ASEAN
AMRO forecasts 5.1% growth for ASEAN as growth normalises
(18 April 2022) The ASEAN+3 Macroeconomic Research Office (AMRO) expects ASEAN to grow by 5.1% in 2022 and 5.2% in 2023 as the region’s economies move towards a fuller opening up in parallel with their rising vaccination rates. However, AMRO notes that this does not take into account the impact of the Russia-Ukraine conflict since the conflict’s impact on ASEAN remains limited for now. All ASEAN countries, especially the Philippines (6.5%), Vietnam (6.5%), and Malaysia (6.0%), are expected to see firmer growth this year, with Singapore being the only exception where growth is expected to moderate from 7.6% in 2021 to 4.0% in 2022.

INDONESIA
Indonesia’s exports hit an all-time high in March
(18 April 2022) Indonesia’s exports saw a 44.36% year-on-year spike in March 2022, reaching US$26.5 billion, its highest export total ever since the Indonesian government began recording such data in 1993. The country’s imports also saw a 30.85% year-on-year spike to US$21.97 billion and its trade surplus also reached a six-month high of US$4.53 billion. The surge in exports was driven by coal, metals and crude palm oil, while the surge in imports was due to an increase in raw materials and capital goods. This uptrend is expected to continue as Indonesia benefits from increased commodity prices due to global shortages and the Russia-Ukraine conflict.

SINGAPORE
Singapore’s air passenger traffic at 31% of pre-pandemic numbers
(18 April 2022) Singapore’s air passenger traffic reached 31% of pre-pandemic levels and is expected to reach 50% this year, according to the country’s civil aviation agency. The number of passenger flights has also achieved 38% of pre-pandemic levels, with robust growth in traffic volume to and from Australia, Malaysia, Indonesia and Thailand. Meanwhile, Singapore Airlines Group — which operates both Singapore Airlines and Scoot — recorded a nearly nine-fold increase in passengers in March 2022, with passenger capacity reaching 51% of pre-pandemic levels. The group expects this figure to reach around 61% by May 2022.

SINGAPORE
Singapore approves second oral antiviral drug for COVID-19
(19 April 2022) Singapore has approved the use of Molnupiravir, an oral antiviral drug developed by MSD that goes by the brand name Lagevrio, for treating adult COVID-19 patients. According to the government, the drug can reduce the risk of severe COVID-19 by 30% through a mechanism that “causes the machinery that reproduces the virus’s genetic material to make mistakes, thereby rendering the copies defective”. Separately, Singapore’s health ministry said that more clinics would soon be authorised to prescribe Pfizer’s Paxlovid pill — the first oral COVID-19 antiviral drug it approved — for those at risk of severe disease.

CAMBODIA
Cambodia delays capital gains tax to 2024
(16 April 2022) Cambodia has postponed the implementation of its amended capital gains tax to 1 January 2024 to give the private sector more time to recover from the pandemic. Capital gains received by residents and non-residents are taxed at a rate of 20%, with “capital” encompassing immovable property, investment assets, foreign currencies, intellectual property, leases, and goodwill. While the tax is not new, the 2024 version will also apply to individuals buying and selling real estate. Only properties that have served as an individual’s primary residence for five years before the sale will be exempted from the tax.

THAILAND, VIETNAM
Thailand, Vietnam aim for US$25 billion in bilateral trade
(21 April 2022) Vietnam and Thailand have agreed to aim for US$25 billion in bilateral trade by 2025, up from the US$19.5 billion recorded in 2021. Thailand’s exports to Vietnam saw a 12.3% increase last year totalling US$12.5 billion, while its imports from Vietnam grew by 27.6% to reach US$6.93 billion. Vietnam was also Thailand’s sixth-largest trading partner last year, after China, Japan, the United States, the European Union, and Malaysia. The new bilateral trade target was announced following a meeting held between the countries’ trade ministers in Bangkok this week.

