Australia, Philippines in firm and fast lockstep against China – Asia Times

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Ahead of the special Australia-ASEAN summit in Melbourne, Philippine President Ferdinand Marcos Jr made a historic state visit Down Under, where he spoke before the Australian Parliament.

“[T]he Philippines now finds itself on the frontline against actions that undermine regional peace, erode regional stability and threaten regional success,” declared Marcos Jr in an impassioned speech before Australian legislators without naming China.

“I will not allow any attempt by any foreign power to take even one square inch of our sovereign territory,” he added, vowing to remain steadfast in defending the Philippines’ sovereign rights in the hotly disputed South China Sea. The area has been the site of multiple encounters between Philippine and Chinese vessels in the past year.

Australian Prime Minister Anthony Albanese hailed the Philippines as a “strategic partner” and signed multiple deals with Marcos Jr aimed at cementing “enhanced maritime cooperation” while vowing to “collaborate even more closely to promote our shared vision for the region.”

In response, a state-backed Chinese newspaper slammed Marcos Jr’s address as a cynical ploy “to drag [an] ally into provocative strategy”, arguing that the Philippines is rallying Western powers to keep China’s ambitions in the South China Sea in check. 

In many ways, Australia hopes that Marcos Jr’s address sets the tone for the upcoming summit with Southeast Asian leaders. But while Philippine-Australia bilateral relations seem to be on an upward trajectory, if not entering a new “golden era”, it’s unlikely that other ASEAN leaders will follow through. 

If anything, the Philippines may, once again, end up as a regional outlier. Eight years earlier, the pro-Beijing Philippine President Rodrigo Duterte was the only no-show ASEAN leader at the inaugural Australia-ASEAN Summit.

This time, the incumbent Philippine president is likely the only Southeast Asian leader fully invested in a full-blown security partnership with Australia with an eye on China.

Closest of friends

“Australia remains, and will continue to be, one of our closest friends…we shall forge ahead in fully maximizing the potentials and the gains from this Strategic Partnership between our two forward-looking, law-abiding maritime states,” Marcos said upon his arrival in Australia last week.

Philippine President Ferdinand Marcos Jr together with Australian Prime Minister Anthony Albanese at the signing of a Joint Declaration on Strategic Partnership between Philippines and Australia at Malacañang Palace, September 8, 2023. Photo: PPA Pool / Yummie Dingding

The state visit was no trivial matter. The two nations are not only fellow US treaty allies but also among the oldest liberal democracies in the Asia-Pacific region. The two sides fought side-by-side against Imperial Japan, most notably during the Battle of Surigao Strait (1944), where Australian forces were essential to US General Douglas MacArthur’s recapture of the Philippines from Tokyo.

For many reasons, however, Philippine-Australia relations were largely static throughout the second half of the 20th century, with both sides acting as de facto “deputy sheriffs” to America in their respective subregions but without much bilateral economic or strategic interaction.

Over the past decade, however, bilateral relations have taken on greater urgency as the Philippines began implementing its Status of Visiting Forces Agreement (SOVFA) with Australia on the heels of the Scarborough Shoal crisis in 2012, where China seized control of the South China Sea feature after a monthslong standoff.

Australia soon became a vital defense partner for the Philippines by, inter alia, conducting regular drills with and donating defense equipment to the Armed Forces of the Philippines (AFP). Ties took a dramatic turn under Prime Minister Malcolm Turnbull, who twice visited the Philippines in the mid-2010s in order to cement a Comprehensive Partnership pact.

The value of the burgeoning alliance was on full display during the Battle of Marawi (2017), when Canberra provided real-time intelligence and training to facilitate the AFP’s counterterrorism operations against so-called Islamic State-affiliated militant groups in the southern Philippines.

The problem, however, was that then-Philippine president Duterte largely shunned tighter security cooperation with Western powers, even if he personally thanked Canberra for its counterterrorism assistance at Malawi. Over the past two years, however, there has been a perfect convergence in the strategic orientation of the two sides.

Fresh into power, the Albanese administration, staffed with several Bahasa-speaking cabinet members, made it clear that Southeast Asia would be a top strategic priority. Accordingly,  Deputy Prime Minister and Defense Minister Richard Marles and Australia’s Malaysian-born Foreign Minister Penny Wong made successive visits to key ASEAN states to signal Australia’s commitment to the region.

But it was Manila that proved a special case, thanks to Marcos Jr’s dramatic pivot towards traditional Western allies following months of unrequited diplomatic flirtation with Beijing.

Failing to secure any concrete agreements during his visit to China last year, his first major overseas trip, Marcos Jr quickly shifted gears and welcomed expanded security cooperation with traditional allies, most notably the US, Australia and Japan. 

An exceptional case

The Philippines, which has an American-style liberal democracy, also adopted West-leaning positions on key geopolitical issues, most notably the Ukraine conflict and the Australia-UK-US (AUKUS) nuclear-powered submarine deal.

