Prospects for East Asia in the second quarter

Subject Prospects for East Asia in the second quarter of 2015. Significance Pronouncements made at the National People's Congress (NPC), which opened in Beijing yesterday, will give pointers on policy during the coming months. Debt has become a significant issue in the assessment of China's economic outlook. In Japan, nationwide local elections in April could see setbacks for Prime Minister Shinzo Abe's government, hit in recent days by political funding scandals. Meanwhile, annual large-scale military exercises have just begun in South Korea, antagonising Pyongyang.

Significance It is the only country in South-east Asia with a large-scale nuclear plant, although this was never loaded with fuel. Other countries in the region have tentative plans to develop nuclear power programmes. Impacts The current absence of nuclear power programmes will help avert the diversion of capital from renewable energy development in the region. South-east Asian countries with small, non-power reactors, built for research, will try to maintain these facilities. Across the region, the need for electricity grid investment will increase as more decentralised generation sources are deployed.


2020 ◽  
Author(s):  
Ke Xu

<p>    The large-scale circulation anomalies associated with extreme heat (EH) in South Korea and southern–central Japan are examined using data during the time period 1979–2016. Statistical analysis indicates that EH days in these two regions are concentrated in July and August and tend to occur simultaneously. These EH days are therefore combined to explore the physical mechanisms leading to their occurrence. The composite results indicate that the anomalous atmospheric warming during EH days is dominantly caused by a significant subsidence anomaly, which is associated with a deep anomalous anticyclone over East Asia. Further investigation of the evolution of circulation anomalies suggests that the anomalous anticyclone over East Asia related to EH is primarily initiated by wave trains originating from upstream regions, which propagate eastward along the Asian westerly jet in the upper troposphere. These wave trains can be categorized into two types that are characterized by the precursor anticyclonic and cyclonic anomalies, respectively, over central Asia. The distinction between these two types of wave train can be explained by the wavenumbers of the Rossby waves, which are modulated by both the intensity and the shape of the Asian westerly jet as the background basic flow.</p>


Significance King Mohammed VI has committed forces to the Saudi-led coalition conducing operations in Yemen to reinforce the alliance with Gulf states. It may be because of these ties that Morocco's Islamist Justice and Development Party (PJD) survived the regional political backlash against the Muslim Brotherhood -- with which the PJD has some parallels, but no formal links. Prime Minister and PJD leader Abdelilah Benkirane has developed a close working relationship with King Mohammed and the royal court. With the economy performing well, Benkirane's chances of prolonging his mandate look promising. Impacts Local elections will signal the level of popular support for the PJD. If Benkirane retains the premiership post-2016, he may seek a more prominent role for the PJD -- in cabinet and the civil service. This could bring him into conflict with the king.


Subject The outlook for Indian naval engagement with South-east Asian countries and ASEAN. Significance At the ASEAN summit in mid-November, India's Prime Minister Narendra Modi underlined India's 'Look East' policy, pledging to cultivate diplomatic, economic and security relationships with South-east Asia. One manifestation of Delhi's willingness to undertake a more strategic regional role is the Indian navy's growing portfolio of partnerships with South-east Asian navies. Amid concerns over China's maritime assertiveness, India's navy has been welcomed in the region as a security partner. Impacts India will avoid South-east Asian undertakings that may provoke China. Delhi will need to define 'Look East' policies concretely to convince South-east Asia fully of Indian strategic utility. Modi will expand bilateral naval exercises, humanitarian aid and counter-piracy/smuggling efforts in South-east Asia.


Significance However, the June 14 local elections resulted overall in the pro-European parties winning 56.5%, with the pro-Russians securing 31.5%. The result will be a relief for the pro-European camp, which had feared that the ongoing banking scandal -- which has seen 1 billion dollars go missing and the resignation on June 12 of Prime Minister Chiril Gaburici -- could portend an upsurge in support for pro-Russian groups. However, despite the pro-European win, Moldova's Gagauz region remains one of Russia's strongest supporters and will remain a potential pressure point. Impacts Russia's enduring prominence in Gagauzia's political landscape will give Moscow a foothold in Moldovan politics. Russia's interest in Moldovan politics will prompt Moldovan supporters of European integration to speed up that process. The EU will have to continue to support Moldova's economy, if only to match Russia's economic support for Gagauzia.


Significance Inbound and outbound Asian tourism has exploded over the last 20 years, especially in East and South East Asia. However, the sector faces challenges. Impacts Supporting tourism, Asia hosts three Olympics in a row -- South Korea 2018 (winter games), Tokyo 2020 (summer) and Beijing 2022 (winter). Tourism is a key source of exports and dollars; if Cambodia is hit by sanctions after its disputed election, tourism could cushion GDP. In ten years the UN sees India's population overtaking China's, making Indian travellers key to East and South-east Asian tourism.


Subject The economic outlook for Papua New Guinea. Significance Rating agency Moody’s on March 23 shifted Papua New Guinea (PNG) to 'negative watch', a further indication of the economic challenges facing the re-elected Peter O’Neill government as it prepares to host the Asia-Pacific Economic Cooperation (APEC) summit in November this year. PNG in February suffered its largest earthquake for nearly a century in areas surrounding the largest resource projects in the country. Impacts Despite a planned major expansion in LNG production, recent policy decisions suggest a troubled business environment. Reversals in economic policy, combined with the earthquake, will further depress GDP growth. Prime Minister Peter O’Neill is weaving together a large coalition which should cement his position until at least after APEC. Foreign exchange shortages will harm growth and discourage investment, due to fears that firms cannot pay dividends to foreign shareholders.


Subject Consequences of India revoking Jammu and Kashmir's special constitutional status. Significance Delhi denies reports that there was a large-scale anti-India protest on August 9 in Srinagar, headquarters of the majority-Muslim Kashmir Valley. Much of Jammu and Kashmir has been on lockdown since Prime Minister Narendra Modi’s government on August 5 revoked the state’s special constitutional status and passed legislation to reorganise its governance. India and Pakistan administer different parts of Kashmir and dispute sovereignty over the region. Impacts China is unlikely to maintain much diplomatic pressure on India, following its initial expression of opposition to Delhi’s Kashmir move. Islamabad will urge Washington to confront Delhi over the Kashmir issue, probably to little avail. In India’s north-eastern states, fears that Delhi may attenuate special local rights are unlikely to be assuaged by government denials.


Subject The economic outlook for China following the lifting of the COVID-19 lockdown. Significance The economic uncertainties due to the economic impact of the COVID-19 pandemic made this year’s National People’s Congress (NPC) unusually important. After GDP fell 6.8% year-on-year in the first quarter, the government for the first time announced no annual GDP growth target, indicating extreme uncertainty over the extent and durability of recovery. Impacts China’s industrial output will outpace export demand; trade tensions such as anti-dumping cases could rise. US-China tensions will rise, but both sides will be warier than last year of major moves that could jeopardise economic recovery. China’s commitment to high military spending is undiminished by its economic troubles; defence spending will rise as a share of GDP.


Significance Bringing the poll forward could be risky for Prime Minister Lee Hsien Loong's People's Action Party (PAP), as it faces a new opposition party and worsening economic conditions. Impacts Tan Cheng Bock will at the next election attempt to unite the opposition behind his Progress Singapore Party. Deputy Prime Minister Heng Swee Keat will likely succeed as prime minister when Lee eventually leaves the post. Singapore's economy is unlikely to benefit from any large-scale redirecting of investment from Hong Kong, despite the protests there.


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