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
Share of local pop music in Southeast Asia’s streaming market increasing
(16 March 2025) The share of local music in Southeast Asia’s streaming market is increasing, driven by lower production and distribution costs, rising middle-income consumers, and social media promotion. In Indonesia, homegrown music accounted for 35% of on-demand streaming in 2023, up 12 percentage points from 2020, while U.S. music declined by 5 points to 26%, and K-pop fell from 12% to 8%, according to Luminate. A similar trend is seen in Thailand, where local “T-pop” groups like 4EVE and Proxie are gaining traction. Thai and Indonesian music is also popular in neighboring countries such as Cambodia, Laos, Myanmar, and Vietnam, with Thai drama theme songs becoming regional hits. Migrant workers contribute to the spread of these cultural influences. Japanese music has a 2% share in Indonesia and Thailand’s streaming market, compared to under 1% in the U.S. and U.K. PwC forecasts the Asian music market will grow 20% to USD 20.8 billion by 2028. Indonesia’s per-capita GNI reached USD 4,810 in 2023, a 5.5-fold increase over two decades, while Thailand’s rose 3.3 times to USD 7,200, placing both in the World Bank’s upper-middle-income category.

MALAYSIA
Malaysian state-linked funds to increase investments into local startups
(17 March 2025) Malaysia’s state-linked funds Employees Provident Fund, Khazanah Nasional, and Permodalan Nasional Berhad will allocate an additional MYR 120 billion (USD 27 billion) to private companies, including startups, over five years. The funds, which collectively manage MYR 1.7 trillion in assets, typically allocate MYR 440 billion annually to domestic investments. The initiative aims to reduce reliance on foreign direct investment (FDI) and strengthen economic resilience by focusing on high-growth sectors such as technology and infrastructure. Malaysia secured MYR 378.5 billion in approved FDI in 2023, up 14.9% year-on-year, though future FDI inflows face uncertainties. The economy expanded by 5.1% in 2024, driven by household spending, and the stock market saw increased IPO activity. The government seeks to diversify economic drivers through investments in semiconductors, artificial intelligence, and data centres while maintaining focus on traditional sectors like tourism. Supply chain realignments continue to favour Malaysia, reinforcing its role in global trade.

THAILAND
Thailand to ease restrictions on alcohol sales and advertising 
(20 March 2025) Thailand’s House of Representatives approved amendments to the alcohol control bill, easing restrictions on sales and advertising, with Senate approval still pending. The bill revokes a 1972 ban on alcohol sales between 11:00 – 14:00 and 17:00 – 23:00 and relaxes advertising rules that previously prohibited displaying brand names, trademarks, or images of alcoholic beverages. A Thai lawmaker stated the amendments aim to reduce “unreasonable control” and boost economic activity. The changes follow recent legislation allowing microbreweries and small distilleries to compete in a market historically dominated by Thai Beverage Pcl and Boon Rawd Brewery Co. Prime Minister Paetongtarn Shinawatra has also indicated that the government may review other restrictions affecting tourism, including the ban on alcohol sales during Buddhist holy days and online sales. The measures align with broader efforts to enhance Thailand’s tourism appeal, alongside initiatives such as cannabis legalisation and proposed casino legalisation.

VIET NAM
Viet Nam plans to cut the number of provinces by 50%
(18 March 2025) Viet Nam plans to cut the number of provinces by 50% and reduce commune-level authorities by 60% – 70% before August 2024, according to Viet Nam’s Interior Minister. This follows previous reductions in government ministries from 30 to 22 and a planned 20% cut in public sector jobs over five years. As of 2022, nearly 2 million people worked in the public sector, with 100,000 set for redundancy or early retirement under ongoing reforms. So far, 22,000 jobs have been eliminated, according to VNExpress. The government has also announced the elimination of district-level authorities. Communist Party General-Secretary To Lam has stated that state agencies should not serve as “safe havens for weak officials.” Concerns have emerged over administrative slowdowns, but the foreign ministry denies any impact on investment or business operations.

THE PHILIPPINES
Bangko Sentral ng Pilipinas (BSP) anticipated to reduce rates by 50 to 75 basis points in 2025
(20 March 2025) The Philippine economy is expected to grow between 6% and 7% in 2024, supported by interest rate cuts, according to the country’s Finance Secretary. He anticipates the Bangko Sentral ng Pilipinas (BSP) will reduce rates by 50 to 75 basis points this year, with the first cut possible at the 10 April meeting. Inflation remains within the BSP’s 2% – 4% target, and the peso has strengthened by 1% against the dollar in 2024 after hitting a record low of 59 in December. The BSP’s assistant governor stated that inflation is projected to stay within target for the next two years, providing monetary policy flexibility. Recto dismissed concerns over political instability following former President Rodrigo Duterte’s arrest, saying there is “zero” risk of unrest. The government plans to raise PHP 100 billion through state asset sales, including a hydroelectric power plant.

THE PHILIPPINES, UK
The Philippines and UK to begin trade talks following lifting of import ban on British beef and poultry
(17 March 2025) The UK and the Philippines will begin trade talks following the Philippines’ decision to lift an import ban on British beef and poultry. The UK’s Trade Minister will meet the Philippine Undersecretary in London on Monday to discuss trade expansion, focusing on infrastructure, renewable energy, agriculture, and technology. The removal of the import ban, which was imposed due to cases of mad cow disease and bird flu, is expected to generate GBP 80 million for the UK meat industry over five years. Bilateral trade between the two countries is valued at approximately GBP 2.8 billion annually. Discussions will also cover up to GBP 5 billion in financing from UK Export Finance to support sustainable public infrastructure in the Philippines. The initiative is part of the UK’s broader strategy to expand trade ties in Asia, alongside ongoing negotiations with China, South Korea, Malaysia, and a post-Brexit reset with the EU.

INDONESIA
Indonesia seeing widespread layoffs as Eid approaches
(20 March 2025) Indonesia’s textile sector has seen widespread layoffs, with over 10,000 workers losing jobs at PT Sri Rejeki Isman (Sritex) on 26 February following its failed bankruptcy appeal. Sritex’s closure follows shutdowns at more than 60 textile and garment manufacturers between January 2023 and December 2024 and recent closures of major firms such as Yamaha Music, Sanken Electronic, and Danbi International in early 2025. The Indonesian Trade Union Confederation reported 60,000 job losses across 50 companies in January and February, while the Centre for Research at the Parliamentary Expertise Agency forecasts 280,000 layoffs in 2025, pushing unemployment to 5.2%. Analysts cite government policies favouring new investments and easing import restrictions as factors exposing domestic industries to foreign competition, particularly from China. The Central Bureau of Statistics reported a 0.09% year-on-year deflation in February, the first since March 2000, attributed to discounted electricity tariffs, though economists warn it signals weakening consumption and investment. Indonesia posted 5.03% GDP growth in 2024, with a 5% forecast for 2025, below President Prabowo Subianto’s 8% target. To counter slowing consumption, the government announced a IDR 445.5 trillion stimulus, Ramadan and Eid discounts, and IDR 50 trillion in religious holiday allowances for civil servants.