Timor-Leste: Watching the transition of ASEAN’s newest star

By Anna Thomas*

One year on from the historic admission to ASEAN, Southeast Asia's youngest nation is building at breakneck speed. But poverty and malnutrition are still affecting the people who fought so hard for independence.

This month marks a year since Timor-Leste was formally welcomed into ASEAN, and the transformation of the capital Dili, in that short time is staggering.

After spending most of 2025 in the country and returning several times this year, it's hard to miss the new multi-storey buildings, new cafes, and paved roads. Driving around the city remains typically chaotic but there is an energy which is hard to ignore.

More flights are coming in, more business meetings are happening, and blocks of corrugated iron make-shift homes and food stalls have been cleared to make way for new builds.

A massive convention centre is being built in the old port precinct, in time for the country's chairmanship of ASEAN 2029 which will attract thousands of people. The 30,000 square-metre complex features conference halls, exhibition spaces, a pedestrian pier promenade, an aquarium, and even a Ferris wheel.

And if that's not enough to get excited about, Timor-Leste has just been listed on Intrepid Travel's "Not Hot List" of 10 under-the-radar destinations. That's guaranteed to bring an influx of intrepid travellers wanting to get in before the crowds arrive.

But not everyone is happy. Local media outlets have been running stories for most of the year about those people who've being evicted from their homes with nowhere to go and many remain living under tarpaulins. In one suburb 57 businesses were flattened to make way for urban infrastructure projects. As they wait for compensation, business owners say the evictions have disrupted livelihoods, cost jobs, and left them struggling to rebuild.

The worrying pace of progress

Not all construction is equal. In a country that regularly experiences earthquakes, an expat engineer who lived in our three storey complex pointed out several new buildings we should avoid spending time in. No such thing as building codes and regulations. Every day I watched a multi storey building shoot up in front of my apartment and did not see any reinforcing steel between the blocks.

There is no denying Timor-Leste is a country ripe for investment, and the money is flowing in. Some of it legitimately and some of it not. Stories I've heard include suitcases of US cash coming in and contracts being awarded to friends of influence.

Like many new and emerging nations where there is weak institutional frameworks, ineffective legal systems and lack of transparency, corruption flourishes. Timor-Leste fell three places to 44 in the latest corruption perception index put out by Transparency International.

And in a 2026 report by the Anti-Corruption Commission in Timor Leste it showed out of 86 public projects, 25 were flagged for problems or vulnerability to corruption.

Foreign officials offer to build infrastructure, sometimes for free, though few here believe there won't eventually be a price to pay.

A former government minister described to me how government perks have grown. When he was in office, he said only three people had a security detail, including the Prime Minister. Now all 19 ministers plus the PM, two Deputy PMs all have a security detail. When I asked if the risk to life, or if the country had become more dangerous, he replied 'not at all'. It's all about status and jobs for friends and family.

Overseas travel allowances for ministers were also generous. And while an Australian or New Zealand VIP might travel with two staff… the Timorese travel with many more.

These things are not lost on the people of Timor-Leste, of which 45 percent live below the poverty line, and where jobs are hard to find. In late 2025, student-led protests forced the government to cancel plans for lifetime pensions and vehicle benefits for elected representatives. The unrest ended without major escalation, but needed intervention from President, José Ramos-Horta.

Health: remarkable gains, glaring gaps

Dr Arvind Mather is the World Health Organisation's representative in Timor-Leste, and says the country's progress in health is 'remarkable' for a post-conflict nation. At independence there were around 15 doctors, today there are more than 1,000, along with a substantial nursing, midwifery and allied health workforce. Life expectancy has risen by about ten years, from around 60 to above 70.

"The country is polio-free and has eliminated maternal and neonatal tetanus, measles and rubella. In July 2025 it was certified malaria-free, only the third country in the WHO's South-East Asia Region to achieve this". But health spending sits at between 4.5 and 5 percent of GDP, a figure Mather would like to see higher.

While there is a high number of health professionals- there is a severe shortage of specialists services. Mather says Timor-Leste has about three qualified cardiologists and one ear, nose and throat specialist. While specialists are being trained in Cuba, which has a recipricol deal with Timor-Leste, there are not the facilities or equipment to perform many procedures.

"If they find a person has had a heart attack, we can only do stabilisation and thrombolysis. Angiography and angioplasty are not available, so patients are sent overseas, usually to Singapore or Malaysia." This of course is a major cost burden for the country.

It is a similar story for cancer patients. Breast and ovarian are the most common cancers for women, yet patients needing anything more than chemotherapy have to be treated offshore.

Mather also explains how the doctors trained locally are largely stuck in country, because they fail to meet the qualifications or foreign medical graduate testing required to work overseas.

Malnutrition is another cause for concern, with the WHO reporting 47 percent of children under five have stunted growth. Tuberculosis is among the highest in the region, and dengue and rabies keep returning. Non-communicable diseases, including hypertension, diabetes, stroke and heart disease, now account for 45 per cent of deaths.

Adding to the myriad of issues, are the long wait times for patients at public hospitals and lack of access and availability of basic medical supplies and medicines.

The Timorese Doctor Returning to Build a healthier future

Dr. Andre Belo, was born in Timor-Leste during the Indonesian invasion. He went on to train as a doctor in Java, Indonesia but returned to his homeland and set up the charity, Sabeh (Saude Ba Ema Hotu). They work in about 100 remote areas with over 1000 health professionals, including volunteers, providing primary healthcare services.

Belo says there is a real need for depoliticized health systems, standardized medical training, and better infrastructure. His organisation says there are high rates of tuberculosis and respiratory diseases in Timor-Leste, attributed to malnutrition, poverty, and smoking.

Tobacco is widely used by adults (60 percent) with one in five school children saying they've used tobacco. Twenty percent of schools have a vendor at the gate.

Belo says they'd like to see practical, community-focused projects that address the root causes of health issues. Sabeh workers try to educate communities about nutrition and health but it remains a real challenge due to limited resources and infrastructure.

Despite those challenges he says Sabeh has made significant impacts, including improving patients' quality of life and addressing health inequities.

"One recent case really stands out to me," Belo explains. "We went to visit a patient who lived remotely and had been bedridden for six years due to chronic pain. She was finally able to see the sun after receiving painkillers and a wheelchair."

The test ahead

ASEAN membership has brought Timor-Leste regional dialogue, technical assistance and the promise of trade and investment. With access to a market of over 680 million consumers, the country is experiencing a major economic push. Organisations like the Australian Trade and Investment Commission are launching campaigns like Invest Timor-Leste 2026 to draw in regional business.

Stefania Dina, who until recently headed the Asian Development Bank in Timor-Leste, says institution-building and regional integration are progressing well. ASEAN accession, she says, "stands out as a historic achievement." Investment in roads, energy and water, she adds, is beginning to connect communities and improve daily life.

But Dina does not understate the challenge, describing the reality of poverty, especially in rural areas, as confronting. "Change will not be immediate," she says, but consistent policies and partnerships will likely see poverty levels decline over time. Priorities should include private sector jobs for young people, better education and health services, support for agriculture and small business, infrastructure and stronger governance.

Asked for a single piece of advice for the country, she was clear: Stay focused on investing in people, especially the youth, and on building strong institutions. Natural resources can provide revenue, she said, but human capital, governance and regional integration will secure Timor-Leste's future.

* Anna Thomas travelled to Timor-Leste with assistance from Asia New Zealand Foundation.