
Thai-Cambodia ceasefire: ‘Rare diplomatic success' due to Anwar, ASEAN and US pressure
It is too early to tell if the ceasefire will hold, but with Thailand accusing Cambodia of armed attacks on Tuesday morning – which Cambodia has denied – there is now an urgent need to deploy observation teams on the ground, the experts added.
They also said reports of some skirmishes hours after the truce came into effect are not surprising, and that the deal is a 'coup' for the Association of Southeast Asian Nations (ASEAN) and Anwar.
Border tensions between the two Southeast Asian neighbours escalated last Thursday into a deadly conflict that has killed at least 38 people and displaced hundreds of thousands in both countries.
On Monday, Thai Acting Prime Minister Phumtham Wechayachai and Cambodian Prime Minister Hun Manet agreed to an unconditional ceasefire after talks in Putrajaya chaired by Anwar, who is this year's ASEAN chair.
The special meeting was co-organised by the US with the 'active participation' of China, according to a joint press release issued after the event.
Both sides' regional commanders were also due to meet on Tuesday morning, and this could be followed by a meeting with both countries' defence attaches led by the ASEAN chair, according to the press release.
A spokesperson from the Thai army said on Tuesday its Army Region 1 (Trat and Chanthaburi) has met with Cambodian counterparts.
Its Army Region 2, which covers the Isaan region including the four provinces affected by clashes, is still setting up a date with Cambodian counterparts.
The border situation was calm on Tuesday, with Phumtham saying "there is no escalation," and Cambodia's defence ministry spokeswoman Maly Socheata adding earlier that there had been "no armed clashes against each other in any regions".
WHAT CEASEFIRE MEANS FOR ASEAN – AND ANWAR?
Some analysts have dubbed the ceasefire agreement a 'rare diplomatic success' for ASEAN.
It reinforces the bloc's relevance in managing intra-regional crises, said Jamil Ghani, a doctoral candidate at Singapore's S Rajaratnam School of International Studies.
'It revives confidence in ASEAN centrality and showcases the bloc's potential to uphold its founding commitments to regional peace, neutrality, and non-interference … The swift resolution also strengthens ASEAN's credibility as a framework for conflict mediation without great-power involvement,' he said.
'Amid mounting criticism over ASEAN's inertia on issues like Myanmar, the Cambodia-Thailand ceasefire illustrates that the bloc can still deliver meaningful outcomes — when its chair acts decisively,' said Jamil.
Anwar had acted quickly and displayed his diplomatic skills in brokering the ceasefire, analysts agreed.
He offered a neutral venue and framed the talks under ASEAN's diplomatic umbrella, giving both parties 'political space to de-escalate', noted Jamil.
'To save face, neither Thailand nor Cambodia would have acted to stop first, so Malaysia stepped in as mediator. Malaysia understands the predicament of Thailand and Cambodia and that is a starting point to end the conflict,' said Nusantara Academy for Strategic Research senior fellow Azmi Hassan.
While a 'coup' for Malaysia and ASEAN, Azmi and other experts noted US President Trump's role in nudging both sides towards peace.
Both Cambodia and Thailand currently face a 36 per cent tariff on goods exported to the US, which is set to take effect from Aug 1, unless a reduction can be negotiated.
'Trump had linked tariff talks to a ceasefire. For all the talk about China, it seems that these states still can't do without the US market. ASEAN on its own was unable to broker a meeting earlier or to prevent the conflict from breaking out,' said Chong Ja Ian, an assistant professor of political science at the National University of Singapore (NUS).
US Ambassador Edgard Kagan and Chinese Ambassador Ouyang Yujing were present during the meeting in Putrajaya.
Trump on Monday claimed that both countries reached a ceasefire and peace because of his involvement, and said trade negotiations would resume.
'By ending this war, we have saved thousands of lives. I have instructed my trade team to restart negotiations on trade. I have now ended many wars in just six months — I am proud to be the President of peace!' he said on the Truth Social platform.
Anwar himself called the agreement 'concrete evidence of ASEAN's diplomatic strength' and said the 10-member bloc 'remains united and principled'.
It was the alignment of multiple factors that led to the announcement of the ceasefire, said retired Malaysian ambassador Ilango Karuppannan.
