Connecting ASEAN: Two-day Business Summit Connects ASEAN with the World – Southeast Asia Globe

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As Cambodia continues its ascent to a middle-income country on the back of a successful ASEAN chairmanship and hosting of the SEA Games, it begs the question: where does it fit within ASEAN and the global economy? To help answer this question, EuroCham Cambodia and its partners are organising a two-day ASEAN-Cambodian Business Summit on 28-29 September where business and political leaders will come together to explore the opportunities and challenges of further economic integration

ASEAN-Cambodia Business Summit

August 28, 2023

Connecting ASEAN: Two-day Business Summit Connects ASEAN with the World

Hosted in Phnom Penh at two of the most luxurious hotels in the city and bookended by premium networking events, the summit will explore the economies of the Mekong Region, bringing together leaders from Cambodia, Laos, Thailand, and Vietnam to promote economic integration within the region and the rest of the world.

“This summit marks the completion of months of work to foster regional integration, trade, and enable a favorable business environment for the growth of Cambodia’s economy. We are looking forward to inviting much anticipated speakers to Cambodia to discuss these issues at the highest level, one month after the newly formed Cambodian government will take office. We are very hopeful that this summit will be a landmark,” Martin Brisson, EuroCham Cambodia’s executive director said.

During the summit, EuroCham Cambodia will release its 2023 White Book, a comprehensive list of policy recommendations covering 13 sectors, and present it to the newly elected Cambodian government. The 2023 Business Confidence Survey will also be launched, a detailed survey that allows business leaders in Cambodia to candidly describe the climate for doing business in the country.

Over lunch on Thursday, we are expecting a keynote presentation about ASEAN regional integration, focusing on the Mekong region, and a discussion on how to foster business between ASEAN and the European Union with the participation of high-level ASEAN Secretariat representatives amongst top business leaders and Cambodian government officials. The afternoon will feature trade experts presenting on regional infrastructure, investment opportunities, and digitalisation, among other topics. In the evening, our guests will be invited to rejoice with Cambodian hospitality for networking cocktails.

European Union representatives will introduce the EU’s Global Gateway strategy and break down the EU’s trade policy with Cambodia. To close the summit on Friday morning, we will turn our focus on Cambodia, its newly formed government, and learn about the Kingdom’s business opportunities through the stories of successful entrepreneurs and business owners in smaller mini-sessions that will allow participants to engage with the speakers.

Mr. Bryan Fornari, Head of Cooperation at the European Union Delegation to Cambodia, remarked: “We are glad to take part in this initiative that will contribute to identify relevant investment opportunities and new sectors with local added value for the economic development of Cambodia, as it seeks to graduate from Least Developed Country (LDC) status in 2027. The partnership with the Private Sector remains crucial and we are keen to explore this engagement under the framework of the Global Gateway, promoting investments in quality infrastructure and connecting goods, people and services in a sustainable way”.

Friday afternoon is left voluntarily free for guests to either discover Phnom Penh’s tourist spots or engage in customized business meetings designed by the EuroCham service department.

EuroCham is proud to partner with ARISE + Cambodia and the European Union Delegation to Cambodia to organise the event. Both organisations bring expertise and insight into Cambodia’s policies and its trade relations with the European Union.

Mr. Kha Sok, ARISE Plus Trade Advisor, said: “We are delighted to join this partnership to bring such an important Summit to happen in Cambodia. The region has made significant efforts in promoting integration and connectivity, with various initiatives such as bilateral and regional trade deals and the rise of cross-border trade volume in overall and digital trade in particular. It is crucial for all economic players to have a robust understanding of its opportunities and challenges, and foster cooperation to address all the bottlenecks reaping the benefits.

The Summit will bring a good mix of practitioners and experts to provide many great knowledge and practical insight and provide an excellent opportunity to exchange and explore on trade and investment potential of Cambodia and the region.”

Event Details
Date: September 28-29
Venue: Sofitel Phnom Penh Phokeethra and Hyatt Regency
Full Website with Tickets/Details: https://tinyurl.com/yc3cd593

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Philippines feeling stronger with muscly US, Australia support

MANILA – As China-Philippine tensions escalate over disputed features in the South China Sea, the United States and its regional allies are lending Manila a firm helping hand in asserting its claims.

“In the role of the United States in those resupplies, they were providing freedom of navigation, they were conducting freedom of navigation operations on their own uncoordinated with us,” said Philippine Defense Secretary Gilbert Teodoro, referring to recent news of the US Pentagon’s operational support during the Philippines’ latest resupply mission to the contested Second Thomas Shoal.

Last week, the Philippines conducted a follow-up resupply mission to the contested shoal by delivering basic goods to its marine detachment stationed on the grounded BRP Sierra Madre.

Reports said that a US Navy P-8A Poseidon reconnaissance aircraft was hovering just over the horizon in a clear show of support for the Philippines. The two long-time allies share a mutual defense treaty.

“Well, they (US) might have coordinated it. But that’s below my level of coordination if ever,” the Philippine defense chief added, refusing to provide more details on top-level coordination with the US during the latest Philippine resupply mission.

Earlier, both the US State Department and Pentagon reiterated their mutual defense treaty (MDT) commitment to aid Philippine forces in the event of skirmishes with China in the South China Sea.

But the US isn’t the only major ally providing support. Last week, Australia, which has a status forces of agreement with the Southeast Asian nation, conducted a historic Combined Amphibious Assault Exercise with the Armed Forces of the Philippines in Zambales, which faces the South China Sea.

Australian Prime Minister Anthony Albanese is set to visit Manila early next month, reportedly the first “state visit” by any Australian leader in recent memory. Meanwhile, Australia, Japan and the Philippines also conducted joint patrols in the South China Sea in a clear show of strength amid rising tensions in the area.

Australian Deputy Prime Minister Richard Marles indicated that more joint patrols are in the cards in the coming months, as the Philippines fortifies defense ties with traditional allies.

Following this month’s Second Thomas Shoal showdown, when Chinese coast guard vessels blocked a Philippine resupply vessel with water cannon fire, the US came under pressure to show more support to its treaty ally.

The Sierra Madre, the grounded ship used by the Phillippines as a guard station on Second Thomas Shoal, is falling apart. Photo: US Naval Institute

In recent years, the two sides have coordinated to ensure the US can provide robust “just-over-the-horizon” operational support in times of need. At the same time, the two allies have sought to strike a fine balance in developing military ties so as not to overly provoke China.

This enhanced cooperation with the US has emboldened Philippine forces to challenge China’s de facto blockade, with both the Armed Forces of the Philippines and the Philippine Coast Guard pressing ahead with asserting Manila’s claim in the area.

The shift in tack has been apparent with the transition from former president Rodrigo Duterte, who favored a non-confrontational policy toward Beijing, to Ferdinand Marcos Jr, who has shown a willingness to tackle China head-on in the contested sea.

Chinese analysts quoted in the state-run Global Times warned earlier this month that “Manila has increasingly become a bridgehead in Asia for the US’ anti-China push, at the cost of its own security and interests.”

“Geographically close to China, bases of the Philippines that Manila allows the US-led Western forces to use to attack China if a cross-Straits conflict breaks out, would inevitably become battlefield(s),” Global Times quoted Chinese military expert Song Zhongping as saying.

Song questioned “Is this Manila’s best strategic choice to secure itself? Or it would work the opposite.”

Legally, the contested Second Thomas Shoal is a low-tide elevation, which can’t be claimed as a “territory.”

But since it falls within the Philippines’ 200 nautical miles exclusive economic zone (EEZ), giving the coastal state exclusive rights over exploiting fisheries and subsea resources, Manila maintains that it has no obligation to explain its presence in the area, especially to China.

