A Maoist firebrand takes charge in Nepal; Duterte gets tough in war on drugs: Asia round-up

1. Thai referendum a first step towards democracy, says junta

Thailand is no stranger to political instability, with a merry-go-round of coups and insurrection in recent years. This weekend’s referendum on a draft constitution is, the junta says, a first step in the transition to democracy and greater stability. Foreign investors, though, have already fled – foreign direct investment in Thailand fell by more than 90 per cent in the first half of the year. The junta has responded with ever more stringent security measures and last week demanded ousted prime minister Yingluck Shinawatra pay an US$8 billion bill for her part in the country’s failed rice subsidy scheme.

What next? General elections are scheduled for next year but how the military positions itself in the interim will be closely watched. There are some powerful variables: how will Yingluck’s supporters react if she is jailed for negligence? And if the ailing King Bhumibol passes away, the junta maybe decide a return to democracy can wait.

Quoteworthy: “Do not say the referendum will define who loses or wins. I have never lost to anyone. I just want to maintain my power,” – General Prayuth Chan-ocha.

2. New security laws in Malaysia ‘stifle dissent’, say Prime Minister’s critics

Malaysian Prime Minister Najib Razak is under unprecedented scrutiny for his role in the 1MDB scandal, after the US Justice Department last month filed civil lawsuits alleging that more than US$3.5 billion was misappropriated from the state fund. This, however, coincides with a raft of new security laws coming into effect, giving Najib the power to suspend civil liberties in any region he declares a “security area”. Fighting terrorism is the claimed justification for the new laws but Najib’s critics suggest stifling dissent is the true objective.