Moreover, the Philippines welcomed expanded military cooperation and joint drills with Australia, culminating in massive exercises as well as an unprecedented quadrilateral naval patrol in the South China Sea along with the US and Japan.

Encouraged by Marcos Jr’s strategic orientation, Albanese embarked on an official visit to Manila last year, the first by an Australian leader in almost two decades, where he signed a new bilateral strategic partnership pact.

Marcos Jr’s state visit to Australia last week, therefore, was meant to cement this new era of bilateral cooperation, with both sides signing agreements in the realm of maritime and cyber cooperation as well as good governance reforms, green technology, trade and economic development.

“We are ambitious for the future of the Australia-Philippines relationship, which is guided by our historic Strategic Partnership I signed with President Marcos in Manila last year,” declared Albanese during a meeting with his Filipino counterpart.

Marcos Jr’s hope to upgrade bilateral security cooperation with Australia and rally international support for his ongoing tussle with China didn’t go unnoticed in Beijing.

The Communist Party-run Global Times mouthpiece newspaper lambasted the Filipino president in an editorial as playing the “victim card [by] portraying China as ‘bullying’ the Philippines in the South China Sea to garner more international support and exert pressure on China.”

The editorial warned that Marcos Jr was placing his country “in the wrong position” since “no other ASEAN countries are willing to stand behind the Philippines’ South China Sea provocations.”

A Philippine Coast Guard ship tows a Filipino resupply vessel following damage caused by water cannon from a Chinese Coast Guard ship as it was heading towards the disputed Second Thomas Shoal, in the South China Sea, December 10, 2023. Photo: Philippine Coast Guard / Handout

One Chinese expert quoted in the newspaper openly warned the Southeast Asian nation against “naive and simplistic attempts to rally external forces such as Australia will ultimately fail.”

In fact, ASEAN foreign ministers issued a statement of solidarity with the Philippines last December amid repeated near-collisions between Philippine and Chinese maritime vessels in the South China Sea.

Marcos Jr has also signed several defense deals with Indonesia and Vietnam this year with an eye on counterbalancing China. Nevertheless, no other ASEAN country has openly criticized China in support of the Philippines, with even Vietnam increasingly embracing a pragmatic and conciliatory approach to its giant northern neighbor.

It’s doubtful that ASEAN will echo Marcos Jr’s more forthcoming critique of China’s aggressive actions in adjacent waters. Nor is it clear that Australia, which is grappling with potential mission creep and massive cost overruns with its US$368 billion AUKUS submarine deal, is in a position to provide the Philippines massive military support in the South China Sea.

But after Marco Jr’s visit, Australia can be reassured that at least one key ASEAN nation is firmly on the same page when it comes to its vision of regional security in the Indo-Pacific vis-à-vis China.

Follow Richard Javad Heydarian on X, formerly Twitter, at @Richeyadrian

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A sneakerhead’s guide to Sneaker Con in Singapore this weekend: Top things to do and what to look out for

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An artisan in sneaker customisation, Singapore’s very own Mark Ong will also be showcasing his exclusive Kintsugi Air Jordan 1 Highs. Inspired by the Japanese art of kintsugi – the traditional process of repairing ceramics using lacquer and gold, these shoes are given a new life using Hermes scarves and vintage bandanas. There are only 22 pairs of these limited-edition sneakers available, each numbered and personalised with the buyer’s initials.

But that’s not all. Ten pairs will come boxed in luxurious trunks bearing SBTG’s bandana prints while the remaining 12 will be housed in Louis Vuitton Speedy bags.

And in support of the local arts scene, RWS and Mr Sabotage will be auctioning off two pairs during the event, with all proceeds going to Temasek Polytechnic, where Ong studied.

2. ZOOM IN ON COLLABS, LIMITED EDITIONS AND EXCLUSIVE DROPS

Thinking to add to your growing sneaker and streetwear collection? With over 200 international and local brands and collaborations, there’s no better time to browse and shop the latest kicks, limited editions and exclusive drops from hot favourites Nike, Adidas, Puma and Fila.

Other noteworthy collabs to check out, according to Tan, include the Sabotage and Def Jam SEA (of Def Jam Recordings, the multinational record label) capsule collection. The collection features old-school hip-hop culture with 1990s boxy fitted single stitched T-shirts, football jerseys and caps. 

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AI in Southeast Asia: As new frontier opens in scams and cyberbullying, authorities wage high-tech battle

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The agency is also looking into large language models that have led to an increase in “potency and proliferation of phishing scams”, said Ms Cheryl Tan, deputy director of sense-making and surveillance centre of expertise at HTX.

Cybersecurity firms CNA spoke to have also adopted AI to defend against increasingly sophisticated cyber attacks.