In 2016, an arbitral tribunal at The Hague, formed under the aegis of the United Nations Convention on the Law of the Sea (UNCLOS), ruled against China’s expansive “nine-dash line” claims, which cut into the Philippines’ EEZ including across the Second Thomas Shoal.

“We are not going to back down in exposing their aggressive behavior in the West Philippine Sea,” said Jay Tarriela, the Philippine Coast Guard spokesman for the West Philippine Sea, ahead of the latest resupply mission.

Accusing China of trying to “block, harass and interfere” with the Philippines’ resupply mission within its own EEZ, he described the showdown as a “David and Goliath” situation.

The reality, however, is that the Pentagon provided certain operational support, suddenly making the showdown more of a Goliath versus Goliath situation.

The presence of the American surveillance aircraft near the disputed shoal, combined with the Philippines’ deployment of relatively large resupply vessels, appeared to deter China from employing coercive means.

This was not, however, the first time that the US and the Philippines coordinated their actions in the area.

Over the past decade, China, emboldened by its occupation of the Manila-claimed Scarborough Shoal following a months-long naval showdown in mid-2012, has repeatedly sought to squeeze Philippine marines out of the area by imposing a de facto blockade.

In response, the Barack Obama administration deployed drones and surveillance reconnaissance to assist the AFP’s resupply missions.

In 2016, then-US Defense Secretary Ash Carter boarded the USS John Stennis aircraft carrier during a patrol in the area in order to push back against China’s growing assertiveness.

Yet China continued to press its claims during the Duterte administration, which adopted a broadly subservient approach towards Beijing. In 2018 and 2019, Chinese vessels tried to disrupt Philippine resupply missions to the Second Thomas Shoal.

Following another incident in late 2021, as Duterte began to warm up to the Pentagon and reverse his pivot to Beijing, two Chinese coast guard ships blocked Philippine vessels from providing supplies to BRP Sierra Madre.

In response, the US rhetorically reaffirmed its mutual defense obligations to the Philippines in the South China Sea.

Earlier this year, Admiral Samuel Paparo, commander of the US Indo-Pacific Fleet, made it clear that the US is prepared to assist its Southeast Asian ally in the area.

He accused China of “frequently interfer[ing] with [Philippines’ Second Thomas Shoal] resupplies,” which is “clearly unlawful.”

Adding to the strategic equation, Australia, Japan and the Philippines are now also conducting joint patrols in the South China Sea. Moreover, the Philippines and Australia also conducted the Amphibious and Land Operations of the Indo-Pacific Endeavor 2023 (ALON).

A first-of-its-kind operation, the bilateral exercises were nominally meant to enhance interoperability and the Philippines’ overall coastal defense capability.

As many as 2,200 troops from both nations, along with American forces, participated in the joint exercises. Canberra deployed state-of-the-art weapons systems, including F-35A Lightning-II aircrafts and M1A1 Abrams tanks that were joined by US Marine Corps V-22 Ospreys and the Philippine Marine Corps amphibious assault vehicles.

Leaving little to the imagination, the exercises saw the three allies fighting a fictional enemy named “Calabania”, which, carrying a red flag and with red arm bands, overtly resembled China’s People’s Liberation Army (PLA).

A simulated Chinese invasion of Taiwan. Both the US and China would incur heavy losses in a conflict. Image: Facebook

“We are two countries committed to an idea of a world in which disputes are determined by reference to international laws,” Australian defense chief Richard Marles said following the massive drills while vowing to explore more joint exercises and patrols in the near future.

“A whole lot of damage can be done to Australia before any potential adversary sets foot on our shores, and maintaining the rules-based order in Southeast Asia, maintaining the collective security of Southeast Asia, is fundamental to maintaining the national security of our country,” he added.

China’s Global Times responded to the exercises in tough terms, saying that “Australia’s intention is to assume the role of a ‘small America’ or a ‘minor hegemon’ in the Indo-Pacific region at the cost of being instrumentalized and weaponized by the US, while the reckless provocation to China will only harm its own interests in the long run, experts warned.

The report cited Chinese experts saying “Albanese’s plan to visit the Philippines is a clear indication of Australia’s alignment with the strategic intentions of the US – to further provoke and incite Philippine’s provocations.”

Albanese is set to visit Manila this week, underscoring the upswing in ties. Although the trip is being billed as the first Australian leader “state visit” in decades, it largely builds on efforts by nimble predecessors, most notably former prime minister Malcolm Turnbull, who twice visited Manila to upgrade bilateral ties under both the Aquino and Duterte administrations.

“I think we would be discussing for sure also the continuation of this kind of joint exercise to increase the capabilities again of our (forces),” Marcos Jr said following the recently concluded military drills with Australia.

“It is an important aspect of how we prepare for any eventualities, considering there have been so many events that attest to the volatility of the region,” Marcos Jr said.

Follow Richard Javad Heydarian on X, formerly known as Twitter, at @Richeydarian

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Camp David summit paves way for potent trilateral alliance

The August 18 summit at the presidential retreat at Camp David was the culmination of decades of American efforts to bring its Japanese and Korean allies closer together. President Joe Biden has been facilitating this process since his time as vice president in the Barack Obama administration.

Given the potential crises on the Korean Peninsula and in Taiwan, the leaders emphasized the necessity of standing together and resolved to exchange information rapidly and coordinate actions in the event of challenges impacting the shared interests and security of the three nations.

The American hosts heavily emphasized the summit’s symbolism. Representatives of Japan and South Korea were the first Biden hosted in Washington after his inauguration. Again, Japan and Korea had primacy as the countries Biden visited first in Asia. The centrality of the two states was underscored when their leaders were the first Biden invited to Camp David during his tenure.

The first standalone summit, which President Biden, Prime Minister Fumio Kishida and President Yoon Suk Yeol attended, further highlighted the significance of their trilateral cooperation. 

Summit accomplishments

The summit was preceded by a rapprochement and the resumption of shuttle diplomacy between Japan and South Korea in May after 12 neglected years. It was especially the heavy lifting of the Korean president that helped mend fences with Japan.

Kishida and Yoon agreed during the summit to resume high-level economic and political talks by the end of this year, amid progress in mending ties. The agreement pertains to two engagements: a vice-foreign-ministerial strategic dialogue this autumn and economic talks by year-end.

Two documents came out of the summit: the “Camp David Principles” and the “Spirit of Camp David,” which outlined the scope of future cooperation ranging from holding regular trilateral meetings at various levels involving leaders, foreign and trade ministers and defense chiefs.

They pledged also to hold annual joint drills involving the Japan Self-Defense Forces and US and South Korean forces. To strengthen economic security, the three countries committed to working closely together by launching “early warning system pilots” to enable swift information sharing to avert disruptions in global supply chains.

Beyond security and economics, the scope of collaboration will include sharing cutting-edge technology, joint development, health care and people-to-people exchanges.

Piece of a larger puzzle

The trilateral summit was part of a larger multilayered and multidimensional US strategy for the Indo-Pacific region that emphasizes alliances. Both Japan and South Korea are technologically advanced middle powers and key regional allies of the US.

While Seoul’s defensive strategy is traditionally focused on the Korean Peninsula, Yoon’s administration is adopting a wider regional outlook. Japan, for almost two decades, has been reaching out to India and other partners in South and Southeast Asia to build closer economic and security ties.

These efforts were welcomed by Washington and are further strengthening the US-led regional security architecture. As many pundits predicted, the three leaders discussed regional hotspots including North Korea and the Taiwan Strait while denouncing Russia’s aggression against Ukraine. 

