

Ms. Phal-Chalm Theany, Secretary General of the Association of Banks in Cambodia

Ms. Theany elaborated: “CBC is a data centre for the financial sector that collects data from banks and financial institutions, stores and analyses them for the purposes of credit scoring for those financial institutions. Where each bank and financial institution may have its own data, CBC has the financial information for the whole sector.

“With strong capabilities in data analytics, artificial intelligence and machine learning, CBC is uniquely positioned to harness alternative data from diverse data sources to enable banks and financial institutions to conduct better assessment of the profile of the unbanked (mainly women and farmers) and informal small businesses, estimate income with more precision. This shall enable financial institutions to offer more appropriate credits or other financial services in the absence of a financial footprint, credit histories or property guarantees.”

Mr. Chan added: “CBC could spearhead the aggregation of payments, telco and utilities data. These datasets are then fed into a prospective customer’s credit score. Over the past few years, with NBC’s Bakong as a key enabler, we’ve seen a rapid digitization of payments. We believe that when assessing customer creditworthiness, payments data is just as important as borrowing and repayment data, and should be prioritized. At the same time, CBC would need to seek the cooperation of their member financial institutions to provide these datasets. For SMEs, we also see data from GDT as an important asset. If CBC could connect and obtain data with GDT, it will allow the banks to form better assessments for clean loans, spurring economic activity.”

Currently, CBC provides K-Score, an algorithmic credit score (ACS). ACS uses machine-learning algorithms to analyse massive data sets to produce credit scores without traditional financial information. This is the only industry level credit score available in Cambodia. First launched in 2015, CBC did a major revamp of the algorithms in 2020 to keep up with the evolving changes in the market landscape. Today, K-Score is available to all member financial institutions of CBC and (via CBC’s mobile app) to all individuals as well.

Example of a K-Score from CBC

A 2023 report in the Asian Journal of Law and Science states: “ACS is the tip of the spear of the global campaign for financial inclusion, which aims at including unbanked and underbanked citizens in financial markets and delivering them financial services, including credit, at fair and affordable prices.” The study outlines the wide ranging benefits of ACS and alternative data as tools to benefit individuals across Southeast Asia who lack access to financial services.

In the Cambodian context, Credit Bureau of Cambodia is well positioned to lead the way in leveraging these tools. To make sense of the massive datasets now available thanks to digitalisation, CBC utilises a host of ACS tools. Machine-learning algorithms and other artificial intelligence mechanisms allow for the analysis of data at a scale that was previously impossible. Risk analysis profiles and loan portfolios that are regularly updated and refined are just a couple of the ways these technologies can be leveraged using alternative data. While the power of these tools is certainly important, CBC’s experience in the sector — and its standing as the leading institution managing, analysing and providing financial data — are the most compelling reasons for the adoption of alternative data schemes in Cambodia.

“As we are entering our second decade of credit reporting in Cambodia, CBC is committed to being a trusted (element in the) national financial infrastructure for providing alternative credit data, to strengthen credit risk assessment for our 190-plus member financial institutions, and to expand access to credit for the new-to-credit consumer segments. We are very open to collaborate with alternative data providers such as telcos, utilities and payment service providers to harness information not found in traditional credit reports, to help more Cambodians obtain access to mainstream financial services,” explained CBC CEO, Oeur Sothearoath.

As CBC leverages its established presence in the financial sector, a growing pool of innovators is working with the agency to develop and facilitate the alternative data ecosystem.

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Climate change: The villagers building 100ft ice towers

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Arati Kumar-RaoArati Kumar-Rao

Environmental photographer and writer Arati Kumar-Rao travels across South Asia in all seasons to chronicle the subcontinent’s changing landscape. Here, in photos and in her own words words, she captures the increasing threat climate change poses to the lives and livelihoods of the Ladakhi people, who face an uncertain future below the melting glaciers of the Himalayan mountains. Kumar-Rao is one of this year’s Climate Pioneers on the BBC 100 Women list.

mountain

Arati Kumar-Rao

The night of 5 August 2010 is still fresh in the memory of the people of Ladakh, in northern India, when it felt like a cloud had burst over the area surrounding the capital, Leh.

One year’s worth of rain fell on the cold desert in just two apocalyptic hours. Massive walls of sludge swallowed up everything in their path. Scrambling people were buried mid-stride under a thick brown-grey mass.

Several hundred people were never found after that fateful night.

The Ladakh region, the northernmost plateau of India, sits more than 3,000m (9,850ft) above sea level. The Greater Himalayan Range shields the region from the annual monsoon that much of the rest of India relies on.

