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In today’s bulletin: Asian economies tighten movement restriction measures further, historic oil price plunge spooks Asian markets, China backs Hong Kong’s arrest of pro-democracy activists, Malaysian political leaders squabble over Covid-19 control measures, reports about Kim Jong Un’s illness, and more.

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ASIAN ECONOMIES STEP UP MOVEMENT RESTRICTIONS

Asian economies kept up controls on movement of people to prevent the coronavirus outbreak from spreading further.

Prime Minister Lee Hsien Loong announced today that Singapore is extending the circuit breaker to choke off  the spread of coronavirus by another month to June 1. The announcement follows a Health Ministry report that 1,111 new coronavirus infection cases were confirmed today. This brings the national total to 9,125. 

Indonesia today banned the massive movement of people from urban to rural areas that usually takes place ahead of the Idul Fitri holiday to curb the spread of the coronavirus from Jakarta, the epicentre of the outbreak, to the rest of the archipelago. The move inspired Malaysian officials to look into the possibility of deferring its public holidays for Hari Raya Aidilfitri celebration too, to prevent the coronavirus outbreak from spreading.

Alongside, Hong Kong said it will extend social restrictions aimed at containing the outbreak by another 14 days from today, till May 7. 

The moves in Asian economies come even as countries elsewhere, among them Australia, Germany and the United States began easing or considering easing of restrictions, though experts warned it could be too early.

Read more:

Brace for extended new norm of social distancing even as lockdowns are eased, says WHO

Muslims prepare to mark Ramadan, Hari Raya at home

HISTORIC OIL PRICE CRASH SPOOKS ASIAN SHARE MARKETS

Crude oil prices moved up a few notches today after plunging to a historic low of below zero on Monday, but it continued to spook Asian markets with the world awash in oil, indications that demand will take a while to pick up and recession worries.

Futures for the May delivery of West Texas Intermediate (WTI), the benchmark for America’s oil industry, rose US$39 to reach US$1.76 a barrel today, the final trading day of WTI futures for delivery in May. June prices were US$22 a barrel but experts cautioned against optimism with countries being urged to ease lockdowns slowly for economic activity to resume, to prevent a second wave of the pandemic.

Not surprisingly, Asian equity markets fell lower. MSCI’s broadest index of Asia-Pacific shares outside Japan fell half a percent while Japan’s Nikkei fell 1 per cent. 

Industry observers expect oil volatility to continue given the complicated oil infrastructure that makes it difficult to simply turn off the taps, till demand for oil increases.

Meanwhile, a leading oil trading company in Singapore finds itself facing a probe by Singapore police after reports emerge that it hid about US$800 million (S$1.14 billion) in losses. Hin Leong, the firm, owes US$3.85 billion (S$5.49 billion) to more than 20 banks.

CHINA SAYS IT STRONGLY SUPPORTS HONG KONG’S ARREST OF ACTIVISTS

China offered strong support to Hong Kong over the latter’s decision to arrest 15 activists last weekend that has led to concerns that demonstrators in the city could take to the streets again.

Many of those arrested are high profile opposition activists. The list includes Martin Lee, touted as the godfather of democracy in Hong Kong, former lawmakers Albert Ho, “Long Hair” Leung Kwok Hung and Au Nok Hin, as well as media tycoon Jimmy Lai, who owns Apple Daily. 

Beijing said certain “radicals” in the city were blind to the interference of outside forces, in pointed reference to Washington and London, in its statement today. But the move is likely to irk some foreign governments further.

Read more: 

Fearing big election loss, China goes on offensive in Hong Kong

Bookseller who fled Hong Kong attacked with red paint in Taiwan

MALAYSIAN POLITICAL LEADERS SQUABBLE OVER CORONAVIRUS CONTROL MEASURES

Less than two months since it came to power Malaysian Prime Minister Muhyiddin Yassin’s government is facing criticism over its handling of the coronavirus outbreak that has seen the country adding an average of 1,000 cases a week since the middle of March. 

Finger-pointing at the grassroots level has escalated and other prominent figures, among them former premier Najib Razak, are slamming the government for failing to stop the Tabligh Islamic missionary gathering held from Feb 27 to March 1, that was attended by some 15,000 followers.

Meanwhile, Parliament is due to sit on May 18. Malaysia Bureau Chief Shannon Teoh writes that while momentum behind a no-confidence vote has ebbed, the government will still have to seek approval for several measures, including the RM35 billion fiscal stimulus unveiled last month to soften the blow of the coronavirus crisis.

Read more: 

Quick economic recovery in Malaysia post-MCO unlikely

IS KIM JONG UN GRAVELY ILL?

A report by Daily NK, a Seoul-based speciality website, that North Korean leader Kim Jong Un was recovering after undergoing a procedure on April 12, had several followers abuzz with what could have happened. Speculation grew further with CNN quoting a US official as saying Washington was “monitoring intelligence” that Mr Kim was in grave danger after surgery.

Read more: 

Possible heirs to Kim Jong Un’s throne

IN OTHER NEWS

VIRGIN ATLANTIC COLLAPSE: Virgin Australia Holdings, 20 per cent-owned by Singapore Airlines (SIA), became Asia’s first airline and the first long-haul carrier to fall to the coronavirus after the outbreak deprived the debt-burdened company of almost all income. Administrators at Deloitte will take control of the Brisbane-based carrier, it said in a statement on Tuesday and will bring in new investors, reorganise borrowings or find a buyer to save the business.

TRUMP TO SUSPEND ALL IMMIGRATION INTO US: US President Donald Trump announced on Monday he will suspend all immigration into the United States temporarily through an executive order in response to the coronavirus outbreak and to protect American jobs. The White House, however, declined to offer further details about the reasoning behind the decision, its timing, or its legal basis. The U.S. attracts many migrants from Asia, every year.

GENTING PLANS PAY CUT: Malaysia’s casino-to-hospitality conglomerate Genting Bhd and its units are planning the first group-wide salary cut since its founding in 1965. The company is proposing as much as a 20 per cent temporary reduction of basic salary for employees based on their ranks, while Genting Hong Kong Ltd suggests up to a 50 per cent cut for senior management. 

That’s it for today. Thanks for reading. Stay safe and we’ll be back with you tomorrow. 

Shefali

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