Biden welcomed Indian Prime Minister Narendra Modi to the White House in June, and a visit by Australian Prime Minister Anthony Albanese is planned for later this year.

The US-JP-ROK cooperation, together with the Quad, US-AU-JP and AUKUS, is part of the American-led effort to uphold the rules-based order in the Indo-Pacific region through enhanced regional deterrence against revisionist powers.

Push and pull factors

Many factors are pulling Asian states and the US together. For example, despite the repeated Chinese narrative accusing the US of creating “elitist cliques” or even an Asian mini-NATO, and accusing the US and its allies of a Cold War mentality, it is China’s hegemonic and coercive actions that have pushed growing cooperation throughout the Indo-Pacific.

China has engaged in economic coercion against both Japan in 2010 (nationalization of the Senkaku Islands) and South Korea in 2017-2019 (after the THAAD deployment). More recently, China weaponized trade against Australia after it sought an impartial investigation into the origins of Covid-19.

Chinese President Xi Jinping has seemingly forgotten the warning of late patriarch Deng Xiaoping: “If one day China tries to seek hegemony in the world, people of the world should expose, oppose, and overthrow it.”

Only a day prior to the summit, 11 Chinese and Russian naval ships sailed through waters near Japan’s southern islands of Okinawa prefecture in an overt show of force.

The visit of Russian Defense Minister Sergey Shoigu and Chinese ruling-party official Li Hongzhong to North Korea in light of the ongoing Russian war against Ukraine and the possible trilateral cooperation of Beijing, Moscow and Pyongyang is another factor pushing closer trilateral cooperation among Seoul, Tokyo and Washington.

The spillover of the Russian invasion of Ukraine seems to have reached even the Korean Peninsula. There are strong indications within the US intelligence community that the Democratic People’s Republic of Korea (DPRK) is selling weapons to Russia.

Moreover, according to the Center for Strategic and International Studies (CSIS) think tank, the physical characteristics and flight data of the North Korean Hwasong-18 intercontinental ballistic missile are “nearly identical to those of the Russian Topol-M ICBM.”

CSIS asserts that Russia likely provided technical assistance in the development of the North Korean ICBM. Given the North Korean regime’s penchant for threatening its neighbors, this rings alarm bells in both Seoul and Tokyo.

During the Camp David summit, Kishida and Biden agreed to develop a new missile capable of intercepting hypersonic weapons. This joint development plan comes amid China’s, North Korea’s and Russia’s aggressive pursuit of hypersonic capabilities.

Elections ahead

The timing of the Camp David trilateral summit was planned to initiate greater cooperation before the respective leaders face re-election. Yoon is facing parliamentary elections in April, Kishida faces re-election as leader of the Liberal Democratic Party in September, and Biden is likely to run again in November.

For Biden, the summit was not only a way to ensure his political legacy but also an important stepping stone in the election cycle as he strives for a second presidential term. At least for this term, it is politically impossible for the US to return to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) regional trade agreement.

Japan and South Korea are aware that the Indo-Pacific Economic Framework for Prosperity (IPEF), with its missing free-trade element, is a Band-Aid in the absence of greater US economic involvement in the Indo-Pacific region.

Kishida’s government, despite its numerous foreign political successes, is under pressure due to its lackluster economic performance and numerous affairs, most recently the My Number Card issue. Kishida is more respected by his allies abroad than at home. Nevertheless, for now, his position as leader of the LDP is uncontested.

The largest conservative LDP faction, Seiwakai, hurriedly named Abe’s successor in August after more than a year since Abe’s assassination. Abe’s murder caused a shockwave in the LDP. Not only did the Seiwakai lose their leader, but so too did independent conservatives.

The moderate Kishida cannot turn to his conservatives for support any longer and now must face a fractionalized conservative camp. Moreover, with Abe gone, Kishida lost a possible ally who was able to mitigate the worst impulses of former US president Donald Trump, who could conceivably return in 2024.

It remains an open question whether Ryu Shionoya, as the new Seiwakai leader, can unify the conservatives and be an effective counterpart to Kishida.

Yoon faces the most difficult situation. Elected to office by a razor-thin margin, Yoon faces an opposition majority in parliament. In the event that the opposition retains this advantage after the upcoming election in April 2024, Yoon will confront a hostile parliament until the end of his tenure in 2027.

For now, the historical grievances between Japan and South Korea have been put aside in favor of future-oriented cooperation. Nevertheless, significant issues of cultural and historical weight remain.

These include challenges connected with Japan’s colonization from 1910-1945 but also the territorial spat over the Dokdo/Takeshima islands as well as the 2018 incident when a Korean naval vessel illuminated a Japanese patrol plane with its fire control radar.

These issues will not simply disappear. It is likely that the Korean opposition will play the “Japanese card” against Yoon’s conservatives in the legislative election campaign.

Moreover, the upcoming release of treated Fukushima water is, despite International Atomic Energy Agency assurances of safety, another point that Yoon’s opponents vocalize.

What’s next?

Yoon offered to host the next leaders’ summit in Seoul. After their meeting symbolically in Hiroshima on the margins of the Group of Seven summit, the electoral turf of Kishida, and then in Washington, it seems a reasonable proposal.

Many in Tokyo look back to 2015 when the Abe-Park deal was reached with the blessing of the Obama administration on comfort women. The succeeding Moon Jae-In administration dismantled the agreement and his entire tenure was marked by a confrontational attitude toward Japan.

It is important not only to Yoon and Kishida that the positive momentum of the tacit institutionalization of trilateral cooperation take root as early as possible, but also to Biden, who is particularly vested in the budding trilateral alliance’s endurance.

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Indonesia picks the F-15EX to push back on China

Indonesia is set to acquire the latest F-15 fighter jets from the US, Jakarta’s latest move to modernize its aging air force and upgrade its defenses, namely against China in the Natuna Islands on the edge of the South China Sea.

This month, Breaking Defense reported that Indonesian and Boeing officials have signed a memorandum of understanding for the supply of 24 F-15EX fighter jets for Jakarta. The report notes that the agreement followed a tour by Indonesian officials of Boeing’s production line in St Louis.

While the deal is still subject to approval by the US State Department, it is seen as an important step for Indonesia’s military as well as the US Air Force (USAF), which is also purchasing the jet to modernize its likewise aging fighter fleet.

The F-15EX is a highly advanced fighter jet developed by Boeing for the USAF. It represents the latest iteration of the F-15 series, featuring improved avionics, structural enhancements and a higher payload capacity. The F-15EX is designed to fulfill various roles, including air superiority, strike missions and multirole operations.

Air Force Technology mentions that the F-15EX has a length of 19.45 meters, a width of 13.05 meters, and a height of 5.64 meters, with an empty weight of 14,500 kilograms and a maximum take-off weight of 37,000 kilograms.

The source notes that the F-15EX can launch hypersonic weapons up to 6.7 meters long and can be operated by a single pilot. It also says the aircraft has new electronic warfare systems, advanced cockpit systems, modern sensors and radars, and advanced mission systems and software capabilities.

Breaking Defense mentions, however, that concerns over the F-15EX program persist, specifically around cost and production issues, noting that the per-unit cost could escalate to US$106 million by fiscal year 2025.

Furthermore, the report says that the US Government Accountability Office (GAO) has noted production problems on the F-15EX line, possibly affecting the USAF’s initial operational capability (IOC) date.

Breaking Defense notes that Boeing must deliver six more F-15EXs, known as the program’s Lot 1B fighters, before the program’s IOC can be officially declared, which was previously expected in June 2023.

The report adds that the delivery of all six F-15EX aircraft is still scheduled for this calendar year, reflecting optimism about the program’s progress.

