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There are three major challenges that the power sector is facing. First, there are many features of the Electricity Act of 2003 (EA2003) that have not been implemented or are not working properly. The reasons for these failures must be understood and required corrections made. Second, the power sector is changing rapidly with greater contributions from renewable energy, the presence of distributed energy resources (DER), the expected growth of energy storage particularly in the form of batteries, several new behind-the-meter activities such as electric vehicle (EV) charging and new technologies to control consumption. The legislative and regulatory framework for the power sector must be ready for this dramatically changed future. Third, because of the interconnectedness of the power sector, it is important that the functioning and structure of each sub-sector (fuel markets, wholesale electricity markets, retail electricity markets, generation, transmission, and distribution) is consistent with that of the other sub-sectors. While work continues in each of these subsectors, more often than not, it is being done in isolation, leading to inconsistencies that create technical, economic, or operational obstacles. Even when the average impact is positive, we cannot ignore winners and losers as well as structural distortions. Therefore, developments in the subsectors need to be carried out in a coordinated and consistent manner.

A new phase in US foreign policy, in which China is viewed as a major threat to American economic and security interests, has begun under the Trump administration. The strong anti-China sentiment is accompanied by efforts to "decouple" from China. If carried too far, they will alienate allies and friends whose cooperation the US will need in order to compete with China. In the broader American foreign policy community, there is an intense ongoing debate on how strong the push-back against China should be. Both moderates and hawks agree on the need for a "tougher" approach but differ on the degree and method of toughness. No coherent strategy has been possible partly because President Trump's thinking does not always accord with that of his own administration and partly because it is still too early in the day to come out with well-thought-out policies to support such a major change in foreign policy direction. The ongoing adjustments to global policy and strategy will therefore continue as the security focus shifts to the Indo-Pacific region. The "Free and Open Indo-Pacific" concept provides some signs of the broad direction policy may take but its vital economic dimension is still missing. There is greater recognition in Washington of the importance of Southeast Asia. Located in the middle of Indo-Pacific, it will be a contested zone between China and the US and its allies. The US will step up its public diplomacy to better promote its own narrative in Southeast Asia. Under the Trump administration, the importance of the South China Sea to the US has risen. The US will remain a powerful factor in Asia despite Trump and problems at home. China is not on an inevitable path of dominance given its own significant domestic challenges.

A new phase in US foreign policy, in which China is viewed as a major threat to American economic and security interests, has begun under the Trump administration. The strong anti-China sentiment is accompanied by efforts to "decouple" from China. If carried too far, they will alienate allies and friends whose cooperation the US will need in order to compete with China. In the broader American foreign policy community, there is an intense ongoing debate on how strong the push-back against China should be. Both moderates and hawks agree on the need for a "tougher" approach but differ on the degree and method of toughness. No coherent strategy has been possible partly because President Trump's thinking does not always accord with that of his own administration and partly because it is still too early in the day to come out with well-thought-out policies to support such a major change in foreign policy direction. The ongoing adjustments to global policy and strategy will therefore continue as the security focus shifts to the Indo-Pacific region. The "Free and Open Indo-Pacific" concept provides some signs of the broad direction policy may take but its vital economic dimension is still missing. There is greater recognition in Washington of the importance of Southeast Asia. Located in the middle of Indo-Pacific, it will be a contested zone between China and the US and its allies. The US will step up its public diplomacy to better promote its own narrative in Southeast Asia. Under the Trump administration, the importance of the South China Sea to the US has risen. The US will remain a powerful factor in Asia despite Trump and problems at home. China is not on an inevitable path of dominance given its own significant domestic challenges.

"Southeast Asian Affairs is the only one of its kind: a comprehensive annual review devoted to the international relations, politics, and economies of the region and its nation-states. The collected volumes of Southeast Asian Affairs have become a compendium documenting the dynamic evolution of regional and national developments in Southeast Asia from the end of the 'second' Vietnam War to the alarms and struggles of today. Over the years, the editors have drawn on the talents and expertise not only of ISEAS' own professional research staff and visiting fellows, but have also reached out to tap leading scholars and analysts elsewhere in Southeast and East Asia, Australia and New Zealand, North America, and Europe. A full list of contributors over forty years reads like a kind of who's who in Southeast Asian Studies. Regardless of specific events and outcomes in political, economic, and social developments in Southeast Asia's future, we can expect future editions of Southeast Asian Affairs to continue to provide the expert analysis that has marked the publication since its founding. It has become an important contributor to the knowledge base of contemporary Southeast Asia." - Donald E. Weatherbee, Russell Distinguished Professor Emeritus, University of South Carolina