An example is the analysis of behaviour patterns to detect anomalies that can indicate potential attacks, said Mr Johan Fantenberg, a Principal Solutions Architect APJ at Ping Identity. 

Another cybersecurity firm, Infoblox, also makes use of AI to help security teams detect threats. 

“On an average day, security teams could look at anywhere from 500,000 to a million security reports, varying from false positives to serious threats,” said Mr Paul Wilcox, Vice President of Infoblox Asia Pacific and Japan. 

Infoblox uses AI-driven analytics to help distil the number to a much more manageable figure, allowing security teams to concentrate their attention on these.

AI in cybersecurity is “increasingly critical” to protecting online systems, said cybersecurity form Fortinet. If used correctly, AI systems can be trained to detect threats automatically, identify new strands of malware and protect sensitive data, it added.

“However, organisations also need to be aware that cyber criminals adjust their methods to resist new AI cybersecurity tools,” said Fortinet in an article on its website.

While some governments in the region are establishing rules to deal with the potential misuse of AI, these may not be enough to deter criminals, Mr Wilcox from Infoblox noted.

“Proactive early detection for crime prevention is far more effective than responding to cyber threats only when it happens,” he added.

Still, having AI rules is still better than none, analysts pointed out, highlighting a regional guide on AI governance and ethics that was launched this month.

Despite being voluntary, the guidelines by the Association of Southeast Asian Nations (ASEAN) are likely to be influential on organisations as well as policy makers, pointed out Mr Benjamin Wong, a lecturer at the National University of Singapore’s Faculty of Law. 

Mr Wong added that the endorsement of the AI guidelines by ASEAN member states shows that governments are aware of the risks, and are aligned on principles including transparency, security, privacy and data governance. 

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Strongman politics returning to Southeast Asia – Asia Times

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History is repeating in Southeast Asia. Filipinos and now Indonesians have elected leaders with links to their countries dark pasts, raising questions about whether strongman politics is back in the region and whether it is here to stay. Its return could risk hard-won progress on democracy and human rights.

Subianto returns in Indonesia

When Indonesians went to the polls this month, Prabowo Subianto was the overwhelming victor, winning in the first round with 58% of the vote. While the General Elections Commission has until March 20 to announce the final tally, it is widely recognized that Subianto will become the next Indonesian president.

The victory is third time lucky for Subianto, 72, having lost to Joko Widodo in 2014 and 2019. Subianto told supporters the win was “the victory of all Indonesians.”

The difference from outgoing President Widodo could not be starker. While Widodo was seen as an outsider to Indonesian politics, Subianto is firmly part of the old guard. He is a former lieutenant-general and special-forces commander and a close ally of the late president Suharto, even marrying his daughter.

Subianto modeled himself on his former patron in his 2014 and 2019 election campaigns, building a strongman image based on his military service. But it is his military background that has caused controversy.

Subianto has been accused of serious human-rights abuses, including atrocities in East Timor and Papua and the abduction and disappearance of democracy activists in 1997. He was controversially dismissed from the military after storming the presidential palace to threaten Suharto’s successor, B J Habibie, in 1998.

Subianto sought to distance himself from his strongman persona in the lead-up to this election to attract young voters. This included styling himself as a “cuddly grandpa,” dancing onstage and having Widodo’s 40-year-old son Gibran as a running mate.

Subianto also outspent all other candidates online, spending more than US$500,000 on his social-media campaign. The change in strategy clearly worked.

But despite the change, Indonesians might be in for a rude shock. Subianto’s victory signals a return to an older, more brutal Indonesia, where the country is run by military strongmen and family-dynasty politics. The incoming president represents both of these things.

His poor record on human rights is also a nod to Indonesia’s dark history of atrocities against political opponents, protesters and minority groups. 

But the re-emergence of strongmen is not isolated to Indonesia, with Subianto’s victory having close parallels to the 2022 presidential election in the Philippines.

History repeats in the Philippines

Ferdinand “Bongbong” Marcos Jr was elected president of the Philippines in a landslide in May 2022, gathering almost 40 million votes, making it the country’s first majority win in decades.

While Bongbong is not a military man like Subianto, the Marcos name is infamous in the Philippines. Marcos Jr’s father, Ferdinand Sr, brutally ran the country as president – and then dictator – from 1965 to 1986. 

Marcos Sr’s regime oversaw severe human-rights abuses, including arrests, forced disappearances, torture and extrajudicial killings. The Philippine Human Rights Violations Victims Memorial Commission estimates more 11,000 people were victims of human-rights violations under the regime, while Amnesty International claims the number is well over 100,000.

The family was also notorious for corruption, allegedly stealing US$10 billion while in power before Marcos Sr was ousted in a popular uprising in 1986, known as the People Power Revolution, which saw the family flee into exile.

Like Subianto, Marcos Jr distanced himself from his family’s dark history during the election campaign to attract young voters. This included an attempt to rehabilitate his father’s image, labeling it a “golden age.” Marcos Jr also used social media to reach young voters and spread misinformation about his father and allegations over the family’s stolen fortune.