Indonesia has been struggling to modernize its air force, with mixed results. Asia Times noted in June 2023 that Indonesian Air Force (IDAF) officials have long expressed their desire to modernize, noting that their current fleet of aircraft is insufficient to cover the archipelagic nation’s vast airspace and address constantly evolving security requirements, particularly in regard to China’s presence near the Natuna Islands.

A China Coast Guard ship passes near an Indonesian warship in a July 2019 file photo. Photo: Indonesian Navy’s Western Region Fleet Command

As of April 2023, the IDAF operates a fighter force consisting of 49 jets made in the US and Russia. The force includes 33 F-16s, 11 Su-30s, and five Su-27s, with the Russian-made Su-30 serving is the IDAF’s primary fighter.

However, Western sanctions on Russia have prevented Indonesia from acquiring the more advanced Su-35. At the same time, its older F-16s are less capable, have limited upgrade potential and are only effective when integrated into a wider air defense strategy.

Given its financial and political constraints, Indonesia has tried multiple avenues to modernize its air force, such as co-designing a fighter jet with South Korea, purchasing used fighters from Qatar, considering Japan as a source of used fighter jet engines and buying new-build fighters from France.

In July 2023, Asia Times reported that Indonesia is still committed to South Korea’s KF-21 Boramae advanced jet fighter program despite being late on payments. Indonesia has paid 21% of the cost share through June 2023 but has yet to release a 2024-2026 payment plan timeline.

The South Korean Defense Acquisition Program Administration (DAPA) seeks talks with Indonesia regarding payment plans, with Indonesia agreeing to pay 20% of the US$6.2 billion project cost as part of its efforts to modernize the IDAF.

In June 2023, Asia Times reported that Indonesia had acquired a squadron of 26-year-old Qatari Mirage 2000-5 jets with new multirole fighters to fill a hole in frontline air defenses until the government can find the money to buy new-generation multirole fighters.

The Mirages will replace Northrop F5s and will be used as a training and familiarization platform while the air force awaits the first of new Dassault Rafale jets from France. However, that approach has led to Indonesian Defense Minister Prabowo Subianto having to defend his decision to acquire the old, used jets.

Moreover, Indonesia has made efforts to keep its aging fighters airworthy. Asia Times reported in June 2023 that Indonesia is considering surplus F-15 engines from Japan to power its F-16 fighters, with the two governments having previously signed an agreement regarding the transfer of defense equipment and technologies, thus paving the way for the F-15 engine deal.

Japan can provide 200 Pratt & Whitney turbofan engines from its 100 older F-15s, which will not be used due to modernization difficulties. These engines could be a valuable resource for countries that operate F-15s and F-16s, potentially leading to practical cooperation with Indonesia.

Although Japan has a de facto ban on exporting military hardware, Tokyo has previously exported sensitive military components to the US and exporting F-15 engines to Indonesia may be permitted.

Apart from those efforts, Indonesia has approached France for new-build jet fighters. In February 2022, Asia Times reported that Indonesia signed a purchase agreement for 42 French-made Rafale fighters, making it the first Southeast Asian country to acquire the jets.

The initial order includes six jets, 36 more to be delivered, and munitions and simulators. That move may have forced the US to sweeten its offer of military aircraft to court Indonesia, a crucial partner in Southeast Asia.

A Rafale fighter jet. Photo: Dassault Aviation

In response to Indonesia’s Rafale purchase, the US approved the sale of up to 36 F-15EX fighters, which, if Indonesia finally purchases, would complement its existing F-16 fleet.

Indonesia’s multifaceted fighter jet procurement program involving strategic purchases from various global powers illustrates its commitment to maintaining an independent and active foreign policy, which eschews overreliance on one strategic partner.

However, the complexities of such an approach, such as interoperability concerns and financial difficulties, can raise questions about its sustainability.

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Excerpt: ‘Charlot’ by Ian Masters

On the other side of the European Quarter, Charlie was blissfully oblivious to Levalier’s interest in his wife, and Paulette’s half- hearted attempt to deflect it. His mind was consumed with his new friend and his stories of colonial excess and exploitation. He listened intently in the rickshaw as Phirath pointed out this building and that canal, each new landmark given a political slant or a cultural resonance. It was nearly dark by the time they pulled up in front of the light yellow Art Deco façade of the Central Railway Station. The two towers on either side of the entrance cast shadows over the square in which rickshaw drivers huddled around a cluster of market stalls. Dusk was fast approaching and some of the traders were lighting lamps. Phirath and Charlie headed to the station entrance, passing a line of rickshaws. Two drivers played a game of Khmer chess in the half-light but many of the others were asleep.

‘Look at us,’ snapped Phirath in disgust. ‘Asleep. Hungry. Spending what we earn on the poppy. In IndoChine it is opium which is the religion of the masses. We must wake our people up!’ ‘It will take more than comedians for the French to give up their pearl,’ said Charlie. His introduction to the politics of the protectorate — and in particularly the cruel reality of the rubber plantations in the French colony – had been a wake-up call. He found the clandestine discussions with his unlikely companion intoxicating and inspiring in equal measure.

‘How can they stop us? All around the country the signs are clear. Change is coming.’

‘Isn’t it always?’ replied Charlie, quickly regretting his easy Western cynicism.

‘We have Khmer newspaper. First time. Khmer graduates from the lycée. The Communist Party of Indochina. The time for acting is over. Now is the time for action.’

They crossed the grand threshold and into the cool dark interior. It was busy with porters and hawkers.

‘If we’re lucky our people compete to earn a few piastres as labourers or porters. But this is just scraps the French throw to us, a cruel competition which turns us against each other.’

He peered through the railings to the rear of the station, following the platforms until they extended beyond the main structure and into the open air. A handful of steam locomotives idled. Porters rushed with suitcases, trunks and cargo. Charlie joined him as the Battambang train arrived at the platform. The din and the smell of coal were an elixir. Steam hissed, whistles blew and there was a screech of brakes.

The two men exchanged glances. There was something in Charlie’s expression that made Phirath smile. He saw that familiar moment of inspiration, that first fizz of an artist’s creative neurons reacting to stimulus. ‘Tell me what you see.’

‘A railway scene, a set piece. After his arrival in the docks as a stowaway from America, this will be the moment that launches the story of Colonial Subjects.’

‘Explain.’

‘The Little Fellow’s unexpected departure on the train to Battambang in pursuit of the governor’s daughter.’

‘Go on. Maybe I can help?’

For an answer, Charlie lifted his camera to his eye and looked through the lens. The station was no longer the scene in front of Charlie. It was the studio backlot version of it, in black and white – an embryonic first vision of a Chaplin silent comedy.


ESTABLISHING SHOT: the main station’s grand art deco façade.

Tilting down a pillar on one side of the entrance to a sign which reads ‘Porters Required’.

There’s a queue in front of the sign – a line of labourers all wearing identical rice paddy hats. As we pan down the line, the pattern is broken by one lone derby hat – belonging to the indomitable Tramp. He’s beside Phirath in the line but Phirath shakes his head dismissively at the Tramp’s inappropriate choice of headwear. The Tramp looks first to Phirath, then to the porters to his left, clearly worried.

Before the Tramp can react, a French station master in uniform emerges and the line surges. In the hubbub the Tramp swaps his hat for his neighbour’s. A whistle blows and the labourers flatten against the station wall for inspection as the station master walks down the line. Until he reaches the derby on the unsuspecting Khmer labourer’s head. He’s yanked from the line and sent to the back. This starts a pantomime of hat swapping down the line as everyone tries to pass on the offensive derby. Distracted by

this, the labourers don’t notice as Phirath pulls the Tramp down to a crouch and they crawl through the station master’s legs to reach the front of the line. The Tramp taps the burly official on the shoulder and gestures inside with a sheepish grin. The station master’s bulging eyes narrow. He checks the line, then the odd couple at the front of it, perplexed. Undeterred, the Tramp pulls out a handkerchief and dusts down the station master’s lapels with a shrug and a grin, desperate to find favour. The station master bats him away irritably, but nods for them to go inside.

