What will it take for Timor-Leste to join ASEAN?

By:
On:
In: South-East Asia

Since first declaring independence in 1975, accession to ASEAN has been one of Timor-Leste’s foremost foreign policy goals.

Finally, in December, the ASEAN chair announced the bloc’s decision to admit Timor-Leste “in principle”, granting the country observer status. This will allow Timor-Leste to participate in all ASEAN meetings and to familiarise itself with the bloc’s structure, its decision-making process and its internal regulations.

But some Timorese experts remain unconvinced that this milestone was a game changer. As the country’s petroleum fund is drying up, and with a lack of alternative economic resources, some argue the accession will only add financial pressure that could prevent the country from benefiting from the bloc’s multilateral trade agreements.

According to Fundasaun Mahein, a local security research institute, ASEAN membership could boost foreign investments into Timor-Leste while boosting human capital and employment.

Membership relies on the unanimous vote of the 10 current ASEAN members. Although Timor-Leste meets the accession criteria enshrined by Article 6 of the ASEAN charter, the economic unreadiness and the capacity of its bureaucracy of Timor might be a stumbling block to its full ASEAN membership. More economically developed bloc members such as Singapore seem especially to fear that Timor-Leste’s limited social and economic development may also hold back ASEAN’s global economic integration. 

More questions remain regarding Timor-Leste’s role in the bloc, its benefits on a national level and the country’s ability to fully integrate into the regional market. 

According to a commentary by Roberto Soares, a former secretary of state for ASEAN affairs of Timor-Leste, the Timorese government has repeatedly guaranteed the country would not be a burden for the bloc, reiterating that despite the small size of its economy, it is ready to join the regional market and to abide by the international trade system. 

While Timor-Leste seems committed to bringing a positive change in ASEAN, a question remains on what the country would benefit from its membership in the bloc. 

Timor’s development context

With a regional market worth $2.3 trillion and a population of 600 million people, ASEAN’s dynamism could offer significant economic opportunities for Timor-Leste.

The extent of this potential development largely depends on Timor’s domestic development policies and investments to capitalise on such opportunities. 

It will be challenging for the country to find the right financial balance between domestic expenses and participation in the ASEAN market. Some of the extra costs Timor-Leste will have to cover as a bloc member include annual membership fees, expansion and maintenance of embassies across the region and beyond, the hosting of international events and travel expenses for diplomats attending hundreds of meetings abroad each year.

As Timor-Leste’s economy heavily depends on petroleum revenues, which account for approximately 86% of public expenditures, the country suffers an enormous trade deficit in its non-oil export market. The only visible alternatives to oil export are organic coffee production and the tourism industry. 

The private sector is still in its infancy. Unclear rules and regulations and administrative hurdles dealing with business registration, unclear land ownership and weak access to finance are widely cited as the main impediments for private sector investment. 

These have impacts on employment opportunities. According to the 2021 Labor Force Survey, very limited formal employment opportunities are available across the country. The labour participation rate is only 30% compared to the average 66% in Southeast Asia as a region, as recorded by the International Labour Organization.

The primary sources of employment in Timor-Leste remain agriculture subsistence and the informal sector. Formal employment is largely in the public sector and mostly concentrated in the capital Dili. These development challenges are widely discussed and acknowledged across the political spectrum in Timor-Leste and are cautiously considered by ASEAN members as risk factors for Timor’s viability to join the regional bloc. 

The renowned ineffectiveness of public institutions in the country is often one of the main constraints to effective economic development. These are reflected in the limited efficiency of the justice system and public resource management, as well as the low quality of public services.

As a result, the country ranks the lowest on the Human Capital Index compared to other ASEAN members, according to a World Bank economic report from last year.  

While Timor-Leste continues to be referred to as the most democratic country in Southeast Asia,  there is a growing fear that the government is not providing any real solution to major domestic issues such as poverty, stunting, unemployment and poor services for health and education.

For now, oil money still seems to provide a comfortable position for political elites, which uses it to provide cash handouts or subsidies to the citizens – all of which are short-term solutions not contributing to the country’s social development.

These are the reasons why ASEAN members are still cautious about admitting Timor-Leste as the 11th member, fearing that would increase the financial burden on the association. 

Addressing these problems 

Despite these development challenges, ASEAN cannot simply ignore Timor’s presence in the region. 

The real question now is how this first step into ASEAN will motivate Timor-Leste to move forward with new national economic reforms and push for effective and sustainable economic diversification. 