ASEAN, UNITED STATES
US government to probe solar imports from Southeast Asia 
(18 April 2022) The US commerce department has opened an investigation to find out if the solar products that the US imports from Cambodia, Malaysia, Thailand and Vietnam are actually goods produced in China that are then shipped to Southeast Asia for minor processing and exporting in order to skirt US solar duties. Southeast Asia has been the US’ number one source of solar panel imports for the past five years, with 85% of imports in 2021 coming from the four countries. Separately, the White House announced that the US-ASEAN Special Summit would be held in Washington, DC, on May 12-13.

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ASEAN
78% of Middle Eastern companies view Malaysia as top ASEAN market for expansion
(12 April 2022) According to a survey recently commissioned by Standard Chartered entitled ‘Borderless Business: Middle East-ASEAN Corridor’, 78% of Middle Eastern companies view Malaysia as their top ASEAN market for expansion. This is followed by Singapore (69%) and Indonesia (67%). Greater participation of Middle Eastern companies in Southeast Asia has been enabled by multiple regional and country-level alliances. In particular, the report said the ASEAN-GCC Joint Vision has served as the foundation for pursuing closer economic and cultural cooperation between the regions. The report noted that key growth sectors in Malaysia attractive to Middle Eastern companies include refining and petrochemicals, renewable energy, and retail and consumer goods. Not only has Malaysia established integrated petrochemical zones, it has also emerged as a major hub for solar photovoltaic (PV) production and is a key market for halal goods.

ASEAN
ASEAN nations to utilize economic recovery momentum to push for financial stability and integration
(11 April 2022) ASEAN nations agreed to utilize economic recovery momentum to push for financial stability and integration during the 8th Joint Meeting of the ASEAN Finance Ministers and Central Bank Governors (AFMGM). It is believed that greater financial integration would mitigate economic risks and challenges during the post-COVID-19 era, including from climate change, digital disruptions, and geopolitical tensions. Among the priority areas identified was encouraging further integration in the regional financial services sector. The ASEAN member states also welcomed the resolution of the study on ASEAN member states entitled Financial Landscape Toward Furthering ASEAN Banking Integration in the Digital Era. They also welcomed the Cross-Border QR Code Payment Linkages initiative and the issuance of ASEAN Taxonomy Version 1. There was also support for the ASEAN central bank initiative to strengthen the sustainable finance agenda through the formation of two work streams under the Senior Level Committee Task Force (SLC-TF).

INDONESIA
Indonesian sovereign wealth fund agrees to invest US$2.7 billion in toll roads on Java and Sumatra
(14 April 2022) The Indonesia Investment Authority, a sovereign wealth fund, has agreed to provide around US$2.7 billion to invest in toll roads on the islands of Java and Sumatra. The deals are with Hutama Karya, the Indonesian state-owned construction company that is building the Trans-Sumatra toll road, and Waskita Toll Road, which is developing the Trans-Java toll road and is a subsidiary of another state builder. Indonesian President Joko Widodo stated that the agreements are expected to help domestic and international investors gain trust in the way the fund, also known as the INA, manages its money. As part of Joko Widodo’s mass infrastructure program, Indonesian state contractors have been accumulating massive amounts of debts. Some of these companies are now seeking to divest some of their assets. Apart from turnpikes, the INA plans to invest in geothermal infrastructure, ports, and the health care sector.

MALAYSIA
Malaysia expected to hire nearly 180,000 migrant workers over the next six weeks to ease labor-crunch
(14 April 2022) Malaysia is expected to hire nearly 180,000 migrant workers over the next six weeks in order to ease a pandemic-driven labor crunch, which has choked its key plantation and manufacturing industries. Malaysia froze the hiring of foreign workers in the past two years to stem the spread of COVID-19, leading to an acute labor shortage, especially in the economically crucial palm oil plantation sector. Although various business associations had urged the freeze to be lifted sooner, the government first ensured that locals didn’t want those jobs. Reportedly, many locals shunned those types of jobs, preferring to work as e-hailing drivers due to the higher income. There are only about 1.17 million registered foreign workers in Malaysia, down from 1.7 million before the outbreak of COVID-19. As of 7 April, the Ministry of Human Resources has received 519,937 applications from employers across various industries.