WIDE SHOT: a steam train idles inside the station. Smoke and steam billow.

CUT TO: The Tramp and Phirath wait on the platform. They are now dressed in the uniforms of official station porters complete with baggage trolleys. The Tramp picks up a discarded cigarette butt and puts it in his pocket for later as a train rumbles into the station billowing more smoke and steam. All the porters wait, eyeing the doors (and each other) – primed for customers. The first door opens and the Tramp is off, rushing over to the nearest door with his trolley, but another porter beats him to it and shoves his trolley aside. Further down the train another door opens. The Tramp runs over, but with the same outcome. He’s being outmanoeuvred by the more experienced porters.

At the second carriage, a porter has positioned himself to help an ELDERLY DOWAGER preparing to disembark. The Tramp taps him on the shoulder and gestures back to an irate-looking station master glaring in their direction. The porter gulps, worried – but while his back is turned, the Tramp kicks the porter’s trolley away and replaces it with his own. He doffs his derby for an elderly grand dame dowager and offers his hand to help her off the train. She hangs her hatbox on it, ignoring his gallantry.

But when he turns to put it on his trolley, the disgruntled porter has pushed the Tramp’s trolley down the platform and replaced it with his own. And gives the Tramp an angry glare. The Tramp is livid. They push and shove each other’s trolleys, ramming each other out of the way and shaking their fists, until they realise that Phirath has snuck through and is now helping the grand dame dowager with her baggage. The trunks and cases are piled precariously on his trolley.

That’s when a poodle runs through their legs. The argument is forgotten as the Tramp sees again the governor’s daughter beside the governor, approaching from the end of the platform. She looks horrified, hand up to her mouth and shouting:

INTERTITLE: Descartes! My darling Descartes!

Descartes, the poodle, has climbed to the top of the pile of the grand dame dowager’s luggage on Phirath’s trolley. The furious porter, feeling cheated by both the Tramp and Phirath, pulls the bottom case of the pile out to put on his trolley. The pile jolts lower, with Descartes on top. Each case is swiped out; each time a bewildered Descartes plunges lower and lower until finally it leaps into the Tramp’s arms.

The governor’s daughter is there in an instant and the Tramp hands over Descartes with a shy smile. A hand taps him on the shoulder. It’s the governor. He glares at the Tramp and shouts:

INTERTITLE: Put our luggage on the Battambang Train.

First Class.

He hands the Tramp a piastre coin. The Tramp grins.

CUT TO: the interior of the baggage compartment on the Battambang train. The Tramp whistles to himself, pleased as punch, as he stacks the last of the governor’s trunks on the train. Job done, he walks down the carriage, nodding to the French passengers, and doffing his derby to the ladies. He passes the governor’s daughter in her seat by an open window, her folded parasol and dog beside her. The heat is unbearable, and she fans herself. The Tramp doffs his derby, but she’s completely oblivious to him and stares instead at the bustle on the platform. But Descartes sees the Tramp. He barks once and then leaps out of the open window. The governor’s daughter shrieks. A handkerchief dabs her eyes, she looks to the Tramp, pleading. He nods gallantly, about to set off when the whistle hoots and the train begins to pull away …

As the train moves slowly out of the station, the Tramp sees Phirath holding Descartes. He grabs the parasol from beside the governor’s daughter and runs down the carriage, leaping over the connections to the next carriage, and the next, until he’s at the back of the train.

Phirath is running towards him, hands outstretched holding Descartes.

Closer and closer Phirath runs, but the train is building up speed. The Tramp holds out the parasol from the tip and hooks Descartes collar and pulls him into the train as Phirath leaps aboard. They clap each other on the back as the tracks rush away beneath them.

INTERTITLE: Tickets please!

Shock on their faces. They turn to see the ticket collector passing through the last carriage checking and punching tickets. He sees them at the back of the train holding a poodle and a parasol. His eyes narrow. The Tramp and Phirath look back, but the tracks are rushing away too fast now to jump.

The Tramp retrieves the piastre coin from the governor but Phirath shakes his head.

‘It’s OK for you,’ he says. ‘But the punishment for Khmer to ride train with no ticket is ten years. Ten years hard labour.’

The Tramp stares at him open-mouthed. ‘What?’ asks Phirath, confused.

‘What are you doing?’ the Tramp shouts, ignoring the ticket collector barreling towards them.

‘I don’t understand.’ ‘You’re … you’re talking!’ ‘So are you,’ quips Phirath.


Charlie’s sketch came to an abrupt halt with Phirath’s verbal intrusions. The filmmaker lowered his camera, annoyed. The younger actor looked at his idol with a sadness in his eyes.

‘What must be said cannot be limited to intertitles, to a few cards,’ he said, his voice firm but friendly.

‘Then I need to rework the scene. The Little Fellow doesn’t speak.’

‘Think of the power if he did.’

Charlie glared at him, but the hour started to chime on the big station clock.

‘I’m late.’ And he put his camera back into his bag and rushed through the station and into the twilight. He was already at the line of rickshaws when Phirath caught up with him.

‘Forgive me, Saklo,’ Phirath said, worried that his comment had

jeopardised their budding friendship and creative collaboration. There was a lot riding on it, although Charlie didn’t know that yet. Before Charlie could respond they saw the headlights of a police car enter the square and circle round in front of the station entrance, coming to a stop close to the line of rickshaws. The driver immediately stepped down and opened the rear passenger door. It was Le Favre.

Merde,’ muttered Phirath.

‘Do you think he wants my autograph?’ said Charlie. The captain’s persistence was beginning to rattle the filmmaker.

Phirath leant into Charlie so they wouldn’t be overheard and whispered, ‘It’s he who stopped Yen Bai in Vietnam. Forty men sentenced to death. Over nothing. And don’t be fooled by the governor either. He and the rubber plantation owners are in this exploitation together. They take what they like, do what they like. We will talk more, but now you must go.’

He told the rickshaw driver where to take his guest and Charlie climbed into the back. Before they pulled away, Phirath grabbed Charlie’s arm.

‘Saklo, in two days we perform in Battambang. It would be an honour if you would grace the performance with your presence. I must be honest with you. It is not just an honour. If you believe that we have the right to challenge the excesses of the French protectorate, your presence would … it would give us greater … visibility. The press follows you everywhere. Think about it, I beg you.’

Charlie barely had time to acknowledge this heartfelt request when the captain barreled over. Phirath turned his face away.

‘Was I not clear, Monsieur Chaplin?’ said the captain.

For a moment Charlie was caught between Phirath’s request and Le Favre’s irritating threats. But it was the manner of the Frenchman’s intrusion which made up his mind.

‘I’ll be there,’ he whispered to Phirath. ‘I promise.’

The young actor walked off into the darkness. Charlie turned his attention to Le Favre and offered his wrists to the policeman. ‘I wasn’t aware that taking a walk was a criminal offence, Sergeant Le Favre.’

‘It’s Captain Le Favre. As you well know.’

Le Favre trailed off when he caught sight of Phirath melting into the darkness beyond the nighttime street stalls. His eyes narrowed.

‘What do you want to achieve in Indochina, Mr Chaplin?

Perhaps it would be best if you would just speak your mind.’