ASEAN’s economic community vision can provide a platform for Timor-Leste to address the institutional hurdles affecting its long-term economic trajectory. This would include support to simplify the country’s administrative procedures and policies to align national legislation with regional standards. 

Improving human capital is imperative if Timor-Leste intends to be competitive across Southeast Asia and beyond.

This step requires political commitment and leadership at the very top government levels. It is crucial for the political elites and society to change their action mechanisms. The government needs to ensure political stability and provide the citizens with a clear sense of direction in terms of national objectives. They also need to offer more realistic and pragmatic solutions, and society in general needs to hold political elites accountable based on promises and delivery. 

Addressing these institutional weaknesses and administrative challenges is critical to the future role of Timor in Southeast Asia, especially to its chances to successfully become ASEAN’s 11th member. 

Guteriano Neves is an independent policy analyst based in Dili, Timor-Leste, where he regularly writes and comments on the country’s economic development policies. He can be reached by email at [email protected] 

Continue Reading

China’s economic coercion hits a chip wall in S Korea

By:
On:
In: Asia

South Korea has been the target of Taiwanese financial pressure. The South Asian country, like Australia, is a significant member of the US empire in the Pacific. President Yoon Suk Yeol’s recent trip to the United States highlighted its role as an equal-minded adherent to rules-based purchase.

South Korea has been one of the most important goals of Beijing’s economic force strategies because it is a cousin of China and has an economy that complements some of its core corporate sectors. But there are precedents for this.

Following World War II, analyst Albert Hirschman and others argued that” seemingly safe” bilateral trade relations can lead to asymmetric dependence. Asymmetry breeds emphasis, which can lead to social dominance, especially by powerful nations.

The attempts of China to derive social and strategic benefit from its trade relations are a modern-day version of this. Hirschman, however, thought that the global network might” contain the seeds of its own destruction ,” despite what modern evidence would have us believe.

One group of researchers identified 123 instances of China imposing— or threatening to impose — unilateral sanctions on foreign entities between February 2010 and March 2022, including strikes, operational discrimination, defensive trade steps, trade restrictions, and travel restrictions.

Even though Chinese persuasion has had a negative impact on the North Korean economy, its unintended effects have forced South Korea to cut back on its ties to China, even though this comes at some significant costs.

North Korean businesses and decision-makers have worked to improve financial independence, sovereignty, and private resilience by reshoring and onshoRING. This is clear from the experience of two industries — retail and semiconductors — that had previously been heavily exposed to China.

The most obvious example of a South Korean company being subjected to Chinese force for non-economical reasons is the Lotte team and its string of department stores, which it again ran on mainland China.

A closed Lotte Mart in Hangzhou, Zhejiang province, China, March 5, 2017. REUTERS/Stringer
On March 5, 2017, a Lotte Mart in Hangzhou, Zhejiang province, China, closed. Companies in the photography

Lotte is frequently referred to as” the biggest loser” in the 2016 Terminal High Altitude Area Defense ( THAAD ) incident, in which Beijing expressed outrage over Seoul’s choice to use a US-made anti-ballistic missile system. Lotte already sold the land required for THAAD.

In retaliation, As & nbsp, the majority of its stores in China were subjected to regulatory suspensions, which led to declining sales and losses of up to AU$ 1.3 billion( US$ 875.7 million ). The Lotte ring had already left China by 2018.

The Lotte case shows the limitations of persuasion as a tool for international insurance even though it was the Chinese government’s use of unchecked power. China’s actions eliminated a significant source of purchase over South Korea by punishing Lotte and forcing it to close its shops.

A South Korean academic and political consultant noted that” very few foreign sellers” have ever” run fantastic services” in China, despite the fact that there were actual costs for the business.

Pertinently, the South Korean government encouraged Lotte’s move to Southeast Asia rather than trying to talk it out of leaving China. The incident already damaged North Koreans’ perception of China.

In the financial sector, China’s force was successful in harming South Korea economically, but in the semiconductor industry, it was less effective. South Korean chipmakers produce about & nbsp, 20 % of global production, including some of the most cutting-edge, upstream segments, and East Asia is the center for the multiphase creation of semiconductors.

Chinese businesses, in contrast, are active in upstream markets and heavily rely on imported parts from South Korea. Beijing is convinced that semiconductors are a” chokepoint concept,” which can limit the government’s ability to target foreign companies, including South Asian ones.

The largest companies in some counties are North Korean chipmakers, who have made sizeable investments in China. Any threat of retaliation against North Korean semiconductor producers may result in job losses and decreased Chinese semiconductor production.

