Current affairs articles.

Thursday, 12 December 2019

Articles/Essays

Articles/Essays



1          Japan-South Korea Tensions 2019:
A Singaporean View

KB Teo

SYNOPSIS

The current Japan-South Korea tensions are related to historical grievances
and trade conflicts.  There are no winners in a trade war.
Seoul, wisely, has a keen interest to end the dispute as soon as possible.

COMMENTARY

The recent Japan-South Korea tensions arose due to a loss of trust over an
October 2018 South Korean Supreme Court ruling ordering three Japanese firms
to compensate South Korean "comfort women"
for “forced labour” (sexual slavery) during World War Two. 
These firms are Mitsubishi Heavy Industries, Nippon Steel, and the
Nachi-Fujikoshi Corporation. Tokyo strongly condemned the court ruling.
In 1965 when Japan and South Korea normalized their relations,
Tokyo paid US$2.4 trillion in loans and aid to settle the compensation issue.
But Seoul argued that individuals had the right to seek justice on their own.

In August 2019, President Moon Jae-in and US Defense Secretary Mark Esper
agreed to maintain the 2016 Seoul-Tokyo intelligence-sharing pact. 
This shares vital information on North Korea’s nuclear missile program.
It was renewed by South Korea on 23 November 2019, just six hours before it
expired.  

In August 2019 South Korea decided to end it, raising tensions. 
In July 2019, Japan had imposed export controls on materials for ROK's
semiconductor industry. Tokyo said that these strategic materials were illegally sent to North Korea.  The Korea Economic Research Institute said a 30% curb on components from Japan would result in a US$35 billion loss to South Korea's economy.

Japan and South Korea have enjoyed rapid growth.
Japan is the world’s third-largest economy, with a GDP per capita of US$39,286. South Korea is the world’s 11th largest economy.  Over the past twenty years, South Korea has caught up with Japan, with a GDP per capita of US$31,362. On the people-to-people level, more South Koreans visit Japan than any other nation except for China.  
Japan and South Korea have a bitter territorial dispute over the
Takeshima/Dokdo islands in the East Sea.  South Korea complained to the
WTO and lobbied ASEAN. Few countries, as expected, are keen to get involved.
Japan and South Korea are both ASEAN’s major trading partners.
In November 2018, President Moon unveiled a new “Southern Policy” aimed at
deepening ties with ASEAN. In 2018, ASEAN was South Korea’s second-largest
trading partner, after China. Japan is Singapore’s 5th-largest trading partner,
after China, Malaysia, Indonesia, and the US. 
PM Lee Hsien Loong visited the ROK from 22-24 November 2019 to boost
bilateral ties. He held talks with President Moon.
South Korea's economic problems
 Since 2001, South Korea is Japan's third-largest trading partner.  In 2018, their bilateral trade hit a record US$89 billion. In 2018, Japan had a US$24 billion trade surplus with South Korea.  Japan had huge investments of US$4.9 billion (2018) in South Korea compared with Seoul’s investments of US$2 billion in Japan. Seoul has much to lose if the tensions persist. 

President Moon strongly encouraged South Korean firms to develop the ability
to produce the goods restricted by Japan. He accused Japan of trying to destroy
South Korea’s export-led economy. 
But history is a big obstacle: an estimated 75% of Japanese and South Koreans
mistrust one another.

Japan and South Korea have major differences in East Asian affairs. 
On North Korean denuclearisation, President Moon supports the easing of
sanctions.  He called for Korean Reunification by 2045. But PM Shinzo Abe insists on maintaining a tough policy unless Pyongyang first denuclearized.  The result is an impasse. Since 2004, China has overtaken the US and Japan to become South Korea's largest trading partner. Japan and South Korea’s willingness to achieve a compromise is due to the cost of their disputes.  Both economies are struggling. Japan's government has lowered its own growth forecast. South Korea’s growth is also weaker. 

The US is caught in a dilemma.  South Korea and Japan are treaty allies of
Washington. American mediation efforts have so far failed. 
The US fear is that the Japan-South Korea dispute could lead to a weaker front against North Korea and China. The Inter-Korean Dialogue is making good progress.   President Moon and Chairman Kim Jong-Un have already met several times.  The latest developments indicate that Tokyo and Seoul are keen to de-escalate tensions.  In May 2019, Japan and South Korea participated in US-led Pacific naval exercises. In October 2019, PM Abe met South Korean PM Lee Nak-Yon to improve ties.

Implications

For Singapore, Japan and South Korea are major trading partners. 
Japan is Singapore’s 5th-largest trading partner, while South Korea is the 7th. Japan and South Korea are ASEAN’s largest trading partner, after China.

As G7 industrialised states, Japan and South Korea are vital to the health
of the global economy.  Despite their current differences, the fundamentals of
Japan-South Korea relations are sound. They share vital common interests
in helping to maintain peace and prosperity in East Asia.
South Korean chaebols are keen to end the tensions with Japan. 
It is unlikely that the Japan-ROK tensions will deepen.
The urgent and vital process of Japan-South Korea reconciliation has started.
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KB Teo is a former diplomat with the Singapore Ministry of Foreign Affairs. 
He obtained a Masters’ degree (IR) from the Australian National University.