SINGAPORE
Singapore’s GDP growth slows to 3.4% year-on-year in first quarter of 2022
(14 April 2022) According to Singapore’s Ministry of Trade and Industry (MTI), Singapore’s economy grew 3.4% year-on-year in the first quarter of 2022. This is a slowdown from the 6.1% growth recorded in the previous quarter. On a quarter-on-quarter seasonally adjusted basis, Singapore’s GDP grew 0.4% in the first quarter, slower than the 2.3% recorded in the preceding quarter. The slowdown in the first quarter was largely due to the manufacturing sector coming off a high base, as the sector failed to grow at the same pace observed over the last two years due to Singapore facing capacity constraints. Moving forward, the easing of COVID-19 restrictions will support economic activity in the coming quarters. However, Singapore will be vulnerable to slowdowns in economic activity in either the United States or China. Authorities project growth of between 3% to 5% in 2022, and preliminary GDP estimates for the first quarter of 2022 will be released by MTI in May.

THE PHILIPPINES
Fintech company Voyager Innovations reaches unicorn status after raising US$210 million in latest funding round
(12 April 2022) Philippine fintech company Voyager Innovations stated it had reached unicorn status after raising US$210 million in their latest funding round. The company’s valuation had reached US$1.4 billion following the latest funding round, which was led by new investor SIG Venture Capital. Existing shareholders U.S. fund KKR, Chinese tech titan Tencent, World Bank affiliate IFC and PLDT, the Philippines’ largest telecom, also participated. The company operates a payments app called Paymaya, which serves some 47 million users. The company said it will use the fresh funds to launch Maya Bank, a new digital bank that targets consumers and small enterprises. The company said it will also continue to expand Paymaya’s products and services, including cryptocurrency, micro-investments and insurance. With one of Southeast Asia’s largest unbanked populations, there is fierce competition among the Philippines’ upcoming digital banks to provide financial services to millions of Filipinos who traditionally lack access to them.

VIET NAM
Viet Nam plans to raise minimum wage by 6% from July 2022 to help workers deal with impact of COVID-19  
(12 April 2022) Viet Nam plans to raise its minimum wage by 6% from July 2022 onwards to help workers weather the impact of COVID-19. Under the plan, the minimum monthly wage would be raised to between US$142.00 and US$204.47. This will be the first minimum wage hike in two years, as a large proportion of the population is facing hardships due to the COVID-19 pandemic. In response, Viet Nam’s Chamber of Commerce and Industry, which represents businesses in the country, said firms would try to increase their productivity to help fund the wage hike. Viet Nam recorded GDP growth of 5.03% in the first quarter of 2022, beating the 4.72% expansion recorded in the first quarter of 2021 but down from the 5.22% recorded in the fourth quarter.

ASEAN
World Bank shaves 2022 growth projections for Southeast Asia
(6 April 2022) The World Bank has downgraded its growth projections for East Asia and the Pacific in 2022 in its latest economic outlook from last October’s 5.4% to 5%, with a worst-case scenario forecast of 4% growth, due to slowing growth in China, monetary tightening in the United States, and the impacts of the war in Ukraine. The report, which does not provide data on Singapore and Brunei, expects to see the most growth in the Philippines this year (5.7%), followed by Malaysia (5.5%), Vietnam (5.3%), Indonesia (5.1%), Cambodia (4.5%) and Laos (3.8%). The World Bank expects Thailand’s growth (2.9%) to be hardest hit due to the COVID-19 situation in China and Russian sanctions affecting pivotal tourist inflows, and Myanmar’s growth to come in at 1% due to its domestic issues.

ASEAN
ADB trims Southeast Asia’s growth outlook in 2022
(6 April 2022) The Asian Development Bank (ADB) has adjusted its full-year growth projection for Southeast Asia (including Timor Leste) from 5.1% to 4.9% due to the Omicron variant’s effect on the region in early 2022, particularly in tourism-reliant Thailand. The ADB also expects the region’s growth to hit 5.2% in 2023, though it noted that downside risks remain and that its projections do not take into account the latest COVID-19 situation in China. Five Southeast Asian countries are expected to outperform the region’s 4.9% growth rate this year: Vietnam (6.5%), Malaysia (6.0%), the Philippines (6.0%), Cambodia (5.3%), and Indonesia (5.0%).