In order to further thwart Chinese retaliation against the United States and its allies, significant players like the SK Group are expected to join the so-called” chip alliance” through & nbsp, increased investment in the US, and cooperation on supply chain restructuring.

South Korean businesses have clearly experienced economic disruption as a result of Taiwanese force, and South Korea and US-aligned economies will cover the costs of supply chain restructuring. However, it says a lot that South Korea, Australia, and other nations chose to accept these expenses rather than submit to Chinese pressure.

An employee of Samsung Electronics shows the world's first 30-nanometer 64-gigabit NAND flash memory device. Photo: AFP/Kim Jae-hwan
The world’s second 30-nanometer 64-gigabit NAND flash memory device is displayed by a Samsung Electronics individual. Kim Jae – hwan, AFP

While China has used asymmetrical dependence to further its diplomacy, this strategy has only had limited performance. Through the Belt and Road Initiative & nbsp, China’s attempt to become a global financier and wield more power has also encountered obstacles. Hirschman’s analysis of the politicians of international trade is supported by how quickly targeted nations like South Korea have moved to lessen their reliance on Chinese force.

Although South Korea’s restrictions on economic force have been made clear, this type of statecraft won’t always be abandoned. While some adhere to Hirschman’s logic and believe that Chinese power can be” tamed” through interactions with other powers, which could result in the end of coercion or a decrease in its frequency, others believe China is failing to & nbsp, read the signals, and send them from other states.

This implies that ambitious Chinese leaders may continue to be tempted by force. As they look into the future, nations like Australia and South Korea would be good to make for both situations.

Dominic Simonelli is a Research Assistant in the School of Humanities and Social Sciences at Deakin University.David Hundt is Associate Professor of International Relations in the School of Humanities and Social Sciences at Deakin University.Baogang He is Alfred Deakin Professor and Personal Chair in International Relations in the School of Humanities and Social Sciences at Deakin University.

This document, which was originally published by the East Asia Forum, has been republished with a Creative Commons license.

Continue Reading

‘Don’t criticise the government unless you want to disappear’ Lao activist survives shooting

By:
On:
In: South-East Asia

This is a scenario that is still developing.

In Laos, the cost of freedom can be as huge as a child’s life. & nbsp,

Anousa” Jack” Luangsuphom, a 25-year-old democracy activist who has spent subsequent decades advocating for greater rights and freedom of expression in Laos, came to an end with this. & nbsp, On Saturday, an assailant shot him in a coffee shop, which resulted in the activist’s false death certificate being filed several hours later.

Nat, another Lao democracy activist, said that because of his advocacy, the government wanted to kill him. & nbsp,

Although the shooter’s motivation is unknown at this time, speculation that the attack was motivated by politics was instantly sparked by the fact that Jack was one of the most well-known Lao politics activists. The situation was already made public in the national press, which sparked outrage among users of social media. Jack is credited with starting a private Facebook group in 2020 where users could discuss politics, social issues, and mental health in an open manner while promoting human rights. The class just consists of over 7,500 people. In order to formally criticize the government, he co-founded the well-known Facebook page Empowered by a Keyboard ().

An unidentified man shot Jack twice — once in the face and the other time in his chest — in the Chanthabouly neighborhood of Lao capital Vientiane on the evening of April 29. Shortly after the attack, Jack’s family reported him dead, but three days later, images of him were posted on social media showing him to be fully alive. & nbsp,

In an effort to persuade Jack’s life to tell them the truth about his situation, police reportedly paid a visit to the hospital where the militant was receiving treatment by the evening of May 3. & nbsp, Images given to Southeast AsiaGlobe demonstrate that Jack is capable of moving his left arm, possibly writing, and opening his eyes. & nbsp,

The advocate and his Facebook co-administrators were being spied on and stalked by the intruder, who had reportedly made friends with them earlier this year, according to Manushya Foundation, a Thai social justice lobbying organization that has been in contact with people around to Jack. According to the family, this may be one of the factors that led them to record Jack’s death almost immediately after the shooting out of concern for retaliation.

Emilie Palamy Pradichit, the creator and executive director of Manushya, said,” We are really happy he is still alive, and we call for an independent inspection and safety for Jack.”

On May 3, Anousa” Jack” Luangsuphom was shot in a nearby coffee shop. Photo: Facebook kindness

Although the attempted execution was caught on camera, the Lao officials have not yet announced a situation analysis. Local activists and international human rights organizations became outraged as a result, and they started blaming legal connections to the incident.