Until recently, Ladakh has been bathed by the sun for 300 days per year, while barely four inches of rain have fallen on the vast landscape of rock and mountains. Floods were virtually unheard of.

Animal rearing

Arati Kumar-Rao

The destructive flood of 2010 was followed in quick succession by further floods in 2012, 2015, and most recently, in 2018.

Something that had not happened in seven decades, occurred four times in fewer than 10 years. Such freak weather events are a result of climate change, experts say.

Meltwater

Arati Kumar-Rao

A decade and a half ago there used to be a regular rhythm to the Ladakhi land, which provided villagers with a steady water supply. Winter snow melted to feed streams, just as meltwater from the glaciers trickled down and provided water for farming and agriculture in springtime.

goatherd

Arati Kumar-Rao

farmer

Arati Kumar-Rao

However, climate change has seen average winter temperatures in Ladakh rise by about 1C over the last 40 years.

Snowfall has become increasingly unpredictable and glaciers have retreated farther up towards the peaks, or disappeared altogether.

village of Stok

Arati Kumar-Rao

I first visited Ladakh in 2018. I returned in 2019, and again in spring this year – kept away in the interim by the coronavirus pandemic. The difference was startling.

The snow now melts faster, leaving villagers with little to no water by spring. Glaciers are now so high up in the mountains that they melt later in the year. Ladakhi springtime – once lush and fertile – was dry and silent this year.

A lack of water has led to a decrease in meadows – keeping large flocks of pashmina goats is becoming unviable. The Changpa herders are giving up their traditional livelihoods and migrating to other parts of India or to Leh looking for non-pastoral work.

Farmers, unable to find water for their barley and apricots, are leaving in droves.

Apricot farmers

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apricot farming

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Despite the destruction caused by climate change, there is hope for this isolated region.

On my second visit to Ladakh in March 2019, I met engineer Sonam Wangchuk. He told me that on a drive through the valleys in 2013 he noticed a large mound of unmelted ice under a bridge, sheltered from the sun. The sight of that small tower of ice triggered an idea.

“High school maths tells us that a cone is the simple answer,” he grinned at me.

Sonam Wangchuk

Arati Kumar-Rao

mountain workers

Arati Kumar-Rao

Wangchuk wanted to help villagers freeze water in winter which could be saved for use in spring. Freezing it in the shape of a cone would maximise the volume of ice per square metre of surface area exposed to the sun and lengthen the amount of time it would take to melt.

The engineer assembled a team of local people and began experimenting, looking for the best way of creating cones of ice. Eventually, they found the right formula.

Ice stupas

Arati Kumar-Rao

After piping water from a mountain stream down into the valley, the group forced water to flow up a vertical pipe with a fine nozzle attached to its end. The water went up the pipe and exited via the nozzle as a fine spray.

In night-time temperatures of -30C, the spray froze as it exited the pipe. Gradually, as more and more water emerged as spray and turned to ice, the edifice began to resemble a cone.

ice stupas

Arati Kumar-Rao

Now named ice stupas, after Buddhist places of meditation, they have gained popularity all across Ladakh. The structures, some of which tower over 100ft (30m), provide a water supply for a community that has seen climate change disrupt its natural resources.

They also provide a surprising source of entertainment – hotly contested competitions for the tallest stupa take place annually.

But the injustice of the situation is not lost on either Wangchuk or his stupa-building friends. Ladakhi people are paying the price for carbon emissions made elsewhere.

Ladakhis

Arati Kumar-Rao

“It is not enough that we keep coming up with technical innovations, keep adapting, keep solving problems,” Wangchuk tells me.

“I want to use ice stupas as much to sensitise the world about the need for a change in behaviour, as I want to use it to provide water for us.”

As a photographer who has travelled across vast spaces of south Asia, I know Ladakh is not alone in its fight.

For the first time in history India and its neighbouring countries, China and Pakistan, face a common enemy – climate change. It has the potential to destroy river basins and threaten the most populated regions of the world. It may be time to come together to shore up resilience against this threat to survival.

Produced by Rebecca Thorn, BBC 100 Women.

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China: Human Rights Watch accuses Beijing of closing and destroying mosques

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In: Asia
Photo of a Hui Muslim attending prayer in Yingchuan, NingxiaGetty Images
By Kelly Ng
BBC News

China is closing, destroying and repurposing mosques, Human Rights Watch (HRW) has alleged in a new report.

The crackdown is part of a “systematic effort” to curb the practice of Islam in China, HRW said.

There are about 20 million Muslims in China, which is officially atheist but says it allows religious freedom.

