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ASEAN’s much underrated soft power

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The 10-nation Association of South-east Asian Nations (ASEAN) still doesn’t figure high on Europe’s foreign policy agenda, yet the EU’s chances of stronger political, business and security profile in Asia rest on forging stronger relations with it. This means EU governments must have a clearer understanding of ASEAN and its many little-noticed achievements.

With its policy of quiet, cautious and often not so fast regional co-operation and “preventive diplomacy”, ASEAN has managed to achieve peace and stability in the region. Slowly but steadily, ASEAN members are integrating their economies and institutions, making the group a respected political force in the region.

Peace and stability in South-east Asia was certainly not a given when Singapore, Indonesia, Thailand, the Philippines and Malaysia signed the political declaration in 1967 that formed the basis for ASEAN. In a climate of uncertainty and suspicion, ASEAN started as a purely political undertaking. One big difference between the EU and ASEAN is that by starting as a political project, it wasn’t until 1993 that the ASEAN agenda, inspired by the EU, was extended to cover economic integration.

And even then, ASEAN’s goal of establishing an economic community by end-2015 with a “single market and common production base” doesn’t mean it’s on track to become another EU. ASEAN’s economic integration is less ‘deep’ than that of the EU. In addition to its own integration, it is the group’s policy to push ahead with the knitting together of its many different free trade agreements into one over-arching accord. The goal is to establish by 2015 an umbrella trade deal known as the Regional Comprehensive Economic Partnership (RCEP) with Australia, China, India, Japan, Korea and New Zealand as part of a policy of “widening”. The RCEP is designed to create a free trade zone for a market of 3bn people with an economy of $17 trillion.

Equally impressive is ASEAN’s role as a political stabiliser in the region through its network of dialogues on issues ranging from maritime security, health and climate change. These ASEAN-driven initiatives tend to go largely unnoticed in the west but they are the tools of preventive diplomacy.

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ASEAN’s Treaty of Amity and Co-operation (TAC) began as a “peace treaty” between its own member states but now includes a growing number of countries and ‘regional organisations’ (since the TAC was adapted so the EU could join) that have committed to the TAC’s message of “peaceful co-operation and non-interference”. In 2003, China was the first non-ASEAN member to sign up to the TAC, and others that have followed included the U.S. in 2009, the EU in 2012 and Norway and Pakistan as the most recent members, with Turkey and Brazil about to join.

ASEAN has, significantly, managed to keep relations with China on an even keel despite the tensions in the South China Sea over conflicting territorial claims of China and Vietnam, and China and the Philippines. This may lead some to indulge in simplistic conclusions of “inevitable war” in the region – but the reality is very different. China, after long, patient but relentless lobbying by ASEAN, has finally agreed to talk with ASEAN as a bloc about a Code of Conduct for the South China Sea. This ASEAN-China dialogue is still fragile, and fresh incidents could yet lead to future misunderstandings and escalation, so armed conflict can never be ruled out. In the meantime though, ASEAN has played an important stabilising role.

Indonesia, accounting for some 40% of ASEAN’s population and economy, is in the vanguard of efforts to keep the peace with China and has steered clear of China-U.S. rivalry in the region. Indonesia seeks to keep ASEAN, which includes some very pro-U.S. members and others who are allied with China, on a similarly neutral course. When East Timor said it wanted to join ASEAN, Indonesia was clear about ASEAN’s role as a counter-balance to China, with Indonesia’s foreign minister, Marty Natalegawa warning that a negative ASEAN reaction to East Timor’s entry bid could only lead to “greater influence of China in East Timor”. This said, the minister has stressed on more than once occasion that there is “no need to create a new Cold War climate”.

ASEAN executed much behind-the-scenes influence to spur political change and reform in Myanmar. Its decision in 1997 to accept military-ruled Myanmar as a member was in part related to growing Chinese influence in that country, and ASEAN member states felt it was better to deal with Myanmar through a policy of “constructive engagement” than to exclude it.

Myanmar’s ASEAN membership of course led to difficulties in relations with the EU, the U.S. and other Western countries. But ASEAN felt it was not up to those outside the region to pass judgment on the issue, and it can now claim with some justification that this inclusive approach towards Myanmar produced the right results. ASEAN diplomats like to explain that it played an equally important role by showing Myanmar that the ‘international community’ was not composed of a bunch of unpleasant bullies.