For Anwar, the ceasefire success is both symbolic and strategic, coming days after thousands of Malaysians took to the streets to protest rising living costs and a perceived lack of reform by his unity government, marking the first major protest since he came to power in 2022.
'Domestically, it provides a high-profile foreign policy achievement during Malaysia's ASEAN chairmanship — one that can strengthen his government's standing and enhance Malaysia's diplomatic profile,' Jamil said.
While it boosts his international image, 'whether that helps his domestic situation is yet to be seen', said Ilango.
GROUND MONITORING NOW NEEDED
However, with the spectre of one or both sides reneging on the ceasefire, experts said there is an immediate need for a monitoring and observation team.
It is common to see remnants of fighting as local commanders may not have all received the orders, said Ilango.
'Sometimes, it's simple things like (the) lack of walkie talkies. Sometimes, a soldier wants revenge for his friends' death,' he said.
'So what can the three governments do? The first is to deploy the ceasefire monitoring or observation mission immediately. It must go to the ground and not just go to the capitals for briefings,' he added.
Even with an agreement in place, one or both sides could always renege on it, noted Chong.
'There is presently no mechanism in place to restrain their behaviour. Tensions, suspicions, tempers and animosity continue to run high. Ultimately, the two sides need to move troops away from each other to avoid rapid escalation and allow negotiations to prevail,' he said.
The latest reports of clashes, he said, suggests the 'real limits to what ASEAN and other actors can do' if they are not utilising political capital to get the two sides to stop the hostilities.
'If ASEAN wishes to be more active, it could offer observers on the ground to monitor phased withdrawals by both sides and provide transparency to avoid misunderstanding or miscalculation by the Thai and Cambodian sides on the ground,' Chong said.
Chong said ASEAN could theoretically work with the United Nations (UN) or offer its own peacekeepers to keep the two sides apart.
But this would be challenging, he said, as it could involve putting personnel from other ASEAN states in the middle of tensions, or suggest that ASEAN is unable to act on its own if other actors are called in. 'This option does not appear to be on the table right now,' Chong noted.
Malaysia could also try to convene further talks between Cambodia and Thailand in the hopes that this could bring more stability to the relationship, he added.
The joint statement after the Putrajaya talks had stated that direct communications between the prime ministers, foreign and defence ministers of Cambodia and Thailand will resume.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Straits Times
24 minutes ago
- Straits Times
Russia claims capture of Chasiv Yar after 16-month battle
Sign up now: Get ST's newsletters delivered to your inbox Russia said on Thursday it had captured the town of Chasiv Yar in eastern Ukraine after nearly 16 months of fighting, opening the way for potential further advances. Russia's Defence Ministry said in a brief statement its forces had "liberated" the town. A Ukrainian military spokesperson called the claim "propaganda", but a video posted by a Russian military unit and verified by Reuters showed a Russian paratroop banner and the national flag being raised by soldiers in the desolate ruins of the town. Russia has been slowly grinding forward in eastern Ukraine as talks to end the 3-1/2 year war have failed to make progress towards a ceasefire, prompting U.S. President Donald Trump to threaten new sanctions on Russia and buyers of its exports from next week. Moscow's forces are also mounting intense pressure on the city of Pokrovsk, 60 km (37 miles) southwest of Chasiv Yar. Military analyst Emil Kastehelmi, co-founder of the Finland-based Black Bird Group, said it was likely that battles were continuing near Chasiv Yar. "The terrain of Chasiv Yar has favoured the defender. Forested areas, waterways, hills and a varied building stock have enabled Ukraine to conduct a defensive operation lasting over a year, in which the Russians have made minimal monthly progress," he told Reuters. Kastehelmi said it was likely that the town's fall, if confirmed, would create conditions for Russia to advance further in eastern Ukraine, but still only gradually. Top stories Swipe. Select. Stay informed. Singapore No entry: ICA to bar high-risk, undesirable travellers from boarding S'pore-bound ships, flights Singapore 5 foreign women suspected of trafficking 27kg of cocaine nabbed in Changi Airport Singapore Over half of job applications by retrenched Jetstar Asia staff led to offers or interviews: CEO Singapore 17-member committee to drive roll-out of autonomous vehicles in