Multimedia University, Huawei Malaysia to enhance ICT education ecosystem with Huawei ICT Academy Support Center 

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  • Courses will cover 5G, AI, cloud computing, green tech & cybersecurity
  • Aims to cultivate local talent with skills for the evolving digital landscape

(From left) Multimedia University deputy dean of Student Affairs Assoc. Prof. Dr Ng Kok Why and Multimedia University president & CEO Prof. Dr. Mazliham Mohd Su’ud with Rony Zhang, Huawei Malaysia account director for Enterprise Government Business Group and Ye Zhonghua, Huawei Malaysia director of the Board at the MoU exchange ceremony.

Multimedia University (MMU), the tertiary education arm of Telekom Malaysia Bhd, has partnered with Huawei Technologies (Malaysia) Sdn Bhd to establish a Huawei ICT Academy Support Center (IASC). The IASC will serve as a central hub, supporting the operations and development of both new and existing Huawei ICT Academies across the nation. This initiative aims to strengthen Malaysia’s Information and Communications Technology education ecosystem and cultivate local talent with the skills necessary to meet the evolving demands of the digital landscape.

Through this partnership, MMU will drive the expansion and onboarding of new Huawei ICT Academies nationwide via the IASC, employing marketing strategies, orientation assistance, on-site workshops, and various outreach activities designed to foster industry-academia alliances. These initiatives are intended to showcase the value of digital talent and attract new students.

Huawei Malaysia will equip the IASC with regularly updated, authorised course materials aligned with industry trends, drawing on its expertise as a global ICT solutions provider with significant local insight. These materials will cover key tech domains, including 5G technology, Artificial Intelligence (AI), Cloud computing, Big Data, green technology, and cybersecurity. Additionally, the company will support the IASC with Train-the-Trainer (TTT) programmes, technical guidance, and lab resources.

Prof. Dr. Mazliham Mohd. Su’ud, president of MMU, stated, “This partnership marks a significant milestone in our commitment to advancing ICT education in Malaysia. By establishing the Huawei ICT Academy Support Center, we are not only enhancing our educational offerings but also ensuring that our students are equipped with the skills required to thrive in an increasingly digital world. This collaboration with Huawei Malaysia will empower educators, foster industry-academia partnerships, and ultimately help bridge the skills gap in our workforce. Together, we are paving the way for a more digitally inclusive future.”

“Digital equity is built on digital literacy, and with the ICT sector employing 1.24 million people last year—7.8% of Malaysia’s workforce—there is growing demand for expertise in emerging technologies. However, as technology advances at an unprecedented pace, educational programmes often struggle to close the digital skills gap and address the mismatch between academic output and industry needs. The expansion of our Huawei ICT Academies network, supported by the IASC, will be instrumental in ensuring each academy operates with maximum efficiency. We are excited to partner with MMU on this initiative to elevate Malaysia’s ICT education ecosystem to new heights,” said Oliver Liu, vice president of Huawei Malaysia.

The collaboration was formalised with the recent signing of a Memorandum of Understanding (MoU) in Shenzhen, China.

Under the MoU, MMU will oversee the integration of Huawei ICT Academy courses into formal academic curricula. At least two Huawei Certified ICT Associates instructors will be part of MMU’s resources to deliver the necessary TTT programmes required by the various academies.

Additionally, the university will monitor students’ progress and provide the necessary support for academies to secure Huawei Certification Exam Vouchers, enabling students to obtain internationally recognised certifications that will enhance their career prospects in the ICT field.

To date, Huawei Malaysia has established Huawei ICT Academies in 40 public and private higher education institutions nationwide and claims to have already trained 54,000 individuals through the Huawei ASEAN Academy, surpassing its target of 50,000 digital talents by 2025.

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How China can revive its bruised and dwindling billionaire class – Asia Times

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Is the “smart” money still fleeing China? Whether it’s wise to leave Asia’s biggest economy is debatable. What’s not is that the mainland billionaire emigration trend continues and that their ranks have thinned by more than a third in just the last three years.

The latter dynamic, tracked by research group Hurun, spotlights how the fallout from the last few years of government crackdowns, slowing economic growth, volatile equities and property collapse is catching up with Xi Jinping’s policymakers and complicating their efforts to counter Wall Street worries that China has become “uninvestable.”

To be sure, the “avoid-China” vibe isn’t what it was, say, six months ago. As Nicholas Colas, co-founder of research firm DataTrek, notes, the recent “surprise announcement of aggressive fiscal and monetary policy action is spurring a reappraisal of the view” that Chinese equities are uninvestable.

“China’s leadership has finally acknowledged that the country’s economy needs much more monetary and fiscal stimulus if it is to achieve its growth potential over time,” Colas says.

