Captures has widened its scope to include news related to all the members of the Regional Comprehensive Economic Partnership (RCEP) agreement which was signed towards the end of 2020. Besides the ASEAN Member States, this includes Australia, New Zealand, China, Japan, and South Korea. The other weekly newsletters under CARI, China-ASEAN Monitor and Mekong Monitor will also be consolidated into the Captures newsletter. We hope this new version of Captures will serve you better and look forward to providing a curation of stories relevant to ASEAN and its trading partners.

ASEAN
Southeast Asia faces potential economic challenges from Trump presidency
(21 November 2024) Southeast Asia faces potential economic challenges from Donald Trump’s proposed tariffs, including a 60% duty on Chinese imports and up to 20% on imports from other regions. Five of the six largest ASEAN economies have trade surpluses with the U.S., with Vietnam particularly exposed due to its role as a manufacturing hub for firms bypassing previous tariffs. Thailand’s economy could suffer a USD 4.6 billion impact, while nearly 40% of Cambodian exports rely on U.S. markets. However, the region benefited from trade diversion during Trump’s first term, attracting investment and manufacturing relocation from China, Japan, South Korea, and the U.S. Analysts suggest opportunities for Southeast Asia to capitalise on trade substitution, as well as to tighten their antidumping measures against Chinese goods. Electric vehicle manufacturing and intra-ASEAN trade could provide economic buffers to Trump’s tariff plans. Currency devaluation, including declines in the Thai baht and Malaysian ringgit, and global monetary shifts may further complicate the region’s economic landscape. Governments are urged to diversify trade relations, support local firms in accessing U.S. markets, and improve trade facilitation to build resilience.

INDONESIA
Apple proposes USD 100 million investment in Indonesia to resume iPhone 16 sales
(20 November 2024) Apple has proposed a USD 100 million investment in Indonesia to resume sales of its iPhone 16 series, following a sales ban due to the company’s failure to meet an earlier pledge. In April, Apple committed to investing IDR 1.7 trillion rupiah (USD 107 million) in local initiatives, including funding Apple Developer Academies to meet Indonesia’s “local content” requirements for market access. The Indonesian government is demanding that Apple complete the remaining IDR 300 billion of this pledge before sales can resume. Apple’s initial USD 10 million proposal to manufacture accessories and components locally was rejected by the government. Indonesia’s policy mandates that electronic handsets must contain at least 35% locally made parts or meet equivalent requirements, such as developing domestic software or establishing innovation centres. Apple has chosen to meet these criteria by setting up Apple Academies in three locations in Indonesia. The company sold 2.61 million units of mobile phones in Indonesia last year, generating an estimated IDR 30 trillion in income. A similar policy will be applied to Alphabet’s Google Pixel 9, which is also banned under the same local content rules.

MALAYSIA, VIET NAM
Malaysia and Viet Nam to enhance cooperation in renewable energy and digital technologies
(21 November 2024) Malaysia and Viet Nam have agreed to enhance cooperation in renewable energy and other strategic areas following a meeting between Malaysian Prime Minister Anwar Ibrahim and Vietnam’s General Secretary of the Communist Party, To Lam, during his three-day official visit to Malaysia. Malaysia’s Petronas and Vietnam’s PetroVietnam signed a memorandum of understanding to collaborate on decarbonisation and sustainable energy solutions. Malaysia plans to facilitate further cooperation with Vietnam in defence, maritime, and digital technology. Vietnam intends to expand collaboration in halal industry development, mutual investments, green economy innovation, education, sports, and tourism. Anwar noted that Malaysian investments in Vietnam exceed USD 13 billion across 700 projects and described the visit as pivotal in elevating ties to a “comprehensive strategic partnership.”