ASEAN
Wall Street says Indonesia is the region’s top market in 2022
(3 April 2022) Analysts from JPMorgan and Goldman Sachs picked Indonesia, Vietnam and Singapore as their Southeast Asian markets of choice for 2022, with Indonesia being the top pick for both banks. Goldman believes that the region’s stocks have largely flown under the radar in the last decade, while JPMorgan feels that the region is relatively insulated from the rising geopolitical tensions in Europe. Among JPMorgan’s reasons for banking on Indonesia is the significant percentage of the country’s population that remains underbanked, the emergence of digital economy firms being listed, and an economy that is set to recover from pandemic-related setbacks and policies.

MALAYSIA, INDONESIA
Bilateral agreement on Indonesian domestic helpers signed
(2 April 2022) Indonesia and Malaysia signed a memorandum of understanding (MoU) on the recruitment and protection of Indonesian domestic helpers in Malaysia on 1 April 2022. The MoU included provisions for implementing a single entry system agreed upon by both countries, an e-wages system to ensure that payments are made before the 7th of each month, and a mandatory induction course to help workers understand their rights and responsibilities. Among other provisions, the MoU also states that domestic helpers will serve a maximum of six people per household, receive Social Security Organisation (SOCSO) contributions, and have access to a mobile application to submit complaints.

THAILAND
Government preps incentives for four new economic corridors
(4 April 2022) Thailand is finalising investment incentives for four new economic corridors in four regions to complement its flagship Eastern Economic Corridor (EEC) and other special economic zones, with each new corridor promoting specific industries. The new Southern Economic Corridor will promote a palm oil-based bio-economy, the new Northeastern Economic Corridor will focus on manufacturing bio-economy related products for the EEC and China, the Northern Economic Corridor will encourage tourism and products for export, and the Western Economic Corridor will link the EEC and Myanmar’s Dawei port.

THAILAND
Thailand approves enhanced incentives to boost EV use
(7 April 2022) Thailand’s investment board has approved additional incentives to accelerate the expansion of electric vehicle (EV) infrastructure and consumer adoption of EVs to meet its goal of having EVs account for 30% of total automotive production output by 2030. Smaller charging stations will be eligible for three-year tax benefits under the revised incentives, in addition to the existing five-year corporate income tax exemption available to charging stations with at least 40 charges. The board has also scrapped the need for ISO certification, and investors will no longer be barred from receiving benefits from other government agencies.

ASEAN, US
US plans trade meetings with ASEAN as it retools Indo-Pacific strategy 
(7 April 2022) The United States is renewing its efforts to engage Southeast Asian countries with several meetings in 2022 and the development of an Indo-Pacific Economic Framework (IPEF) that focuses on trade, supply chain, infrastructure, and clean energy. This includes a summit with ASEAN leaders in the coming months, the planned signing of an agreement on supply chain resilience with Malaysia in May, the US undersecretary of commerce for international trade’s clean energy mission to Indonesia, Vietnam and possibly the Philippines in June, as well as the G20 Leaders’ Summit in Bali in October.

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ASEAN
India calls for more regional cooperation at Bimstec summit, which includes Thailand and Myanmar
(30 March 2022) India called for greater regional cooperation among the member states of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (Bimstec), which comprises countries which border the Bay of Bengal, including the Southeast Asian states of Thailand and Myanmar. Other member states include Bangladesh, Bhutan, India, Nepal, and Sri Lanka. Officials stated that India would also take charge of matters related to the ‘security pillar’, which includes maritime security. India has been keen to push Bimstec as the core regional grouping in an effort to fortify its presence in the region. During the summit, India pledged US$1 million to the grouping’s budget, and also highlighted the need for a coastal shipping ecosystem among the members. India also pitched a free trade agreement for the group. A Master Plan for Transport Connectivity among the countries was also announced.

ASEAN, UNITED STATES
United States mulling tariffs on solar panels imported from Malaysia, Thailand, Viet Nam and Cambodia
(29 March 2022) US trade officials stated they would launch an investigation into solar panels imported from four Southeast Asian countries, namely Malaysia, Thailand, Viet Nam and Cambodia. The investigation was launched after a California-based solar manufacturer claimed that Chinese solar panel manufacturers had shifted production to Southeast Asia to avoid paying U.S. duties in place for nearly a decade on Chinese-made solar goods. According to the American Clean Power Association industry group, imports from these four ASEAN countries accounted for 80% of the panels expected to be installed in the United States in 2022. Solar industry trade groups in the US warned that the investigations alone would immediately hamstring project development and harm U.S. progress in addressing climate change.