While Marcos Jr has also tried to portray himself as a supporter of human rights, events on the ground tell a different story. Human Rights Watch reports that despite promises to the contrary, Marcos Jr has continued the infamous drug war of his predecessor Rodrigo Duterte, which led to the killing of 342 people in his first year in power.

There have also been cases of extrajudicial killings and forced disappearances against politicians, journalists and human-rights advocates. 

Admittedly, the attraction of strongmen isn’t new in the Philippines, with former president Duterte infamous for inciting violence and damaging the country’s reputation on human rights.

But like Subianto – and unlike Duterte – Marcos Jr is a return to the old guard. His presidency both revises and legitimizes his father’s brutal rule and the country’s dark history. His return is a dangerous moment for the Philippines.

Democracy at risk

So is history repeating in Indonesia and the Philippines? 

There is certainly a disconnect between the region’s dark past and what attracts voters today. Voters in both countries – particularly young people – were attracted to older candidates and a nostalgia for what they claimed were better times. 

Both men have taken advantage of modern election strategies, including using social media to attract young voters and spread misinformation. This has enabled both to reinvent themselves and to deflect away from their country’s difficult past or to reinvent that as well.

This is not helped by a lack of knowledge or misunderstanding of the past by young people, who did not live through the atrocities and corruption under Suharto or Marcos Sr.

Both countries have a proud recent history of democracy and – while Subianto and Marcos Jr were elected democratically – they put this progress at risk. Their return represents and legitimizes a darker time of dictators, corruption and atrocities, which many older Indonesians and Filipinos hoped they had consigned to history. It is undoubtedly a step back.

This is a dangerous moment for Indonesia and the Philippines. Instead of a break from history, they may be seeing it return.

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Malaysia sees increased cross-border transactions via Alipay+ and PayNet

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  • 5th most popular destination for Chinese, 6th amongst other Asian tourists
  • Enabled 13 international e-wallets & bank apps for seamless travel experience

Malaysia sees increased cross-border transactions via Alipay+ and PayNet

Data from Alipay+ and PayNet shows a robust rebound of consumer spending during the first back-to-normal Chinese New Year (CNY) travel season after the Covid-19 pandemic, especially in cross-border tourism in Malaysia.

For CNY 2024, data from Alipay+ shows that Malaysia is the fifth most popular destination globally for Chinese tourists, with spending in Malaysia in the first seven days of CNY at two times that of CNY 2019 and more than ten times compared to 2023

Growing Alipay+ ecosystem in Malaysia to welcome tourists

Since Nov 2023, Alipay+ has been accepted by more than 1.9 million DuitNow QR merchants (Alipay has an 80 million merchant network in China). At the same time Alipay+ has enabled 13 international e-wallets and bank apps that can now be used in Malaysia: Alipay (Chinese mainland), AlipayHK (Hong Kong SAR, China), Kakao Pay, Naver Pay and Toss Pay (South Korea), Changi Pay and OCBC Digital (Singapore), GCash and HelloMoney by AUB (Philippines), Hipay (Mongolia), MPay (Macao SAR, China), TrueMoney (Thailand) and Tinaba (Italy).

The addition of new e-wallets provides added convenience to tourists while bringing more growth opportunities to Malaysian merchants where Alipay+ has also partnered with top merchants across multiple tourism-focused industries in retail, F&B and everyday conveniences.

Malaysia sees increased cross-border transactions via Alipay+ and PayNet“With its use spreading across age and income groups, mobile payment is increasingly becoming an important promoter of local and cross-border commerce in Asia and beyond,” said Dr Cherry Huang (pic), General Manager of Alipay+ Offline Merchant Services, Ant International. “Particularly through our partnership with PayNet, we have seen a significant increase in Alipay+ transactions on the DuitNow QR network, which shows that it not only provides great convenience to tourists but also brings more opportunities to local businesses, both big and small. We look forward to strengthening our collaborations with local partners to contribute to the vibrant tourism sector in Malaysia.”

Besides Chinese tourists, Malaysia ranks as the sixth most popular destination amongst Asian tourists (ex-Chinese). Via transactions from Alipay+ payment partner apps, tourists from Hong Kong SAR, the Philippines and Thailand are the top spenders in Malaysia, aside from tourists from the Chinese mainland.

Additionally, in Nov 2023, Alipay+ and PayNet enabled travellers with 8 Alipay+ supported e-wallets to make QR payments seamlessly at DuitNow QR merchants’ touchpoints across Malaysia. The impact has been clear. In the four-month period since launch, compared to Dec 2023, in Feb 2024, the number of average daily transactions via Alipay+ on DuitNow QR has increased by 2.5 times, while spending via Alipay+ partner users at DuitNow QR merchants has also increased 2.5 times.

