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’s manufacturing PMI rises to 51.5 in May 2026, indicating expansion
(02 June 2026) Southeast Asia’s manufacturing sector ended a three-month slowdown in May, with the manufacturing Purchasing Managers’ Index rising to 51.5 from 50.7 in April, indicating a stronger expansion in activity. Growth was driven by a solid increase in new domestic orders, which enabled manufacturers to raise production despite continued weakness in exports. Viet Nam recorded the region’s highest PMI reading at 52.8, followed by Thailand at 52.6, while the Philippines and Indonesia also remained in expansion territory. Myanmar and Malaysia registered contractionary readings of 49.3 and 49.9, respectively. S&P Global reported that purchasing activity increased across the region, but firms remained cautious about workforce expansion, resulting in a slight decline in employment during May. According to S&P Global Market Intelligence, ongoing trade disruptions and inflationary pressures linked to the current war are expected to continue weighing on growth prospects.

INDONESIA
Monthly inflation accelerates to 0.28% in May from April’s level
(02 June 2026) Indonesia’s monthly inflation accelerated to 0.28% in May from April’s level, driven primarily by higher food, beverage and tobacco prices, according to Statistics Indonesia (BPS). BPS said red chilli peppers were the largest contributor, adding 0.08 percentage points to inflation, followed by cooking oil and shallots at 0.04 percentage points each, tomatoes at 0.03 percentage points and rice at 0.02 percentage points. The BPS attributed the increase to seasonal movements in volatile food prices and changes in demand linked partly to major religious holidays. Annual inflation reached 3.08% in May, while year-to-date inflation stood at 1.35%. Bank Indonesia’s inflation target remains 2.5% with a tolerance range of one percentage point above or below the target for this year and next. Separately, BPS reported that Indonesia’s economy expanded 5.61% year-on-year in the first quarter of 2026, the strongest growth since the third quarter of 2022. The rupiah weakened to more than 17,800 per US dollar, a record low, which Bank Indonesia attributed to global tensions and seasonal factors including corporate demand for dollars to pay dividends and overseas travel by hajj pilgrims.

INDONESIA
Indonesia records trade surplus of USD 0.09 billion in April 2026
(02 June 2026) Indonesia recorded a trade surplus of USD 0.09 billion in April 2026, its smallest monthly surplus since May 2020 and well below the USD 1.5 billion expected in a Reuters poll. Exports rose 21.98% year-on-year to USD 25.3 billion, supported by higher shipments of manufactured products including palm oil and nickel derivatives, basic chemicals and jewellery. Imports increased 22.49% to USD 25.21 billion, driven by an 82.52% surge in oil and gas imports and a 42.9% rise in consumer goods imports. The statistics bureau said Indonesia’s main crude oil suppliers in April were Nigeria, Brazil and Kazakhstan, while refined oil imports primarily came from Malaysia, Singapore and Egypt. Export growth benefited from higher commodity prices following the war in Iran and the depreciation of the rupiah, which fell to a record low of 17,892 per US dollar ahead of the data release.

THE PHILIPPINES
Philippine inflation in May expected to range between 7.1% and 7.9%
(30 May 2026) The Bangko Sentral ng Pilipinas (BSP) expects Philippine inflation in May to range between 7.1% and 7.9%, compared with 7.2% in April. The projected increase is primarily attributed to higher prices for rice, vegetables and meat, as well as the weakening peso, which reached a record low against the US dollar during the month. The BSP said recent reductions in domestic fuel prices and slightly lower electricity rates could partially offset these inflationary pressures. The BSP Governor stated that the May inflation data, due for release on 05 June, will be an important factor in determining the central bank’s next policy decision. The BSP has indicated readiness to implement further monetary tightening after raising its benchmark interest rate by 25 basis points to 4.5% last month.

THAILAND
Bank of Thailand claims current policy interest rate remains appropriate
(02 June 2026) Bank of Thailand Governor Vitai Ratanakorn said the current policy interest rate remains appropriate despite rising inflation and a more hawkish stance by some central banks in response to higher energy prices. Thailand’s headline inflation increased to 2.89% year-on-year in April, up from the previous year, but remained within the central bank’s 1%-3% target range. The governor said inflation could exceed 5% in the third quarter but characterised the increase as a temporary, oil-driven phenomenon rather than a threat to long-term economic growth. He stated that inflation is expected to ease after reaching its peak as market expectations improve regarding a resolution of the Middle East conflict. The comments indicate continued support for maintaining accommodative monetary policy to assist an economy facing higher energy costs and weaker external demand. The Bank of Thailand left its benchmark one-day repurchase rate unchanged at 1% in April, one of the lowest policy rates globally. The next monetary policy meeting is scheduled for 24 June.

CAMBODIA
International visitors to Angkor Wat decline 31.8% year-on-year during January–May 2026 period
(02 June 2026) Cambodia’s Angkor Archaeological Park received 359,471 international visitors during January–May 2026, a decline of 31.8% compared with the same period a year earlier, according to state-owned Angkor Enterprise. Revenue from ticket sales fell 30% year-on-year to USD 17.2 million over the five-month period. The UNESCO World Heritage site in Siem Reap province covers 401 sq km and contains 91 temples dating from the ninth to the 13th centuries. The deputy director of the China-Asean Studies Center at the Cambodia University of Technology and Science said the decline was likely linked to global and regional economic slowdowns, online scam-related issues and the border conflict with Thailand. He added that the conflict in the Middle East had further affected visitor numbers through higher fuel prices and disruptions to some flights.

VIET NAM
Agricultural exports increase 9.2% year-on-year in first five months of 2026
(01 June 2026) Viet Nam’s agriculture, forestry and fisheries exports increased 9.2% year-on-year to nearly USD 30.7 billion in the first five months of 2026, generating a trade surplus of USD 8.4 billion, up 1.1%, according to the Ministry of Agriculture and Environment. Imports rose 12.6% to nearly USD 22.3 billion during the same period. Agricultural products remained the largest export category at almost USD 16.4 billion, up 6.1%, while forestry exports reached USD 7.65 billion, up 4.5%, and seafood exports rose 10.6% to USD 4.65 billion. Exports of production inputs increased 83% to USD 1.7 billion, livestock product exports grew 43.2% to USD 308 million, and salt exports rose 45.8% to USD 6.7 million. China remained the largest export market, accounting for 20.5% of total export value and recording growth of 28.4% year-on-year. The United States represented 18.5% of exports, although shipments declined 3.6%, while exports to the European Union and Japan increased 4.2% and 3.5% respectively, accounting for 11.8% and 6.8% of total exports. The ministry attributed export growth to trade promotion activities, market diversification and the effective use of free trade agreements. The Deputy Minister of Agriculture and Environment said the sector is targeting growth of 3.7% in 2026 and is seeking to achieve 4%, with key indicators broadly tracking planned targets.