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Why ASEAN membership matters for Timor-Leste, SEA’s smallest economy

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Timor-Leste, Southeast Asia’s smallest economy, is now ASEAN’s newest member. 

On Oct 26, the regional body voted in the island nation as its eleventh member at the ASEAN Summit in Kuala Lumpur. Timor-Leste first applied for membership in 2011, just under a decade after it won formal independence from Indonesia, its much larger neighbor. Timor-Leste, also known as East Timor, is ASEAN’s first new member since 1999, when the bloc welcomed Cambodia into the group.

“Timor-Leste has struggled with securing investments, due to the country’s instability and associated risks,” says Norashiqin Toh, a post-doctoral fellow at Tsinghua University’s Institute for Advanced Study in Humanities and Social Sciences.

“Becoming a member of ASEAN will likely send a credible signal to international investors of the country’s political stability, and also attract further investments from businesses in other ASEAN member states.” 

ASEAN, or the Association of Southeast Asian Nations, is a regional grouping which seeks to promote economic and security cooperation among its members. Founded in 1967, ASEAN began with five member nations: Indonesia, Malaysia, Philippines, Singapore and Thailand. It has since expanded to include other regional countries, namely Vietnam, Laos, Cambodia, Brunei and Myanmar. 

A turbulent past

Timor-Leste is Asia’s youngest nation, gaining independence on May 20, 2002. The eastern half of the island of Timor was colonized by the Portuguese in the 16th century. The territory remained under Portuguese rule, apart from a brief Japanese occupation during the Second World War, until 1975, when a left-wing Portuguese government pledged to withdraw from all its colonies. 

Indonesia invaded Timor-Leste just a week after Portugal withdrew, leading to almost a quarter-century of occupation marked by severe human rights abuses. 

In 1999, Timor-Leste’s population voted overwhelmingly for independence in a United Nations-sponsored referendum. The vote was organised at the request of then-Indonesian president B. J. Habibie, allowing its people to choose between independence or greater autonomy within Indonesia. A few years later, in 2002, Timor-Leste became the first new sovereign state of the 21st century. 

In the 23 years since its independence, Timor-Leste has made significant progress in nation building, expanding critical infrastructure like roads, airports, and internet access. The country has also eradicated once-rampant tropical diseases like malaria.

Yet much of Timor-Leste’s development can be credited to its reliance on oil and gas revenue, which at times made up over 90% of the country’s GDP. As of 2024, the country’s GDP stood at approximately $2 billion, making it ASEAN’s smallest economy. (The next smallest economy, Laos, has a GDP of around $16.5 billion).

Timor-Leste’s oil and gas wells are already running dry, with oil production at the Bayu-Undan field in the Timor Sea—the country’s only producing field—ceasing production in June 2025.

The Singapore strategy

There are also geopolitical benefits to ASEAN membership. Timor-Leste now has access to ASEAN-led security and economic mechanisms, and the country can now leverage the coalition to engage with external partners such as China, the U.S., and Australia.

“This is similar to Singapore’s strategy of a small country utilizing the bloc to increase its influence,” says Pasha L. Hsieh, a law professor from the Singapore Management University.

Being a member of ASEAN also gives Timor-Leste a seat at the table with world leaders it might not be able to access on its own, Toh, from Tsinghua, adds. “Many formal and informal bilateral meetings occur on the sidelines of summits such as the ASEAN summit, so Timor-Leste can use the opportunity to develop its political ties,” she says.

Economically, the country will also benefit from near-zero tariffs in the ASEAN market, which can help diversify its industry.

Additionally, Timor-Leste will likely become part of the Initiative for ASEAN Integration (IAI), says Joanne Lin, a senior fellow and coordinator from the ISEAS-Yusof Ishak Institute, a research center based in Singapore.

The initiative provides targeted capacity-building support for newer and less developed ASEAN members—namely Vietnam, Laos, Myanmar and Cambodia—to strengthen institutions, infrastructure and human capital. 

“This will help Dili better align with ASEAN’s economic and technical standards,” Lin says.

And importantly, Timor-Leste’s ASEAN membership is an affirmation of its sovereignty, putting it in equal standing with its former occupier, Indonesia, within the regional bloc.

Timor-Leste’s ASEAN admission “reflects the strength of its democracy, built through regular elections, peaceful political transitions and a vibrant civil society that continues to hold institutions accountable,” Lin says.



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Trust has become the crisis CEOs can’t ignore at Davos, as new data show 70% of people turning more ‘insular’

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Everywhere you turn in Davos this year, people are talking about trust. And there’s no one who knows trust better than Richard Edelman. Back in 1999, Edelman was on the cusp of taking  over the PR firm founded by his father Daniel. Spurred by the 1999 WTO protests in Seattle, he decided to try and measure the level of trust in NGOs compared with business, government and media, Edelman surveyed 1,300 thought leaders in the U.S., U.K., France, Germany and Australia, and the Edelman Trust Barometer was born. 