Billionaire David Tepper has been making his own headlines by declaring it time to buy “everything” in China. And after “running around the world” in recent weeks, Kinger Lau, chief China equity strategist at Goldman Sachs, says that “for some investors who haven’t really looked at China over the past one to two years, certainly, the interest level has picked up a lot”

As Lau tells the South China Morning Post, “I’m not saying everyone is buying. But the level of interest has picked up a lot, very much consistent with the flows and positioning.” He’s among many who now see “upside” for Chinese equities.

Where this leaves China’s remaining billionaires in US dollar terms – Hurun says there are now 753 versus a peak of 1,185 in 2021 – is debatable. What’s clear, though, is that the stakes surrounding next week’s gathering of the standing committee of National People’s Congress are rising.

Rarely has there been a better opportunity for Xi’s inner circle to reassure the billionaire set at home and global funds abroad.

“The announcement of the NPC Standing Committee meeting for November 4-8 reflects Beijing’s strategic approach to the major economic policy U-turn underway,” says economist Diana Choyleva at Enodo Economics.

Choyleva noted that “by scheduling the meeting immediately after the US presidential election on November 5, the Chinese leadership has positioned itself to announce fiscal measures with full knowledge of the electoral outcome, enhancing its ability to manage market expectations and responses effectively.”

Next week’s confab will “allow Chinese policymakers to fine-tune their announcements and potentially adjust the scale or presentation of stimulus measures based on the new geopolitical context,” she says.

Choyleva notes that “a better-coordinated approach to policy announcements could actually enhance market stability. Investors should view the timing as a sign of careful planning rather than delay, particularly given the potential for more comprehensive and strategically calibrated announcements.”

Billionaires and global funds alike are craving a “well-thought-out approach” that “sets the stage for more impactful and sustainable market responses,” Choyleva says. “For investors, this timing and a more coordinated policymaking reduces uncertainty by ensuring that China’s fiscal response will be announced with full knowledge of the US political landscape, potentially leading to more stable and sustained market reactions rather than volatile short-term responses.”

The potential wildcard of a Donald Trump 2.0 presidency would be a game-changer for Asia, starting with a 60% tax on all Chinese goods that would upend Asian growth and supply chains.

Derek Holt, Bank of Nova Scotia’s head of capital markets economics, speaks for many when he warns that “Trump’s plans risk being highly destabilizing to world markets in a much more fractured world.”

Investors everywhere are bracing for a supersized US trade war in the event of a second Trump White House, including Europe. Germany’s recession is already casting a pall over European markets.

“In a worst-case scenario of a full-blown tariff war with retaliation, we estimate potential for a mid to high single-digit drag on European earnings-per-share growth,” says Barclays Plc strategist Emmanuel Cau. A “big chunk” of analysts’ worry more than 10% growth in earnings next year could disappear as trade tensions spike, he notes.

One worry is Trump’s desire to add fiscal stimulus via giant tax cuts into an economy that doesn’t need it. “The US economy doesn’t need pump-priming, it’s in excess demand and will remain there next year,” Holt notes. And while “the US needs to assert control over its borders, Trump’s extreme immigration policies would severely damage the US economy.”

Trump’s desire to weaken the US dollar also would increase inflation risks, complicating hopes the Federal Reserve might cut interest rates. Not that Vice President Kamala Harris has a great track record in global market circles, Holt notes. As a US senator in 2020, Harris was one of only a few lawmakers who voted against a revised US-Mexico-Canada trade agreement.

In Holt’s view, “it’s a matter of picking the one you think will be less damaging. As a professional economist, I have no doubt that this means voting against Donald Trump and the weak self-serving men behind him.”

Yet risks abound as the US national debt tops the US$35 trillion mark. “America’s fiscal position is living on borrowed time and the more damage that’s done now, the higher taxes will go in the future in a potentially more divided and more dangerous world,” Holt explains.

Reassuring China’s billionaires and overseas funds requires bold and transparent action by Xi’s inner circle. 

Earlier this month, Beijing cut borrowing costs, slashed banks’ reserve requirement ratios, reduced mortgage rates and unveiled market-support tools to put a floor under share prices. Beijing is telegraphing bolder fiscal stimulus steps.

Team Xi also raised the loan quota for unfinished housing projects to 4 trillion yuan (US$562 billion), nearly double the previous amount. The bump was less than markets wanted, but pledges of more come has limited big negative market reactions.

The bigger issue, though, is repairing the balance sheets of giant property developers. Success in devising a mechanism to dispose of toxic assets could go a long way toward reassuring investors.

Xi’s inner circle has surely demonstrated it knows what’s needed to turn things around and reassure its capitalist class: a clear strategy to strengthen the finances of good-quality developers; incentivizing mergers and acquisitions; improving capital markets so that consumers stop seeing property as their only investment option; creating social safety nets so that households spend more and save less.

Beijing also must allay concerns that the tech crackdowns that began in late 2020 are over and done with.

Xi has left it to Premier Li Qiang to make the case for a more dynamic, competitive and predictable China. In January, Li said that “choosing investment in the Chinese market is not a risk, but an opportunity.”

