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In today's bulletin: Whoever wins the US election, Indonesia will stay neutral in the US-China rivalry in the South China Sea; Australia is on edge over China's import curbs; Malaysia will continue to pump-prime its pandemic-hit economy; and more.
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US polls: Whoever wins, Indonesia to stay neutral
Whether Mr Donald Trump or Mr Joe Biden becomes the next president of the United States, Indonesia will maintain its neutrality in the South China Sea amid simmering tensions between the US and China, reports regional correspondent Arlina Arshad. This is as the two presidential contenders are seen by analysts to be politicians who come and go while the bureaucracy is in charge of policies.
When US Secretary of State Mike Pompeo visited Jakarta on Oct 28, he expressed Washington's readiness to cooperate "in new ways" to ensure maritime security and protect the busiest trade routes from unilateral claims by China. His Indonesian counterpart Retno Marsudi, however, called on US businesses to invest in the Natuna islands in the South China Sea, over which the US and China have clashed on issues such as China's excessive maritime claims and the US' freedom of navigation operations.
The move has been hailed by analysts as a "smart approach" by President Joko Widodo's administration to safeguard Indonesia's sovereignty over the islands without getting dragged into the rivalry between the two great powers. The US is among Indonesia's top military partners while China is its second-biggest source of foreign direct investment.
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Also read:
Global economy at risk if US remains divided
Australia on edge over China's import curbs
Australian exporters are on high alert on Friday (Nov 6) as the deadline arrives for traders in China, its biggest market, to stop buying at least seven categories of the country's commodities. China's government has ordered a halt to imports of products including coal, barley, copper ore and concentrate, sugar, timber, wine and lobster, beginning on Friday, according to media reports.
The industries mentioned as targets of trade action by China represented about 7 per cent of Australia's total goods exports, or A$27.15 billion (S$26.5 billion), in 2019-20. China's blacklist - delivered verbally to commodities traders - doesn't cover materials like iron ore or natural gas, where import curbs could unduly damage China's own economy.
Australia's Trade Minister Simon Birmingham on Friday called the reports of trade sanctions "rumours", warning people to "exercise caution and not jump to conclusions at this point in time". Ties between Australia and China have deteriorated in recent years and soured further this year after Canberra in April called for an independent probe into the origin of the coronavirus.
Also read:
Australia calls for clarity from China over embargo reports
Malaysia's Budget to pump-prime Covid-hit economy
Malaysia will continue pump-priming its coronavirus-battered economy into the next year, with a 5.4 per cent deficit expected in Budget 2021 being unveiled on Friday (Nov 6) evening, reports Malaysia bureau chief Shannon Teoh. This is only slightly lower than 2020's projected 6 per cent deficit, which is in part due to a shortfall in revenue by 7 per cent to RM227.3 billion (S$74 billion).
Malaysia has announced four stimulus packages so far this year, to soften the economic impact of Covid-19-related shutdowns, valued at RM305 billion. A total direct fiscal injection of RM55 billion has led to the Finance Ministry nearly doubling the 3.2 per cent deficit forecast in Budget 2020, which was tabled last year.
Prime Minister Muhyiddin Yassin had said earlier this week that his administration's first budget will be expansionary, with gross domestic product (GDP) expected to shrink by 4.5 per cent this year, the first contraction since 2009. The economy is expected to rebound and see growth of 6.5 to 7.5 per cent next year.
See also:
Budget needs to support people, revive economy amid pandemic
Nintendo, Sony lead Japan's recovery
Nintendo's net profit more than tripled for the first half of this fiscal year, the gaming giant said in its earnings report on Thursday (Nov 5). This was as the gaming industry has been a clear beneficiary of the Covid-19 pandemic which has led to shutdowns and stay-at-home orders, reports Japan correspondent Walter Sim. Sony, whose products range from semiconductors to gaming consoles and movies, also saw its net profit over the same period double.
These tech giants are leading Japan's recovery, with the economy expected to grow an annualised 18.4 per cent in the July-September quarter after a crushing contraction of 28.1 per cent in the previous quarter. Japan is now staking its economic recovery on the hardest-hit sectors like aviation and tourism, by promoting domestic travel and consumption via the Go To Travel and Go To Eat campaigns.
Read also:
Japan PM Suga says revitalising economy is government's top priority
Big time for gaming during coronavirus outbreak
Jobs top billing in India's state election
Jobs have emerged as a key issue in the election in the Indian state of Bihar, the first such poll during the Covid-19 pandemic, reports India bureau chief Nirmala Ganapathy. It is expected to be a test for Prime Minister Narendra Modi and his Bharatiya Janata Party (BJP), which is the junior partner in the state's governing alliance. The third phase of voting is taking place on Saturday (Nov 7) for the 243-seat state assembly.
Bihar was the worst impacted by a stringent lockdown imposed in March to prevent the spread of Covid-19, with hundreds of thousands of migrant workers around the country, many of them Biharis, losing their jobs and making a desperate dash to reach home, triggering a humanitarian crisis.
Read also:
India gets back to work amid Covid-19 pandemic
In other news...
New Zealand's Ardern sworn in for second term: New Zealand Prime Minister Jacinda Ardern was sworn in on Friday (Nov 6) for a second term, as final election results showed her landslide victory was even bigger than previously thought. Ms Ardern, 40, leveraged her success battling Covid-19 into an unprecedented majority at the Oct 17 election, leading her centre-left Labour Party to its biggest win since World War II.
Eye-catching S-E Asian indie beauty brands: On the heels of K- and J-beauty, indie brands from other parts of Asia are catching the eye of beauty lovers and retailers alike. They share in common trendy packaging, social media savviness and clean or cruelty-free claims.
1,000 tips on day one of HK hotline: Hong Kong's new hotline for residents to report violations of a controversial national security law received 1,000 tips hours after its launch on Thursday (Nov 5). The law enacted in June criminalises subversion, secession, collusion with foreign powers and terrorism.
That's all for today, thanks for reading. We'll be back next week.
Sui Noi