Singapore Business Singapore gold investment soars 37% to 2.2 tonnes in Q2 while jewellery demand wanes Singapore Underground pipe leak likely reason for water supply issues during Toa Payoh fire: Town council Multimedia 60 years, 60 items: A National Day game challenge Singapore 'Switching careers just as I became a dad was risky, but I had to do it for my family' "The fall of the city to the enemy is nevertheless a challenging situation for Ukraine, as it will bring the Russians closer to Kostiantynivka, which Russia is now approaching from several directions," he said. "The logistics in the area will also be affected, as Russians can bring drone teams even closer." The battle for Chasiv Yar began in April last year, when Russian paratroopers reached its eastern edge. Russian state media reported then that Russian soldiers had begun phoning their Ukrainian counterparts inside the town to demand they surrender or be wiped out by aerial guided bombs. The town, now destroyed, had a pre-war population of more than 12,000 and its economy was based around a factory that produced reinforced concrete products and clay used in bricks. It lies just west of Bakhmut, which Russia captured in 2023 after one of the bloodiest battles of the war. REUTERS
Business Times
24 minutes ago
- Business Times
Malaysia rolls out RM611 billion plan to lift wages, cut deficit and power digital shift by 2030
[KUALA LUMPUR] Malaysia has launched a RM611 billion (S$186 billion) master plan to catapult itself into the ranks of high-income nations by 2030, with aggressive bets on artificial intelligence (AI), semiconductors and green energy as key growth engines. Unveiled by Prime Minister Anwar Ibrahim on Thursday (Jul 31), the 13th Malaysia Plan (13MP) earmarks RM430 billion in federal development spending, alongside RM120 billion from state-linked companies and RM61 billion in public-private partnerships. It outlines a five-year road map – spanning 2026 to 2030 – to raise per capita income to RM77,200, reach up to 5.5 per cent growth in gross domestic product, and slash the fiscal deficit to below 3 per cent. The blueprint, themed 'Redesigning Development', was tabled by Anwar in parliament. Central to the plan is the National Semiconductor Strategy – launched in 2024 – along with a RM1.2 billion push to move Malaysia beyond chip assembly and into design and front-end manufacturing. To deepen its technology stack and build local intellectual property, the government will partner semiconductor design company Arm Holdings , as well as tech majors such as Amazon Web Services, Intel and Infineon. Under its National AI Action Plan, Malaysia will pour investments into AI, data analytics and 5G infrastructure, with the aim to produce 5,000 digital entrepreneurs and extend 5G access to 98 per cent of populated areas. The digital economy is expected to generate 500,000 new jobs. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up 'Malaysia is currently the world's sixth-largest semiconductor exporter. We plan to double down on this advantage,' Anwar said. Further details, including a new electricity tariff structure aimed at reflecting actual generation costs, are expected to be released on Friday. The prime minister said that the new electricity rate will not hurt the economy. ' The next five years are critical for Malaysia to leap towards becoming a high-income nation while also nurturing a compassionate society and ensuring a high quality of life. ' — Malaysian Prime Minister Anwar Ibrahim A new US tariff rate on Malaysian goods is also expected on Friday, Anwar said, following a long-awaited phone call on Thursday morning with US President Donald Trump – just ahead of the Aug 1 deadline for a potential 25 per cent duty on the South-east Asian country. 'God willing, it will not be a burden on our economy,' he added. More jobs and higher wages Malaysian Prime Minister Anwar Ibrahim says the government has allocated RM430 billion for federal development spending to boost the economy. PHOTO: PRIME MINISTER'S OFFICE OF MALAYSIA Overall, 13MP aims to create 700,000 new manufacturing jobs and 500,000 roles in the digital economy. 'Collaboration between industry and technical and vocational education and training (Tvet) providers will continue to ensure skill readiness,' Anwar said. The benchmark minimum wage for employees of government-linked companies and investment firms has been raised to RM3,100. The prime minister also noted that 95.6 per cent of Tvet graduates found employment within six months, with many earning more than RM1,700 a month. The labour market is expected to improve, with the share of employee compensation to GDP reaching 40 per cent, and unemployment hitting a full employment rate by 2030. Inflation is projected to remain stable at between 2 per cent and 3 per cent annually. With a sweeping reform agenda and ambitious growth targets, 13MP signals Malaysia's intent to transition from a middle-income economy reliant on resource exports to one powered by digital innovation, green energy and value-added manufacturing. The country aspires to rank among the world's top 30 economies by 2030, a goal that will require sustained investment, disciplined governance, and effective public-private collaboration. 