""Southeast Asian Affairs is the only one of its kind: a comprehensive annual review devoted to the international relations, politics, and economies of the region and its nation-states. The collected volumes of Southeast Asian Affairs have become a compendium documenting the dynamic evolution of regional and national developments in Southeast Asia from the end of the 'second' Vietnam War to the alarms and struggles of today. Over the years, the Editors have drawn on the talents and expertise not only of ISEAS' own professional research staff and visiting fellows, but have also reached out to t

"Founded in 1974, Southeast Asian Affairs provides, without fear or favour, informed and in-depth annual analyses of this vibrant region and its component countries. It is the only publication which does this and is in its own class without peers. It is a mandatory reference and read for those seriously interested in knowing Southeast Asia." - Professor A.B. Shamsul, Founding Director, Institute of Ethnic Studies, Universiti Bebangsaan Malaysia. "Now in its 38th edition, Southeast Asian Affairs offers an indispensable guide to this fascinating region. Lively, analytical, authori

"Founded in 1974, Southeast Asian Affairs provides, without fear or favour, informed and in-depth annual analyses of this vibrant region and its component countries. It is the only publication which does this and is in its own class without peers. It is a mandatory reference and read for those seriously interested in knowing Southeast Asia." – Professor A.B. Shamsul, Director, Institute of the Malay World & Civilization, Universiti Kebangsaan Malaysia "Now in its 37th edition, Southeast Asian Affairs offers an indispensable guide to this fascinating region. Lively, analytical, authoritative, and accessible, there is nothing comparable in quality or range to this series. It is a must read for academics, government officials, the business community, the media, and anybody with an interest in contemporary Southeast Asia. Drawing on its unparalleled network of researchers and commentators, ISEAS is to be congratulated for producing this major contribution to our understanding of this diverse and fast-changing region, to a consistently high standard and in a timely manner." – Hal Hill, H.W. Arndt Professor of Southeast Asian Economies, Australian National University

Southeast Asian Affairs, of which there are now twenty-seven in the series, is an annual review of significant developments and trends in the region. Though the emphasis is on ASEAN countries, developments in the broader Asia-Pacific region are not ignored. Readable and easily understood analyses are offered of major political, economic, social, and strategic developments within Southeast Asia.The contributions can be divided into two broad categories. There are those which provide an anal

Frontmatter -- FOREWORD -- CONTENTS -- INTRODUCTION -- THE REGION -- Southeast Asia in 1999: A False Dawn? / Singh, Daljit -- Southeast Asia: Towards a Sustained Recovery? / Booth, Anne -- How Valid Are the South China Sea Claims under the Law of the Sea Convention? / Van Dyke, Jon M. / Valencia, Mark J. -- The East Timor Crisis: A Test Case for Humanitarian Intervention / Sebastian, Leonard C. / Smith, Anthony L. -- BRUNEI DARUSSALAM -- Brunei Darussalam: Weathering the Storm / bin Awang Damit, Mohamad Yusop -- CAMBODIA -- Cambodia: Hun Sen Consolidates Power / Osborne, Milton -- INDONESIA -- Indonesia: Democratization and the Threat of Disintegration / Crouch, Harold -- The Indonesian Economy under Abdurrahman Wahid / Soesastro, Hadi -- LAOS -- Laos: An Episode of Yo-Yo Economics / Bourdet, Yves -- MALAYSIA -- Unfinished Crises: Malaysian Politics in 1999 / Boo Teik, Khoo -- Malaysia's Alternative Approach to Crisis Management / Zainal Abidin, Mahani -- MYANMAR -- Myanmar: Political Stasis and a Precarious Economy / Wingfield, Tom -- The Failure of Myanmar's Agricultural Policies / Warr, Peter G. -- THE PHILIPPINES -- The Philippines: Governance Issues Come to the Fore / Coronel Ferrer, Miriam -- SINGAPORE -- Singapore: A Vision for the New Millennium / Chan, Jasmine S. -- Singapore: Information Technology in an Intelligent Island / Mahizhnan, Arun -- THAILAND -- Thailand: Farewell to Old-Style Politics? / Bunbongkarn, Suchit -- The Thai Economy: Stabilization and Reforms / Likitkijsomboon, Pichit -- VIETNAM -- Vietnam: The Politics of Immobilism Revisited / Thayer, Carlyle A.

Southeast Asian Affairs 1997 provides comprehensive regional coverage on the political, economic and social trends and developments in contemporary Southeast Asia. Designed to be easily readable yet in-depth, informative yet analytical, issue-focused yet providing a background, this volume is a useful tool for all students, academics, diplomats, senior executives, journalists and publicists who seek to understand the dynamics of Southeast Asian developments

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