Charlie thought about that for a moment, choosing his words carefully. It was an opportunity, and he knew it.

‘Very well,’ he replied eventually. ‘I am struggling to understand why Modern Times has been approved for screening in every country of the Far East and beyond, every single one, except for French Indochina? I believe that this was on your insistence. I am no threat, and neither are my motion pictures.’

Le Favre glared at the filmmaker. ‘Perhaps in America they are seen only as light entertainment. But it is the opinion of the governor that you and your films are dangerous to the status quo of this colony. In America you may be a celebrity, Monsieur Chaplin, but here you are a guest of French-administered Cambodia, and I would remind you once again to keep your Hollywood politics out of Indochina. Do I make myself clear?’

‘Is that a threat, Captain? Are you going to arrest me for

walking? Now that would be front page news.’

He dropped his wrists and eyeballed the captain. It was the Frenchman who looked away first.

‘Very well then. If you’ll excuse me, I’m late for the governor’s garden party.’


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Philippines gathering allies to tame China at sea

MANILA – The Philippines is leveraging a widening network of alliances to assert its stance in the South China Sea, a strategy that threatens to put it on a steeper collision course with China over contested features in the disputed waters.

Rising tensions over the Second Thomas Shoal have only reinforced the Philippines’ resolve to fortify its position vis-à-vis China.

This week, the Philippine Navy (PN) pressed ahead with another resupply mission to BRP Sierra Madre, a grounded ship that has served as a de facto military base for a detachment of Philippine troops since 1999.

General Romeo Brawner Jr, the newly-promoted chief of the Armed Forces of the Philippines, said that the resupply mission was unarmed to underscore Manila’s determination to avoid direct clashes with Chinese forces lurking in the area.

Earlier this month, a Chinese Coast Guard (CCG) fired water cannons to disrupt Philippine resupply missions on the Second Thomas Shoal, which the Philippines also refers to as the Ayungin Shoal.

The provocative blast followed on a February 6 incident near the same shoal where the CCG aimed a military-grade laser at a Philippine Coast Guard (PCG) ship that temporarily blinded its crew. The PCG claimed China also made “dangerous maneuvers” by passing within 150 meters of its vessel.   

“Yes, they are still unarmed. We are not going there to make war. We’re just going there to simply bring supplies to our troops and to rotate,” the Philippine military chief told reporters while denying speculation that Manila is now bent on building new structures in the area before the rusty, grounded ship gives way to the elements.

Last week, US Secretary of Defense Lloyd Austin spoke by phone with his Philippine counterpart Gilberto Teodoro to affirm that the two sides’ Mutual Defense Treaty “extends to Philippine public vessels, aircraft and armed forces – to include those of its Coast Guard – in the Pacific including in the South China Sea.”

Members of the Philippine Coast Guard patrol in the South China Sea on April 14, 2021. Photo: Philippine Coast Guard

Following their historic meeting in Camp David, the leaders of the United States, Japan and South Korea trilateral alliance also made it clear that “[W]e strongly oppose any unilateral attempts to change the status quo in the waters of the Indo-Pacific.”

The three allies also jointly reaffirmed the 2016 South China Sea arbitral tribunal award ruling at The Hague, which “sets out the legal basis for the peaceful resolution of maritime conflicts between the parties to that proceeding,” it added.

“Together, we’re going to stand up for international law, freedom of navigation and the peaceful resolution of disputes in the South China Sea,” US President Joe Biden told his Japanese and South Korean counterparts amid growing alignment over the need for more coordinated action in the disputed maritime areas.

A hallmark of the Ferdinand Marcos Jr administration, however, is also reaching out to so-called “non-traditional partners”, most notably India and Vietnam, which also have their own territorial disputes with China.

The Philippine president is now pursuing a new maritime agreement with Vietnam, likely based on the 2016 arbitral tribunal ruling, as well as expanded defense cooperation with India, which is set to deliver the much-vaunted BrahMos missile defense systems to the Philippines this year.

The Philippines and Vietnam have the most similar threat perception vis-à-vis China among the sea’s various rival claimants, with both embroiled in decades-long maritime disputes with the Asian power.

Both have employed a combination of strategic and diplomatic means to counter China’s expanding footprint in overlapping areas of claim.

Philippine-Vietnam bilateral relations, however, reached new heights in the early 2010s when Manila filed an unprecedented arbitration case against Beijing under the United Nations Convention on the Law of the Sea (UNCLOS).

Across Southeast Asia, only one country openly backed the Philippines and even suggested a potential joint legal case against China at some point in the future.

Vietnam’s most important legal intervention came in 2014, when it submitted a highly sympathetic position paper on the Philippines’ efforts to leverage international law to resolve the disputes.

“It is Vietnam’s consistent position to fully reject China’s claim over [Paracels] and [Spratlys] archipelagoes and the adjacent waters, as well as China’s claiming of ‘historic rights’ to the waters, sea-bed and subsoil within the ‘dotted line’ unilaterally stated by China,” the Vietnamese foreign ministry said.

Crucially, then-Vietnamese prime minister Nguyen Tan Dung openly threatened to file a parallel legal case following China’s deployment of a giant oil rig to an area near the disputed Paracel Islands, which sparked massive protests and a temporary diplomatic breakdown between the two communist neighbors.

During this period, the Philippines and Vietnam also expanded maritime security cooperation, including Vietnamese warship goodwill visits to Manila and friendly games among their troops stationed in the Spratly group of islands.

But the burgeoning ties came to an abrupt halt when then-president Rodrigo Duterte largely ignored Vietnam in favor of warmer ties with China.

On multiple occasions, his top officials, including his former foreign affairs secretary, even tried to portray Vietnam as a hostile rival in the South China Sea, partly in an effort to downplay China’s massive reclamation activities in the area.

Since coming to power, however, Marcos Jr has placed Vietnam at the heart of his regional strategy of balancing China. In his first year in office alone, Marcos Jr has held at least three meetings with high-level Vietnamese officials.

Philippine President Ferdinand Marcos Jr and Vietnamese Prime Minister Pham Minh Chinh are in a strategic embrace. Image: Facebook

The bilateral talks ostensibly covered food security, since Vietnam alone is responsible for 90% of the Philippines’ total rice imports. As acting agriculture secretary, Marcos Jr is intent on expanding cooperation with Vietnam to new heights.

Crucially, however, the Filipino president also sees Hanoi as a key maritime security partner. Recently, the Filipino president admitted that the two sides have been negotiating a new maritime cooperation agreement, which likely aims to enhance defense cooperation but also delineate overlapping claims in the Spratlys based on the UNCLOS.

Last December, Vietnam and Indonesia successfully finalized decade-long negotiations over maritime border delimitation. The Philippines is likely seeking a similar deal with Vietnam based on the 2016 arbitral tribunal ruling at The Hague.

“Now that we are going to start discussions on the agreement that we have between the Philippines and Vietnam, I think it is a very, very important part of our relationship and it will bring an element of stability to the problems that we are seeing now in the South China Sea,” Marcos was quoted as saying following a recent meeting with Vietnamese officials.

Marcos Jr hailed the impending maritime cooperation agreement as “a very big step” toward building a united front to confront “common challenges”, namely China’s expanding footprint in the South China Sea.

Meanwhile, India is emerging as another major “non-traditional” partner. The two sides held their 5th meeting of their Joint Commission on Bilateral Cooperation (JCBC) in New Delhi earlier this year, where Philippine Secretary for Foreign Affairs Enrique Manalo and Indian Minister of External Affairs S Jaishankar discussed ways to accelerate comprehensive strategic cooperation including on maritime security.