He stressed that “investing in China will bring huge returns and a better future” and described CEOs on hand as “participants, witnesses, and beneficiaries of China’s reform and opening up.”

China, Li added, “stands ready to seriously look into and solve the difficulties and problems encountered by foreign enterprises” operating in the country. “We will take active steps to address reasonable concerns of the global business community,” Li said.

The bottom line, says Fred Hu, CEO of Primavera Capital Group, is that if China “really commits to rule of law and market reforms, I do think the confidence will slowly but surely come back, then the animal spirit will be rekindled.”

One reason the clock is ticking in Xi’s reform plans is that the 10-year mark of his “Made in China 2025” scheme is fast approaching.

When he took the reins of power in 2012, Xi promised to let market forces play a “decisive” role in Beijing’s decision-making. In May 2015, Xi unveiled his ambitious plan to morph China into a high-tech Mecca for semiconductors, renewable energy, electric vehicles, biotechnology, aerospace, artificial intelligence, robotics and green infrastructure.

A decade on, progress has been more sporadic than hoped. Team Xi has often proved better at treating the symptoms of China’s economic funk, not the underlying ailment. 

It’s a lesson Japan taught the world: throwing money at an economy traumatized by plunging property values and deflationary pressures won’t work without supply-side moves to repair cracks in the economy.

Late last year, Xi introduced the buzz-phrase “new quality productive forces.” Though somewhat cryptic, Xi’s inner circle has been selling it as the answer to China’s economic future.

China wants to get its consumers to spend more and save less to keep growth near 5% year after year. That means continuing to raise incomes and building more robust social safety nets to encourage spending. It means creating deeper, trusted capital markets so the average Chinese can invest in stocks and bonds — not just real estate.

Beijing’s extreme focus on boosting consumption over the years has proved counterproductive, economists say. It leaves China susceptible to boom-and-bust cycles that require urgent attention at the expense of moving the economy upmarket. China’s heavy reliance on exports leaves the economy vulnerable to Trump-like antics.

There’s no better alternative to accelerating and broadening China’s evolution into a high-tech powerhouse, development experts say. And indications are, this is precisely the pivot Xi and Li are making as 2025 approaches.

At the NPC in March, Xi’s Communist Party said “it’s imperative to boost the endeavors to modernize the industrial system, and accelerate the development of new productive forces.” Billionaires skittish about China’s prospects couldn’t agree more. The days and weeks ahead offer Xi a ready opportunity to do just that.

Follow William Pesek on X at @WilliamPesek

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To challenge China, the next US president should fix trade – Asia Times

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This article was originally published by Pacific Forum. It is republished with permission.

In the September presidential debate, former President Donald Trump and current Vice President Kamala Harris had sharply contrasting views on issues ranging from energy to immigration to policy toward China and the Middle East.

Yet, both agreed that tariffs were useful for US foreign policy.

The debate started with tariffs, and the two candidates went back and forth on the likelihood that the new tariffs would cause inflation. By the end of the debate they returned to their discussion on tariffs, where they disagreed on the sectors where they thought tariffs should be imposed and on which countries should be targeted – but agreed that tariffs are useful.

Regardless of the detrimental consequence of tariffs, including inflation, the candidates emphasized the need to impose them to protect critical sectors and spur domestic manufacturing.

The debate clearly demonstrated the arrival of a new era in the United States, one in which the two parties are recalibrating the balance between national security and economics.

Biden’s trade war and Trump’s

The United States has a growing list of grievances about Beijing’s mercantilist practices. These include

  • widespread market-access restrictions, from equity caps on investment to regulatory harassment;
  • pervasive subsidies directed at national champions that tilt the competitive playing field against foreign firms in China and in third markets; and
  • widespread forced technology transfer and intellectual property theft.

To protect domestic industries vital to national security and incentivize China to change its practices, both the Trump and Biden administrations have imposed tariffs on Chinese products.

In March 2018 President Trump announced the administration would impose a 25% tariff on imported steel and a 10% tariff on imported aluminum. Following the announcement, the Trump administration imposed several rounds of tariffs on steel, aluminum, washing machines, solar panels as well as goods specifically from China, impacting more than $380 billion worth of trade at the time of implementation and amounting to a tax increase of nearly $80 billion.

President Biden said in a 2019 speech: “President Trump may think he’s being tough on China, but all he has delivered is more pain for American farmers, manufacturers, and consumers.”

Yet, the Biden administration has largely upheld existing tariffs, with some exceptions. These include suspending certain tariffs on European Union imports, replacing tariffs with tariff-rate quotas (TRQs) on steel and aluminum from the EU and UK, as well as steel from Japan, and allowing tariffs on washing machines to expire after a two-year extension.

In May 2024, the Biden administration announced additional tariffs on $18 billion of Chinese goods, resulting in a tax increase of $3.6 billion.