“As the national payments network and a pivotal infrastructure for Malaysia, we are immensely proud to be part of this transformative journey with Alipay+,” said Gary Yeoh (pic), Chief Commercial Officer ofMalaysia sees increased cross-border transactions via Alipay+ and PayNet PayNet. “This partnership, exemplifying how strategic collaborations can drive economic growth and enhance the tourism experience, has facilitated easy payment for international visitors and opened up a world of opportunities for local merchants.”

As Malaysian marks 50 years of partnership between Malaysia and China, various initiatives have been introduced to promote tourism in Malaysia, including visa-free travel and ongoing discussions about establishing direct flights between smaller provinces in China and Malaysia.

With the government working to boost tourism, particularly in preparation for Visit Malaysia 2026, PayNet’s focus remains on enhancing travellers’ cashless experiences.

“Looking ahead, PayNet is committed to innovating and expanding our services to support the dynamic needs of tourists and merchants alike, reinforcing Malaysia’s position as a top-tier global destination,” Yeoh said.

Robust recovery, diversified destinations for outbound Chinese tourists using Alipay

Hong Kong SAR, Japan, Macao SAR, Thailand, Malaysia, Singapore, South Korea, France, Australia and Canada are the top destinations for Chinese travellers by their Alipay spending. Thailand, Malaysia and Singapore combined saw a 7.5% increase over 2019 and a 580% leap over 2023, with Thailand leading in total volume and Malaysia showing the most significant growth. New visa-free policies from major Southeast Asia destinations, including Malaysia, are critical enablers of the cross-border travel boom.

A global campaign to attract Chinese tourists has been in full swing on the Alipay+ merchant network since Dec 2023. In the CNY holiday week between Feb 9th and 12th, the number of transactions made by Alipay users overseas surpassed 2019 by 7%, while consumer spending recovered to 82% of the 2019 level, or 2.4 times that of 2023.

Promoting outbound travel among Alipay+ partner e-wallets and bank apps

With new partnerships in 2023 and increased travel, total cross-border spending on the region’s leading e-wallets powered by Alipay+ increased by 252% year-on-year. Daily average transactions increased by 304%. Japan, South Korea, Macao SAR, Thailand and Singapore are the top 5 most popular destinations for Alipay+ consumers besides the Chinese mainland.

International e-wallets and cards-enabled Alipay accounts in the Chinese mainland saw multi-fold expansion. During CNY 2024, international travellers to China spent 500% more on their international card-enabled Alipay accounts at merchants in the Chinese mainland compared to 2023. Chinese restaurants, tourist attractions and public transportation are the most popular use cases for international visitors travelling in China and experiencing the festival. Since Sept 2023, Alipay+ has supported ten leading e-wallets and payment apps in Asia, including Touch ‘n Go eWallet, to serve their roaming users across Alipay’s 80-million merchant network in China.

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Capital A improves its ESG ratings following revamp in strategy

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  • Delivered the 11th lowest CO2 emissions per passenger among 80 global peers
  • Capital A & Asia Aviation will start publishing standalone sustainability report in 2023 cycle

Capital A improves its ESG ratings following revamp in strategy

Capital A was recently awarded a GOLD Environmental Sustainability rating from the Centre for Aviation in its 2023 CAPA-Envest Global Airline Sustainability Benchmarking Report for its Air Asia operations.  Capital A attributes this award to a revamp of its sustainability approach to prioritise group wide measures to address climate risks and improve stakeholder communication.

The London Stock Exchange Group also ranked Capital A 15th out of 124 airlines using its ESG scoring that measures a company’s relative ESG performance, commitment and effectiveness across 10 main themes. AirAsia’s score of 71% places it highest among Asean-based carriers.

“In 2020, we began reorienting Capital A’s sustainability focus for a better balance between our external and internal sustainability practice. While we were very active in external social activities prior to 2020, the global pandemic necessitated a recalibration. This coincided with a period when climate change regulations on aviation were also beginning to take shape,” said Capital A chief sustainability officer, Yap Mun Ching.

In Malaysia, Capital A’s ESG score rose to 3.2 from 2.9 out of a possible 5 between 2020 and 2022, surpassing the 2.9 threshold of the FTSE4Good Bursa Malaysia Index in all years of assessment. Capital A’s Thai associate Asia Aviation also saw its ratings rise to 81% from 67% between the 2021 and 2022 assessment cycles, ranking it among AA-rated companies of the Stock Exchange of Thailand’s ESG Ratings.

Capital A has also been focusing on its diversity metrics, with women making up 53.8% of all employees and 32% of all senior managers. AirAsia also maintained its lead as the airline employing the highest number of women pilots in Southeast Asia at 6.6%, above the global average of 5.8%. 

“In 2020, we began reorienting Capital A’s sustainability focus for a better balance between our external and internal sustainability practice. While we were very active in external social activities prior to 2020, the global pandemic necessitated a recalibration. This coincided with a period when climate change regulations on aviation were also beginning to take shape,” added Yap.

