Thayer Consultancy Background Brief:

ABN # 65 648 097 123

Japan’s Relations with ASEAN
and Cambodia
February 18, 2024

We are preparing a report about Japan’s role in Southn East Asia in general and
Cambodia in particular. We request your input into the following issues/questions:
Q1a. What is your assessment of Japan’s future role in South East Asia?
ANSWER: Japan has a long established record of diplomatic and economic
engagement in Southeast Asia. In March 1977, Japan became one of ASEAN’s first
dialogue partners, and in August htat year Japan adopted the Fukuda Doctrine. This
doctrine stressed that Japan would not become a military power and would promote
wide-ranging cooperation with Southeast Asian states and the newly established
Association of South East Asian Nations (ASEAN).
Subsequently, Japan emerged as one of ASEAN’s most trusted economic partners. For
example, Japan provided vital economic assistance to Southeast Asian states during
the 1997-98 Asian Financial Crisis. Also, Japan played a key role in resuscitating the
Trans-Pacific Partnership after President Trump abruptly withdrew the United States
from it.
Japan contributed an estimated $367 billion to finance infrastructure in Southeast
Asia’s six biggest economies prior to the COVID-19 pandemic, compared to China’s
commitment of $255 billion.
Japan is currently ASEAN’s third largest trading partner and also a major source of
foreign investment. Additionally, Japan is the second largest provider of Overseas
Development Assistance, estimated at $130 billion in total up to 2023.
In 2022 and 2023, there were straws in the wind indicating that Japan would assume
a greater role in contributing to regional defence and security cooperation. In
December 2022, Japan adopted three security documents: National Security Strategy
of Japan, National Defense Strategy and Defense Build-up Program. These documents
signalled a new priority on bilateral relations with regional states such as “2 plus 2”
meetings of foreign and defence ministers, and joint military exercises and training.
In 2023, Japan, as chairman of the Group of 20, invited Indonesia and Vietnam as
observers Japan and the Philippines held a summit meeting in January. Prime Minister
Kishida became the first Japanese leader to address a joint sitting of the Philippine
Congress. In April 2023, Japan introduced a new cooperation framework called Official
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Security Assistance (OSA), aimed at benefiting the armed forces and related security
services of developing countries.
With respect to Southeast Asia, Kishida announced an OSA grant of $4 million to
provide coastal radar to the Philippines. Japan and the Philippines currently are
negotiating a Reciprocal Assess Agreement to set the stage for future joint military
exercises. Kishida also visited Malaysia and offered expanded maritime security
assistance.
Japan’s future role in the region will be largely shaped by its overall relations with
ASEAN. In September 2023, ASEAN and Japan formally raised their relations to a
comprehensive strategic partnership. Only Australia, China, India and the United
States had been previously accorded that status.
In October 2023, ASEAN and Japan adopted the Framework for Comprehensive
Economic Partnership. In December 2023, when Japan hosted a summit with ASEAN
to commemorate the 50th anniversary of relations, Japan announced a set of four new
priorities in its economic relations with Southeast Asia – sustainable development and
combatting climate change; promoting innovation; developing cyber and digital
connectivity; and expanding human capital.
Q1b. What do you think about Japan’s role in Cambodia?
ANSWER: Japan was one of the first countries to extend diplomatic relations to
Cambodia when it achieved independence in 1953. Japan commenced providing
Overseas Development Assistance shortly after. Japan’s relations with Cambodia are
of longer standing than Japan’s relations with ASEAN.
Japan played a major diplomatic role in bringing the Cambodian conflict to an end in
1991 and assisting Cambodia’s recovery in the post-Khmer Rouge period. Japan
stepped in again to assist Cambodia during the COVID-19 pandemic by providing
medical equipment and supplies and assistance in vaccine production.
Japan has made a major contribution to Cambodia’s economic development through
investment, trade and development assistance in a wide variety of areas including
industry (manufacturing and private sector); infrastructure (schools, hospitals,
highways, bridges, public facilities, power plants); education, vocational training and
development of human capital; agriculture, public health, tourism, defence and
security (demining and peacekeeping); preservation of historic sites; and technology
transfer including digital transformation.
Japan is also a major source of foreign investment with $2.9 billion invested in 149
Cambodian projects as of August 2022.
Cambodia maintains a hefty trade surplus with exports to Japan of $1.17 billion
accounting for 65 per cent of total two-way trade of $1.8 billion in 2023.
With respect to foreign policy, in 2017 Cambodia was the first ASEAN member to
openly support Prime Minister’s Shinzo Abe’ Free and Open Indo-Pacific (FOIP)
construct.
Japan’s future role in Cambodia will be shaped by the decision of the two countries to
raise bilateral relations to a comprehensive strategic partnership in January 2023, on
the occasion of the 70th anniversary of diplomatic relations. Japan now joins China at
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the top of Cambodia’s diplomatic hierarchy. In early 2023, Cambodia publicly