Authors’ compilation derived from White House Fact Sheet

President Biden’s trade policy differs from the former president’s in that he seeks to increase production and jobs in a select group of emerging high-tech industries. Additionally, he has tightened trade restrictions with China under the “Small Yard, High Fence” approach, limiting the sale of American technology to Beijing while directing federal subsidies to US manufacturers competing with Chinese manufacturers. Another key difference in President Biden’s trade policy is that his strategy relies on bringing international allies together to counter China through a mix of domestic incentives and potentially coordinated tariffs on Chinese goods.

Weighing Washington’s tariffs on Beijing

Among the reasons countries impose tariffs are:

  • to protect domestic industries vital to national security,
  • to incentivize foreign countries to change their practices, and
  • to raise revenue.

The Trump and Biden administrations both stated they imposed tariffs for the first two reasons.

The Trump administration argued that tariffs were “imposed to encourage China to change its unfair practices” as they “threaten United States companies, workers, and farmers.”

Similarly, after the Biden administration announced tariff hikes on May 14, the White House announced tariff increases were designed “to protect American workers and American companies from China’s unfair trade practices,” including forced technology transfers and theft of intellectual property. The administration also pointed out China’s “growing overcapacity and export surges that threaten to significantly harm American workers, businesses, and communities.”

The biggest problem with the latest round of tariffs imposed in May is that it cannot resolve the problems the Biden administration sought to tackle. Rather than focusing on changing China’s forced technology transfers and protecting intellectual property rights, the tariff increases were more about boosting US industries.

Furthermore, doubts persist about whether tariffs truly benefit the US economy. By raising the cost of parts and materials, tariffs increase consumer prices, and reduce private sector output. This will eventually reduce the return to labor and capital, incentivizing Americans to work less and invest less.

There are numerous studies claiming the negative economic consequences of tariff policy. In August 2019, the Congressional Budget Office (CBO) estimated that the negative GDP effects of recent tariff increases had outweighed the positive ones and were decreasing real output by 0.3%. Meanwhile, the Tax Foundation estimated in July 2023 that the long-run effects would bring GDP down by 0.2% and total employment down by 142,000 jobs.

Another issue with the extended tariff policy is that China has evaded its impact. The US-China trade war and rising risks of investing in China prompted global companies to adopt a “China Plus One” strategy, diversifying production into ASEAN countries. These nations became attractive alternatives to replace China for their relatively young populations, free trade agreements with key players, and prime geographical locations.

However, it wasn’t just American firms relocating to Southeast AsiaChinese manufacturers also shifted operations there. Currently, Chinese firms attempt to bypass tariffs by selling components to manufacturers in ASEAN, where the final goods will not be regulated by the US. In the electric vehicle industry, Chinese companies are rapidly expanding into Southeast Asia, making it difficult to regulate them under current trade policies.

Harming allies

Successive administrations have pursued protectionism, from Trump’s steel and aluminum tariffs to Biden’s Inflation Reduction Act subsidies. Unfortunately, these protectionist policies are also hurting friendly countries. The steel and aluminum tariffs also affect the European Union and Japan, while the subsidies from the Inflation Reduction Act have created challenges for US allies trying to conduct business in the US.

In response, countries like Japan, the EU, Canada, Australia, and others have adopted their own domestic subsidies.

Getting trade policy right

If the new administration aims to achieve the stated goal of changing China’s unfair trading practices, the new president should consider reviewing its trade-distorting policies and reigniting a policy of market-driven economic integration with its allies.

To regulate China’s non-market, export-driven model of growth, the administration should work through international organizations and institutions, just as it did during the recent G7 meeting in Italy. Through channels such as the G7, the WTO and the OECD, the US could build an international coalition demanding that Beijing change direction. If those efforts should prove ineffective, the administration could authorize collective action to rein in China’s exports while simultaneously revitalizing the market economy.

Su Hyun Lee ([email protected]) is a researcher focusing on US-China relations and economic security at the Korea National Diplomatic Academy. Previously, she was a 2021-22 resident Korea Foundation fellow at the Pacific Forum.

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Ishiba’s election setback raises red investor flags over Japan – Asia Times

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Japan’s ruling Liberal Democratic Party (LDP) has suffered a substantial political setback, leaving Prime Minister Shigeru Ishiba with a fractured mandate after failing to secure a majority in the lower house election on October 27. 

For global investors, this outcome adds yet another layer of uncertainty in a world already grappling with economic volatility, inflationary pressures, geopolitical tensions and a highly uncertain US election.

Although Ishiba will likely manage to pull together some form of coalition government, the fragility of such an arrangement casts doubt on Japan’s ability to maintain a coherent economic policy. 

Investors will be particularly cautious as a weakened government often struggles to implement long-term reforms, let alone respond decisively to sudden economic shifts.

