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  • US Secretary of Defense Lloyd Austin talks with Indonesia's then Defense Minister Prabowo Subianto on the sidelines of the ASEAN Defense Ministers’ Meeting, Jakarta, Indonesia, 16 November 2023 (Photo:Reuters/Willy Kurniawan).

    In recent years, the United States has struggled to maintain its influence in Southeast Asia while China's presence continues to expand. President Biden's absence from the 2023 ASEAN Annual Summit affected US prestige in the region. To counter China's influence and maintain favourable relationships with ASEAN nations, the United States must enhance its public diplomacy efforts. This could be through increasing the number of diplomats in the region, promoting existing military, economic and educational programs, and establishing comprehensive security partnerships with key countries like Indonesia, Malaysia and Singapore all while respecting ASEAN's centrality in the face of US-China competition.

Editor's Pick

Bank of Japan reverses gear on monetary policy, back to managing inflation

In March 2024, the Bank of Japan shifted its monetary policy by raising interest rates from negative 0.1 per cent to 0–0.1 per cent and halting its quantitative and qualitative easing (QQE) measures, marking the first policy change towards tightening credit in seventeen years. While the Bank of Japan's previous measures under QQE were unable to stimulate demand and inflation, adjustments in interest rates, despite being minimal, have the potential to impact firms' and households' behaviour. Future policy adjustments will be dependent on the outlook of future inflation.

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Editor's Pick

Bank of Japan Governor Kazuo Ueda attends a press conference after a policy meeting at BOJ headquarters, in Tokyo, Japan, 19 March 2024 (Photo: Reuters/Kim Kyung-Hoon).

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