SINGAPORE
Trump’s election victory fuels surge in cryptocurrency investments in Singapore 
(04 February 2025) Trump’s return to the White House has fuelled a surge in cryptocurrency investment among high-net-worth individuals in Singapore, with firms such as Sygnum and Independent Reserve reporting increased client interest. Sygnum  noted a sharp rise in client onboarding following Trump’s election victory, while a September survey of 400 family offices and asset managers found 57% of Singaporean respondents planned to increase crypto allocations, above the 47% global average. Tracxn data showed Southeast Asian crypto firms secured USD 325 million in funding in 2024, up 20% from 2023, despite total fintech funding in the region dropping 23% to USD 1.6 billion. Bitcoin surpassed USD 100,000 in December, driving further investment. CoinGecko reported global spot trading on centralised exchanges hit USD 17.4 trillion in 2024, more than doubling from USD 7.2 trillion in 2023. Singapore’s single-family offices rose to over 2,000 by end-2024, attracting crypto-focused wealth managers. DBS reported a 20% post-election rise in wealth client demand for crypto products. Aspen Digital found 76% of surveyed Asian family offices had invested in digital assets by late 2024, up from 58% in 2022, with allocations rising beyond 10%. The Monetary Authority of Singapore restricts crypto marketing to retail investors, but professional investors remain a key target.

SINGAPORE
Singapore secures SGD 21.9 billion in investment commitments in 2024 
(06 February 2025) Singapore secured SGD 21.9 billion (USD 16.2 billion) in investment commitments in 2024, slightly exceeding 2023 levels, according to the Economic Development Board (EDB). Fixed asset investment (FAI) commitments increased by SGD 0.8 billion to SGD 13.5 billion, while total business expenditure (TBE) per annum commitments declined by SGD 0.5 billion to SGD 8.4 billion. The manufacturing sector attracted SGD 11.1 billion in FAI, with semiconductors and biomedical manufacturing leading investments. TBE was primarily driven by spending in headquarters and professional services. The EDB warned of geopolitical and macroeconomic risks in 2025, citing protectionist policies and trade frictions as factors affecting investment decisions. The 2024 commitments are expected to generate 18,700 jobs over the next five years.

MALAYSIA
Malaysia initiates anti-dumping investigations into steel products from China, South Korea, and Viet Nam
(6 February 2025) Malaysia has initiated an anti-dumping investigation into imports of flat-rolled steel products from China, South Korea, and Viet Nam following a petition by Malaysian steel producer CSC Steel Sdn Bhd, a subsidiary of CSC Steel Holdings Bhd. The company alleges that imported galvanised iron and steel coils or sheets are being sold below market value, causing financial harm to domestic manufacturers. The Ministry of Investment, Trade, and Industry confirmed sufficient evidence to proceed under Section 20 of the Countervailing and Anti-Dumping Duties Act 1993, as published in a federal gazette on 06 February. Miti has attributed the alleged dumping to increased import volumes, declining profitability, and reduced market share for local producers. The ministry has invited responses from the governments of China, South Korea, and Viet Nam, as well as other stakeholders, who have 15 days to request participation and 30 days to submit evidence.

MALAYSIA
Emerging AI tech such as DeepSeek could reduce Malaysia’s reliance on single product
(06 February 2025) Malaysia’s Investment, Trade and Industry Minister stated that emerging AI technologies such as DeepSeek could reduce Malaysia’s reliance on a single product and position the country as a neutral hub for AI companies from both the West and China. Responding to a parliamentary question, the minister said increased AI efficiency does not diminish demand for data centres but may instead drive broader adoption, sustaining investment in data infrastructure. He noted that Malaysia’s semiconductor supply chain would be diversified, with Johor, Penang, and Kedah remaining key strategic locations for AI infrastructure. To enhance Malaysia’s data centre competitiveness, the government aims to introduce additional green investment incentives. Plans also include developing AI and digital workforce capabilities and strengthening Malaysia’s position as an AI processing hub. The minister emphasised maintaining diplomatic relations with both the US and China to secure Malaysia’s status as a neutral technology investment destination.

THE PHILIPPINES
The Philippines’ declares food security emergency over rice inflation
(3 February 2024) The Philippines has declared a “food security emergency,” allowing the release of buffer rice stocks to stabilise prices amid rice inflation concerns. Despite a decline in overall inflation to 3.2% in 2024 from 6% in 2023, rice prices remain high, with retail prices in Metro Manila ranging from 42 to 57 pesos per kilogram. The government attributes this to profiteering by importers and wholesalers, despite record rice imports of 4.68 million tonnes in 2024. The Agricultural Tariffication Act permits the emergency declaration in cases of supply shortages or extraordinary price increases. Critics argue that the measure is temporary and will not address structural agricultural productivity issues. The government holds 300,000 tonnes of unhusked rice in reserves, covering five days of national consumption. Some experts question the necessity of the emergency, citing ample supply and upcoming harvests.