The question now is not just whether Ishiba can secure enough support to govern but also whether he can deliver the stability and consistency that investors need to feel confident in Japan’s economic trajectory.

Without a clear majority, the LDP’s agenda for economic reform will be at the mercy of coalition partners with potentially divergent priorities. 

For investors, this spells potential paralysis on issues like tax reform, trade policy and fiscal stimulus—all critical levers that affect business confidence and capital flows.

The country’s aging population and sluggish growth have long posed structural challenges and any sign of policy gridlock could deter foreign investment at a time when Japan needs it most.

The post-election environment likely means more negotiation, more compromise and less ability for Ishiba to push through the bold initiatives that would attract more foreign capital. 

Market participants will be watching closely to see whether the coalition, if and when formed, signals a willingness to tackle these deep-seated issues or merely focuses on short-term political survival.

In either scenario, Ishiba’s government will need to work hard to reassure both domestic and international markets that Japan remains committed to economic stability and growth.

Japan’s hot geopolitical environment, with tensions on the rise with China, adds another layer of urgency. Rising regional tensions—particularly with China—place the country in a critical position within global supply chains. 

Ishiba’s ability to manage these relations while maintaining domestic political harmony will be closely scrutinized by investors, who are weighing the potential for and implications of a more unstable Asia-Pacific region.

A weakened Japanese government unable to present a unified front may find itself vulnerable and weak in diplomatic negotiations with key actors, complicating potential trade and investment deals.

As Japan faces 30 days of coalition negotiations, markets will rightly be on high alert. Ishiba’s capacity to negotiate and his willingness to compromise will set the tone for Japan’s economic outlook.

If he emerges from the process with a reasonably stable coalition, it may be enough to restore investor confidence. 

If the resulting government appears highly fragmented or indecisive, investors may start pricing in increased risk premiums, affecting the yen, equity markets and Japan’s credit ratings.

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Budget 2025: MBAN applauds measures, asks for matching grant to further amplify early-stage funding

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  • Announced measures will strengthen Malaysia’s Startup Ecosystem
  • Matching grant will spur more participation, increase investment pool

Budget 2025: MBAN applauds measures, asks for matching grant to further amplify early-stage fundingThe Malaysian Business Angel Network (MBAN) welcomed the recent Budget 2025 announcement, especially the establishment of a US$229 million (RM1 billion) National Fund-of-Funds allocation under Khazanah, alongside US$14.9 million (RM65 million) for Cradle Fund, describing this “as a pivotal step in empowering startups to expand both regionally and globally.”

Pointing to a recent 500 Global survey that Malaysia has over 30 “A1” grade startups, each generating more than RM5 million in annual revenue with over 20% growth, MBAN highlighted that access to funding remains a critical challenge with studies showing that inadequate financing is among the top three reasons for startup failures.

[RM1 = US$0.229]

It also applauded the new matching investment fund exceeding RM100 million that will be introduced through an equity crowdfunding (ECF) platform to support the growth of local suppliers in the electrical and electronics (E&E) sector, as well as in specialty chemicals and medical devices.

“This initiative aims to provide significant advantages to different areas within the startup ecosystem,” it said. Budget 2025 also allocated RM25 million for creative social entrepreneurs, further strengthening the support for a wide range of entrepreneurial initiatives.

Reinforcing its commitment to nurturing early-stage startups, and acknowledging the support these measures will provide, MBAN nonetheless believes that introducing a matching grant would further amplify early-stage funding.

“This initiative would provide matching capital to angel investors, encouraging more participation and increasing the overall investment pool for startups. We hope the government will consider this proposal, as it could further enhance our ecosystem and support early-stage businesses in their growth journey,” the angel network said.

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Prabowo’s big chance to be a global green leader – Asia Times

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Indonesia entered a bold new era with the October 20 inauguration of President Prabowo Subianto.

The leader’s ascent, rooted in a military career as a special forces commander, embodies a deep commitment to national sovereignty. But in a world where threats are as environmental as they are geopolitical, sovereignty must evolve beyond traditional defense.

So will Prabowo’s Indonesia, the world’s fourth-most populous nation and a vital maritime axis, merely drift with the currents of global change or will it seize the helm and steer toward more assertive environmental leadership and sustainable prosperity?

Indonesia’s vast archipelago loses an estimated US$4 billion annually due to illegal, unreported and unregulated (IUU) fishing, accounting for about 17% of global IUU fishing losses. It’s a crisis that depletes marine biodiversity and jeopardizes the livelihoods of over 2.6 million Indonesians in the fisheries sector.

As the nation’s maritime wealth is stolen, impinged on by illegal fishing boats including from China, the impacts are being felt in terms of economic potential and food security.

To reverse this tide, Indonesia must embrace advanced maritime surveillance and stringent enforcement, as demonstrated by Norway’s success in curbing illegal fishing. By adopting cutting-edge technologies like satellite monitoring and automated identification systems, Indonesia can reclaim control over its rich marine territories.

