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Showing posts for "Malaysia"

Friday Asia Update: Five Stories From the Week of July 22, 2016

by Guest Blogger for Elizabeth C. Economy
Loretta-1MDB U.S. Attorney General Loretta E. Lynch announces the filing of civil forfeiture complaints seeking the forfeiture and recovery of more than $1 billion in assets associated with an international conspiracy to launder funds misappropriated from a Malaysian sovereign wealth fund 1MDB in Washington, July 20, 2016. (James Lawler Duggan/Reuters)

Rachel Brown, Lincoln Davidson, Bochen Han, Gabriella Meltzer, and Gabriel Walker look at five stories from Asia this week.

1. Justice Department announces action against 1MDB. The ongoing scandal surrounding Malaysian state investment fund 1MDB took a dramatic turn this week when the U.S. Justice Department announced plans to seize $1 billion in assets as part of an investigation into money laundering and funds improperly taken from 1MDB. While the fund was intended to boost Malaysia’s development, some of the money appears to have instead gone toward enriching Prime Minister Najib Razak, his stepson, and other associates. Read more »

The Impact of the U.S. Justice Department 1MDB Announcement on Malaysian Politics

by Joshua Kurlantzick
U.S. Attorney General Loretta E. Lynch announces the filing of civil forfeiture complaints seeking the forfeiture and recovery of more than $1 billion in assets associated with an international conspiracy to launder funds misappropriated from a Malaysian sovereign wealth fund 1MDB in Washington on July 20, 2016. (James Lawler Duggan/Reuters) U.S. Attorney General Loretta E. Lynch announces the filing of civil forfeiture complaints seeking the forfeiture and recovery of more than $1 billion in assets associated with an international conspiracy to launder funds misappropriated from a Malaysian sovereign wealth fund 1MDB in Washington on July 20, 2016. (James Lawler Duggan/Reuters)

I could write a six hundred word blog before getting to the point here, but I will get right to it: The 1MDB asset seizure is likely to have minimal impact on Malaysian domestic politics. To recap … the U.S. Justice Department this morning announced it was filing “civil-forfeiture complaints against more than $1 billion of assets allegedly acquired using funds misappropriated from a Malaysian economic development fund,” known as 1MDB, according to the Wall Street Journal, which has extensively covered the 1MDB saga. Read more »

Friday Asia Update: Five Stories From the Week of June 3, 2016

by Guest Blogger for Elizabeth C. Economy
A man points to water and soil which turned red after being contaminated by industrial waste from a closed dye factory, amid heavy rainfall at a mountain in Ruyang county, Henan province September 15, 2014. According to the local government, the dye factory was operating without proper licenses and was shut down by the authority last year after an explosion which caused dye leakage and polluted the underground water. Picture taken September 15, 2014. REUTERS/Stringer A man points to water and soil which turned red after being contaminated by industrial waste from a closed dye factory, amid heavy rainfall at a mountain in Ruyang county, Henan province on September 15, 2014. According to the local government, the dye factory was operating without proper licenses and was shut down by the authority last year after an explosion which caused dye leakage and polluted the underground water. The Chinese government released a new action plan to address soil pollution this week (Stringer/Reuters)

Rachel Brown, Lincoln Davidson, Theresa Lou, Gabriella Meltzer, and Gabriel Walker look at five stories from Asia this week.

1. China releases ambitious plan to clean up polluted soil. In 2014, the Chinese government disclosed that approximately 20 percent of its arable land was contaminated, primarily with heavy metals and agricultural chemicals from industry and farming. This Tuesday, the central government released a long-awaited action plan as a first major step to control and remedy the widespread problem, known as the last of the “three big campaigns” in Chinese environmental protection along with air and water pollution. The plan aims to stabilize and improve soil quality so that 90 percent of contaminated sites are safe for use by 2020, and 95 percent by 2030. Read more »

Podcast: How State Capitalism is Transforming the World

by Elizabeth C. Economy
State-Capitalism-Kurlantzick

In this week’s Asia Unbound podcast I speak with Joshua Kurlantzick, CFR’s senior fellow for Southeast Asia, about his new book, State Capitalism: How the Return of Statism is Transforming the World. Kurlantzick explains that although state capitalism has been around for more than two decades, it has entered a new era of popularity. Read more »

Friday Asia Update: Five Stories From the Week of May 6, 2016

by Guest Blogger for Elizabeth C. Economy
Supporters chant slogans as the motorcade of presidential candidate Rodrigo "Digong" Duterte passes by during election campaigning in Malabon, Metro Manila in the Philippines April 27, 2016. REUTERS/Erik De Castro Supporters chant slogans as the motorcade of presidential candidate Rodrigo "Digong" Duterte passes by during election campaigning in Malabon, Metro Manila in the Philippines on April 27, 2016. (Erik De Castro/Reuters)

Ashlyn Anderson, Rachel Brown, Lincoln Davidson, and Gabriella Meltzer look at five stories from Asia this week.

