THAILAND
Three of the wealthiest families in Southeast Asia are Thai
(25 February 2025) The Bloomberg list identifies three of Southeast Asia’s five wealthiest families as Thai, with the Chearavanont family leading at USD 42.6 billion, followed by the Yoovidhya family at USD 25.7 billion and the Chirathivat family at USD 15.7 billion. The Chearavanonts’ wealth stems from the Charoen Pokphand Group, founded in 1921 and now spanning multiple industries, with Dhanin Chearavanont’s grandson Korawad recently launching tech firm Amity. The Yoovidhya family, creators of Krating Daeng and co-founders of Red Bull, derive their fortune from the global success of the energy drink, with Chalerm Yoovidhya overseeing their assets. The Chirathivats control Central Group, one of Thailand’s largest commercial conglomerates, established in 1947 by Tiang Chirathivat and now led by his grandson Tos. The two non-Thai families on the list are Indonesia’s Hartono family, worth USD 42.2 billion, who built their fortune on Djarum cigarettes and Bank Central Asia, and Singapore-Malaysia’s Kwek family, worth USD 17.9 billion, whose Hong Leong Group operates across real estate, hotels, and finance under Kwek Leng Beng in Singapore and Quek Leng Chan in Malaysia. 

ASEAN
Malaysian Prime Minister calls for resilient ASEAN supply chains
(26 February 2025) At the ASEAN Future Forum 2025 in Hanoi, Malaysian Prime Minister Anwar Ibrahim called for resilient ASEAN supply chains to counter geostrategic challenges, including recent US tariffs and retaliatory measures. He questioned whether ASEAN could benefit from global supply chain diversification or risk being caught in geopolitical conflicts. He emphasised equitable distribution of trade and investment gains, citing a stark GDP per capita disparity among ASEAN members, with some economies over 34 times wealthier than others. Anwar urged trade integration aligned with sustainability trends, advocating for measurement, reporting, and verification of environmental footprints to enhance competitiveness and attract green investments. He warned against over-dependence on single markets or industries, stressing that ASEAN’s strength lies in unity and economic cohesion. Malaysia’s 2025 ASEAN chairmanship will focus on inclusivity and sustainability to foster regional integration and economic resilience.

THAILAND
Thailand’s Cabinet urges Bank of Thailand to align monetary policy with growth goals
(25 February 2025) Thailand’s Cabinet has urged the Bank of Thailand (BOT) to implement monetary policies that keep inflation within the 1-3% target range and align with fiscal policies to support economic growth, according to Thailand’s Deputy Finance Minister. The government expects a further policy rate reduction, considering its impact on inflation, exchange rates, and economic growth. The previous rate cut in October 2024, from 2.50% to 2.25%, increased capital circulation and had positive effects on inflation and exchange rates. This is the second time the Cabinet has called for a rate cut, citing persistently low inflation. The Deputy Finance Minister stated that Thailand has enough fiscal space for a reduction despite the National Economic and Social Development Council’s recommendation to maintain the rate. He emphasised that there is no need for excessive caution, though the final decision remains with the BOT’s Monetary Policy Committee.

SINGAPORE
Monetary Authority of Singapore launches USD 5 billion programme to increase stock market liquidity
(24 February 2025) The Monetary Authority of Singapore (MAS) has launched a USD 5 billion programme to increase liquidity in the Singapore stock market, directing funds to selected local asset managers for investment in Singapore equities. Fund managers welcomed the initiative but emphasised the need for clarity on investment allocations, particularly for small- and mid-cap stocks outside the Straits Times Index (STI), which face liquidity constraints. SGX shares rose to USD 13.70 on 24 February, up from USD 12.80 on 21 February, before closing at USD 13.30, a 3.9% increase. MAS will also streamline listing regulations to facilitate IPOs, following recommendations from a review group established in August 2024.

SINGAPORE
Core inflation declines to 0.8% year-on-year in January 2025 
(24 February 2025) Singapore’s core inflation declined to 0.8% year-on-year in January 2025, down from a revised 1.7% in December, marking its lowest level since June 2021 and below Bloomberg’s 1.5% forecast. The 0.9 percentage point drop was attributed to broad-based moderation across major goods and services categories and the fading effects of past GST hikes. Headline inflation also fell to 1.2% from 1.5% in December, beating the consensus estimate of 2.3%. The Singapore Department of Statistics rebased the consumer price index (CPI) from 2019 to 2024, though OCBC indicated this had minimal impact on January’s inflation readings. Electricity and gas prices fell 2.9% year-on-year, while retail and other goods declined 0.6%, led by footwear and medical goods. Food inflation moderated to 1.5% from 2.3%, while services inflation dropped to 1% from 1.6% due to lower education and healthcare costs. Accommodation inflation eased to 1.6% from 2.1% on slower rent and maintenance cost increases. Private transport costs rose 2.8%, reversing December’s 0.9% decline. MAS and the Ministry of Trade and Industry maintained their 2025 inflation forecasts, expecting core inflation between 1% and 2% and overall inflation between 1.5% and 2.5%.