Nat explained how Lao individuals view campaigning by saying,” Don’t criticize the government unless you want to vanish.”

Nat continued,” It all comes down to the public wanting complete authority over us.” ” For centuries, they used propaganda and fear measures to control us, but now they fear that we will question their actions.” nbsp

Human rights organizations have criticized the initial report of a crime and urged the Lao authorities to establish an independent investigation right away. & nbsp,

The case was described as” emblematic” of the ongoing suppression of human rights and freedoms in Laos by Amnesty International’s regional office.

Luangsuphom is a medical facility. Photo: Facebook kindness

Some human rights activists and outspoken government critics have vanished without a trace, in addition to the most well-known unsolved case of Sombath Somphone’s forced disappearance in 2012. Od Sayavong, who vanished in Thailand and was never located, was the most recent case to come to light prior to Jack’s crime. & nbsp,

Amnesty International told Globe that this attempted murder” sends a clear and disturbing message that sometimes online expression is hardly tolerated.”

Pradichit from Manushya shared this sentiment when he talked about a recent rise in online engagement in Laos. & nbsp,

She claims that in August, when prices in the nation reached an intolerably high level, particularly for local communities, Lao citizens started speaking up in greater numbers online and privately. & nbsp,

According to Pradichit,” There is now a new generation of young people from various backgrounds who want to change elements in Laos.” & nbsp,

She claims that while the nation is beginning to voice its concerns online, they have not yet done so physically. She also emphasized the crucial role played by campaigners like Jack in promoting more freedom online.

She claimed that without persons speaking up, the continent wouldn’t be aware of their hardships. ” Citizens journalists are crucial to mobilize the global community for assistance.”

The International Covenant on Civil and Political Rights, an international agreement that obligates its signatories to uphold political and social rights and trust human rights, includes Laos as a party. According to Amnesty International, the international community had urge the Lao authorities to take action in the case of Jack’s attempted crime if the country doesn’t start the necessary investigation.

In the meantime, right organizations frequently list Laos as one of the most oppressed nations in terms of freedoms and rights. Non-state-controlled information is seldom permitted entering or leaving the country because it is one of the last five socialist nations still in existence. The most popular method of sharing active information may be electronic communication, but Jack’s case demonstrates that even this does come with risk.

According to campaigner Nat,” Jack is a brave young man who has been fighting hard for his rights.” He should be able to sit and cherish his rights because he is still a young person.

Continue Reading

Laos opens up about mental health amid poor professional support

By:
On:
In: South-East Asia

When Mee Xaiyasongthor first began to doubt the everyday, dark feelings of loneliness that she couldn’t seem to tremble, she was just a teenager.

She set out on a desire to free herself from her own terrible thoughts as she felt more and more cut off from the rest of her peers, solitary, and misunderstood in her rural northwestern Laos home. & nbsp,

She remarked,” I started asking myself what was wrong with me.” ” I didn’t have any friends I could talk to.” I feared being by myself.

Mee, a top health technology student in Vientiane’s capital, quickly realized she needed assistance. However, since she lacked support, she was forced to teach herself coping skills she had learned online. In addition, & nbsp,

She said,” That’s when I realized I wanted to assist those who are mentally ill and unable to see relief.” I aspired to work in psychology.

Mee quickly discovered, however, that earning a psychology degree is not an easy option for students in Laos because such degrees are not offered it. & nbsp,

The nation’s health infrastructure is usually constrained, with mental health infrastructure being particularly so. The closest philosophy university at any of Laos’ three regional universities is helpful psychology, which is more closely related to teaching, despite having a dispersed population of 7 million and only one licensed psychiatrist. & nbsp,

During the confinement of the Covid – 19 pandemic, development agencies, civil society, and youth-led counseling advocacy groups like Gamlang Chai and WeCare made progress in improving fundamental solutions. Even so, a general lack of knowledge or awareness of mental health conditions frequently makes it challenging for those in need to seek assistance before it’s too soon.

Mee believes the crisis was at least a turning point for sensitivity, despite the fact that she really believes Laos has inadequate overall mental health support. More tangible ideas feel deep off for the time being.

She said,” I quickly realized that becoming a neurologist was neither simple here.” ” My only option was to begin my medical studies before submitting an application for a scholarship to study overseas.”

a medical facility in Vientiane, Laos. The nation has inadequate health facilities, and mental health response is typically only included as a significant component of larger medical studies. Lilian Suwanrumpha, AFP, pictures

Where are the authorities?