INDONESIA
Government revokes forest concession permits covering 482,198.72 hectares of forests
(30 March 2022) The Indonesian government has revoked forest concession permits from 15 companies, covering 482,198.72 hectares of forests, in an effort to improve governance and transparency in its natural resources sector. In January 2022, Indonesian President Joko Widodo announced more than 2,000 mining, plantation and forest-use permits had been revoked due to non-compliance or because they had remained unused. According to Indonesia’s investment ministry, the permits were revoked based on a recommendation from the forestry ministry, and that the companies had been given time to clarify and verify the status of their operations before the permits removal became permanent. Among the companies which had their permits revoked included those which operated palm and timber plantations as well as logging operations across Sumatra, Kalimantan and Papua.

THE PHILIPPINES   
The Philippines central bank considers raising policy rate to between 2.5% to 2.75% as reasonable
(30 March 2022) According to the governor of the Philippines’ central bank, Benjamin Diokno, raising the key policy rate to between 2.5% to 2.75% as part of an exit from the bank’s COVID-19 accommodative stance would be “reasonable and consistent”. Diokno stated that the bank would begin the normalization process in the second half of 2022, and that reaching a 2.75% key policy rate might be reached by 2023. Last week, the central bank maintained its interest rates steady at a record low 2%. While authorities see inflation averaging above its 2%-4% target in 2022, it expects consumer-price increases to be within the goal in 2023. The Philippines’ central bank has refrained from the global rate-hiking cycle, choosing to focus instead on nurturing the economic recovery.

SINGAPORE, CHINA
More wealthy Chinese seeking to move their assets to Singapore via the family office structure
(29 March 2022) More and more wealthy Chinese are reportedly seeking to park their money in Singapore via the family office structure, owing in part to Singapore’s large Mandarin Chinese-speaking community and lack of a wealth tax. The trend reportedly picked up in 2021 after China’s sudden crackdown on the education sector and newfound focus on ‘common prosperity’, which is focused on redistributive policies. A family office is a privately held company that handles investment and wealth management for an affluent family. In Singapore, setting up a family office typically requires at least US$5 million in assets. China’s tight capital controls, which limits overseas foreign exchange to US$50,000 a year, limits the ability of wealthy Chinese to move money out of the country. Wealthy Chinese are also investing into Singapore to apply for permanent residency. However, the ongoing war in Ukraine has caused some wealthy Chinese to reconsider their plans to open a family office in Singapore.

VIET NAM
Viet Nam’s economy grows by 5.03% year-on-year in first quarter of 2022  
(29 March 2022) Viet Nam’s economy expanded by 5.03% year-on-year in real terms in the first quarter of 2022. Growth in the January-March period slowed from the 5.22% recorded in the preceding three months. Viet Nam’s export turnover in the first quarter of 2022 was estimated at US$88.58 billion, an increase of 14% from the same period in 2021. The United States was the country’s largest export market, accounting for US$25.2 billion of shipments. Vietnam’s retail sales, including service sales, grew 4.4% in the first three months of 2022 year-on-year. The ongoing war in Ukraine is expected to have an impact on Viet Nam’s economy in terms of a spike in material prices. Rising energy prices are also expected to have a negative impact on Viet Nam’s economy. In December 2021, the Asian Development Bank predicted Viet Nam’s economy to expand by 6.5% in 2022.

BRUNEI DARUSSALAM, UNITED ARAB EMIRATES
Brunei signs MoU with UAE to help expand and develop Bruneian maritime industry in terms of human resources
(30 March 2022) A Memorandum of Understanding (MoU) was signed on 29 March between the governments of Brunei Darussalam and the United Arab Emirates, and took place on the sidelines of Sultan Hassanal Bolkiah’s working visit to Dubai. The MoU on the Recognition of Certificate Issued under the Provisions of the International Convention on Standards of Training, Certification and Watch Keeping for Seafarers, 1978 as amended is to help expand and develop the Bruneian maritime industry in terms of human resources. The MoU formalizes Emirati recognition of the competency certificates of Bruneian seafarers, thus opening up employment opportunities on merchant ships registered under Brunei and the UAE. The maritime institutions of the two countries will be able to be co-recognised by each other.