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Counting on coal: A visual guide to Cambodia’s big bet on fossil fuel

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Photo story

An investigation of Cambodia’s three planned coal-fired power plants found the sites stalling as uncertainty continues to cloud the future of coal

Written By:

avatar-Anton L. Delgadoavatar-Anton L. Delgado

October 27, 2023

Counting on coal: A visual guide to Cambodia’s big bet on fossil fuelCounting on coal: A visual guide to Cambodia’s big bet on fossil fuel
Operations continue at the Yun Khean coal mine near Cambodia’s stalled Han Seng power plant in Oddar Meanchey province. Photo by Anton L. Delgado for Southeast Asia Globe.

Three years ago Cambodia defied the global push for clean energy by doubling down on fossil fuels.

After companies and embassies expressed concerns about coal, the Cambodian government pledged that its plans to develop three new coal-fired power plants would be the Kingdom’s last foray into coal-fuelled electricity.

Since 2020, energy production globally has continued to diversify away from coal, as volatile markets rock the industry and spike fuel prices. Despite surviving China’s funding cuts to overseas coal, the planned power plants in Koh Kong and Oddar Meanchey are in varying stages of inertia, plagued by long delays. Meanwhile in Sihanoukville, the operations of two of Cambodia’s active coal complexes in the same district are raising concerns among local residents.

Southeast Asia Globe reported from each of these locations. While taking more than 4,300 images, Globe spoke to 35 people about the projects; from concerned residents and struggling fisherfolk to plant workers, local officials and energy experts. Read Part I of Globe’s Counting on Coal project and continue to see Part II, an accompanying photo story. Click or tap any image to expand for a slideshow.

Oddar Meanchey province

In Oddar Meanchey, the 265-megawatt, semi-built Han Seng project missed its deadline to go online last year. Falling revenue for the Chinese companies in charge pivoted the project to new contractors, who are sticking with coal but also investing in solar energy production at the same power plant.

Chrek Pechneng, who proudly shared that she is the only female commune chief in Oddar Meanchey, said she has conflicting feelings about coal activity in her district. Photo by Anton L. Delgado for Southeast Asia Globe.

“I want electricity to be accessible to everyone in my community, but I am also concerned about the health risks to workers and local people,” she said. Photo by Anton L. Delgado for Southeast Asia Globe.

Chrek Pechneng

Roeun Phearin, who was a commune consultant for the Han Seng power plant, has received no new information about the plant during the long pause of its construction. Photo by Anton L. Delgado for Southeast Asia Globe.
Two kilometres from the semi-built power plant, down the provincial road connecting Anlong Veng and Trapeang Prasat, is an active coal mine that one day hopes to supply the Han Seng project. Photo by Anton L. Delgado for Southeast Asia Globe.
The Han Seng power plant has been dormant for more than a year, according to local residents and officials. For those in Oddar Meanchey, there are no clear reasons why and no set date for construction to resume. Photos by Anton L. Delgado for Southeast Asia Globe.
Heaps of earth and coal at the Yun Khean coal mine two kilometres from the semi-built Han Seng power plant. The active mine is small but is proposed to one day supply the nearby plant. Photo by Anton L. Delgado for Southeast Asia Globe.
Chunks of coal at the Yun Khean coal mine two kilometres from the semi-built Han Seng power plant. Photo by Anton L. Delgado for Southeast Asia Globe.

Koh Kong province

In Koh Kong, the Royal Group of Cambodia conglomerate has yet to break ground on a 700-megawatt power plant scheduled to go online this year. Though former residents continue to allege unfair deals and heavy-handed evictions.

On overview of one of two land concessions given to the conglomerate Royal Group by the Cambodian government. While the first, given for a coal power plant, has seen little to no activity, the area given to the company in a second concession within a national park is steadily being cleared. Photo by Anton L. Delgado for Southeast Asia Globe.
A former resident evicted from the concession area shows a picture of his former home, which he says was destroyed by government officials. As he had no title for the land, the resident received no compensation for lost property. Photo by Anton L. Delgado for Southeast Asia Globe.
The proposed site of the Royal Group coal power plant has seen little to no activity. The plant was initially intended to go online this year. Photo by Anton L. Delgado for Southeast Asia Globe.

Sihanoukville province

In Sihanoukville, Cambodia International Investment Development Group’s (CIIDG) new 700-megawatt coal project shares a road with the already operational 250-megawatt Cambodian Energy Limited (CEL) power plant complex. Steung Hav residents fear for the effects these two coal sites could have on their health and environment.