The United Nations Population Fund( UNFPA) has contributed to the development of a more robust set of hotlines for those seeking assistance over the last three years.

In order to maintain longer hours and high-quality counseling through current alerts as well as creating new ones to visit interest during the pandemic, UNFPA worked with the Health Ministry, the Vientiane Youth Center, Lao Youth Union, and the Women’s Union.

According to UNFPA Laos nation representative Mariam Khan,” there is an increase in the burden of thought well-being whenever there is distress, whether physical, emotional, or socioeconomic.” ” Our goal is to establish a secure support group that is trained to offer consolation and security to local areas so they can feel relaxed reaching out.”

Khan added that the lack of experience became” very apparent” when UNFPA started looking for national counseling educators, but the biggest problem was finding enough certified and trained individuals throughout Laos who specialized in this field.

Dr. Kongsy Chounlamany is currently one of only two individuals in the nation with a master’s degree in information psychology from Thailand; the other is retired. She is also the only person with a Doctorate in academic philosophy from Sweden’s Ume University. Chounlamany is the only public psychology professor in the nation and the evil dean of the National University of Laos’ Faculty of Education in Vientiane.

The biggest issue, according to Chounlamany, is that even in hospitals, physicians who treat psychological illnesses are not psychology or doctors. ” They don’t have any formal mental health exercising.”

She claims that among Lao academics, mental medical studies have never been well-liked. She claimed that belief or folk medicine, which attributes for conditions to a mother’s uncomfortable pregnancy or is completely ignored, has historically been used to diagnose mental health disorders. In addition, & nbsp,

The subject is still largely prohibited in Laos. People who spoke with Globe claim that as a result, mental health issues are typically ignored until they become extremely serious or lead to suicide, which would be extremely embarrassing for the victim’s life.

Later in the 1970s, the National University established an Education and Psychology Department, but due to a want of instructors and students, it quickly closed. The ministry didn’t resume its doors until 2017 but, once again, the same issue arose. & nbsp,

According to Chounlamany, there are only seven students on the staff this year.

Lao students offering assistance

She does, however, believe that the subject may now be beginning to change. & nbsp,

People started setting up support groups and mental health advocacy sections on social media as a result of the grief brought on by pandemic lockdowns. Federal public services, in the meantime, increased their efforts in offering counseling training to medical professionals and emergency response participants across the nation in collaboration with international organizations like UNFPA. & nbsp,

Since 2021, Khan has also observed a discernible change in mental medical assistance. & nbsp,

However, she claimed that in Laos, discussing self-harm to the point of suicide is still viewed negatively, just like in many other faiths. She countered that by emphasizing the function of traditional support systems in guiding the susceptible away from ruin. Health emergency response to such incidents is either limited or nonexistent in most places.

The strong sense of community is what makes this place really distinct, according to Khan. There is a propensity to interact at the community level, even though the legal service system may not be as well developed for catastrophes and emergencies.

This strategy led Lao Youth Radio speech Valy Phommachak to co-found the Gamlang Chai social media community support system, which is roughly translated as” cheering and supporting you.”

During the pandemic’s hardships, Valy served as a public radio speaker and felt highly the target of scathing remarks on social media from enraged individuals.

She remarked,” I couldn’t get any more hateful comments, and I was no longer able to handle it on my own.” ” All I wanted to do was stop. I was aware that I needed assistance.

Valy wanted to provide a secure environment for her own members who were having trouble with their mental health as she was able to get assistance through shattered charity organization. Gamlang Chai was the end result, which she and her party introduced in late 2020.

Since then, they have held numerous Wellness Festivals, screen debate, and many activities in Vientiane. In order to get all the tools and data about mental health in Laos, including line numbers, breathing techniques, and a list of medical service providers, they are now looking for funding to develop if necessary.

Valy stated,” We wanted to educate people about mental health and to destigmatise it.” I’m not an expert, but one way I do know is that even the smallest amount of assistance can make a difference.

Continue Reading

Cold chain startup, Coldspace raises US.8mil seed round to fill gap in Indonesia’s supply chain market

By:
On:
In: Technology

Limiting geographic reach for temperature-sensitive products reduces separation and watts.to increase its support offering and create a software suite with customer analysisThe completion of a US$ 3.8 million( RM17 million ) seed round led by Intudo Ventures, an Indonesian-focused venture capital firm, ASSA, one of Indonesia’s largest logistics groups, and Triputra…Continue Reading

FA Sustainable Finance Forum: Top Five Takeaways

By:
On:
In: Asia, Finance, South-East Asia

In terms of sustainable development goals (SDG), business and investment have long and difficult journeys ahead.  Sobering figures from a draft report published by the United Nations (UN) last month reveal that at the end of 2022, just 12% of the SDGs were on track to meet their 2030 targets.

