In this 2016 photo, Chinese missile frigate Yuncheng launches an anti-ship missile during a military exercise in the waters near China's Hainan Island and Paracel Islands. Tensions continue to rise between China and the US in this part of the world. AP Photo
In this 2016 photo, Chinese missile frigate Yuncheng launches an anti-ship missile during a military exercise in the waters near China's Hainan Island and Paracel Islands. Tensions continue to rise between China and the US in this part of the world. AP Photo
In this 2016 photo, Chinese missile frigate Yuncheng launches an anti-ship missile during a military exercise in the waters near China's Hainan Island and Paracel Islands. Tensions continue to rise be
With China firing medium-range missiles across the South China Sea and the US navy in July sending two aircraft carriers into waters claimed by Beijing, tensions in the region continue to rise.
All too often the Trump administration's stance appears to be, as my former colleague at the Institute of Strategic and International Studies Malaysia, Elina Noor, put it in a co-authored article recently, "reminiscent of the 'either you are with us, or against us' trope that cast a shadow over the Bush administration's Asia policy".
South-East Asian countries are being pushed strongly, especially by Secretary of State Mike Pompeo, to come down on America's side. While this conversation reverberates around the globe, voices and views from the 10 countries that constitute the Association of South-East Asia Nations (Asean) are curiously absent.
This is a real omission, considering that its population of 650 million made it collectively the fifth-largest economy in the world last year. Further, we who live there will have to face the consequences of this dangerous rhetoric. We are on the frontline of any future conflict that some hawks seem earnestly to desire, however catastrophic it might be.
So a new publication – In The Dragon's Shadow: South-east Asia in the Chinese Century – by the Australian journalist and scholar Sebastian Strangio could not be more timely and important. In this superbly researched book Mr Strangio sets out the historical background, going back centuries, before focusing on recent decades of a relationship he describes as "fraught" – but necessary.
In 2019's Empire of the Winds: The Global Role of Asia's Great Archipelago, the storied columnist Philip Bowring argued that the region had "a common history and deep linguistic and cultural roots" going back millennia. Mr Strangio takes a more recent starting point. He notes that the term "south-east Asia" is of mid-20th century coinage; but that it has become something real, not least since the formation of Asean in 1967.
When I interviewed Zaim Mohzani, then a member of the Young South-East Asian Leaders Initiative set up by the Obama-era State Department, for the association’s 50th anniversary three years ago, he agreed. The region, he said, had evolved into an extended family. “Uncle, aunty,” he said. Occasionally dysfunctional perhaps, “but it’s still a family".
However, it is not homogeneous. Mr Strangio correctly points out that what are known as the "CLMV countries" – Cambodia, Laos, Myanmar and Vietnam – have always been China's borderlands. Historically they may have had closer tributary arrangements with the emperors of old, and their relations with China today are complicated by Beijing's power over the mighty Mekong River, on which they all rely to a greater or lesser extent. Regulating its flows, which China can do after damming it, has enormous effects downstream.
Other countries, such as Malaysia, Indonesia and the Philippines, were just literally further away. Now, they feel closer; uncomfortably so, when China ventures out and presses its claims to wide stretches of the South China Sea that Asean states also lay claim to. But the proximity was always there. Mr Strangio quotes Malaysia’s then prime minister, Tun Abdul Razak, saying in 1971 that being in China’s neighbourhood meant they were always “the first to live with the consequences of her policies”. Turning away from China is just a geopolitical impossibility.
Thailand Prime Minister Prayut Chan-o-Cha, centre, greets guests at an Asean business forum last year. While being a tight-knit regional bloc, it is however not homogeneous. AFP
The same is true economically. Quite apart from it being a source of much-needed infrastructure loans, Mr Strangio states: “From 2013 to 2018, China’s trade with the south-east Asian bloc totalled $2.37 trillion, compared to $1.33 trillion for the US and $1.32 trillion for Japan. It is also the leading source of tourists to the region.”
There are many other reasons why south-east Asia would not want to side against its giant neighbour. Mr Strangio quotes one US analyst talking of “China’s push to shape other countries’ political systems”, but there is next to no evidence of that in the region. Instead, he rightly concludes that China “works with the realities that exist… it has been mostly indifferent” to how Asean countries govern themselves. With a common belief in the principle of non-interference in other states’ internal business, that is exactly how all parties want it.
What most if not all regional governments do not want, in fact, is to be pushed to replicate the American-led liberal universalist model, which Mr Strangio found to be “viewed as quaint and parochial, if not an open threat” in conversations in South-East Asian capitals. In this, he is to be commended for not making the mistake of too many foreign correspondents in the region – of talking to a handful of urban liberals and assuming they represent more than the minority they actually are.
Customers hang out at a Starbucks coffee shop at Parksons Mall in Kuching, Sarawak, Malaysia. Sarawak is separated from peninsular Malaysia by the South China Sea. American businesses flourish in the region. Bloomberg
The strongly held view in south-east Asia about the US-China dispute is that 'the future should not be an ultimatum'
Then there is the question of American reliability. The fact that President Barack Obama needed to put forward his famous “pivot” to Asia shows that the US had neglected the region in the past, and the Trump administration’s wild oscillations and intemperate bellicosity have provided little reassurance of either long-term continuity or any commitment to stability.
Ultimately, as Mr Strangio quotes the eminent Sinologist Wang Gungwu as saying: “The Americans ‘have to justify being here’. The Chinese, on the other hand, ‘are just here. It’s their backyard'.”
And that is why South-East Asian governments will "simultaneously balance, hedge and bandwagon" between great powers, according to the leading Singaporean thinker Bilahari Kausikan. It "is embedded in our foreign-policy DNA. Not only do we see no contradiction in doing so, this is an instinctive response honed by centuries of hard experience".
It should be stressed that there is plenty of pro-American sentiment in the region. US culture and food have long been adopted, and co-operation on trade and security is widely welcomed. But as Ms Noor wrote in her article, the strongly held view is that “the future should not be an ultimatum". Should that scenario prevail, Mr Strangio’s book contains a stark warning to America from a former Singaporean ambassador to Washington: “Don’t press countries in the region to choose. You may not like what you hear.”
Sholto Byrnes is an East Asian affairs columnist for The National
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
UK’s AI plan
AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
£10bn AI growth zone in South Wales to create 5,000 jobs
£100m of government support for startups building AI hardware products
£250m to train new AI models
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