endorsed Japan’s National Security Strategy.
In September, Prime Minister Fumio Kishida met with Prime Minister Hun Manet on
the sidelines of ASEAN-related Summit Meetings in Indonesia. The two leaders agreed
to the Co-Creation for Common Agenda Initiative to support digital transformation.
Kishida suggested strengthening security cooperation through dialogue between
Japan’s Ground Self-Defence Force and Royal Cambodia Army and visits by Japan’s
Maritime Self-Defense Force (JMSDF) to Ream Naval Base. Hun Manet agreed to port
call by the JMSDF.
In November 2023, the Cambodia and Japan held their first foreign ministry Senior
Officials’ Meeting (SOM) in Tokyo.
On 17 December 2023, Cambodia Foreign Minister Sok Chenda Sophea met his
Japanese counterpart, Kamikawa Yoko, in Phnom Penh. A press release noted the
ministers agreed to enhance and broaden bilateral cooperation in “politics, economy,
infrastructure, defence, demining, peacekeeping operations people-to-people
exchanges, human resource development, digital advancement and cybersecurity.”
On 18 December 2023, Prime Minister Hun Manet made his first official visit to Japan
to attend ASEAN-Japan Commemorative Summit for the 50th Year of ASEAN-Japan
Friendship and Cooperation. Prime Ministers Fumio Kishida and Hun Manet met in
Tokyo on the sidelines of the Commemorative Summit. Kishida pledged a loan of $139
million to assist in providing advance medical care to rural hospitals.
Kishida also expressed his desire to strengthen security relations through people-to-
people and unit-to-unit exchanges such as port calls. The two leaders agreed to
establish Defence Senior Officials’ Talks in parallel with the recently held first foreign
ministry SOM.
Hun Manet proposed the creation of the Cambodia-Japan Special Economic Zone.
The two leaders witnessed the exchange of notes on grant aid for three projects
totalling $31.3 million: development of the National Data Center towards promoting
e-government, construction of a hydrographic survey vessel to prepare electronic
navigation charts, and the project for the development of a digital management
system of municipal water supply facilities. Under the second grant aid project Japan
agreed extend its assistance to develop the port of Sihanoukville as a “hub of principal
ports in the region.”
The leaders also witnessed the exchange of notes on ministerial cooperation in four
projects: the development of digital economy and society, development of a unified
QR code-based payment system, a solar power project, and a biomass project.
In January 2024, in a follow up to discussions by the two prime ministers, the
Cambodian government announced it was drafting a policy to establish the Cambodia-
Japan Special Economic Zone.
A Japan-Cambodian inter-ministerial meeting is scheduled at the Council for the
Development of Cambodia later this year to draft a country assistance policy covering
political, defence and economic assistance for Cambodia in the period 2024-28.
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Q2. Does Japan still retain influence in South East Asia with a rising China?
ANSWER: Japan has and will continue to exert enormous influence in the Indo-Pacific
region in general and Southeast Asia in particular. According to The State of Southeast
Asia: 2023 Survey Report, a public opinion poll conducted by the Yusof Ishak Institute
of Southeast Asian Studies in Singapore released in February 2023, Japan is Southeast
Asia’s most trusted external partner. The Report gave two reasons: Japan is viewed as
a responsible stakeholder that upholds international law and Japan has the necessary
economic resources and political will to provide global leadership.
The elevation of Japan’s relations with ASEAN to a comprehensive strategic
partnership now places Japan on a par with Australia, the United States and China. In
other words, Japan has a new platform to exert influence on Southeast Asian states.
Over the last five years up to November 2023, China’s Belt and Road-related initiatives
declined by an estimated 40 percent due to the COVID-19 pandemic’s disruption of
the global supply chain, China’s lockdown policy, and the slowdown of China’s
economy. Japan is well-placed to offer alternate finance for high-quality infrastructure