“It’s time to sound the alarm,” the report warned.

“At the mid-way point on our way to 2030, the SDGs are in deep trouble. A preliminary assessment of the roughly 140 targets with data show only about 12% are on track.”

“Close to half, though showing progress, are moderately or severely off track and some 30% have either seen no movement or have regressed below the 2015 baseline.”

The audience at FinanceAsia’s recent Sustainable Finance Asia Forum on April 18 heard that although there is plenty of road to make up on the journey to net zero, so too is there substantial opportunity. 

ESG imperatives are changing the way institutional investors approach decision-making, develop sustainable products and operate within new regulatory frameworks.

While the over-arching message of the forum underlined that sustainable goals and driving yield are not inimical, how exactly institutions approach sustainable finance will shape the future.

The following are FA’s top five takeaways from a forum focussed on these frameworks.

***

1. Creativity is key

While sufficient capital may be out there to bootstrap transitional finance in Asia – a region that is bearing the physical brunt of climate change – getting it where it needs to go in emerging markets (EMs) is not working at the scale and speed necessary to effect change.

Emily Woodland, head of sustainable and transition solutions for APAC at BlackRock, told a forum panel exploring the state of play of Asia’s SDG commitments that, as well as climate and transition risks, investors also face the common-or-garden risks that come from operating in EMs.

“There are the general risks of operating in these markets as well – that’s everything from legal, to political, to regulatory to currency considerations,” she said. 

“Where finance can help develop new approaches, is around alleviating risks to attract more private capital into these innovation markets, and this is where elements like blended finance come into play.”

To make emerging market projects bankable, de-risking tools are urgently needed.

“That means guarantees, insurance, first loss arrangements, technical assistance which can help bring these projects from being marginally bankable into the bankable space, offering the opportunity to set up a whole ecosystem in a particular market.”

2. Regulation drives change

As investment in sustainable development goals moves from the fringe to the mainstream, institutions are bringing with them experience and learnings that are accompanied by policy, regulation and clear frameworks from regional governments.

Institutions are being asked to lead mainstream investment in the space as increasingly, investment in ESG becomes a viable funding choice.

“The next phase, which is the forever phase, will be when sustainability becomes mandatory rather than just a choice,” Andrew Pidden, Global head of sustainable investments at DWS Group told the forum.

“In the future, you will not be able to make an investment that has not been subject to due diligence with a view to doing no harm – or at least to doing a lot less harm than it is going to supply.”

“People may think this is never going to happen, but people thought this phase (of ESG investment becoming mainstream) was never going to happen 10 or 15 years ago.”

3. China is an ESG bond behemoth

Make no mistake, China is an ESG debt giant. Assets in China’s ESG funds have doubled since 2021, lifted by Beijing’s growing emphasis on poverty alleviation, renewable power and energy security.

According to Zixiao (Alex) Cui, managing director CCX Green Finance International, in 2022, green bond issuance volume alone totalled about RMB 800 billion ($115.72 billion), marking a 44% increase year-on-year (YoY). In the first quarter of 2023, there were 113 green bond issuances worth almost RMB 20 billion.

“Actually, this number decreased compared to last year because right now in the mainland, the interest rate for lending loans from banks is very low so there’s really not much incentive to issue bonds,” he told the audience during a panel on the latest developments in Chinese ESG bonds and cross-border opportunities.

“But over the long term, I think we are on target to achieve a number no less than last year.”

At the heart of this momentum is China’s increasingly ESG positive regulation.

“Policy making is very critical because in the mainland, we have a top-down governance model mechanism which has proven effective in terms of scaling up the market – especially on the supply side.”

4. Greenwashing depends on your definition

When is greenwashing – the overstating of a company’s or product’s green credentials – technically measurable, and when is it a matter of opinion?

Gabriel Wilson-Otto, head of sustainable investing strategy at Fidelity International, told a panel addressing greenwashing and ESG hypocrisy issues, that these transparency and greenwashing concerns are often problems of definition.

“There is a bit of a disconnect between how these terms are used by different stakeholders in different scenarios,” he says.