Strengthening legal frameworks and fostering regional cooperation through ASEAN will further amplify these efforts, positioning Indonesia as a guardian of marine resources and reinforcing sovereignty in a tangible way.

Simultaneously, Indonesia’s pursuit of economic growth through industrial downstreaming has transformed its abundant nickel reserves into a booming export industry. In 2015, Indonesia’s nickel exports were valued at only 45 trillion rupiah (US$2.9 billion).

However, following the implementation of downstream processing policies, the figure surged to 520 trillion rupiah ($33 billion) by 2023. This economic boon, however, has caused significant environmental risks.

Energy-intensive smelting processes, primarily powered by coal, contribute substantially to greenhouse gas emissions, undermining both global climate efforts and Indonesia’s own environmental sustainability.

Here, Indonesia faces a pivotal choice: continue on an environmentally unsustainable path or pivot toward a renewable energy revolution. The country has an estimated 400 gigawatts (GW) of technical potential for renewable-based power generation.

Solar alone could contribute half of this potential, while hydropower and geothermal could deliver up to 75 GW and 29 GW, respectively. Yet, renewables currently account for only 13% of the national energy mix.

By investing in renewable infrastructure and incentivizing clean energy integration in industrial processes, Indonesia could emulate China’s successful model of aligning economic growth with environmental stewardship.

To accelerate this transformation, Indonesia must adopt strategic policies such as feed-in tariffs, tax incentives for renewable projects and the gradual phasing out of fossil fuel subsidies.

To his credit, Subianto has said he plans to launch a green economy fund by selling carbon emission credits from projects such as rainforest preservation, aiming to raise $65 billion by 2028, one of his advisors told Reuters last month.

Establishing green industrial zones powered entirely by renewables could not only reduce carbon emissions but also attract global investors committed to sustainable practices. This shift will require confronting entrenched fossil fuel interests and mobilizing public support—a test of leadership that could ultimately define Prabowo’s legacy.

At the heart of this agenda is the imperative to improve the lives of all Indonesians. Sustainable development must be inclusive, ensuring that economic progress does not come at the expense of environmental integrity or social equity.

Engaging local communities in renewable energy projects can create jobs, reduce energy poverty and stimulate rural economies. Community-based initiatives, such as micro-hydropower plants and solar cooperatives, empower citizens and distribute the benefits of growth more equitably, fostering a sense of ownership and shared prosperity.

Indonesia’s strategic position grants it significant influence over regional stability and environmental stewardship. By championing sustainable practices and leading collaborative efforts to address climate change, Prabowo’s administration can elevate Indonesia’s global standing.

The choices made today are critical—not just for Indonesia but for an entire region grappling with the dual challenges of economic development and environmental degradation. Indonesia’s actions could set a precedent for others, amplifying its impact far beyond its borders.

President Prabowo’s inauguration represents more than a change in leadership; it is an opportunity to redefine Indonesia’s role in the 21st century.

By boldly integrating environmental sustainability with economic ambition, Indonesia can demonstrate that prosperity and ecological responsibility are not opposing forces but rather complementary goals.

The path forward will be challenging, but with decisive action and visionary leadership, Indonesia can transform potential into tangible progress. Prabowo has the opportunity to transform Indonesia into a beacon of sustainable development at the heart of Asia. And the time to act is now.

Setyo Budiantoro is a fellow at the IDEAS Global Program, Massachusetts Institute of Technology (MIT), and Nexus Strategist at The Prakarsa.

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Japan’s LDP rocked and roiled in an election earthquake – Asia Times

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As political miscalculations go, it’s hard to top Shigeru Ishiba’s decision to hold a snap election Sunday, just 30 days after his own shock rise to Japan’s premiership.

Ishiba’s Liberal Democratic Party (LDP) lost its majority for only the third time since 1955. But this latest indignity for a party that long took for granted the priorities of Japan’s 125 million people could be the most impactful yet.

Ishiba’s blunder, and the political upheaval it’s causing, come amid a bewildering array of headwinds zooming the nation’s way.

They include slowing growth at home, China’s downshift, North Korea’s provocations and the increasing odds Americans will return Donald Trump and his trade wars to the White House.

It comes as Japanese inflation outpaces wages at a moment when the Bank of Japan mulls whether to continue hiking interest rates. It comes as investors assess whether the Nikkei 225 Stock Average’s surge to record highs is sustainable as policy instability reigns in Tokyo.

At the very least, Ishiba seems more destined than ever for short-timer status as Japanese leader following Sunday’s disastrous election showing for his LDP.

“Japan now enters a period of political uncertainty about whether a new coalition government can be formed,” says David Boling, analyst at Eurasia Group. Economist Takeshi Yamaguchi at Morgan Stanley MUFG adds that “political uncertainty will remain high in the near term.”