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SINGAPORE
Singapore to reopen borders, retire VTLs on April 1
(24 March 2022) Singapore will reopen its borders and simplify entry procedures for fully vaccinated travellers starting 1 April 2022, nullifying existing vaccinated travel lane (VTL) arrangements that it has with other countries. Under the new framework, fully vaccinated travellers under the general travel category arriving by air and sea will only have to take a pre-departure test two days before departing for Singapore with no on-arrival test or quarantine period, while unvaccinated travellers under this category will be quarantined for seven days upon arrival. Travellers under the restricted category will still be subjected to these requirements.

MALAYSIA, SINGAPORE
Singapore-Malaysia land border to reopen in April
(24 March 2022) Malaysia and Singapore have agreed to fully reopen the land border between the countries in line with both countries’ plans to lift travel restrictions and transition towards living with COVID-19. Both countries will allow all fully vaccinated travellers and non-fully vaccinated children aged 12 and below crossing the causeway to enter the country without having to take pre-departure and on-arrival tests or undergo quarantine. However, those driving vehicles not registered in Singapore will need to apply for a vehicle entry permit and collect their permits in Johor Bahru before heading for the checkpoint.

INDONESIA
No more quarantine for air travellers arriving in Indonesia
(23 March 2022) Foreign travellers entering Indonesia by air will no longer need to go through a quarantine period upon arrival, though a polymerase chain reaction (PCR) test will still be required. It remains unclear if the new requirements will also apply to those arriving by land and sea, or if a pre-departure test will still be needed. The announcement follows a successful two-week quarantine-free trial in Bali, Batam and Bintan, and ahead of the upcoming Hari Raya festivities. Indonesians who have taken their booster shot will be allowed to participate in Hari Raya trips and gatherings this year.

VIETNAM  
Vietnam’s vaccine certificates now accepted in 17 countries
(21 March 2022) Vietnam has so far formed agreements with 17 countries to mutually recognise each other’s vaccine passports and allow the holders of such passports to be held to the same medical requirements as vaccinated locals. The 17 countries include the United States, United Kingdom, Japan, Australia, India, New Zealand, South Korea, Singapore, Cambodia and the Philippines. Vietnam also announced a three-year visa waiver for citizens of 13 countries for visits of up to 15 days. The countries are Germany, France, Italy, Spain, the UK, Russia, Japan, the Republic of Korea, Denmark, Sweden, Norway, Finland, and Belarus.

THAILAND
Thailand scraps pre-travel COVID-19 test to boost tourism
(22 March 2022) Travellers visiting Thailand will no longer have to take a pre-departure test starting 1 April 2022 though they will still be tested on arrival as the government looks to further relax restrictions to revive its tourism industry. Thailand’s tourism ministry says that it aims to remove all restrictions by 1 June 2022 if the situation continues to improve. This would include the removal of existing Test & Go, Sandbox and quarantine programmes. The ministry also hopes to lower entry restrictions on 1 May 2022 if there is no spike in COVID-19 cases after Songkran.

SINGAPORE
Singapore announces relaxation of COVID-19 measures 
(24 March 2022) Singapore announced a slew of changes to its COVID-19 measures that will come into effect from 29 March 2022. This includes allowing groups of 10 people to gather and dine in up from the current maximum of five, allowing the sales and consumption of alcohol after 10.30 pm, resumption of live performances and large scale social gatherings, as well as increasing the capacity limit for events of over 1,000 and workplaces from 50% to 75%. While mask-wearing outdoors will be optional, masks will still be required indoors and there is still a one-metre distancing measure in settings without masks.