On one side, is the argument around whether an organisation is doing what it says it is, which involves questions of transparency and taxonomy.

“In the other camp there’s the question of whether the organisation is doing what’s expected of it. And this is where it can get incredibly vague,” he explained.

Problems arise when interests and values begin to overlap.

“Should you, for instance, be investing in a tobacco company that’s aligned to a good decarbonisation objective? Should you pursue high ESG scores across the entire portfolio?” he queried.

“Depending on where you are in the world, you can get very different expectations from different stakeholders around what the answer to these sub-questions should be.”

5. Climate is overtaking compliance as a risk

While increased ESG regulation means that companies must take compliance more seriously, this is not the only driver. According to Penelope Shen, partner at  Stephenson Harwood, there is a growing understanding that climate risks are real.

“The rural economic forum global risk survey shows that the top three risks are all related to financial failure directly attributable to climate risk and bio-diversity loss,” she highlighted during a panel called ‘ESG as a component of investment DNA and beyond?’

“In fact, if you look at the top 10 risks, eight of them are climate related.”

The prominence of climate as a risk factor has consistently ranked top of the survey over the past 10 years, she explained.

“Other more socially related factors such as cost of living and erosion of social cohesion and societal polarisation are also risks that have consistently ranked highly,” she noted.

What’s your view on the outlook for green, social and sustainable debt in 2023? We invite investors and issuers across APAC to have your say in the 6th annual Sustainable Finance Poll by FinanceAsia and ANZ.

¬ Haymarket Media Limited. All rights reserved.

Continue Reading

Citi appoints new Malaysia CEO

By:
On:
In: Asia, Finance, South-East Asia

Citi has appointed Vikram Singh as new CEO of its Malaysian business, effective from May.

A spokesperson for the bank told FinanceAsia that Singh had already relocated to Kuala Lumpur for the new role, which will see him prioritise growth across the market franchise.

In his new capacity, Singh reports to Amol Gupte, head of South Asia and the Asean region, and takes responsibility for the full suite of the bank’s activities in Malaysia. This includes oversight of the performance of Citi’s Solutions Centres in Kuala Lumpur and Penang, which support its wider banking operations in over fifty countries.

Singh has served across a number of Citi’s core divisions to date. He started his career with the bank 24 years ago working across its India-based business, in posts located in Mumbai, Bengaluru and New Delhi. Most recently, he was head of Asia Pacific Regional Account Management, managing coverage of global subsidiary clients operating in the region, from Singapore. 

A release shared with media pointed to Singh’s particular expertise leading the bank’s Corporate and Investment Banking effort in the Philippines over a period of five years, during which he devised robust business strategies that went on to achieve double-digit revenue growth.

“Vikram’s long career and experience with the firm will be invaluable in leading the next stage of growth in a market that also supports many of our global businesses and functions,” Gupte said in the announcement.

Citi established a presence in Malaysia 64 years ago. In January 2022, the bank announced plans to sell its consumer franchise in four Asean markets including Malaysia, to United Overseas Bank (UOB). The deal finalised in November 2022, bringing the bank regulatory capital benefits of approximately $1 billion. 

Offering an update on the bank’s performance in the market following the divestiture, the spokesperson told FA, “We continue to see good client activity across our institutional businesses.” He noted “good growth and client work”.

Elaborating on the current opportunities that Malaysia presents, the contact pointed to varied growth avenues across investment and corporate banking, as well as within the bank’s trade and treasury business, such as hedging.

“Across our institutional businesses from Banking, Markets and Services, we see opportunities to support both local and multinational corporate (MNC) clients further.”

The spokesperson added that the bank has recruitment plans around Singh’s appointment to support client-led growth. 

¬ Haymarket Media Limited. All rights reserved.

Continue Reading

Australia’s China ignorance a matter of miseducation

By:
On:
In: Asia

The Australian Academy of the Humanities 2023 report into the knowledge capability of Australia’s universities concerning China has brought into sharp relief just how far a fraught relationship with China is permeating national life.

Since at least 2017, the rhetoric of Australian political leaders and prominent media commentators has emphasized that Australia faces an existential threat to its security and prosperity from a rising and more assertive China. Public opinion polls now consistently show deepening negative views of Chinese President Xi Jinping’s China.

The most obvious effect of this relationship breakdown was Beijing’s freezing of high-level political contact and its ultimately counterproductive imposition of tariffs on key Australian exports.

Those restrictions are now being eased and Australian Prime Minister Anthony Albanese’s government has stopped the shouting of its predecessor. Still, there remains little realistic hope that the bilateral relationship can advance much beyond stabilization in the near to medium term.

