The week ahead: Once bitten twice shy in Malaysia's sovereign wealth funds

Hello friends!

Not sure if you’re aware, but there’s a big story this week that is dominating every inch of the internet from DC to Dili. The US election? I think you’ve heard of it? 

There are a lot of ‘what will it all mean for Asia’ pieces out there, with some far more helpful than others. So we’ll have a peek into that on Wednesday, our time, as our American friends get voting. 

Still! The world doesn’t stop for the US, does it! In Thailand, the killing of four nationals has the government more outspoken on Israel, slightly. Indonesia is readying for naval drills with Russia and Duterte is probably going to have to front the Senate again. But first, here are some words to send chills down the spine of any Malaysia watcher (let alone Malaysian!): ‘sovereign wealth fund audit.’ 

Let’s crack in and see you Wednesday!
Erin Cook

🇲🇾 Dud threads prompt Khazanah investigation

Khazanah Nasional must do an internal audit, Prime Minister Anwar Ibrahim says. He’s not happy about a loss-making investment into online fashion platform Fashion Valet, Bloomberg reports. His demand comes as the Malaysian Anti-Corruption Commission announced Saturday that it would investigate the investment losses of 43.9 million ringgit ($10 million). Fashion Valet co-founders Fadzarudin Shah Anuar and Vivy Yusof fell on their swords Friday and said they would cooperate with MACC. 

“There is no such thing as scandal or fraud or siphoning of money. Not at all. I mean, I sit on the board, and I look at the numbers. And definitely, there’s no such thing lah!” Fashion Valet board member Aireen Omar says in the trailer for an interview she’s done with TikTok user Asyraf Khalid, Malaysiakini reports. That’s exactly what you’d expect a board member to say but where she goes next made me laugh. Of critics, she says: “Maybe they should have a life… it is a natural thing that happens in any business. There will be ups and downs, right?” Rude! Crack in, MACC. 

🇮🇩 Russian Navy to team up with Indonesia in Surabaya

Russia and Indonesia relations! What is this, the 60s! I was looking forward to a change in gear from Joko Widodo’s boredom with the rest of the world to Prabowo Subianto’s immense interest, but I didn’t think about how much catching up that would involve.

Prabowo has always promised to carve Indonesia’s own path and this week shows just what that looks like. The Indonesian Navy will host its Russian counterparts for drills off the coast of Surabaya, Java, beginning today and running until the end of the week. ‘Three Russian corvettes, a tanker, a helicopter and a tugboat will be deployed for the drills, Moscow’s envoy Sergey Tolchenov confirmed last week,’ the South China Morning Post reports.

What does it all mean? Call it ‘strategic ambiguity’ analyst Yohanes Sulaiman says in the same piece. Let’s see what happens but in the immediate, any opportunity to bring up those great Khrushchev-Sukarno snaps is welcomed by me.  

🇵🇭 Senate floats what’s next after Duterte testimony

The Senate’s investigation into the Rodrigo Duterte-era war on drugs is continuing with new witnesses set to be called. But the country is still shaking from Duterte’s testimony in which he finally admitted to the Davao death squads, dating back to his days ruling the southern capital. We’ll have a proper look-in on his testimony and the blowback on Friday. But for now, the Senate is eyeing a return of Duterte after hearing from others involved. 

Senate Minority Leader Aquilino “Koko” Pimentel wants more. Pimentel, who has been appointed leader of the investigation, has flagged that the former prez may be recalled. But, first, the country needs to hear from others. 

“Many are suggesting that Duterte must return for the second hearing. But I told them, ‘What kind of materials will we have if we only listen to one witness?’” Pimentel said in a radio interview on Saturday, as reported by the Inquirer. “We need to do more in our investigation and listen to other people … We concentrated on only one witness in the first hearing because we don’t expect Duterte to come back.” 

(Big, big error in here re: Koko Pimentel that has since been amended. Thanks very much to reader Allen for pointing it out!)

🇹🇭 Thailand files grievance with Israel after more nationals deaths

Four Thai nationals were killed and another injured along the Israel-Lebanon border at the end of last week, Foreign Minister Maris Sangiampongsa announced on Friday as reported by Reuters. Bangkok Post later reported the rocket had been fired by Hezbollah, but I haven’t found a second source for that. 

Thailand is a major source of agriculture workers for Israel and was among those captured by Hamas in October last year. There has been a lot of outstanding reporting in the year since about Thailand’s complicated and, at times, desperate relationship with Israel as migrant workers. 

Prayad Pilasrum, 42-years-old, was among the dead. His family and community in Nong Phluang village in Krasang district has been left devastated. The Bangkok Post's reporting on how Prayad ended up so far from home is very illuminating:

‘Prayad had made a living by driving a song thaew but decided to seek his fortune overseas after the Covid-19 pandemic which left him and family with little money. Friends in the village had talked about working in Israel and he decided to go.

His mother secured a loan from the Bank for Agriculture and Agricultural Cooperatives and more from loan sharks, totalling more than 100,000 baht, to pay for travel and other expenses.’

The government in Bangkok has filed a complaint with Israel, asking for Thai nationals to not be sent to unsafe areas. “It's fully understandable that some of us have gone overseas to work for a better life. But the current situation in parts of the Middle East is highly unusual, with a significant level of violence in the ongoing conflict,” Minister Maris said over the weekend. 

More to read:

How to Build an Inclusive Myanmar Post-Junta — Emily Fishbein and Hpan Ja Brang, Foreign Policy

As the Spring Revolution gathers momentum, advocates are calling for measures that also promote the rights of marginalized groups such as the Gurkha community. “This is a critical time [for] every individual and community in Myanmar,” said Aung Ko Ko, the executive director of Mosaic Myanmar, an organization that focuses on ethnic and religious inclusion. “Everyone needs to be accommodated in the new political system.”

Traditional sellers in Vietnam still aren’t sold on e-commerce — Lam Le, Rest of World

In Hanoi’s historic Dong Xuan Market, stalls are filled with clothes, shoes and souvenirs. Sellers sit around chatting, or play on their phones as an occasional tourist wanders about, a far cry from the bustling center of trade it once was. 

“It’s 12 p.m., no one has come in to buy a single thing,” Phung Mai Hung, a wholesale clothes merchant, told Rest of World. “Sales are poor because of e-commerce’s enormous impact.”

Thai YouTuber in $78m scam nabbed in Riau after she couldn’t sing Indonesia’s national anthem — Raul Dancel, Straits Times

A once-aspiring K-pop star who is wanted in Thailand for fraud was, in the end, apparently done in by her singing: She was unmasked and arrested after she failed to sing Indonesia’s national anthem.

Natthamon Khongchak, 31, a YouTube content creator known by her nickname “Nutty”, was arrested in Indonesia on Oct 18 and extradited with her mother, Thaniya, to Thailand on Oct 25, according to media reports in Indonesia.

Investigators in Indonesia said she tried to pass herself off as Indonesian in Dumai city in Riau province on Sumatra island.