-Najib Razak’s United Malays National Organization (UMNO) is fanning racial flames in an attempt to shore up power for its National Front Coalition. Although Najib came to office promising to be more inclusive of minorities, recent electoral pressure from the opposition People’s Alliance has prompted a change in strategy. Analyst believe the UMNO wants to strip Malay support from the People’s Alliance by arguing the party is against ethnic Malay interests. This is risky because they run a risk of alienating secular Chinese support in the National Front. Ethnic Malays make up 55% of the population and the largest minority group, the ethnic Chinese are approximately a quarter of the population. The August 25th election will determine if the UMNO’s strategy bears fruit. The article also touches on the affirmative action system for the Malaysian majority.
– Laos, a the nation of 6.89 million, is suffering less from the global economic recession than its neighbors. This is not a statement of strength but a testament to the fact that Laos is so unplugged from international trade and the economy so continuously capital starved, that there is little to affect.
“ ‘Laos has survived the crisis because we have no economy to suffer,’ joked one senior Lao technocrat who asked not to be named. “
This situation might not last much longer as the Asian Development Bank (ADB) expects, Laos economy to grow by 5.5% GDP growth this year. Much of this will be generated by construction, mining, tourism, and energy projects. In regard to tourism, UNESCO, has named the city of Luang Prabang, the ancient capital of Laos, one of the top 10 cities in the world. Also, in an attempt to join the World Trade Organization next year, Laos is liberalizing foreign investment laws.
– In the last week, ASEAN finalized two major free trade agreements. The China-ASEAN Free Trade Area (CAFTA) was signed on August 15. On August 13, India and ASEAN signed their own free trade agreement. ASEAN and India are already considering further integration, hoping to negotiate an Information Technology agreement. ASEAN is currently India’s 4th largest trading partner behind the EU, U.S., and China. This blog has discussed CAFTA in greater detail here.
ASEAN believes it would benefit mightily from further FTA initiatives, citing research:
A free-trade agreement that included the group, Japan, South Korea and China would lift Southeast Asia’s economic growth by 3.6 percent, Asean said in a statement released late yesterday, citing a feasibility study. Gross domestic product in Japan, South Korea and China would climb 0.9 percent, they said.
A broader trade deal that also included India, Australia and New Zealand would boost Asean’s GDP by 3.8 percent, the regional grouping said in a separate statement. Growth in all 16 nations would increase an average 1.3 percent, the statement said.
– U.S. Senator Jim Webb briefly visited Cambodia on his regional tour. Talking to reporters at the capital, Phnom Penh, Webb said he assured during talks with the minister of commerce that Washington will take a “very close look” at the Trade Act of 2009. This act will provide duty-free access to the U.S. market for garments made in 14 lesser-developed nations. He did press the need for Cambodia to improve labor standards. He also spoke with two opposition leaders about the current ruling party’s suppression tactics. Webb assured them the U.S. supports political pluralism in Cambodia.
–Indonesian President Susilo Bambang Yudhoyono has stated his goal of providing internet access to all villages in the nation by 2010 as part of a broader telecommunication and telephone infrastructure initiative.
-ASEAN is holding talks to consider sending a letter to the Burmese Junta to inquire if the junta could “possibly/maybe” release Aung San Suu Kyi. Rumor has it that the body is split evenly over this issue. Not surprisingly, Vietnam has publically stated that it takes no issue with the Myanmar government over Aung San Suu Kyi’s detention. I suppose this is one small step in human rights in a region that has struggled over the issue.
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