But a light has now been shone on how Australia’s China debate is affecting the kinds of choices being made by — and provided to — younger Australians about the study of China at Australian universities. In short, the report shows a clear shift away from the study of language, history, culture and identity to a heavy focus on international relations and security.

This gradual ebbing of Asian expertise accompanying the rising tide of a China threat narrative is of deep concern to Australia which remains ever-keen to define itself as belonging to Asia.

Australia is stuck in an East-West identity crisis. Image: Facebook

As former Department of Foreign Affairs and Trade secretary Peter Varghese and language studies expert Joseph Lo Bianco argued, “the evidence shows us that Asian expertise is slipping at the worst time: when the region itself is changing, strategic relationships are re-aligning and economic models are shifting.”

The drop-off in the teaching of Asian languages is not a new phenomenon. Indeed, it taps deeper roots in Australia’s ongoing search for markers of regional belonging. Australia appears to periodically discover its Asian knowledge deficit.

In the 1960s, the United Kingdom’s departure from Southeast Asia and the recalibration of the United States’ role in the region forced both sides of politics to come to terms with Australia’s place in Asia as never before. Former minister for education Malcolm Fraser argued for more Asian studies in Australian schools.

Around the same time, former minister for the interior Peter Nixon was much more emphatic in declaring that “now is the time for us to place the war of the roses and similar ancient European events amongst the curios of bygone days.” Nixon said Australians needed to “throw overboard” Latin, Greek and French and start learning Japanese, Chinese and Malay.

In the 1980s, the Ingleson report on Asia in Australian Higher Education (1989) gave the impetus for Australians to pick up unfamiliar dictionaries its fullest treatment. The report advanced the most dramatic claims for the changes which had overtaken Australia since the 1970s, stating that Australia was linked to Asia through geopolitics, trade, investment and immigration “in a way different from any other country.”

Because of this, if Australians were “to manage their future as part of the Asian region”, Australia would need to have widespread knowledge of Asian languages and cultures.

But the Ingleson report’s grandest assertion, leading up to proposals for radical changes in university humanities and social science course structures, was that teaching about Asia was part of the “Australianisation” of the curricula. Former prime minister Bob Hawke’s government took heed of the recommendations and made the teaching of an Asian language compulsory in primary and secondary schools.

The governments of former prime ministers Kevin Rudd and Julia Gillard added the most recent chapter to this story. The Rudd government introduced a program to fund high school Asian language and culture studies and double the number of students exiting school with fluency in Chinese, Indonesian, Japanese or Korean by 2020.

The Gillard government outlined a policy objective that every student in Australia be given the opportunity to learn an Asian language — particularly Chinese, Japanese, Indonesian or Hindi — and study Asian culture. There is space for the Albanese government to emphasize the urgency of Australia’s Asian expertise deficit, too.

Australian Foreign Minister Penny Wong is serious about projection of a “full identity.” Image: Screengrab / ABC

After all, Foreign Minister Penny Wong is serious about projecting Australia’s “full identity” to the Pacific and Southeast Asia. Wong has also been assiduous in recording messages in Indonesian to underline the greater intimacy of the new government’s approach to its regional neighbors.

That example now needs to flow through to a sustained national program for Asian literacy and perhaps even the re-energizing of the Australia–Asia Institute, once housed at the University of New South Wales. The Institute was described by its founder, former Australian ambassador to China Stephen FitzGerald, as having sought to host “high-level dialogues with Asia to incubate ideas and build relationships”, and be “a vehicle for Australian and Asian leaders to amplify their views and debate our Asian future.”

Universities also need to re-forge the link between language and translation and society teaching.

Australia cannot continue to shape future policy towards China reliant only on the advice of its national security agencies. It would be foolhardy to suggest that nations never change — China too will change, perhaps in unpredictable ways.

The question is whether Australia mortgages its image of China to the present or starts learning to be more adaptable and agile in the event that circumstances change.

Elena Collinson is Manager, Research Analysis at the Australia-China Relations Institute, University of Technology Sydney.

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

Continue Reading

Survey: 64% of regional consumers will opt for environmentally friendly products and services

By:
On:
In: Technology

85 % of people think that personal decisions can have an impact on economic progress.However, just 1 in 10 people invest in clean industries.According to study findings, customers in Southeast Asia are confident in their capacity to significantly impact the environment through their eating habits. Even though they couldn’t see how…Continue Reading