Israel-ASEAN Relations 2020:

An Update

KB Teo

SYNOPSIS

Israel-ASEAN economic, investment, and military ties, especially with Singapore, Vietnam, and Thailand, are strong and growing.  Tokyo is a strong competitor to China’s inroads into ASEAN.

COMMENTARY

Israeli Prime Minister Benjamin Netanyahu’s “Pivot to Asia” policy has yielded stunning dividends in bilateral relations with two Asian behemoths, China and India. Some of that success has spread to member countries of the Association of Southeast Asian Nations (ASEAN) in the form of significant interest in tech, research and development, agriculture, and strategic cooperation with the Jewish state. However, several ASEAN countries keep their Israel ties away from the public eye and vote in favor of anti-Israel resolutions at international forums, reported the AJC. 

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Israel established diplomatic relations with Singapore in 1969. But their ties were covert. Even as Israel assisted the buildup of Singapore’s armed forces, Singaporean officials, eager to avoid the sensitivities of Malaysia and Indonesia, would refer to Israeli defense experts as “Mexicans.” In 1986, then Israeli President Chaim Herzog visited Singapore, and nearly 30 years later President Reuven Rivlin was present for the funeral of Singapore’s first Prime Minister, Lee Kuan Yew. Finally, in 2016, Prime Minister Lee Hsien Loong visited Israel, a bold step that signaled a strengthening relationship. In 2017 Prime Minister Benjamin Netanyahu reciprocated and became the first Israeli Prime Minister to visit Singapore, where he declared his own “Pivot to Asia.” During that visit, Prime Minister Lee Hsien Loong said that Israel and Singapore were “old friends,” ending the years of cloaked interactions between the states and making them public.

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Singapore-Israel bilateral trade is worth US$ 1.5 billion (as of 2016). SingTel and Temasek (Singapore’s state-owned investment company) have invested in Israel while many Israeli start-ups use Singapore as a base for investments elsewhere in Asia. Hoping to build on its roots as a global financial hub, Singapore has been seeking Israeli assistance to establish sustainable venture capital and develop local start-ups. If permitted to utilize Saudi airspace (similar to the permission given to Air India in March 2018), Singapore Airlines may begin non-stop flights to Tel Aviv, tapping into the large number of Israeli business and leisure travelers interested in flying to Asia and Australia.

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People-to-people ties between Israel and Thailand are very strong. Nearly 22,000 Thai migrant workers are employed in Israel. Thailand is the most popular destination for young Israelis travelling after their military service. El Al flies seven times a week nonstop to Bangkok. Agricultural, security, and commercial ties are continually growing, with US$ 1 billion (as of 2016) in annual bilateral trade between the countries. In February 2017, Thailand hosted the first ever Southeast Asia – Israel Security Summit in Bangkok, bringing together Israeli, Thai, and other Southeast Asian experts and companies in cyber and homeland security with the aim of fostering long-term collaboration.

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Diplomatic and commercial ties with Vietnam, established in 1993, have steadily grown, and they received a tremendous boost from President Reuven Rivlin’s visit in March 2017, the first ever by an Israeli leader. Annual bilateral trade is worth over US$ 700 million (as of 2016) and a Free Trade Agreement in being negotiated. Over 2,000 Vietnamese students are currently studying in Israel and the two countries cooperate closely in agriculture, information technology, and biotech.

Indonesia is a strong supporter of the Palestinian cause.  It maintains informal trade relations with Israel. Yahya Cholil Staquf, secretary general of Nahadlatul Ulama, visited Israel in June 2018.  He met PM Netanyahu, who called for stronger ties between Israel and Muslim countries. Former Indonesian President Abdurrahman Wahid visited Israel in June 2002. Bilateral trade (through third countries such as Singapore) is about US$ 163 million.

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Although Israel’s relations with Malaysia are icier, Intel sends nearly US$ 600 million worth of technology exports annually to Malaysia from its Israeli factories. In February 2018, David Roet was the first Israeli diplomat since 1965 to visit Malaysia, where he attended the World Urban Forum in Kuala Lumpur. He reported that Malaysia would be a “very tough nut to crack” for Israel and his hosts made it clear that he was invited only because UN- events require invitations to all representatives of UN member states.

Myanmar and Israel gained independence from Great Britain in the same year, 1948. Myanmar was also the first Southeast Asian country to recognize Israel, in 1953. Two years later, its first prime minister, U Nu, was the first foreign prime minister to visit Israel. Prime Minister David Ben Gurion visited Myanmar for two weeks in 1961, the longest overseas trip by any sitting Israeli prime minister. Through its Mashav International Development Program, Israel has provided significant assistance to Myanmar’s agriculture, disaster management, and health sectors. In response to the Rohingya crisis, Israel has ceased sales of military equipment to Myanmar.

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The Israel-Singapore trade relationship is worth US$1.35 billion (2016) and Israel has a trade office in Singapore, which is dedicated to growing Israeli business with the city-state and its neighbours.

Singapore is looking to Israel for assistance in moving away from its roots as a global financial hub and establishing sustainable venture capital to develop local start-ups. Singapore’s stock exchange is also competing with the ASX as a destination for Israeli start-ups looking to list.

People-to-people links remain strong between Israel and Thailand and the two countries share knowledge and expertise in agriculture and intelligence.

According to a report by academics from the University of Haifa, in 2016, there were nearly 22,000 Thai migrant workers in Israel, making up 80 percent of Israel’s total migrant worker population.

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Israel’s relationships with ASEAN’s large majority Muslim members – Indonesia and Malaysia – are a bit more fraught and are unlikely to be normalised absent a resolution to the peace process. To date, Israel does not have diplomatic relationships with either nation.

Israel has devoted considerable attention to strengthening its relations with Southeast Asian countries, particularly the Philippines, Thailand, and Vietnam, as well as Myanmar, reported MEI in January 2020.  Military-security cooperation in the form of arms trade as well as technology transfer and licensed production has emerged as an important dimension of Israel’s relations with Southeast Asian countries.

Of Israel’s total global arms exports in 2018 (worth $7.5 billion), 46% were purchased by Asia-Pacific countries. The arms trade lies at the center of Israel-Southeast Asia military-security cooperation.

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Israel’s military-security cooperation with Southeast Asian countries does not consist of arms sales alone. Systems upgrades and joint-ventures have become important features of these relationships.

Israel has emerged as an important source of defense equipment for the ASEAN nations. These Asian clients have openly made known their preference for Israeli-made weapons systems, particularly because of Israel’s “no-strings-attached” policy over its arms export activities. The interests of both sides have been instrumental in bringing the ties closer than ever before.  Israel’s willingness to meet some of the requirements of these Southeast Asian countries has contributed to the expansion of their cooperation.

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KB Teo is a former diplomat with the Singapore Ministry of Foreign Affairs.  He attended the UN General Assembly as part of the MFA delegation.