An Indo-Pacific humpback dolphin comes up for air by coal loading docks that supply two power plants in in Steung Hav district. Photo by Anton L. Delgado for Southeast Asia Globe.
Cambodia’s active coal-fired power plants are concentrated in the district of Steung Hav in Sihanoukville province. Photo by Anton L. Delgado Fishing boats pass the two active coal-fired power plants in Steung Hav. Photo by Anton L. Delgado for Southeast Asia Globe.
Sun sets on the coal loading docks in Steung Hav district as workers make their way home. Photo by Anton L. Delgado for Southeast Asia Globe.

Contributed reporting by Andrew Haffner and Sophanna Lay. A Khmer-language version of this story can be found here, with translations by Sophanna Lay and Nasa Dip.

This article was supported by a ‘News Reporting Pitch Initiative’ from the Konrad-Adenauer-Stiftung Foundation in Cambodia.

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After junket crackdown in Macau, SEA casinos target Chinese gamblers – Southeast Asia Globe

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The quiet transfer of a major casino in Vietnam from the former company of an imprisoned gambling tour kingpin to a billionaire Hong Kong family suggests China’s massive gaming industry still sees potential in Southeast Asia.

Driven by Chinese government crackdowns from the casino enclave of Macau, some organisers of VIP gambling tours – known as junkets – appear to be enduring the storm while also transferring business elsewhere in their regional networks. Meanwhile, in Vietnam, locally owned gambling operators are restyling themselves to snap up Chinese whales of their own, potentially cutting deeper into the besieged junkets.

The legal pressure in Macau sought to cut down on money laundering and capital flight, both of which are often suspected of jet-setting Chinese gamblers. 

Junket operators in the enclave developed a reputation for helping the affluent ferry their money across the border of the special administrative district to gamble in casinos. There, they could obtain their winnings in U.S. dollars or other foreign currencies that could then be used to invest in property or offshore tax havens. 

But with the effects of the pandemic on this clientele still reverberating across the region’s casinos, unfavourable foreign currency exchange fees and slippery Macau junkets refusing to die, the prospect of Vietnam or other regional destinations becoming hubs for such exiled gamers is up in the air. Gambling operators both in Macau and across Southeast Asia are left to adapt to secure their piece of the market. 

“I think that there’s going to be new intermediaries which won’t call themselves junkets, but in effect, are going to be providing the sorts of services that junket operators used in the past,” said John Langdale, a researcher and expert on money laundering at Australia’s Macquarie University. 

Vietnam is already a node of the bustling Chinese gambling tour business that re-emerged after the pandemic. As junkets in Macau get pushed further underground, preexisting Vietnamese gaming firms, known as “international tour operators” seem eager to fill a gap. 

For now though, their organisations have a more limited reach than the Macau giants that came before them. In general, Southeast Asian junkets “tend to be what we call ad-hoc casual junkets,” said gaming industry consultant Ben Lee. 

That stands in contrast to what former junket operators in Macau utilised as an almost vertical integration model, where gambling tour operators had junket rooms in various casinos. There, they could staff their own cashiers, food and beverage services, and even drivers due to their enormous market share of affluent Chinese gamblers, Lee explained.

Southeast Asian junket operators – at the moment – simply do not have the ability to target the Chinese as they do not have the network in the country. Their main markets are the various Southeast Asia countries with nowhere near the size or volume of Chinese players, Lee said. 

Only a few regional facilities right now may have the clout to break through.

The Hoiana, a multi-billion-dollar integrated resort-casino, could be one of them. It stretches across 1,000 hectares of land in the Chu Lai Open Economic Zone south of Da Nang, Vietnam.

“The Hoiana is probably one of the first proper five-star resorts that has a chance to target [the Chinese market],” Lee said. “But, by the end of day, the volume of mainland patronage in Vietnam is small compared with China.”

The casino-resort didn’t respond to a request for comment, but Hoiana president and CEO Steve Wolstenholme said in an interview earlier this year that following the pandemic and a return of Chinese tourists, the Hoiana was focused on “diversifying our products and services, especially services for high-class guests”.

An entrance to the Hoiana casino-resort outside Danang, Vietnam. Photo by Coby Hobbs for Southeast Asia Globe.

In recent months, control of the Hoiana seems to have passed hands from LET Group Holdings – previously known as the Suncity Group, one of Macau’s largest junket organisers pre-crackdown – to the billionaire Cheng family from Hong Kong through its flagship investment firm, Chow Tai Fook Enterprises. 

The family and Suncity were already deeply connected before the now-embattled tour operator was all but crushed by law-enforcement agencies in Macau. 

As a gambling investor in casino-dense Macau, now-deceased family patriarch Cheng Yu Tung allegedly partnered with triad organisations such as 14K and Sun Yee On as early as the 1980s. Macau prosecutors would later say he was in business with the notorious 14K leader Wan Kuok Koi – better known as “Broken Tooth” Koi – before the gangster met with a dramatic 1998 arrest.

