The Maritime Crescent

Issue 5

Jul 09, 2025

by Nabil Haskanbancha, in Bangkok

Issue 5 of The Maritime Crescent reveals how domestic policies can carry broader implications for the region. The death of a Brazilian climber on Rinjani Summit (Indonesia’s second highest volcano) has sparked debate over tourist safety and emergency response protocols, especially in high-risk areas. This tragedy also raised concerns about its diplomatic handling, pushing for authorities to handle the issue more sensitively to avoid straining Indonesia-Brazil relations (both members of BRICS). In Malaysia, the recent expansion of the Sales and Services Tax (SST) aims to boost national revenue. Service-based businesses such as construction, financial services, and private healthcare are most affected, with tax increasing from 6% to 8%. While not all industries are impacted, the public is mostly concerned about inflation and rising operational costs. Meanwhile in Brunei, study abroad programs and cultural exchange initiatives are on the rise, offering students valuable opportunities to learn beyond the classroom, and build cross-cultural friendships. These experiential learning opportunities help enhance Brunei’s role in the region and contribute to ASEAN unity.

Indonesia 🇮🇩

The Rinjani Fault Line: Navigating the Brazil-Indonesia Divide

by Hree Putri Samudra, in Jakarta

In diplomacy, the true test of a rising power is not how it manages predictable summits, but how it weathers an unforeseen storm. The death of a Brazilian tourist on an Indonesian volcano has become precisely that: a delicate geopolitical test for Brazil and Indonesia, occurring at the very moment they meet as partners at the BRICS summit. How they navigate this fraught intersection of sovereign duty, public anger, and economic reality will say more about their global ambitions than any formal communiqué. The only viable path forward demands shedding legal posturing for shrewd, strategic cooperation.

The temptation for Brazil is to wield the potent political weapon of a national tragedy. Yet its threats of international legal action are toothless. Suing at the Inter-American Commission on Human Rights (IACHR) is a non-starter, and any other claim is paralyzed by the bedrock principle of exhaustion of local remedies. Jakarta knows this well. Brazil’s actual leverage is not in a courtroom, but in the court of global opinion.

Jakarta, however, faces the opposite paradox: a legally defensible position that is strategically untenable. Its defense rests on the twin pillars of sovereignty and force majeure—the hostile environmental conditions that hampered rescue teams. But a legal victory would be profoundly pyrrhic. Citing 'limited capacity' is not a defense; it is a confession of systemic weakness to a global tourism market that prizes safety above all. The solidarity of its ASEAN neighbors is no shield against the economic hemorrhage of lost confidence.

A path out of this thicket exists, but it is diplomatic, not litigious. There is a powerful precedent: following the tragic Lion Air JT610 crash, Indonesian investigators worked in close concert with international experts. That technical cooperation was also a form of crisis diplomacy, essential for rebuilding global trust. It proved that collaborative transparency is the most potent CBM (Confidence-Building Measure) after a fatal incident.

The same logic should be applied now, unfolding in two acts. First, the Joint Investigation Team (JIT), shrewdly proposed by Jakarta, serves as an essential de-escalation. It offers Brazil a political victory and masterfully reframes Indonesia’s posture from defensive to transparent.

The second act is the truly decisive play, a piece of diplomatic jiu-jitsu. Jakarta should invite Brazilian search-and-rescue experts to help co-author new, world-class safety protocols. This act does more than solve a problem; it transforms the very source of conflict into a symbol of partnership. It serves as a powerful, voluntary guarantee of non-repetition—a remedy prescribed under international law, but delivered here as a strategic choice, not a legal penalty. The global story is thus surgically altered.

Such a strategy allows both nations to emerge with their standing enhanced, offering a constructive way to honor a life lost while shoring up a vital economic sector. For two powers aspiring to leadership positions within BRICS and the G20, it would be an object lesson in the kind of sophisticated statecraft that separates true global players from regional ones.

Hree serves as Project Associate for Asia and the Pacific at the Global Network of Women Peacebuilders (GNWP), where she leads multi-country initiatives integrating Women, Peace and Security (WPS), and Youth, Peace and Security (YPS) frameworks into security policies across ASEAN and South Asia. She is also a Non-Resident Fellow at the University of Glasgow’s Atomic Anxiety in the New Nuclear Age program. Previously, she served as Chair of the Humanitarian Disarmament and Inclusive Governance Working Group at the British American Security Information Council (BASIC), advocating for more accountable and inclusive nuclear policy frameworks.

Malaysia 🇲🇾

Malaysia’s Fiscal Manoeuvre: Implications of the Expanded Sales and Services Tax

by Edrina Lisa Ozaidi, in WP Kuala Lumpur

Malaysians are holding their receipts tight as starting July 1, 2025, the Malaysian government has geared its efforts to expand the scope of Sales and Service Tax (SST) as a national fiscal policy. While the expansion was made to strengthen the nation’s fiscal position by broadening the tax base and increasing revenue, consumers couldn’t help but feel anxious about the new tax expansion despite being assured by the government that the implications would be cushioned as much as possible.

At its core, the SST expansion is a revenue-generation play. Generally, the tax remains the same for telecommunications, essential goods and some imported fruits such as apples and oranges after the public’s outcry, but the SST for services such as commercial property rentals, construction, financial services, and even private healthcare and education has climbed from 6% to 8%.