Observers, however, say there has been an increased crackdown on organised religion in recent years – with Beijing seeking greater control.

The BBC contacted China’s foreign ministry and ethnic affairs commission for comment in advance of publication of the HRW report.

“The Chinese government’s closure, destruction and repurposing of mosques is part of a systemic effort to curb the practice of Islam in China,” said Maya Wang, acting China director at Human Rights Watch.

The report follows mounting evidence of systematic human rights abuses against Uyghur Muslims in China’s north-western Xinjiang region. Beijing denies the accusations of abuse.

Most of China’s Muslims live in the country’s north-west, which includes Xinjiang, Qinghai, Gansu and Ningxia.

In the Muslim-majority village of Liaoqiao in the autonomous region of Ningxia, three of six mosques have been stripped of their domes and minarets, according to HRW. The rest have had their main prayer halls destroyed, it said.

Satellite footage obtained by HRW showed a round dome at a mosque in Liaoqiao village being replaced by a Chinese-style pagoda sometime between October 2018 and January 2020.

About 1,300 mosques in Ningxia have been closed or converted since 2020, Hannah Theaker, a scholar on Chinese Muslims, told the BBC. That number represents a third of the total mosques in the region.

Under China’s leader Xi Jinping the Communist Party has sought to align religion with its political ideology and Chinese culture.

In 2018, the Chinese Communist Party’s central committee published a document that referred to the control and consolidation of mosques. It urged state governments to “demolish more and build fewer, and make efforts to compress the overall number” of such structures.

The construction, layout and funding of mosques must be “strictly monitored”, according to the document.

Such repression has been most longstanding and severe in Tibet and Xinjiang, but it has also extended to other areas.

There are two major Muslim ethnic groups in China. The Huis are descended from Muslims who arrived in China in the 8th Century during the Tang Dynasty. The second group is the Uyghurs, mostly residing in Xinjiang. About two-thirds of the mosques in Xinjiang have been damaged or destroyed since 2017, according to a report by the Australian Strategic Policy Institute, an independent think-tank.

“Generally speaking, Ningxia has been a pilot site for implementation of the ‘Sinicisation’ policy, and hence, both renovations and mergers appear to have begun in Ningxia ahead of other provinces,” says Dr Theaker, who is co-writing a report on Hui Muslims with US-based academic David Stroup.

“Sinicisation” refers to Mr Xi’s efforts to transform religious beliefs to reflect Chinese culture and society.

People walk in front of a disused mosque in Xinjiang, China

Getty Images

The Chinese government claims the consolidation of mosques – which often happens when villagers are relocated or combined – helps reduce the economic burden on Muslims, but some Hui Muslims believe it is part of efforts to redirect their loyalty towards the Party.

Some residents have publicly opposed these “Sinicisation” policies, but their resistance has so far been futile. Over the years, many have been jailed or detained after clashing with authorities over the closure or demolition of mosques.

After removing external elements from mosques, local governments would then remove facilities essential for religious activities such as ablution halls and preacher’s podiums, according to US-based Hui activist Ma Ju.

“When people stop going [to the mosques, the authorities] would then use that as an excuse to close the mosques,” he is quoted as saying in the Human Rights Watch report.

Another video verified by HRW showed an ablution hall in Liujiaguo mosque in southern Ningxia being demolished shortly after the removal of its two minarets and a dome.

In Gansu province, which shares a border with Ningxia, officials have made periodic announcements of mosques being closed down, consolidated and altered.

In 2018, authorities banned minors under 16 from participating in religious activities or study in Linxia, a city in the province previously known as China’s “Little Mecca”. A 2019 report by a local television station said authorities converted several mosques into “workspaces” and “cultural centres” after “painstaking ideological education and guidance work”.

Before the “Sinicisation” campaigns, Hui Muslims have in many ways been receiving support and encouragement from the state, said Dr Theaker.

“The campaign has radically narrowed the space in which it is possible to be Muslim in China, and thrown the weight of the state behind a very particular vision of patriotism and religious observance.

“It reflects the profoundly Islamophobic orientation of the state, in that it requires Muslims to demonstrate patriotism above all, and views any sign of ‘foreign’ influence as a threat,” she said.

Arab and Muslim leaders across the world should be “asking questions and raising concerns”, said Elaine Pearson, Human Rights Watch’s Asia director.

Other ethnic and religious minorities have also been affected by the government’s campaign.

For instance, Beijing has in recent months replaced the use of “Tibet” with “Xizang” – the region’s name in Mandarin – on official diplomatic documents. The authorities have also removed crosses from churches, arrested pastors and pulled Bibles from online stores.

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