SINGAPORE
Genting Singapore’s casino license renewed for shortened two-year period
(20 November 2024) Singapore’s Gambling Regulatory Authority has renewed Genting Singapore Ltd.’s casino license for a shortened two-year period, citing “unsatisfactory” tourism performance at Resorts World Sentosa. The licence renewal, which typically lasts three years, will begin on 06 February, with the next evaluation scheduled for 2026. The evaluation, covering the period from January 2021 to December 2023, coincided with the global COVID-19 pandemic, during which Genting faced significant challenges. Resorts World Sentosa, which features over 550 gaming tables and 2,400 slot machines, is one of only two casinos in Singapore. Genting has started a USD 5 billion waterfront expansion, including 700 new hotel rooms, a Minions-themed area at Universal Studios Singapore, and an expanded aquarium. Genting emphasised its ongoing transformation to enhance the visitor experience. Meanwhile, its rival, Marina Bay Sands, is seeking a SGD 12 billion (USD 9 billion) loan to fund a new fourth tower and a 15,000-seat entertainment arena. Marina Bay Sands is also preparing to renew its casino licence, which expires in April.

THE PHILIPPINES
Philippines Stock Exchange anticipates raising up to USD 2.4 billion in 2024
(21 November 2024) The Philippine Stock Exchange (PSE) anticipates raising PHP 120–140 billion (USD 2.4 billion) in capital in 2024, significantly higher than the expected PHP 80 billion for 2023. At least six companies, including a gaming firm in Clark Freeport Zone, Okada Manila’s operator, and a water concessionaire, plan to go public next year, compared to three listings in 2023. The PSE is also preparing to launch depositary receipts in 2024 and collaborating with the Taiwan Stock Exchange to offer derivatives products by 2026, aiming to enhance liquidity and valuations. Monzon noted that further rate cuts by Bangko Sentral ng Pilipinas (BSP), including a potential 25 basis points reduction in December, could drive the stock index above 7,000 by year-end, with analysts projecting levels of 8,000–8,600 in 2024. The BSP Governor stated that rate decisions will depend on inflation trends, with a pause possible if price pressures emerge. The PSE also plans to ease listing rules, lower friction costs, and introduce derivatives to attract both domestic and foreign investors.

THE PHILIPPINES, CAMBODIA
The Philippines and Cambodia to sign double taxation agreement in February 2025
(20 November 2024) The Philippines will sign a double taxation agreement (DTA) with Cambodia in February 2025, delayed from its initial October 2023 timeline at Cambodia’s request. The agreement aims to mitigate double taxation on income earned by citizens and businesses operating between the two countries, reducing trade barriers and encouraging cross-border economic activity. Negotiations for the agreement began in 2018 in Manila and progressed in 2019 in Siem Reap. The Department of Finance (DOF) emphasized that such agreements protect tax rights while facilitating trade and investment, enhancing the competitiveness of Filipino exports in Cambodia. Talks are also ongoing with Lao PDR for a similar deal, while the Philippines plans to renegotiate DTAs with Indonesia, Malaysia, and Singapore. Philexport is currently reviewing the potential impact of these measures, with its vice president noted that easing tax burdens and eliminating trade barriers are beneficial for exporters in principle.

THAILAND
Thai government to distribute THB 10,000 to 4 million senior citizens
(19 November 2024) The Thai government will distribute THB 10,000 (USD 289) in cash to 4 million senior citizens each by late January 2024, allocating THB 40 billion as part of the second phase of its stimulus programme. This phase follows an earlier distribution of THB 10,000 to over 14 million welfare card holders and individuals with disabilities in September 2023. The initiative, originally proposed as a blockchain-based digital cash handout for all Thais aged 16 and above, has been scaled back due to budgetary and technical constraints. The government allocated THB 180 billion for the programme in this fiscal year, with THB 140 billion set aside for a digital rollout in the third phase, scheduled for Q2 2025. Additionally, the government approved a three-year moratorium on household debts under one year old, totalling THB 1.3 trillion, in coordination with the Ministry of Finance, the Bank of Thailand, and the Thai Bankers’ Association.