 

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ASEAN’s rapid response to cyclone Nargis when it struck Myanmar in 2008 also helped to spur change in the country. Former ASEAN Secretary General Surin Pitsuwan convinced Myanmar’s leaders of the need to accept foreign assistance, and in addition, there was constant soft pressure from Indonesia, whose leaders never spoke out openly against the regime, but for many years met with their Myanmar counterparts to underline the importance of becoming democratic, holding up their own country as an example of a transformation from an authoritarian regime to a vibrant democracy. Myanmar isn’t there yet, but the process of change now underway is testimony to ASEAN’s little-noticed soft power.

ASEAN’s post-modern diplomacy and its role as a factor of stability and peace in the region have long been underestimated by Europe and the U.S. But both Brussels and Washington are now waking to ASEAN’s importance, recognising that it shares with the EU the fate of a regional “peace organisation” that seldom makes the headlines. ASEAN plays a crucial stabilising and balancing role in a south-east Asia, and in the face of rivalries between China, the U.S., Australia, India, Russia and others, its protective fence is of utmost importance to the region’s smaller countries. And even Indonesia finds itself better able to promote its policy of “zero enemies, thousand friends” in the ASEAN context than alone.

In spite of the shouting matches that at times erupt between individual ASEAN members and China, ASEAN as a group has a constructive relationship with its huge neighbour. ASEAN-China co-operation covers many sectors and the two sides have concluded an ambitious free trade agreement. There remain problems, but these are dealt with in a way that is arguably more mature and proactive than, for instance, the uneasy relationship between the EU and Russia.

ASEAN’s soft power may be hard to understand for those who think of power in terms of helicopters and gunboats. But today’s world needs peace-builders and conflict managers – and ASEAN’s stabilising role should not be underestimated. It is time Europe took note.

First published by the Europe’s World, article re-posted per author’s permission

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Southeast Asia

South-East Asia youth survey: Skills prized over salary

MD Staff

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Young people in South-East Asia face a relentless challenge to upgrade their skills as technology disrupts job markets, according to research released today by the World Economic Forum and Sea.

In a survey of 56,000 ASEAN citizens aged between 15 and 35, some 9% of respondents say their current skills are already outdated, while 52% believe they must “update their skills constantly.” Only 18% believe their current skills will stay relevant for most of their lives.

These concerns about skills are reflected in attitudes to jobs. ASEAN youths say the number one reason they change jobs is to learn new skills – the desire to earn a higher income comes second. 5.7% report having lost a job either because their skills were no longer relevant, or because technology had displaced them. Other reasons include the desire to create a more positive social impact and to have a more innovative working environment.

The survey also shows 81% of ASEAN youths believe internships are either equally important or more important than school education. In addition, over half are keen to spend time working overseas in the next three years, probably to gain new skills, with a significant portion wanting to work in another ASEAN country.

“It is impossible to predict how technology will change the future of work.” said Justin Wood, Head of Asia Pacific and Member of the Executive Committee at the World Economic Forum. “The only certainty is that job markets face accelerating disruption, where the lifespan of many skills is shortening. It is encouraging that ASEAN youths are aware of these challenges and show a deep commitment to lifelong, ongoing learning.”

Soft versus STEM skills

Overall, ASEAN youth attach greater importance to soft skills, and less importance to STEM skills – science, technology, engineering and maths. They see “creativity and innovation” as the most important skill – in which they also rank themselves highly – followed by the ability to speak multiple languages. They are confident about their soft skills, such as emotional intelligence, and list the two least important skills as “maths and science” and “data analytics”. They are particularly positive about their ability to use technology such as social media platforms, e-commerce sites, and e-payment systems.

Santitarn Sathirathai, Group Chief Economist of Sea, noted: “While it is essential that the region continues to invest in developing STEM skills among young people, we can also see that soft skills will have a vital role to play – even in the tech sector. In the world where knowledge becomes obsolete more quickly, soft skills such as adaptability, leadership and creativity will be crucial in ensuring young people have the resilience to constantly evolve their skill-sets in step with a changing market.”

The importance of re-skilling

Responding to the need to train workers in the face of technological change, the ongoing ASEAN Digital Skills Vision 2020 programme, launched by the Forum in Bangkok in November 2018 is assembling a coalition of organizations to train 20 million workers at ASEAN SMEs by 2020, and to provide internship and scholarship opportunities.

“The World Economic Forum’s ASEAN Digital Skills programme is delivering significant impact. In its first eight months, the initiative has already secured commitments to train over 8.9 million workers at SMEs, and to provide over 30,000 internships,” said Mr Wood.

Some 16 organizations have so far joined the programme: BigPay; Certiport, a Pearson VUE Business; Cisco; FPT Corporation; General Assembly; Golden Gate Ventures; Google; Grab; Lazada; Microsoft; Netflix; Plan International; Sea; thyssenkrupp; Tokopedia; and VNG Corporation.