1. Duterte ahead in Philippine pre-election polls. Leading candidate Rodrigo Duterte is currently the mayor of Davao city on the southern island of Mindanao, where he is considered to have effectively cracked down on crime and improved the local economy. Duterte has pledged to do the same for the nation if elected and and to act decisively as president. He leads in current opinion polls with roughly 32 percent of the vote, and is trailed by Senator Grace Poe with 25 percent, and Interior Minister Mar Roxas with 22 percent. Read more »

Further Signs of Southeast Asia’s Political Regression

by Joshua Kurlantzick
prayuth-thailand Thailand's Prime Minister Prayuth Chan-ocha looks on before a weekly cabinet meeting at Government House in Bangkok, Thailand, on April 26, 2016. (Athit Perawongmetha/Reuters)

Three new annual reports, from the U.S. State Department, Freedom House, and Reporters without Borders, add further evidence to worries that much of Southeast Asia is experiencing an authoritarian revival. Released this week, Freedom House’s annual Freedom of the Press report (for which I served as a consultant for several Southeast Asia chapters) reveals that in nearly all the ten ASEAN nations, press freedom regressed significantly last year. Freedom House’s findings are similar those of Reporters Without Borders annual Press Freedom Index, which was released earlier this month. Read more »

How Has the Rebalance Affected Security Assistance to Southeast Asia?

by Joshua Kurlantzick
ash-carter-philippines U.S. Defence Secretary Ash Carter walks past honor guards at Camp Aguinaldo to attend the closing ceremony of a U.S.-Philippine military exercise dubbed "Balikatan" (shoulder to shoulder) in Quezon City, Metro Manila, on April 15, 2016. (Erik De Castro/Reuters)

Earlier this month, Secretary of Defense Ashton Carter visited the Philippines, an increasingly important U.S. security partner. In the Philippines, where he observed the annual Balikatan (shoulder-to-shoulder) exercises, Carter made several important announcements. He revealed that the United States and the Philippines are, and will be, conducting joint patrols in the South China Sea. Carter also offered specifics on new U.S. assistance to the Philippines as part of the new U.S. Maritime Security Initiative for Southeast Asia, a program conceived by the Senate Armed Services Committee and designed to provide U.S. aid to Southeast Asian nations to bolster their maritime capabilities. Read more »

The Islamic State in Southeast Asia

by Joshua Kurlantzick
indonesia-islamic-state Police officers react near the site of a blast in Jakarta, Indonesia, on January 14, 2016. (Darren Whiteside/Reuters)

After the attacks in Jakarta in January, in which a group of gunmen, apparently overseen by a man affiliated with the self-declared Islamic State, shot and bombed their way through a downtown neighborhood, Southeast Asian governments began to openly address the threat of Islamic State-linked radicals. The region’s intelligence agencies, and especially Singapore intelligence, had been warning for at least two years that Southeast Asian men and women were traveling to Islamic State-controlled territory for training and inspiration, and that the region’s governments had no effective way to track these militants’ return. Read more »

Malaysia’s Institutions Come Unraveled

by Joshua Kurlantzick
Muhyiddin Yassin-Mahathir Mohamad-Malaysia (Seated from L to R) UMNO's Deputy President Muhyiddin Yassin, former prime minister Mahathir Mohamad and member of parliament Razaleigh Hamzah give a news conference in Putrajaya, Malaysia, on October 12, 2015. Former Malaysian Prime Minister Mahathir and some leaders of the ruling party jointly demanded resolution of the 1MDB state fund scandal on Monday and condemned a crackdown on dissent, signalling a divide within the coalition. (Olivia Harris/Reuters)

On Saturday, as the Diplomat reported, Malaysia’s former deputy prime minister, Muhyiddin Yassin, released a statement on Facebook warning that the country was slipping into dictatorship. Yassin lashed out against Prime Minister Najib tun Razak for overseeing this reversal from democracy. “In the face of public outrage at his leadership, Najib is using all the power that he has to suppress the voice of the opposition and silence his critics,” warned Yassin. “We are really witnessing the collapse of democratic institutions and the emergence of a new dictatorship.” Read more »

Plunging Commodity Prices and the Impact on Malaysia

by Joshua Kurlantzick
najib-razak-budget Malaysia's Prime Minister Najib Razak announces revisions to the fiscal budget in Putrajaya, Malaysia, on January 28, 2016. (Olivia Harris/Reuters)

Last month, Malaysia cut its 2016 growth forecast and slashed spending plans as the economy continues to suffer from falling oil prices. Oil and commodities are very important to Malaysia’s economy, with palm oil, in particular, being one of its foundations. Gas and rubber are also important sectors. So falling global commodity prices have hurt Malaysia badly. According to an article in the Straits Times, the Malaysian government has said that “each $1 drop in oil prices slashes RM 300 million [roughly $72 million] from its annual revenue.” Read more »