especially to countries that want to lessen their dependence on China by diversifying
their economic relations, such as Cambodia.
Q3. Does Japan still have a role in upholding Cambodia's democracy?
ANSWER: Japan pursues a quiet, long-term approach to supporting democracy in
Cambodia by providing technical support for national elections and promoting
dialogue rather than “megaphone diplomacy.”
On 7 September 2023, Prime Minister Fumio Kishida met with Prime Minister Hun
Manet on the sidelines of ASEAN-related Summit Meetings in Indonesia. According to
Japan’s Ministry of Foreign Affairs, Kishida told Manet that in “building a democratic
society it is important to create an environment in which the people can express
diverse opinions, and that Japan will continue to support Cambodia’s democratic
development.” Manet expressed his gratitude for past support and “asked for
continuous Japan’s [sic] support.”
On 18 December 2023, Prime Ministers Fumio Kishida and Hun Manet held a summit
meeting in Tokyo. Kishida told Manet that “Japan continues to attach importance to
the democratic development of Cambodia, and that in February next year, Japan will
conduct the sixth invitation program for young Cambodians involved in politics from
both the ruling and opposition parties.” The two leaders agreed to cooperate in that
area.
Q4. Can Japan play a role like the United States or European Union in promoting
democracy and human rights in Cambodia?
ANSWER: Japan’s has a different legal-system than the U.S. and European Union who
both prescribe sanctions for human rights violations and suppression of democracy.
According to Chhay Lim of the Royal University of Phnom Penh, “Japan remains the
only democratic country to support and recognise the legitimacy of the Cambodian
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government” after national elections in July 2023. Japan made no criticism of Hun
Sen’s suppression of opposition parties in Cambodia.
Japan takes a low-key diplomatic profile and plays the long game. For example, Japan’s
Ministry of Economy, Trade and Industry (METI) takes an interest to account for and
eliminate human rights risks including forced labour and child labour in supply chains
operated by Japanese companies in Southeast Asia.
Q5. What do you think about Japan as the upholder of the “liberal international world
order”?
ANSWER: On March 20, 2023, Prime Minister Kishida delivered a policy speech in New
Delhi where he announced Japan’s new plan for a “Free and Open Indo-Pacific (FOIP).”
Kishida argued that the international community lacked a guiding perspective on what
principles should comprise the international order. Kishida offered the following core
principles: defending freedom and the rule of law, freedom from force or coercion,
and respect for diversity, inclusiveness, openness and cyberspace.
Kishida structured his FOIP around four pillars: principles for peace and rules for
prosperity; addressing challenges in an Indo-Pacific Way; multi-layered connectivity;
and extending efforts for security and safe use of the sea to the air. Kishida’s FOIP
gained immediate support from Indonesia, Thailand and Vietnam.
Japan supports ASEAN-centrality and was the first dialogue partner to align the Japan’s
FOIP with the ASEAN Outlook on the Indo-Pacific.
Japan is widely viewed in Southeast Asia as an “all weather friend.” Japan shares much
in common with Southeast Asian states through its membership in the Comprehensive
and Progressive Trans-Pacific Partnership and Regional Comprehensive Economic
Partnership.
Japan, like all ASEAN members, seeks to engage diplomatically and economically with
China. Japan offers a strategic alternative to China and the United States in terms of
economic relations. Regional leaders, such as Singapore call on Japan to play a larger
role.

Suggested citation: Carlyle A. Thayer, “Japan’s Relations with ASEAN and Cambodia,”
Thayer Consultancy Background Brief, February 18, 2024. All background briefs are
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Thayer Consultancy provides political analysis of current regional security issues and
other research support to selected clients. Thayer Consultancy was officially
registered as a small business in Australia in 2002.