THAILAND
Headline consumer price index rose 1.32% year-on-year in January 2025 
(06 February 2025) Thailand’s headline consumer price index (CPI) rose 1.32% year-on-year in January 2025, up from 1.23% in December, and remained within the Bank of Thailand’s (BOT) 1%-3% target range. Core CPI increased 0.83% year-on-year, aligning with forecasts. The Ministry of Commerce expects February inflation to be around 1.1%-1.2% and maintains its 2025 inflation forecast at 0.3%-1.3%, following 0.40% in 2024. The BOT Governor reaffirmed the 2025 inflation projection at 1.1% and stated the current 2.25% policy interest rate is appropriate but subject to adjustment if necessary. The BOT last changed rates with a 0.25-point cut in October before holding steady in December. The next policy review is scheduled for 26 February. The Deputy Finance Minister has expressed support for a rate cut and intends to discuss potential monetary policy easing with the BOT.

VIET NAM
Viet Nam’s trade surplus with the US reaches USD 123.5 billion in 2024
(06 February 2025) Viet Nam’s trade surplus with the US reached USD 123.5 billion in 2024, an 18% increase from the previous year, making it the third-largest US trade deficit after China and Mexico. US Census Bureau data highlights Viet Nam’s growing role as an export-driven economy, with exports accounting for 90% of GDP. The surplus expansion raises concerns about potential tariffs from Donald Trump, who has historically targeted large trade imbalances. This week, Trump imposed 10% tariffs on China, prompting retaliatory measures, and has also threatened tariffs on Mexico and Canada. Viet Nam’s Prime Minister warned that US trade protection policies pose a risk to Viet Nam’s exports. To mitigate trade tensions, Viet Nam has committed to increasing purchases of American products, including aircraft and liquefied natural gas. At the World Economic Forum in Davos, the Prime Minister reiterated Viet Nam’s commitment to addressing the trade imbalance and referenced ongoing efforts to maintain balanced relations between China and the US.

RCEP Monitor

JAPAN
BOJ policymaker state that rates should reach at least 1% by second half of fiscal 2025
(06 February 2025) Bank of Japan (BOJ) board member Naoki Tamura stated that interest rates should reach at least 1% by the second half of fiscal 2025, reinforcing market expectations of a near-term rate hike. He cited rising inflationary pressures from higher raw material and labour costs and warned that keeping short-term rates below the neutral level could further push up inflation. Tamura estimated Japan’s neutral rate at no less than 1% and suggested rate hikes should be gradual and data-driven. His comments led the yen to strengthen, briefly pushing the dollar to a two-month low of 151.81 yen. The two-year Japanese government bond yield rose to 0.765%, its highest since October 2008, with markets pricing in a 50% chance of a rate hike in July. While the BOJ Governor has avoided specifying a neutral rate, recent wage data suggests broad-based pay increases, supporting expectations of continued monetary tightening. The BOJ raised rates last month to 0.5%, the highest since the 2008 financial crisis. Tamura criticised past massive stimulus under former Governor Haruhiko Kuroda, stating its overall benefits were overstated and warning of potential side effects, including excessive yen depreciation.

NEW ZEALAND
Unemployment rate rises to 5.1% in Q4 2024, highest since Q3 2020
(06 February 2025) New Zealand’s unemployment rate rose to 5.1% in Q4 2024, the highest since Q3 2020, as employment declined 0.1% from the previous quarter and 1.1% year-on-year, the steepest annual drop since 2009. The participation rate eased to 71% from 71.1%. Wage inflation slowed for the seventh consecutive quarter, with ordinary time wages for non-government workers rising 2.9% year-on-year, down from 3.4% in the previous quarter. Average ordinary time hourly earnings increased 1.3% quarter-on-quarter and 4% year-on-year, compared to an 8.6% peak in Q3 2022. The economy contracted 2.1% in the six months through September, weakening business confidence. The Reserve Bank of New Zealand (RBNZ) has cut the official cash rate (OCR) by 125 basis points since August and is expected to implement a third consecutive 50-basis-point cut on 19 February, bringing the OCR to 3.75%. The central bank had forecast a 5.1% unemployment rate in November. Inflation remained at 2.2% in Q4, near the midpoint of the RBNZ’s 1%-3% target range.

AUSTRALIA
Australia faces indirect risks from US tariff regime
(06 February 2025) Australia faces indirect risks from the US tariff regime, despite not being directly targeted. China imposed retaliatory export curbs on critical minerals, including tellurium and molybdenum, raising interest in Australian mining firms as alternative suppliers. A broader trade war could weaken demand for Australian iron ore if China’s economy slows. US tariffs on steel, aluminium, and copper could also disrupt Australian exports and invite cheap foreign imports, impacting local manufacturers. Energy markets may see gains as China’s tariffs hit US coal, oil, and gas, but consumer price effects remain uncertain. In agriculture, potential disruptions to US cattle imports from Canada and Mexico could raise Australian beef prices, while increased Canadian canola exports could heighten competition for Australian oilseed farmers. The Australian dollar initially dropped to pandemic-era lows but rebounded after Canada and Mexico received a 30-day tariff reprieve. ANZ expects the divergence between US and Australian monetary policy to weigh on the currency, affecting exporters, importers, and tourism. The currency remains volatile, with rapid movements driven by tariff announcements.