'The next five years are critical for Malaysia to leap towards becoming a high-income nation while also nurturing a compassionate society and ensuring a high quality of life,' said Anwar. Key priorities include strengthening the services, manufacturing and construction sectors, which drove an average GDP growth of 5.2 per cent from 2021 to 2024. Domestic demand, particularly private consumption and investment, rose 5.7 per cent annually over the same period. Anwar also noted that Malaysia's gross income per capita is projected to rise to RM77,200 by 2030, crossing the World Bank's high-income threshold. To deepen its technology stack and build local intellectual property, the government will partner semiconductor design company Arm Holdings. PHOTO: REUTERS Green economy, halal and tourism opportunities The 13MP road map also places a strong emphasis on sustainable growth. The government will expand renewable energy efforts, including hybrid hydro-floating solar projects and green hydrogen hubs such as the Kenyir initiative. It is also exploring nuclear energy as a long-term clean power option. Rare earth resources will be prioritised for domestic industrial use to foster midstream and downstream value chains, while the Lumut regasification terminal and power grid connectivity between Sarawak and Peninsular Malaysia will bolster national energy resilience. Meanwhile, the blue economy – spanning fisheries, coastal tourism and marine biotechnology – is expected to attract more investments, with Sabah designated as a key hub. In addition, 13MP intends to lift the halal sector's exports to RM80 billion and raise its GDP contribution to 11 per cent. A new halal commission will be formed, supported by industrial parks in Melaka, Perak and Kelantan. ' Malaysia must liberalise its labour market and strengthen employment rights and trade unions. ' — Dr Geoffrey Williams, economist and founder of Williams Business Consultancy Tourism will also be a major growth lever, with the Visit Malaysia 2026 campaign expected to bring the sector's contribution to GDP to 16 per cent. Last year, foreign tourist spending reached RM102.2 billion. 'The government will establish Special Tourism Investment Zones in Johor, Melaka, Negeri Sembilan and Sarawak, targeting culture, heritage and nature-based tourism,' said Anwar. Growth catalysts Although 13MP may lack headline-grabbing mega projects, analysts point out that its hefty RM430 billion development expenditure signals a ramp-up in public investment, especially from late 2025. 'We believe increased allocations under 13MP provide fresh impetus for infrastructure spending from the fourth quarter of 2025, accelerating into 2026 and 2027 ahead of the next general elections,' said Mak Hoy Ken, a senior analyst at CIMB Securities. He expects East Malaysia to see heightened activity, particularly with Sabah and Sarawak holding state elections by 2025 and 2027, respectively. Likely beneficiaries include the Penang LRT, East Coast Rail Link, and infrastructure upgrades across Borneo. Despite concerns over US chip export curbs, Mak anticipates strong momentum for data centre contracts, with six to seven projects worth RM1 billion to RM2 billion each. Revival in tender activity for logistics and industrial assets could also pick up once global trade tensions ease. MBSB Research described the RM430 billion allocation as essential to supporting long-term projects without derailing fiscal discipline. It added: '13MP also addresses structural reforms in education, healthcare and housing while targeting a resilient, inclusive economy.' Wages are another key plank. Economist Dr Geoffrey Williams, founder of Williams Business Consultancy, emphasised that wage reform must be paired with deeper labour market liberalisation to meet 13MP's employment goals. 'Malaysia must liberalise its labour market and strengthen employment rights and trade unions,' he said, noting that Singapore's tripartite model, where unions, government and employers work in tandem, should be studied closely. He also called for the simplification of Malaysia's progressive wage policy and proposed the introduction of a reverse income tax mechanism as a direct way to support middle-income earners. 'For workers earning below a certain benchmark, say RM3,100, government tax credits could be issued instead of income tax being collected. This would effectively raise take-home pay for lower-income employees while maintaining existing tax rates for higher earners,' he said.

