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.

THAILAND
31 people killed, 125,000 displaced by monsoon flooding in Malaysia and Thailand 
(03 December 2024) Monsoon rains in Thailand and Malaysia have caused severe flooding, killing 31 people and displacing over 125,000. In Thailand, 25 deaths were reported, and more than 300,000 households were affected. Authorities have sheltered 34,354 evacuees in 491 centres, with a budget of THB 50 million (GPB 1.45 million) allocated per affected province and THB 9,000 (GPB 260) payments provided to impacted families. Pattani, Narathiwat, Songkhla, and Yala are the worst-hit provinces. Malaysia reported six fatalities and damages valued at USD 224 million, with 91,000 people still displaced. Kelantan and Terengganu were the most affected areas. Thai and Malaysian officials anticipate further heavy rainfall this week, preparing shelters, evacuation plans, and rescue measures. Prime Minister Anwar Ibrahim indicated readiness for additional monsoon surges.

MALAYSIA
Malaysia to position itself as regional hub for EV production and innovation
(04 December 2024) Malaysia aims to position itself as a regional hub for electric vehicle (EV) production and innovation, leveraging opportunities in the mobility industry to integrate local manufacturers and SMEs into the global supply chain, according to Deputy Prime Minister Datuk Seri Fadillah Yusof. Speaking at the Kuala Lumpur International Mobility Show (KLIMS) 2024, he highlighted the National Investment Aspirations as a strategic initiative to attract high-quality investments and enhance local industry capabilities. Malaysia’s Transport Minister also attended the event, themed “Beyond Mobility,” which showcases advancements in automotive technology and supports Malaysia’s regional collaboration through the Asean Power Grid initiative. The KLIMS 2024 chairman stated that the automotive sector contributes 4% of GDP and employs over 700,000 people, with total industry volume reaching a record 799,731 units in 2023, and projected to exceed 800,000 units this year. The exhibition facilitates collaboration among global and local players, promoting smarter, sustainable transportation and strengthening Malaysia’s leadership in Southeast Asia’s automotive industry.

VIET NAM
Viet Nam’s coffee supply constrained due to delayed harvesting
(04 December 2024) Viet Nam’s coffee supply is currently constrained due to delayed harvesting caused by heavy rains and farmers withholding beans in anticipation of higher prices, according to the chairman of the Vietnam Coffee and Cocoa Association (Vicofa). The harvest has been delayed by about 15 days due to rains, with supply expected to normalise from late December as farmers prepare to sell more ahead of the Lunar New Year holidays in January. Domestic coffee prices, which have risen significantly alongside robusta futures in London due to supply concerns, are higher than during the previous harvest when similar hoarding behaviour occurred. Vicofa projects Vietnam’s 2024-25 coffee harvest to yield approximately 28 million bags, up from 26.7 million bags in 2023-24. Robusta, primarily used in instant drinks and espressos, remains the focus of these supply dynamics.

THAILAND
Headline inflation rises by 0.95% in November 202, reaching three-month high
(04 December 2024) Thailand’s headline inflation rose by 0.95% in November 2024, reaching a three-month high, driven by increased diesel prices and higher costs of food and beverages, according to the Trade Policy and Strategy Office (TPSO). The consumer price index (CPI) for November stood at 108.47, up from 107.45 in the same month last year. Average headline inflation from January to November was 0.32% higher year-on-year. The TPSO Director-General attributed the inflation rise to elevated diesel prices and higher fruit costs. The Commerce Ministry forecasts December inflation to increase by 0.3–1.3%, with a median estimate of 0.8%, citing anticipated economic growth, higher diesel prices, and increased consumer spending driven by the government’s THB 10,000 handouts.

INDONESIA
Apple to invest USD 1 billion in manufacturing plant in Indonesia  
(05 December 2024) Apple plans to invest USD 1 billion in a manufacturing plant in Indonesia to produce components for smartphones and other products, according to Indonesia’s Investment Minister. This follows Indonesia’s ban on the iPhone 16 due to Apple’s failure to meet a requirement for 40% local content in domestically sold phones, a threshold the government plans to increase. The Investment Minister confirmed the investment discussions are ongoing and expects a formal commitment and announcement within a week. Last week, the government rejected Apple’s USD 100 million proposal for an accessory and component plant, deeming it insufficient to address the iPhone 16 ban. Apple currently has no manufacturing facilities in Indonesia but has operated application developer academies in the country since 2018 as part of its local content strategy.

THE PHILIPPINES
The Philippines’ inflation rose to 2.5% year-on-year in November
(05 December 2024) Philippine inflation rose to 2.5% year-on-year in November, aligning with the central bank’s 2.2%–3% forecast range, as reported by the Philippine Statistics Authority. Core inflation, excluding volatile food and energy prices, also increased to 2.5%, marking its first acceleration since March 2023. Food price increases, particularly outside rice, drove the overall rise, though rice inflation eased to 5.1% from 9.6% in October. Bangko Sentral ng Pilipinas (BSP) stated the trend aligns with its expectation of inflation moving toward the lower end of the 2%–4% annual target. The BSP has cut rates by 50 basis points since August and will assess whether to continue easing or pause at its 19 December meeting, considering both price pressures and economic growth. The BSP Governor indicated that slower-than-expected growth might support further easing, while peso depreciation against the dollar could argue for maintaining the current rate.

SINGAPORE
Singapore stock benchmark rises by as much as 1%, nearing October 2007 record high
(05 December 2024) Singapore’s Straits Times Index (STI) rose by as much as 1%, nearing a record high last set in October 2007, driven by renewed investor confidence in banking stocks. DBS Group Holdings Ltd gained up to 2.4% in morning trading, reflecting a broader rally that has pushed the STI up 18.4% year-to-date, making it Southeast Asia’s best-performing stock market. Analysts attribute the gains to banks’ ability to maintain profitability despite narrowing net interest margins, supported by stable dividend payouts, loan growth, and wealth management inflows. The Monetary Authority of Singapore’s unchanged policy stance in October and expectations of eventual easing have further boosted sentiment. A government-led initiative to increase stock market liquidity, with a task force action plan due by mid-2025, has added to market optimism. Analysts from Morgan Stanley and Goldman Sachs have forecast favourable conditions for Singapore stocks, citing expected earnings growth and market reforms.