In their joint statement, India and the Philippines stressed “the need for peaceful settlement of disputes, and for adherence to international law,” with New Delhi reaffirming the finality and binding nature of the 2016 arbitral tribunal award.

Just a week earlier, Indian Prime Minister Narendra Modi and US President Biden agreed to address “challenges to the maritime rules-based order, including in the East and South China Seas” amid expanding maritime defense cooperation under the Quadrilateral Security Dialogue framework.

Under its “Look East” policy, India is rapidly expanding its economic and strategic footprint in Southeast Asia, with the Philippines emerging as a promising partner. In fact, Manila is India’s first major defense customer following the finalization of the US$375 million BrahMos missile defense deal last year.

India claims its BrahMos missile provides the capability to strike from large stand-off ranges on any target at sea or on land with pinpoint accuracy. Credit: Handout.

The Philippine military is expected to deploy the new missile defense system, which has a top speed of around Mach 2.8 and is capable of carrying warheads weighing 200 to 300 kilograms from aircraft, warships or land to its frontier provinces facing the South China Sea.

The Philippine Marine Corps’ Shore Based Anti-Ship Missile battalion will be operating the Indian anti-ship missile system. To boost bilateral cooperation, India is also set to place a permanent defense attaché in Manila for the first time in recent history.

“We are natural and traditional partners. India and the Philippines have much to offer each other,” Manalo said during his visit to India earlier this year.

“We think this is perhaps only the beginning of further defense cooperation, not only in terms of weapons, but also in training and best practices. This is an important event in our defense cooperation,” he added, referring to the BrahMos missile system.

Follow Richard Javad Heydarian on X, formerly known as Twitter, at @Richeydarian

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Southeast Asian recommerce platform, CompAsia, raises Series A with Gobi Partners as lead investor

Contributed to reduction of 420 tonnes e-waste, saving 46 bil gallons of water
Claims to be among SEA’s leading vertically integrated device lifecycle companies

Pan-Asian venture capital firm, Gobi Partners, has taken on the lead investor role in the Series A funding round of Malaysian based Southeast Asian focused integrated recommerce platform, CompAsia.
Since 2016,…Continue Reading

Hong Kong and China interest in AI and regtech ‘palpable’ despite soft fintech funding: report | FinanceAsia

Fintech companies in Asia Pacific received $5.1 billion of funding in the first half of 2023, a further drop from $6.7 billion during the same period last year, a recent KPMG report has revealed.

The figure points to a “very soft” fintech funding landscape in the region, in contrast with $36.1 billion of funding in the Americas, and $11.2 billion in Europe, Middle East and Africa (EMEA), the study showed.

In terms of number of fintech funding deals, 432 were completed in the Apac region, compared with 1,011 in the Americas, and 702 in EMEA.

“The global fintech market has seen challenges, with a decline in both funding and deals,” Barnaby Robson, deal advisory partner at KPMG China told FinanceAsia.

“Public companies have changed materially, with entire industries trading at fractions of previous valuations. But founder expectations have not moved as fast, meaning private valuations are adjusting slowly as companies seek new funding,” he explained.

The report, Pulse of Fintech H1’23, aggregated data from global venture capital (VC), private equity (PE) and mergers and acquisitions (M&A) deals in 2023’s first half, and looked into various segments including payments, insurtech, regtech, cyber security, wealthtech and blockchain.

The largest fintech deal H1 2023 in the region was $1.5 billion raised by Chongqing Ant Consumer Finance, the consumer finance unit of China’s Ant Group, which faced Beijing’s pressure to restructure in compliance with regulatory limits.

“Fintech funding in China is very dry” outside of Chongqing Ant Consumer Finance’s deal, the report noted. Businesses and investors in China tend to prioritise post-pandemic recovery, waiting for outcomes from prior investments, it explained.

Other significant deals in Asia include $304 million raised by India-based Vistaar Finance, and $270 million raised by Kredivo Holdings in Singapore.

Rebound potential

Despite slowing deal activity and slashed valuation, the intrinsic value and potential of the fintech sector in Hong Kong, mainland China, and Asia in general, remained robust, Robson told FA.

Fintech firms in the area are increasingly looking at leveraging artificial intelligence-generated content (AIGC), the report identified.

“In mainland China, the focus on AI in insurtech, creditech and wealthtech is evident. Hong Kong, with its global connectivity, needs to navigate the growing challenges of dealing two different AI regimes and mainland China data onshoring rules. The diverse financial landscape and low productivity in emerging Asia, offers a fertile ground for AI-driven fintech innovations,” Robson detailed.

“AI’s potential to revolutionise fintech segments is undeniable.”

Despite the US and Europe being leaders in regtech, or regulatory technology, interest from Hong Kong and China is palpable, according to Robson.

“With the People’s Bank of China’s (PBOC) recent announcements and Hong Kong’s agile regulatory framework, it’s clear that the region is gearing up for a more transparent and efficient financial ecosystem,” he said.

China’s central bank released a set of draft administrative measures on data security management last month for public consultation, signalling the watchdog’s enhanced emphasis on data processing securities amid geopolitical tensions.

Many financial institutions are embracing regtech to improve the efficiency and effectiveness of addressing compliance and regulatory requirements, Robson noted.

In his view, the confluence of AI advancements, regulatory shifts, and a growing middle class could very likely help catalyse fintech funding in Hong Kong, mainland China as well as the broader Asia region.

But that would be possible only after “a more complete reset in multiples to get to where valuations reflect fundamentals, and market clearing prices exist”.

He pointed to late 2024 or 2025 as a likely timing for such a rebound, citing fintech being properly valued on a realistic discounted cash flow (DCF) or free cash flow (FCF) basis as a contributing element.

“It’s a matter of when, not if,”

¬ Haymarket Media Limited. All rights reserved.

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A 100-day checklist for the new Cambodian prime minister to turn human wrongs into human right

On 23 July, the ruling Cambodian People’s Party (CPP) secured 96% of National Assembly seats in a landslide electoral victory, further cementing its grip on power ahead of a planned transfer of the premiership from Hun Sen to his son, Hun Manet.

These results hardly came as a surprise. They were made possible by the systematic crackdown on opposition groups, independent journalists, and fundamental freedoms the Royal Government of Cambodia (RGC) has been conducting since 2017. Unsurprisingly, a chorus of international voices dubbed the election as “neither free nor fair,” only for the RGC to brush this criticism aside. Most notably, seven UN Special Rapporteurs called the polls “very unbalanced,” stating that “repressive practices” had seriously undermined human rights and the promise of liberal democracy. 

There is no denying that Cambodia has been a de facto one-party state since 2018, which saw the CPP win every single National Assembly seat. This followed the dissolution of the main opposition Cambodia National Rescue Party (CNRP) just months after it secured nearly 44% of the vote in the 2017 commune elections. CNRP figures were later handed lengthy prison sentences in mass trials that raised serious due process and impartiality concerns. 

History tends to repeat itself, and it certainly did in 2023: the opposition Candlelight Party (CP), the only formation that posed a credible threat, was barred from contesting. Several CP activists were assaulted in broad daylight, others were arrested and charged with vaguely worded offences. Restrictions on the rights to freedom of expression and access to information were further tightened to silence dissenting narratives. In other words, the outcome was never in doubt. 

Respect for human rights took a backseat as the country grew more and more authoritarian. Over the years, the Cambodian parliament rubber-stamped a series of legal provisions to introduce severe restrictions on fundamental freedoms and ramp up online restrictions. These were adopted with little to no public debate, illustrating a disregard for democratic checks and balances. The RGC also shut down or brought independent media under control to prevent unfavorable reporting, and targeted dissenting voices using intimidation tactics, judicial harassment, threats, and violence. These systematic actions, which show no sign of abating, have hindered political plurality, led to the disenfranchisement of a huge portion of the Cambodian population, and deterred citizens from exercising their freedoms. 