“Government policy and business practices need to catch up to what is happening on the ground. Advances in technology will continue to impact labour markets into the future, and this requires ongoing education and skills training,” said Saadia Zahidi, Managing Director and Head of the Centre for the New Economy and Society at the Forum. “Anything less than a systematic shift in our approach to education and skills risks leaving people behind.”

Future jobs

When asked what type of organization they work for today, and where they would like to work in the future, ASEAN youths show a strong preference for entrepreneurial settings. Today, 31% are either entrepreneurs or work for a start-up. In the future, 33% want to work in an entrepreneurial setting. 19% of young people also aspire to work for foreign multinationals in the future (the current figure is 9%).

Traditional SMEs (as opposed to start-ups) are seen less favourably. While SMEs form the backbone of ASEAN labour markets, the survey reveals that small companies face recruitment challenges. 18% of youths work for SMEs today, but only 8% want to work for an SME in the future. One reason for the low interest is because young people say they receive less training at small companies compared to larger ones.

When asked what industry sectors are most attractive, the results reveal a clear preference for the technology sector, with 7% working in the industry today and 16% aspiring to work there in the future. In comparison, more traditional parts of the economy may face recruitment challenges. For example, 15% of youths work in manufacturing today, but only 12% want to work there in the future. Likewise, 8% work as teachers, yet only 5% want to work in education in the future.

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Being Wealthy Helps Singapore’s Naval Ambition

Bahauddin Foizee

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There’s an image that has been imprinted in the minds of the millions about Singapore, that it is a tiny yet wealthy city-state and an important Asian financial hub. But many are unaware of the fact that Singaporean armed forces are stronger than many regional forces, as it has one of the best navies, airforces and armies in the region.

Singapore’s navy, officially known as the Republic of Singapore Navy (RSN), in particular has been shaped over the years into a maritime force which is highly sophisticated and well-trained. An article on The National Interest ranked the RSN among the top five Asian navies, even when Indian Navy did not find a place in the list.

According to the aforesaid article, the RSN is a better navy than the Indian Navy in terms of quality, operation and policy-making, though the RSN lacks the experience, manpower and size of the Indian Navy. Arthur Waldron, an International Relations academic at the University of Pennsylvania, believes that if Chinese Navy, necessarily dividing the fleet, sends a taskforce to subdue the RSN at the Philip Channel, the narrowest part of the Strait of Malacca, the RSN would beat the Chinese taskforce.

Ambitious Procurement Plans

Singapore intends to build a navy that could protect its territories and economic interest from the potential hostility by any immediate larger neighbours, and more importantly a navy that could become lethal if combined with other regional and extra-regional navies (like Australia and Indonesia) against a greater navy (e.g. against Chinese navy). That is why, the RSN is currently on a spree to acquire more capabilities and next-generation platforms.

As part of its submarine force renewal program, the RSN is acquiring four Type 218SG submarines from Germany to improve the operational and combat capabilities of its submarine fleet. These new submarines will be having far more capabilities and durability — and are built to stay submerged about 50% longer — than those of the existing ones.

It’s worth mentioning here that submarines, unlike surface warships that have both peactime and wartime functions, is built to shoot and destroy targets as well as to conduct surveillance, even surveilling foreign coasts to gather vital intelligence. The very fact that a small city-state like Singapore has submarines in operation and is now renewing its fleet with even more capable submarines — shows how ambitious Singaporean navy has become about increasing its naval power.

Because of the larger capacity, these submarines have plenty of scopes for future upgrades, meaning that these submarines could be equipped with weapon systems such as long-range missiles to carry-out an offensive strike.

There’s more to the Singapore’s naval ambitions. Take for example the Joint Multi-Mission Ships (JMMSs), one of the RSN’s major new procurements. With full-length flight deck, these vessels would be almost 540 feet long with an estimated displacement of around 14,500 tons, and are expected to carry five medium and two heavy helicopters on a flight deck. What’s more, these vessels could potentially support limited operations of fixed-wing aircraft, including the F-35B warplanes which Singapore airforce is expected to purchase from the U.S. sometime in near future. Therefore, these vessels could potentially serve as aircraft carriers.