Granted, one silver lining for the LDP is that opposition parties didn’t join forces to win a majority or cobble together a governing coalition. Yet the best-case scenario for the LDP and its coalition partner Komeito is to find additional seats via a third party.

Still the damage has been done, particularly to Ishiba and his ability to retain the premiership or claim he has a mandate to lead.

Though predecessor Fumio Kishida stuck around for three years and mentor Shinzo Abe lasted nearly eight, most Japanese prime ministers get 12 months to make their mark – and most don’t.

Chalk it up to leaders spending so much time keeping their jobs there’s no time to do their jobs. The cycle, especially prevalent since the mid-1990s, seems certain to come for Ishiba. Even before Sunday’s repudiation from voters, Ishiba had suffered one of the most precipitous drops in public approval political observers had ever seen.

In late September, when Ishiba shocked the political establishment by navigating past the two front runners for the premiership, Ishiba enjoyed support rates north of 50%. But after four weeks of policy U-turns and managerial chaos, his numbers fell into the 20s.

That’s far from what Kishida had expected when he stepped aside last month. With his own approval in the low 20s amid scandals and soft economic conditions, Kishida opted to let his party head into Sunday’s contest with a fresh face.

It surprised many that this meant swapping one 67-year-old conservative with another. Ishiba’s man-of-the-people persona led LDP bigwigs to hope he might revive the party’s image.

Instead, reality caught up with Ishiba – and fast. For years, Boling notes, Ishiba polled very favorably with the public.

He benefited from being seen as an outsider within the LDP because he was willing to criticize the party. That made him unpopular with many LDP lawmakers but popular with the public.

But “since becoming prime minister, he has made some missteps that have opened him to attack,” Boling notes. That Sunday’s results mean Ishiba is “weakened” and that the “odds would be against him rebounding.”

If Ishiba does stay in, he’ll be busy struggling to save his premiership. Odds are he’ll be too preoccupied to address the economic headwinds racing Japan’s way.

Chief among them is an economy fast losing altitude. This might come as quite a surprise to LDP elders who encouraged Kishida to stand down.

Back in mid-September, when these machinations were in motion, the party figured the economy was on sound footing.

At the time, the Nikkei index was testing all-time highs amid stable economic growth, 10 years of corporate governance reforms were gaining traction and hopes were high that wages gains would accelerate.

Earlier this year, labor unions scored the biggest wage bump in 33 years. That fueled optimism that the “virtuous cycle” Tokyo had craved for decades had arrived.

All this encouraged the BOJ to begin exiting 25 years of zero interest rates and quantitative easing. On July 31, BOJ Governor Kazuo Ueda’s team hiked short-term rates to 0.25%, the highest since 2008. That sent the yen skyrocketing.

Since then, a clear deceleration in retail sales, exports, industrial production, machine tool orders and other sectors has Team Ueda hitting the pause button on additional tightening moves.

It also had Ishida’s government pivoting to the kinds of short-term stimulus maneuvers he claimed his government would avoid. A long-time fiscal hawk, Ishiba also was a proponent of higher rates and a stronger yen. Not anymore.

Ishiba’s reversal on these and other policies has sent the yen tumbling past the 150-to-the-dollar mark. It’s also generating increased volatility in Japanese government bond yields.

For one thing, Ishiba’s government having to rely on opposition parties to retain power makes it harder to champion fiscal consolidation and monetary liquidity normalization. For another, the clock is now ticking faster and faster for Japanese leaders to act on implementing economic reforms.

The LDP’s stumble could not be worse timed for Asia’s second-biggest economy. The export boost on which Tokyo was betting is in growing doubt as Chinese growth slows. China is slow-walking moves to address a property crisis that many compare to Japan’s 1990s bad-loan debacle.

Stephen Innes, managing partner at SPI Asset Management, notes that Beijing is “trying to talk the talk, with more noise about stabilizing the property market.” Generally speaking, though, Innes says, “China’s property mess isn’t something that can be patched up with a few speeches and half-baked measures.”

Macquarie Bank economist Larry Hu adds that measures taken so far “may not be enough to turn the housing market around.”

Meanwhile, Germany’s recession weighs on Europe’s prospects. The US is showing signs of wear. The geopolitical environment is hardly ideal as Middle East tensions flare and Russia’s Ukraine invasion drags on.

The rising odds that Trump might be re-elected on November 5 to supersize trade wars is a major source of global uncertainty.

Amid such uncertainty, investors have valid reasons to question Tokyo’s ability to get the reform process back on track. In the 12 years since the LDP returned to power, few big-picture upgrades have been implemented.

In 2012, the Prime Minister Abe pledged to modernize labor markets, reduce bureaucracy, increase innovation and productivity, empower women and strengthen corporate governance. Abe succeeded with this last endeavor.

The Nikkei’s surge to record highs is partly a result of steps to increase returns on equity, give shareholders a louder voice and diversify boardrooms. It’s also the result of ultra-low interest rates.