MALAYSIA
Digital investments reaches MYR 163.6 billion in 2024, more than tripling from 2023 
(27 February 2025) Malaysia’s digital investments reached MYR 163.6 billion in 2024, more than tripling from MYR 46.8 billion in 2023, driven by increased focus on AI and advanced computing, according to Malaysia Digital Economy Corporation (MDEC). Investments in data centres and cloud infrastructure comprised 76.8% of the total. Foreign direct investments were led by Singapore (MYR 57 billion), followed by the US (MYR 23 billion), China (MYR 12 billion), Australia (MYR 2.6 billion), and India (MYR 2 billion). Domestic direct investments were concentrated in the Klang Valley (MYR 136 billion), with Johor (MYR 22 billion), Penang (MYR 3 billion), Sabah (MYR 423 million), and Sarawak (MYR 280 million) also receiving significant amounts. Malaysia has established a Data Centre Task Force to drive further growth and ensure sustainability in the sector. The increase in digital investments aligns with the Malaysian Investment Development Authority’s (MIDA) announcement that total approved investments in 2024 hit MYR 378.5 billion, the highest in the country’s history and a nearly 15% rise from 2023. The MDEC CEO stated that the agency will continue working with MIDA to maintain investment momentum and achieve a 5% investment growth target in 2025.

VIET NAM
Exports reaches record USD 403 billion in 2024, up 13.8% from 2023
(24 February 2025) Viet Nam’s exports reached a record USD 403 billion in 2024, up 13.8% from 2023, surpassing USD 400 billion for the first time. This growth outpaced Malaysia (5.6%), Thailand (5.4%), and Indonesia (2.3%). Exports to the U.S. rose 23.4% to USD 120 billion, the highest in the region, while exports to China fell 2%. Vietnam had 35 Apple suppliers in 2024, the most in Southeast Asia, and is projected to produce 20% of iPads and Apple Watches, 5% of MacBooks, and 65% of AirPods in 2025. Meta will begin producing virtual reality headsets in Vietnam, creating 1,000 jobs. Samsung is investing USD 1.8 billion in an OLED manufacturing plant, while South Korea’s Hyosung Group plans to invest USD 4 billion. ASEAN exports to the U.S. surpassed USD 80 billion in Q3 2024, exceeding exports to China, which declined to USD 72 billion. Malaysia’s and Viet Nam’s semiconductor and machinery exports to the U.S. rose 35% and 33%, respectively. U.S. export controls on semiconductor equipment may affect ASEAN exports to China, particularly in Malaysia and Singapore. Vietnam’s government has set a 2025 export target of USD 451 billion, a 12% increase, with Prime Minister Pham Minh Chinh warning of risks from a global trade war.

RCEP Monitor

CHINA
Proposal for central government to absorb at least CYN 20 trillion of local sovereign debt
(26 February 2025) David Li Daokui, a Tsinghua University professor and policy adviser, stated that China’s central government should absorb at least CYN 20 trillion (USD 2.8 trillion) of local sovereign debt to enable regional authorities to support consumer spending and economic growth. He estimates local governments owe CYN 10 trillion in arrears, equivalent to 7% of China’s GDP, affecting payments to suppliers and civil servants. Li proposed a large-scale debt swap of CYN 20 to 50 trillion, with Beijing issuing bonds and acquiring local assets in return. He linked this measure to countering weak consumption and potential trade pressures from US policies under Donald Trump. Local governments, which previously drove growth, now struggle due to a property slump, with total on-balance-sheet debt reaching CYN 47 trillion by the end of 2025 and hidden debt estimated at CYN 60 trillion by the IMF. The Finance Ministry’s CYN 10 trillion bond plan in November provided only temporary relief. Li also called for expanding consumer product and equipment upgrade incentives to CYN 800 billion to CYN 1 trillion and suggested cash subsidies during major holidays.

CHINA
Authorities raises scrutiny of capital outflows via outbound investments and Hong Kong listings 
(25 February 2025) Chinese authorities have tightened controls on outbound investments and the use of proceeds from Hong Kong share sales amid record capital outflows and yuan depreciation pressures. Companies incorporated in China seeking IPOs or secondary listings in Hong Kong must now obtain a “no objection” indication from the State Administration of Foreign Exchange (SAFE) to use proceeds overseas; otherwise, funds must be repatriated. Regulators are also scrutinising offshore money transfers under the guise of direct investment, concerned about fabricated transactions after USD 168 billion in investment outflows last year. SAFE’s role in monitoring offshore stock offerings has expanded, requiring companies to keep authorities updated throughout share sales. Hong Kong’s share sale proceeds nearly doubled to USD 10 billion in 2024, with major listings planned, including Contemporary Amperex Technology Co. Ltd. (CATL), which could be the largest in four years.

SOUTH KOREA
Birthrate increases in 2024 for first time in nine years 
(26 February 2025) South Korea’s birthrate increased in 2024 for the first time in nine years, reaching 4.7 births per 1,000 people, according to preliminary data from Statistics Korea. The fertility rate rose to 0.75 from 0.72 in 2023, while the number of births grew by 8,300 (3.6%) to 238,300. Marriages, a key predictor of births, rose 14.9%, the highest increase since records began in 1970. Statistics Korea attributed this to a shift in social values, a larger early-30s population, and the continued post-COVID-19 marriage surge. Despite government incentives, the birthrate remains below the OECD average and far from the replacement level of 2.1. South Korea’s population continued to shrink, with deaths outpacing births by 120,000 for a fifth consecutive year. The total population, which peaked at 51.83 million in 2020, is projected to decline to 36.22 million by 2072. Vice-chairman of the presidential committee on ageing and population, Joo Hyung-hwan, stated that migration policies must be expanded beyond birthrate-focused measures. The number of foreign residents in 2024 reached 2.65 million, comprising about 5% of the total population.