The Cheng family later partnered with a man reportedly seen as Koi’s protege – Alvin Chau, founder and CEO of the once-powerful Suncity tour company. After starting his company in 2007, Chau built a fortune with Chinese VIP gamblers and, later, real-estate development. But his success put him under the thumb of the Chinese junket crackdown and he was arrested in 2021, effectively cratering that industry.

Last year, Suncity officially rebranded itself as the LET Group while Chau awaited trial in Macau for 286 criminal charges, including fraud and money laundering. By January, Chau was convicted of heading a criminal organisation and sentenced to 18 years in prison.

Suncity had publicly led development of Hoiana and held a major ownership stake in the project, which reportedly struggled in recent years. 

The recently publicised change in management coincides with the shutdown of Suncity’s VIP rooms in Macau following Chau’s jailing. It also follows upon the regulatory tightening of Macau junket operators documented as having associations with organised crime and money laundering – or simply suspected of such.

Jeremy Douglas, regional representative of the U.N. Office on Drugs and Crime (UNODC) for Southeast Asia and the Pacific, fears that in the months and years ahead, the Hoiana could prove to be a model for still-ambitious junket bosses and Chinese gamblers eager to launder their money.

Vietnam currently has no specific licensing regimes for operators of gambling-related tours. Still, the Hoiana has kept much cleaner operations than the many more notorious casinos littered across the region’s special economic zones.

Regional casinos located in these special economic zones (SEZs) are often known to deploy a model whereby casinos become money-laundering fronts for displaced Chinese and regional syndicates. In addition, they may harbour other illicit activities such as cyber scams, human trafficking, drug trafficking and the wildlife trade. 

Some zones, such as the notorious “Golden Triangle” SEZ in Laos, become self-policed areas for syndicate bosses migrating from China. The Golden Triangle SEZ is organised under the Kings Romans Group, owned and operated by the U.S.-sanctioned syndicate chief Zhao Wei. 

Other SEZs are clustered along Mekong region borders and closely overlap with casinos. 

More than 100 casinos in Myanmar are nestled among 13 such zones, according to maps and data provided by the UNODC, while Vietnam has an estimated 41 casinos in or near 44 SEZs.

The diversification into entertainment and conventions and all the rest of it, they provide the cover and the legitimacy for the casinos

John Langdale

The prospect of lawlessness in these zones has caught the attention of authorities, contributing to China’s tightened control over outbound visas. With that, Macau has remained the ideal gambling destination due to its proximity and limited autonomous status.

The former Portuguese colony – despite the supposed shutdown of junket operations in the zone – has developed an underground model that is giving just enough space for high-rolling Chinese gamblers on the hunt for capital flight destinations and elaborate gambling tours.

“What most people don’t know is that the (junket) agents are still operating in Macau, but they’re no longer being identified as junkets because that’s no longer politically correct,” said Lee. “They are now being recognized by the casinos as players.”

As “programme players”, junket operators are able to allocate a private VIP room in a casino with a large enough buy-in. The junket agents are then able to organise a private gaming setting for their “friends” in which only the agent deals with the casino directly. The agent will then redistribute the buy-in chips to their friends, who are actually their clientele, Lee explained. 

“They don’t make any money, but they’re doing that to keep the relationship with their players warm, waiting for the day when they and their players can start going to the casinos around the region,” he said.

In the meantime, operators in Vietnam appear to be looking to team up with Macau’s veteran casino concessionaires.  

The tour operator Let’s Win Group, which had its soft-opening at the Hoiana in February 2022, held a grand opening ceremony and gala dinner for its VIP club in March of this year – and flaunted an invitation to six of Macau’s casino concessionaires. 

Still, as Vietnam shows benevolence to foreign investment from the moguls of the gambling-tour industry, the country heavily restricts lending money to foreigners. This results, among other things, in a bureaucratic bump in the road for the junket-diaspora to the country. 

According to Langdale, the Hoiana also resembles the trendy “integrated resort” model – such as Singapore’s Sentosa Island – that has been established in the gaming industry as a guise to revamp an outdated Macau junket model. In the case of Singapore, where junkets are illegal, it disguises the fact that the real money is coming from high rollers. 

“[Instead of] smoky casinos with Chinese gamblers – gambling 24 hours a day – they’ll present a nice, healthy family-oriented resort,” he said.

The integrated resort model stresses an atmosphere of a holiday destination with family entertainment, and incentivizes hosting conventions. The Hoiana advertises itself only as a resort and golf destination “but you’re still getting VIP gamblers,” said Langdale.

“The diversification into entertainment and conventions and all the rest of it, they provide the cover and the legitimacy for the casinos,” he added. “By going down as the integrated resort, the casino operator can say we’re no longer relying on hardcore gamblers.”

As Thailand begins to relax visa rules for Chinese tourists, Langdale suspects that Vietnam will follow a similar shift. This could attract affluent Chinese tourists and investors seeking a landing zone for capital flight.

“And the Hoiana is one mechanism for doing that,” he said.

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