While the survey sample long ago expanded beyond elites to include about 34,000 respondents in 28 nations, its results are still unveiled and debated every year at the ultimate gathering of elites: the World Economic Forum. This year’s findings are grim: About 70% of respondents now have an “insular” mindset: they don’t want to talk to, work for, or even be in the same space with anyone who doesn’t share their world view. And “a sense of grievance” permeates the business world, Edelman finds. At Davos, debating such findings have spawned a series of dinners, panels, cocktails and media briefings on site. What better place to bring people together than the world’s most potent village green?

I moderated a CEO salon dinner with about three dozen leaders last night to discuss what they’re seeing and doing when it comes to building trust. Before the dinner, I asked Edelman what he’d like to see this year, after 26 winters of highlighting the erosion of trust. “Urgency,” he said. “A sense that time is running out.”

Because the gathering itself was held under the Chatham House rule, I won’t share names and direct quotes. But the focus was on how attendees are trying to address the problem through what Edelman calls “trust brokering,” or finding common ground through practices from nonjudgemental communications to “polynational’ business models that invest in long-term local relationships. (See the report for more information.) There were some success stories from the front lines of college campuses, politics and industries caught in a crossfire of misinformation.

Still, the mood was somewhat subdued, with a sense that there’s no easy fix to building trust. As one CEO pointed out, rarely have leaders faced such a confluence of geopolitical crises, tech shifts, economic divides, disinformation, job disruption and wicked problems. And as much as Davos is a great gathering ground to talk through all of these problems, the fact is the problems will all still be waiting once these CEOs return from the mountains.

This story was originally featured on Fortune.com



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History says there’s a 90% chance that Trump’s party will lose seats in the midterm elections. It also says there’s a 100% chance

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Now that the 2026 midterm elections are less than a year away, public interest in where things stand is on the rise. Of course, in a democracy no one knows the outcome of an election before it takes place, despite what the pollsters may predict.

Nevertheless, it is common for commentators and citizens to revisit old elections to learn what might be coming in the ones that lie ahead.

The historical lessons from modern midterm congressional elections are not favorable for Republicans today.

Most of the students I taught in American government classes for over 40 years knew that the party in control of the White House was likely to encounter setbacks in midterms. They usually did not know just how settled and solid that pattern was.

Since 1946, there have been 20 midterm elections. In 18 of them, the president’s party lost seats in the House of Representatives. That’s 90% of the midterm elections in the past 80 years.

Measured against that pattern, the odds that the Republicans will hold their slim House majority in 2026 are small. Another factor makes them smaller. When the sitting president is “underwater” – below 50% – in job approval polls, the likelihood of a bad midterm election result becomes a certainty. All the presidents since Harry S. Truman whose job approval was below 50% in the month before a midterm election lost seats in the House. All of them.

Even popular presidents – Dwight D. Eisenhower, in both of his terms; John F. Kennedy; Richard Nixon; Gerald Ford; Ronald Reagan in 1986; and George H. W. Bush – lost seats in midterm elections.

The list of unpopular presidents who lost House seats is even longer – Truman in 1946 and 1950, Lyndon B. Johnson in 1966, Jimmy Carter in 1978, Reagan in 1982, Bill Clinton in 1994, George W. Bush in 2006, Barack Obama in both 2010 and 2014, Donald Trump in 2018 and Joe Biden in 2022.

Exceptions are rare

There are only two cases in the past 80 years where the party of a sitting president won midterm seats in the House. Both involved special circumstances.

In 1998, Clinton was in the sixth year of his presidency and had good numbers for economic growth, declining interest rates and low unemployment. His average approval rating, according to Gallup, in his second term was 60.6%, the highest average achieved by any second-term president from Truman to Biden.

Moreover, the 1998 midterm elections took place in the midst of Clinton’s impeachment, when most Americans were simultaneously critical of the president’s personal behavior and convinced that that behavior did not merit removal from office. Good economic metrics and widespread concern that Republican impeachers were going too far led to modest gains for the Democrats in the 1998 midterm elections. The Democrats picked up five House seats.

The other exception to the rule of thumb that presidents suffer midterm losses was George W. Bush in 2002. Bush, narrowly elected in 2000, had a dramatic rise in popularity after the Sept. 11 attacks on the World Trade Center and the Pentagon. The nation rallied around the flag and the president, and Republicans won eight House seats in the 2002 midterm elections.

Those were the rare cases when a popular sitting president got positive House results in a midterm election. And the positive results were small.

The final – and close – tally of the House of Representatives’ vote on President Donald Trump’s tax bill on July 3, 2025. Alex Wroblewski / AFP via Getty Images

Midterms matter

In the 20 midterm elections between 1946 and 2022, small changes in the House – a shift of less than 10 seats – occurred six times. Modest changes – between 11 and 39 seats – took place seven times. Big changes, so-called “wave elections” involving more than 40 seats, have happened seven times.

In every midterm election since 1946, at least five seats flipped from one party to the other. If the net result of the midterm elections in 2026 moved five seats from Republicans to Democrats, that would be enough to make Democrats the majority in the House.