For the average Malaysian, this could be a double-edged sword. On the one hand, it improves the government’s balance sheet, enabling a much-needed fiscal consolidation. Malaysia’s Minister of Finance II, Amir Hamzah Azizan, projected that the expanded SST would create additional revenue of RM5 billion by 2025 and could increase to RM10 billion in 2026. On the other hand, businesses classified under the impacted sectors may face higher operating costs, which will eventually affect domestic consumption. Higher costs could also create inflationary pressure and cause a shift in business models, especially toward subscription and rental-based services, where service industry products-such as home appliances, wellness and personal care-can be provided as an all-inclusive but affordable alternative for businesses and consumers in these uncertain times.

But how does the expanded SST impact the ASEAN market? Since its implementation primarily affects domestic tax, its direct impact on ASEAN member states is quite limited, as the sales tax applies to goods manufactured or imported into Malaysia. Cross-border goods trade is already governed by existing free trade agreements (FTAs) such as AFTA. Where the ripple of SST implementation truly manifests is in the realm of services. ASEAN businesses that operate in Malaysia or leverage with Malaysia services providers will be impacted by the increased operational costs. For example, businesses renting commercial property will see the service tax increase to 8%, which will translate to higher overhead costs.

In essence, while the SST expansion is a big step toward consolidating Malaysia’s fiscal position, with a notable impact on Malaysian businesses and consumers, these shifts would not fundamentally reshape ASEAN’s economic integration trajectory. They do, however, impact ASEAN businesses that navigate the Malaysian market. While Malaysian businesses and consumers may view the SST expansion primarily as domestic policy and fiscal strategy, for ASEAN’s interconnected economies, it serves as a reminder that economic sovereignty rarely exists in isolation. Even national-level adjustments can ripple across the region, challenging the delicate balance between integration and autonomy.

Edrina is a communications professional with a background in international relations. She holds a degree from the University of Nottingham Malaysia and has worked across public relations and social media for organizations in the development, education, and corporate sectors. Her work focuses on crafting narratives around regional affairs and strengthening media engagement across Southeast Asia.

Brunei Darussalam 🇧🇳

Learning Beyond The Classroom: Bruneian Youth Abroad

by Syimah Johari, in Bandar Seri Begawan

Bruneian students across all educational levels are increasingly participating in regional programmes and initiatives that offer learning experiences beyond the confines of their national curriculum. Some of the most popular extracurriculars include English Olympiads in Vietnam, academic opportunities through the Brunei-Singapore Twinning School Programme, and study abroad initiatives under Universiti Brunei Darussalam (UBD). Many of these programmes take place in other ASEAN countries, giving Bruneian students a chance to connect with their peers across the region. These valuable experiential learning opportunities provide more than lectures and academic workshops–they foster mutual cultural understanding and empathy, and help students form long-lasting friendships, all while contributing to the spirit of regional unity from the ground up.

Regional and international programs are increasingly common in Brunei. With the rising number of overseas trips linked to education this year, it is worth highlighting their growing impact, both to the country itself and the wider ASEAN region. For example, the Brunei-Singapore Twinning School Programme allowed students from two districts to travel to Singapore and develop leadership skills and experiences in a new learning environment. UBD has also played an active role in hosting the UBD-ASEAN University Network Summer Programme (AUN); the initiative brought together over 160 students across the region to collaborate on ideas for a more sustainable future. Meanwhile, university students continue to take part in the Discovery Year study abroad programme, spending a semester in partner universities both within and beyond ASEAN. Other efforts, like the English Olympiad in Vietnam, include developing English proficiency by engaging with peers from diverse cultural backgrounds.

These visits are not just about maintaining cultural ties or offering academic benefits- they challenge students to adapt to a new learning environment, navigate daily life abroad, and build strong networks across people of different backgrounds; through hands-on learning and meaningful cultural exchange, students can contribute to their home country more profoundly. In line with Brunei’s Vision 2035 of building a highly educated and accomplished society, these kinds of opportunities bring fresh perspectives and ideas into the nation’s development. In a subtle but meaningful way, not only do these programmes allow students to increase their awareness of ASEAN, but they also align with ASEAN’s pillars - encouraging unity and people-to-people connection, and a sense of belonging across the region. Such early engagement lays the groundwork for a generation that is better equipped to contribute to Brunei’s regional leadership and ASEAN’s long-term cohesion.

While these journeys may unfold quietly and rarely make headlines, their impact is far-reaching. By allowing students to immerse themselves in diverse environments and foster cross-border networks and connections, these programmes help raise a generation that understands the value of regional collaboration from their own lived experience. As Brunei charts its path under Vision 2035, investing in such people-to-people initiatives is crucial, not only to nurture a globally competent workforce but also to deepen Brunei’s role within a more interconnected and resilient ASEAN.

Syimah is a graduate of King’s College London with a BA in International Relations. With a strong focus on diplomacy, regional cooperation, and development policy, she is passionate about contributing to meaningful change through public service. Currently, she is involved in poverty alleviation work through a local NGO.

Editorial Deadline 06/07/2025 11:59 PM (UTC +8)