Straits Times
an hour ago
- Straits Times
Trump tariffs face key test at US appeals court
Sign up now: Get ST's newsletters delivered to your inbox U.S. President Donald Trump speaks after signing the VA Home Loan Program Reform Act at the White House in Washington, D.C., U.S., July 30, 2025. REUTERS/Evelyn Hockstein A U.S. appeals court on Thursday will review President Donald Trump's power to impose tariffs, after a lower court said he exceeded his authority with sweeping levies on imported goods. The U.S. Court of Appeals for the Federal Circuit in Washington, D.C., will consider the legality of "reciprocal" tariffs that Trump imposed on a broad range of U.S. trading partners in April, as well as tariffs imposed in February against China, Canada and Mexico. A panel of all of the court's active judges, eight appointed by Democratic presidents and three appointed by former Republican presidents, will hear arguments scheduled to begin at 10 a.m. ET in two cases brought by five small U.S. businesses and 12 Democratic-led U.S. states. The arguments - one day before Trump plans to increase tariff rates on imported goods from nearly all U.S. trading partners - mark the first test before a U.S. appeals court of the scope of his tariff authority. The president has made tariffs a central instrument of his foreign policy, wielding them aggressively in his second term as leverage in trade negotiations and to push back against what he has called unfair practices. The states and businesses challenging the tariffs argued that they are not permissible under emergency presidential powers that Trump cited to justify them. They say the U.S. Constitution grants Congress, and not the president, authority over tariffs and other taxes. Trump claimed broad authority to set tariffs under the International Emergency Economic Powers Act (IEEPA), a 1977 law historically used for sanctioning enemies or freezing their assets. Trump is the first president to use it to impose tariffs. Trump has said the April tariffs were a response to persistent U.S. trade imbalances and declining U.S. manufacturing power. Top stories Swipe. Select. Stay informed. Singapore No entry: ICA to bar high-risk, undesirable travellers from boarding S'pore-bound ships, flights Singapore 5 foreign women suspected of trafficking 27kg of cocaine nabbed in Changi Airport Singapore Over half of job applications by retrenched Jetstar Asia staff led to offers or interviews: CEO Singapore 17-member committee to drive roll-out of autonomous vehicles in Singapore Business Singapore gold investment soars 37% to 2.2 tonnes in Q2 while jewellery demand wanes Singapore Underground pipe leak likely reason for water supply issues during Toa Payoh fire: Town council Multimedia 60 years, 60 items: A National Day game challenge Singapore 'Switching careers just as I became a dad was risky, but I had to do it for my family' He said the tariffs against China, Canada and Mexico were appropriate because those countries were not doing enough to stop illegal fentanyl from crossing U.S. borders. The countries have denied that claim. On May 28, a three-judge panel of the U.S. Court of International Trade sided with the Democratic states and small businesses that challenged Trump. It said that the IEEPA, a law intended to address "unusual and extraordinary" threats during national emergencies, did not authorize tariffs related to longstanding trade deficits. The Federal Circuit has allowed the tariffs to remain in place while it considers the administration's appeal. The timing of the court's decision is uncertain, and the losing side will likely appeal quickly to the U.S. Supreme Court. The case will have no impact on tariffs levied under more traditional legal authority, such as duties on steel and aluminum imports. Trump's on-again, off-again tariff threats have roiled financial markets and disrupted U.S. companies' ability to manage supply chains, production, staffing and prices. The president recently announced trade deals that set tariff rates on goods from the European Union and Japan, following smaller trade agreements with Britain, Indonesia and Vietnam. Trump's Department of Justice has argued that limiting the president's tariff authority could undermine ongoing trade negotiations, while other Trump officials have said that negotiations have continued with little change after the initial setback in court. Trump has set an August 1 date for higher tariffs on countries that don't negotiate new trade deals. There are at least seven other lawsuits challenging Trump's invocation of IEEPA, including cases brought by other small businesses and California. A federal judge in Washington, D.C., ruled against Trump in one of those cases, and no judge has yet backed Trump's claim of unlimited emergency tariff authority. REUTERS