Yet surging stocks have meant little to the average Japanese household. Wages have generally lagged the rate of inflation. Japan ranks 30th among the 38 Organization for Economic Cooperation and Development (OECD) members in productivity.

What so-called Abenomics did, ultimately, was prove that “trickle-down economics” still doesn’t work. And that sporadic stimulus packages don’t alter economic trajectories nearly as much as structural changes. Now, the clock is already ticking as Japan’s latest government inherits a uniquely lopsided economic trajectory.

On the one hand, the inflation Tokyo had been craving for 25 years is here. And the BOJ is finally trying to normalize a super-aggressive interest-rate regime. On the other, that very rising-price dynamic is wrecking household and business confidence. It makes Japan the economic equivalent of the dog that caught the car. Consumers find themselves missing deflation, which many viewed as a stealth tax cut.

This balancing act proved too much for Kishida, who took power in early October 2021. Ostensibly, Kishida’s dismal approval ratings reflected political funding scandals within his LDP. In reality, it was mostly an underperforming economy that ended his tenure.

Like his mentor Abe, Kishida did himself no favors by prioritizing foreign policy over reforms. Ishiba, a former defense minister, irked voters by appearing to do the same. An old-school China hawk who favors creating an “Asian NATO,” Ishiba seemed more interested in creating a bulwark against Beijing than tackling kitchen-table issues.

Now, with political winds shifting, Tokyo seems even more captive to events in Beijing and Washington.

Recently, Chinese leader Xi Jinping’s government conceded that the globe’s No 2 economy is in trouble.

Earlier this month, Beijing unveiled aggressive stimulus measures to support an economy grappling with a deepening property crisis. The People’s Bank of China announced its first simultaneous cut in key short-term rates and banks’ reserve requirements since at least 2015.

Mainland stocks have tried to rally on the news. And PBOC Governor Pan Gongsheng is hinting at further cuts in the amount of cash banks must hold as reserves.

The faster Beijing puts a floor under the economy, the more Japan’s prospects will improve. China is by far Japan’s biggest trading partner. Having the top customer for your goods battling deflation is rarely a plus for economic confidence.

On top of that, the specter of Trump trade 2.0 is keeping many Tokyo officials up at night. Preparing for a Trump or Kamala Harris administration will be a major preoccupation for LDP officials. Yet not as great as figuring out whether the nation’s dominant party can find a way forward. With, or without, Ishiba in the mix.

Follow William Pesek on X at @WilliamPesek

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Delay for N1 expressway tunnel option

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In: South-East Asia

PUBLISHED : 28 Oct 2024 at 04:59

Foundations for a long-delayed elevated N expressway are visible on Kaset-Nawamin Road. (File photo)
Foundations for a long-delayed elevated N expressway are visible on Kaset-Nawamin Road. (File photo)

The Expressway Authority of Thailand (Exat) is likely to scrap a proposal to build an underground route to replace a controversial section of the N1 Expressway development after questions were raised about its financial viablility.

Exat governor Surachet Laophulsuk said Exat’s board has acknowledged the agency’s decision to delay the project which is based on the findings of a study.

Although the equity internal rate of return (EIRR) is estimated at 19.2%, the financial internal rate of return (FIRR) is negative, indicating high project costs, he said.

Mr Surachet said the costs, estimated at 50 billion baht, are high because the project involves building an underground route to minimise environment impacts. However, as the project’s financial return rate is negative, the project should be delayed unless the route is changed to an elevated route, he said.

The matter will be forwarded to the Transport Ministry and cabinet. Mr Surachet also said Exact plans to seek cabinet approval later this week for two other projects: an 11.3km section of an expressway known as N2 Expressway and a 3.98km tunnel in Phuket.

The N2 Expressway project (Prasertmanukit Road-Outer Eastern Ring Road) is estimated to cost 16.96 billion baht while the tunnel linking Kathu with Patong in Phuket is estimated to cost 16.19 billion baht.

Based on the feasibility of the N1 Expressway scheme, the total project costs are estimated at 49.22 billion baht. Of this amount, 44.5 billion will be spent on construction, 3.6 billion baht on land expropriation costs, and 1.06 billion baht on construction supervision.

At a public hearing on July 13, most participants opposed the underground route due to high costs and scepticism the project could actually alleviate traffic congestion.

The underground route was chosen to replace the controversial section following discussions with Kasetsart University and communities along the route.

Exat previously said the agency had considered several aspects, including engineering, investment costs, and the environmental impacts, and found the underpass to be the most feasible option.

The 6.3-kilometre structure would run along Ngam Wong Wan Road via Phongphet intersection, Bang Khen intersection, and Kaset intersection to Prasertmanukit Road before connecting with the N2 Expressway.

The N1 Expressway is expected to shorten travel time from the eastern part of the Bangkok to the western part by 30 minutes.

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