LUCY WEST |

A fortnightly snapshot of what’s making headlines in South East Asia.

Myanmar’s banking sector under pressure

On 11 May, Myanmar’s currency the kyat declined to its lowest point ever against the US dollar in a decade—illustrative of the decline in public trust. Since the coup on 1 February, the country’s Central Bank and private banks have seen fewer deposits and an increase in cash withdrawals.

With the country’s Central Bank no longer able to guarantee enough funds for private banks, many private banks are now limiting money withdrawals to 200,000 (US$128) to 300,000 kyat per customer per day. Pre-coup, each customer could withdraw around 1 million kyat daily. Some ATMs are reported to have run out of cash and people in Yangon have lined the streets waiting to withdraw their money.

Since the coup, the banking sector has been on the brink of collapse with cash shortages and limited access to social welfare payments and international remittances from those abroad. It is reported that the country’s sea trade has been suspended because banks are unable to issue import/export documents, and many companies have been unable to pay employees because banks are not issuing payrolls.

Some analysts have warned that if cash withdrawals continue at their current rate the country’s banking system may collapse in the coming months.

Eid travel restrictions for Indonesia & Malaysia

For the second year in a row, Muslims in Indonesia and Malaysia are restricted from travelling during the Eid ul-Fitr festive period. To mark the end of the Ramadan (fasting month), millions of people typically return to their homeland to be with family and friends—known as ‘mudik’ in Indonesia.

President Joko Widodo expressed in a televised speech: “I understand that we all miss our relatives at times like this, especially in the momentum of Eid … but let’s prioritise safety together by not going back to our hometowns”. In a move to reduce infections, the governor of Jakarta also ordered the closure of shopping malls and restaurants and issued restrictions on congregational prayers.

Despite efforts to restrict movements, an estimated 1.5 million people had still left Jakarta

to travel to their hometowns throughout Indonesia’s main island of Java. However, this is in stark contrast to the usual 8 million in pre-pandemic years.

Malaysia’s Prime Minister Muhyiddin Yassin surprised citizens with a nationwide lockdown to curb case numbers. The latest Movement Control Order will remain in place from 12 May to 7 June.

COVID-19 clusters in Thai prisons

On Thursday Thailand reported that nearly 3,000 inmates had tested positive for the virus across two prisons. Among those detainees infected is one of the anti-government protest leaders who is awaiting trial for insulting the king. It is reported that the majority of these cases are in the Bangkok Remand Prison and the Central Women’s Correctional Institution.

After a year of relative success, Thailand is suffering its biggest outbreak to date with overall cases tripling to 93,794 and deaths increasing fivefold to 518 in the past six weeks. Four vaccines are approved for use in Thailand: Sinovac, Johnson & Johnson, AstraZenca and just recently, Moderna.

AUTHOR

Dr Lucy West is a Senior Research Assistant at the Griffith Asia Institute.