In an era of close elections and narrow margins on Capitol Hill, midterms make a difference. The past five presidents – Clinton, Bush, Obama, Trump and Biden – entered office with their party in control of both houses of Congress. All five lost their party majority in the House or the Senate in their first two years in office.

Will that happen again in 2026?

The obvious prediction would be yes. But nothing in politics is set in stone. Between now and November 2026, redistricting will move the boundaries of a yet-to-be-determined number of congressional districts. That could make it harder to predict the likely results in 2026.

Unexpected events, or good performance in office, could move Trump’s job approval numbers above 50%. Republicans would still be likely to lose House seats in the 2026 midterms, but a popular president would raise the chances that they could hold their narrow majority.

And there are other possibilities. Perhaps 2026 will involve issues like those in recent presidential elections.

Close results could be followed by raucous recounts and court controversies of the kind that made Florida the focal point in the 2000 presidential election. Prominent public challenges to voting tallies and procedures, like those that followed Trump’s unsubstantiated claims of victory in 2020, would make matters worse.

The forthcoming midterms may not be like anything seen in recent congressional election cycles.

Democracy is never easy, and elections matter more than ever. Examining long-established patterns in midterm party performance makes citizens clear-eyed about what is likely to happen in the 2026 congressional elections. Thinking ahead about unusual challenges that might arise in close and consequential contests makes everyone better prepared for the hard work of maintaining a healthy democratic republic.

Robert A. Strong, Senior Fellow, Miller Center, University of Virginia

This article is republished from The Conversation under a Creative Commons license. Read the original article.

The Conversation



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What a Walmart CEO contender’s exit reveals about when to move on

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There’s no such thing as a silver medal in a CEO succession race.

In November, Walmart named U.S. chief John Furner as its next CEO, crowning him the sixth leader in the history of the world’s largest retailer. The decision also quietly closed the door on another highly regarded contender for the corner office: Kath McLay, Walmart International’s CEO and a decade-long veteran of the company. On Thursday, Walmart disclosed that McLay would depart, staying on briefly to ensure a smooth transition.

The sequence was swift, orderly, and entirely unsurprising to those who study corporate succession. Boards rarely say it out loud, but experienced executives understand intuitively that once a CEO is chosen, the long-term prospects for previously whispered-about internal candidates dim almost immediately as power consolidates around the new chief executive. 

That’s why many of the most ambitious leaders in American business don’t linger after a succession decision. They move deliberately, and often quickly, because the moment immediately after a board makes its choice is paradoxically when a near-CEO executive’s market value is at its peak. The executive has just been validated at the highest level—close enough to be seriously considered for the top job—without yet absorbing the reputational drag that can follow prolonged proximity to a decision that didn’t go their way.

In that narrow window, the story is still about capability. Search firms and directors see a leader who was trusted with scale, complexity, and board scrutiny, not someone who failed to clear the final hurdle. 

When Jeff Immelt was named CEO of General Electric in 2001, the decision concluded one of the most closely watched succession contests in modern corporate history. Among the executives developed as credible successors was Bob Nardelli, then president and CEO of GE Power Systems. Nardelli didn’t stay to see how it might play out. Within months, he left GE to become Home Depot’s CEO.

A decade later, a different scenario unfolded at Apple, but with a similar outcome. Retail chief Ron Johnson had transformed Apple’s stores into an industry-defining, highly profitable global business and was widely viewed internally as CEO-caliber. Apple’s board had long centered its succession plans on Tim Cook, and when Cook was formally named successor to Steve Jobs, it effectively closed the door on a CEO path for Johnson. He left soon after to take the top job at J.C. Penney.

The executives who leave quickly aren’t being disloyal; they’re being realistic. Remaining too long after a succession decision can quietly erode an executive’s standing, both internally and externally, as the narrative shifts from “next in line” to “still waiting.”

At Ford Motor Co., president Joe Hinrichs was widely viewed as a leading CEO contender. When the board selected Jim Hackett in 2017, Hinrichs left not long afterward. Five years later, he resurfaced as CEO of transportation company CSX. Similarly, several senior Disney executives left or were sidelined after Bob Chapek was chosen as CEO in 2020. Most notably, Kevin Mayer, Disney’s head of direct-to-consumer and international, and a widely assumed CEO contender, departed within months to briefly become CEO of TikTok.

There are exceptions. But they tend to follow a different arc.

Although longtime Nike insider Elliott Hill was not passed over in a formal succession contest, he was widely viewed as CEO-ready when the board opted for an external hire in 2020. Hill stayed on for several years and later retired. Only after performance pressures mounted and the company embarked on a strategic reset did Nike’s board reverse course, asking Hill to return as CEO in 2024. Even then, such boomerangs remain exceedingly rare.

McLay’s departure from Walmart fits the dominant pattern. By exiting promptly while remaining to support a defined transition, she preserves both her reputation and her leverage. She leaves as an executive who was close enough to be seriously considered—not one who stayed long enough to be diminished by the process.

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