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Malaysia’s Succession Struggle 2019


KB Teo


Malaysian politics is in turmoil.  In November 2019, factional infighting within the 
Parti Keadilan Rakyat (PKR) broke out. The PKR is the second largest component
of the ruling multiethnic Pakatan Harapan (PH) (Coalition of Hope),
led by PM Mahathir, 94. 
It also includes the Chinese-based Democratic Action Party led by Lim Kit Siang
and his son, Finance Minister Lim Guan Eng. The latter has corruption charges
pending against him in relation to the purchase of a bungalow in Penang.  The prosecution, controlled by the Attorney General, dropped the charges.


The PH coalition surprisingly won the May 2018 Malaysian General Elections (GE14), ousting the corrupt Barisan Nasional (BN) administration of Najib Razak.


Anwar Ibrahim, 72 (leader, PKR), was challenged by his deputy, Azmin Ali, 55. 
Azmin is very ambitious. He has the support of Mahathir. There was apparently
a “promise”made by Mahathir to make way for Anwar to become PM midway
through HP’s term of office.  Mahathir has since denied making such a promise.
Reports suggest that Mahathir may have political ambitions for his son, Muhkriz.


The PKR factional infighting has negative results for the HP coalition.  In June 2019, it lost decisively in the Tanjung Piai by-election to UMNO.


UMNO deputy president Mohamad Hasan voiced concern that PKR leaders
continue to quarrel over the prime minister’s post.  Mohamad said it was
unfortunate that there had been no discussions on economic issues including
the ringgit’s drop and rising debt.  Billions of ringgit in foreign investment has left
Malaysia’s Stock Exchange. Is performance is among the worst in the world this
year.  The amount of foreign investment which left Malaysia in 2019 was more
than RM10 billion. 
Anti-corruption promises lay at the heart of Pakatan Harapan's 2018 win. 
A priority is its pledge to get to the bottom of the 1MDB scandal.
As much as US$4.5 billion went missing.  Jho Low, a financier accused of
orchestrating the theft, remains at large. In October 2018 the U.S. Department
of Justice announced that he had agreed to forfeit nearly US$1 billion in assets
allegedly bought with the fund's money. Instead, Malaysia's attention has shifted
to former Prime Minister Najib, who has plead not guilty to dozens of charges
ranging from money laundering to abuse of power. 


The new Mahathir administration faces many political challenges.
However, there are three key issues that the administration must address
before the next general election in 2023. These are the Malay Agenda/Bumiputra
Policy; political Islam; and the timeline for transition of power from Mahathir to
Anwar Ibrahim. 
Malaysia’s political system is driven by ethnic and religious tensions. 
The HP embraces Ketuanan Islam (Islamic supremacy) and
Ketuanan Melayu (Malay Supremacy). 
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KB Teo is a former diplomat with the Singapore Ministry of Foreign Affairs.  He also attended the UN General Assembly as part of the MFA delegation.
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Myanmar and Rohingyas:
Brutal Treatment or Genocide?


KB Teo


Since 2016, the Myanmese military (Tatmadaw) has conducted a
violent campaign to force the Muslim Rohingyas to neighbouring
Bangladesh.  Myanmar is a Buddhist nation. Ten thousand
Rohingyas have already been killed, especially in Rakhine state
(northwestern Myanmar). Rohingyas have stayed there for at
least the past three hundred years.  They account for 4.3% of
multi-ethnic Myanmar’s population.
Myanmar has 135 different ethnic groups.  


Myanmar state counsellor Aung San Suu Kyi has refused to condemn the military crackdown. 
She is a pro-democracy icon and Nobel laureate. From 1989 to 2010, she was under house arrest
by the military.


The UN Human Rights Commission (UNHRC) has strongly condemned Myanmar for the
Rohingya killings, calling it “ethnic cleansing” and genocide. 
It claimed that Myanmar had violated the 1948 Geneva Convention against Genocide.
In early December 2019, Aung San Suu Kyi arrived at the ICJ (the Hague) to defend
Myanmar’s human rights record and charges of persecuting the Rohingyas. 
Many Western analysts were unpleasantly surprised. They did not expect the democracy icon to
defend the miitary’s crackdown against the Rohingyas.
In November 2020, Myanmar is scheduled to hold nation-wide General Elections.
Aung San Suu Kyi’s National League for Democracy (NLD) is looking to win more parliamentary seats.  


In foreign policy, Myanmar has been deepening economic and financial ties with China. 
Yangon has responded positively to President Xi Jinping’s Belt and Road Initiative and the
Asian Infrastructure Investment Bank. Both China and Myanmar share the same view regarding
the rising threat of militant radical Islam in Asia.  Beijing has a very coherent policy towards
Myanmar.
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KB Teo is a former diplomat with the Singapore Ministry of Foreign Affairs. 
He also attended the UN General Assembly as part of the MFA delegation.
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