The total absence of democratic oversight allowed endemic corruption and clientelism to flourish. Policy decisions gradually became mere tools to serve the ruling elite and their economic interests. This contributed to the persistence of severe social inequalities, limited protections for workers, land grabs, and the unchecked exploitation of natural resources. In a context of restricted civil society space, the lack of political representation of workers and communities faced with rights violations makes it extremely difficult for them to access redress mechanisms, or merely advocate for fairer policies. Human rights defenders, unions, and land activists are routinely treated as enemies of the state; and the threat of prison is real.

Hun Manet, a Cambodian military commander and soon-to-be prime minister, speaks at a Cambodian People’s Party campaign rally in Phnom Penh on 21 July, 2023. Photo by Anton Delgado for Southeast Asia Globe.

As he takes the reins as prime minister, Hun Manet is standing at a crossroads. He can opt for the status quo and embrace the strongman politics that led to the current human rights crisis, or he can preside over a shift towards more inclusive forms of governance based on respect for fundamental freedoms, political pluralism, and social justice. If Hun Manet ambitions to comply with Cambodia’s international obligations and the spirit of its constitution, he will have no choice but to choose the second path. In this regard, the first 100 days of his tenure will be placed under particular scrutiny. Below are a series of urgent issues his government should address if it wants to show a genuine willingness to improve the country’s human rights situation.

Release political prisoners and detained human rights defenders

On 12 July, the UN Working Group on Arbitrary Detention stated that human rights activist Seng Theary, who is currently serving a six-year prison sentence for conspiracy to commit treason, had been “arbitrarily detained” due to “her long-term, high-profile criticism of the prime minister and her pro-democracy activism.” 

She is far from being the only one. According to the Cambodian League for the Promotion and Defense of Human Rights (LICADHO), there are currently 53 “prisoners of interest” in the Kingdom. Among them are 25 opposition figures, including 12 CP officials and former CNRP president Kem Sokha, who in March was handed a 27-year treason sentence following a “politically motivated” trial “fraught with irregularities.”

Every single day they spend in prison is another failure by Cambodia to meet its international obligations. The new government must put an end to the practice of viewing political opponents and human rights defenders as threats to be neutralised, and take the necessary steps to release all those arbitrarily arrested and wrongfully convicted for exercising their rights and freedoms. In the spirit of political reconciliation, it should also declare an amnesty for the politicians in exile who wish to return to Cambodia.

Restore banned media outlets and free detained journalists

Since 2017, systematic censorship and restrictive laws have decimated what used to be a vibrant media landscape, and this trend shows no sign of reversing. Earlier this year, the RGC shut down Voice of Democracy, one of Cambodia’s last remaining independent media outlets over a story alleging that Hun Manet had signed an official document in lieu of his father. It also revoked the licenses of three Khmer language online media outlets that reported on the involvement of a government official in a land fraud case; and blocked access to the websites and social media accounts of Cambodia Daily, Radio Free Asia (RFA) and Kamnotra just days before this year’s general election.

At the very least, the new government should release the three journalists that are currently detained in Cambodia because of their reporting, reinstate the outlets that were shut down this year, and lift any restrictions preventing the public from accessing news sites. Once these preliminary steps have been taken, it should conduct consultations with relevant stakeholders on how to create a protective environment for journalists and undertake genuine efforts to promote press freedom. 

Side with victims in labour disputes and land grabs

Among Cambodia’s “prisoners of interest” are also union leader Chhim Sithar and 27 land activists. Their crimes? Exercising their fundamental freedoms to demand fair solutions to labour disputes and land conflicts. As the president of the Labor Rights Supported Union of Khmer Employees of NagaWorld (LRSU), Chhim Sithar has been at the forefront of a non-violent strike to demand the reinstatement of dismissed NagaWorld employees since December 2021. Authorities responded by subjecting strikers to violence on numerous occasions, before ultimately slapping Sithar and eight other LRSU members with incitement sentences in May. No settlement was ever reached. 

Cambodia union leader Chhim Sithar waves to supporters as she leaves Phnom Penh Municipal Court in Phnom Penh on 25 May, 2023. Photo by AFP.

The same treatment is routinely applied to land activists. On 15 August, the Koh Kong Provincial Court sentenced 10 of them to one year in prison in connection to a land dispute involving a high-profile tycoon. All were arrested as they were trying to travel to Phnom Penh to petition the Ministry of Justice.

This is but one example among many. Instead of addressing the root causes of land grabs, such as the lack of formal land titles, poorly enforced legislation, and endemic corruption, authorities have consistently sided with developers and targeted the communities affected. In doing so, they confirmed that they see any attempt at exercising one’s fundamental freedoms as a threat that needs to be quashed.

If it wants to work towards greater social justice, the new government must hold perpetrators of labour and land rights violations to account, not side with them.

Stop granting economic land concessions and offer fair compensation to the communities affected by development projects

Last November, the RGC adopted a sub-decree making over 930,000 hectares of public land inside protected conservation areas eligible for privatisation. The move raised serious concerns, as it followed the awarding of a new Economic Land Concession (ELC) to a South Korean company in March 2022; the first in nearly a decade. Almost 400 families could be impacted by the concession. Between the 1990s and 2014, the government granted over 200 ELCs covering more than two million hectares of land to private actors, leading to mass evictions and large-scale deforestation and rights abuses before a moratorium on new applications was introduced in 2012. 

The previous administration also leaves behind a legacy of so-called development projects implemented with little to no regard for their impact on the environment or the local communities. Most notably, the RGC sold or gifted most of Boeung Tamok, Phnom Penh’s biggest natural lake, to politically connected individuals or government institutions over the last few years. It is now being filled in for real estate development, a process that could ultimately lead to the eviction of roughly 1,200 people. Other lakes around the capital have faced or are set to share the same fate, which will likely exacerbate flood intensity in the city. Similarly, the construction of a new airport in Kandal Province will soon result in the displacement of over 400 families. Evictees typically have no say and are often compensated inadequately. 

The new government should therefore review all pending eviction cases to ensure that the people affected by development projects are offered fair compensation and strictly adhere to the 2012 moratorium on ELCs to protect the country’s natural resources and prevent other eviction crises. Unlike its predecessor, the new administration should take the necessary measures to make sure that development initiatives do not negatively impact the environment and the livelihoods of local communities. In other words, it must shift from economic policies serving the ruling elite and their interests to policies serving the greater good.

Convene the National Congress

The dissolution of the CNRP and disqualification of the CP from the 2023 general election have led to the disenfranchisement of a significant portion of the Cambodian population; effectively depriving them of political representation or a meaningful say in decision-making. Fortunately, articles 147 to 149 of the constitution enable all Khmer citizens to raise issues with and formulate requests to State authorities via an annual National Congress, which shall be convened by the prime minister and meet in early December. Despite the importance of this democratic participation tool, former Prime Minister Hun Sen never convened it, and even argued that “holding it could cause turmoil in the system.” The new prime minister should break with this approach and clearly announce his intention to convene a National Congress in 2023. It is time for the RGC to abide by the constitution and give back their voice to the people.

The preamble of the Cambodian constitution envisions the Kingdom as an “Island of Peace,” based on a multi-party liberal democratic regime that guarantees human rights and the rule of law. Whether the country can live up to these ambitious expectations is now in the hands of the new prime minister. Cambodia is watching.


Chak Sopheap is the executive director of the Cambodian Center for Human Rights and a peace studies graduate of the International University of Japan.

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