The RSN is also very well aware of the fact that wars these days are fought from a distant with the help of unmanned drones and unmanned vessels that carry cameras and weapons in order to see farther and respond quicker. Hence, the RSN plans to procure new vessels that will be having multiple unmanned air and surface vehicles to extend their reach and flexibility against threats. Take the eight new Littoral Mission Vessels (LMVs) for example. These LMVs will have a helicopter landing pad that will be able to carry an unmanned aerial vehicle. The aforesaid JMMSs and the new Multi-Role Combat Vessels (MRCVs) too will have unmanned air and surface vehicles.

Being Wealthy Helps

An Asian financial hub, the city-state of Singapore has a lot of wealth. The tiny landmass of the state and the already developed infrastructures allow the Singaporean government to allocate comparatively lesser wealth on infrastructures and other conventional sectors and to invest more on innovation and technology as well as defense and security. This is how the tiny state affords to make the quality defense procurements.

Singapore has been the Southeast-Asia’s largest military spender for several years now. Singapore was the top regional military spender in 2018 with an expenditure of US$10.8 billion and the Southeast Asian neighbour with the closest figures was Indonesia with an expenditure of US$7.4 billion. For 2019, Singapore has allocated US$11.4 billion for defense on its budget — something which amounts to about 19 percent of total government expenditures and around 3.3 percent of national GDP.

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Sino-Indonesian Relations: From Friendship to Alliance

Mohamad Zreik

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The relationship between China and Indonesia is becoming increasingly important in international politics. Many analysts are focusing on this relationship as a privileged relationship and it is likely to become a strategic alliance, especially with the Belt and Road Initiative, and the Indonesian role as a key member of the maritime route of the initiative. While others consider that Indonesia allows China to dominate it politically and economically because of exchanges at all levels, which is developing rapidly.

Indonesia is raising the level of relations with China because this policy is in favor of the local economy and stability in Indonesia, while China is dealing with Indonesia with respect and without interference in the internal Indonesian national affairs. In a meeting with his Indonesian counterpart, Ratno Marsudi, on the sidelines of the G-20 foreign ministers’ meeting in Germany, Chinese Foreign Minister Wang Yi said China would work to strengthen bilateral relations with Indonesia and that Indonesia was an important country on the historic maritime silk route. The Indonesian foreign minister said her country is ready to strengthen cooperation with China, more openness to more projects and investment in all fields and Indonesia will work to improve China’s relationship with the ASEAN Group.

The Chinese presence in Indonesia has a long history. Trade relations were the basis of China’s openness to most of the countries of the world and from those countries Indonesia. With the accession of Mr. Abdurrahman Wahid to the presidency of the Republic, the margin of freedoms has greatly expanded to the Chinese community in Indonesia, so they can celebrate the Chinese holidays and they were allowed to work in the local Indonesian markets.The title “Father of Chinese Indonesians” was given to him, because he granted them full rights in Indonesian territory. In 2003, President Megawati Sukarno decided to consider the Chinese New Year as a national holiday in Indonesia. In 2004, the first Chinese minister in the Indonesian government, Mari Pangestu, was appointed.

It is the common interest of China and Indonesia to promote such relations, regardless of differences such as demarcation of the maritime border between the two countries and trade imbalances for China. China is interested in Indonesia for several reasons: having a strong ally in the region, Indonesia’s strategic geographic location beinga natural deterrent and a major contributor to the Silk Road launched by China, natural resources in Indonesia, which are an important factor in China’s industrial and technological progress, and the largest Indonesian market on which China depends on the disposal of its products.

The Chinese president’s announcement of the Belt and Road initiative from Indonesia is a great indication of the depth of the strategic relationship between the two countries and the importance of Indonesia as a key partner of China politically and economically. Chinese Foreign Minister Wang Yi said the relationship between China and Indonesia is a strategy because the two countries have important characteristics and the prospects for development are wide. In addition to politics, diplomacy and security, cooperation between China and Indonesia is expanding at sea, land and air levels. For example, it is expected that the two sides will agree on cooperation in space aviation, the construction of an industrial complex on the ground and the completion of further maritime cooperation.

China is working to consolidate military ties with Indonesia, especially after a dispute between the two countries in the South China Sea region. The good relations between China and Indonesia are of concern to the United States and the West because the Indonesian region is a strategic sea corridor and a geographical area rich in natural resources. Currently, China and Indonesia are working on law enforcement, combating terrorism, controlling drug trafficking, cyber security, defense and joint cooperation in maintaining regional security. The global maritime hub initiated by Indonesia and China’s Maritime Road is being harmonized.

All the political and economic indicators indicate that the relationship between China and Indonesia is developing rapidly and could turn into an alliance, so that Indonesia will be an important partner of China in an internationally sensitive geographical area, all international forces aspire to be there.

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