THAILAND
Government bars the use of cryptocurrencies for payment
(23 March 2022) Thailand announced that it will ban the use of cryptocurrencies as a method of payment beginning 1 April 2022 alongside a slew of new restrictions for businesses operating in the digital asset industry. Under the new regulations, businesses operating in the digital asset space must not advertise or suggest that digital assets can be used to pay for goods and services and they must not facilitate the use of digital assets for such purposes. Businesses will be given until the end of April to comply with the new regulations.

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ASEAN
COVID-19 pandemic pushes 4.7 million more people into extreme poverty in 2021
(17 March 2022) The COVID-19 pandemic pushed 4.7 million more people into extreme poverty – defined as those living on less than US$1.90 per day – in 2021 as compared to 2020, and erased another 9.3 million jobs across the region. This is according to a report recently released by the Asian Development Bank (ADB). The pandemic has impacted the region’s labor market, leading to widespread unemployment, worsening inequality, and rising poverty levels. Although the ADB projects growth of 5.1% in 2022 due to higher vaccination rates, it warned that the new Omicron variant could cut growth by as much as 0.8%. The ADB noted that the region’s crucial tourism sector will gradually begin to recover this year as borders begin to reopen. The ADB also called upon Southeast Asian governments to invest more into their healthcare systems to ensure future resilience. It predicted that the region’s economic growth could increase by 1.5% if health spending in the region reaches about 5% of GDP, compared with 3% in 2021.

MALAYSIA
Government allows Malaysians to make another withdrawal from Employees Provident Fund
(16 March 2022) The Malaysian government announced that they will allow Malaysians to make a withdrawal of up to MYR 10,000 (US$2,383.13) from their savings at the Employees Provident Fund (EPF), a state-owned pension fund which manages the pension savings of private workers in Malaysia. The government had previously allowed the withdrawal of EPF contributions through three schemes, namely i-Lestari, i-Sinar and i-Citra, which amounted to US$24 billion being withdrawn, involving 7.34 million contributors since the COVID-19 pandemic hit the country two years ago. The government stated that further details concerning the withdrawal will be revealed by the EPF in the near future, as well as the necessary measures to address the issue of declining EPF members’ retirement funds. Malaysia’s Finance Minister had recently revealed that the EPF’s recently announced dividend rate of 6.1% should have been higher at 6.7% if there had been no outflows of savings by its members. He also cautioned that the EPF may be forced to dispose of more of its overseas investments and halt domestic investments to fund these withdrawals.

SINGAPORE
Number of expatriate white-collar workers in Singapore fall to lowest number in more than a decade
(16 March 2022) The number of expatriate white-collar workers in Singapore fell to its lowest number in more than a decade in the year ending December 2021. According to the Ministry of Manpower, the number of Employment Pass holders – a type of visa issued to foreign professionals, managers and executives earning at least US$3,300 per month – fell by 9% to 161,700. That is the lowest number since 2010, when there were 143,300 in the country. This has been attributed to both concerns by local Singaporeans that foreigners are taking their jobs, as well as restrictions on travel due to the pandemic. There has also been a drop in the number of technicians and laborers in the construction sector, causing delays in housing projects and other building projects. The total number of foreign workers in the city-state stood at 1.2 million at the end of 2021, well below the 1.43 million that Singapore hosted in 2019.

INDONESIA  
Government removes export volume restrictions on palm oil products, raises export levy instead
(17 March 2022) The Indonesian government recently announced they will remove export volume restrictions on palm oil products and raise its export levy instead. This was a surprise policy U-turn by the government just a week after it had further tightened its export curbs. Under the so-called domestic market obligation (DMO), the government had required companies to sell 30% of their planned export volume of palm oil products domestically, up from 20% imposed in January 2022. This had been to ensure local supply amidst soaring cooking oil prices. The Indonesian Trade Minister had recently announced that the policy had resulted in supply scarcity, and that the DMO would be withdrawn. Instead, the government will raise the ceiling of palm export tax and levy, from a combined maximum of US$375 per tonne to between US$575 to US$675 per tonne. Global prices of crude palm oil, which Indonesians uses for cooking oil, have surged to historic highs in 2022, amid rising demand and weak output from top producers Indonesia and Malaysia, plus Indonesia’s export limits.

THAILAND, MALAYSIA   
Malaysia lifts ban on import of cattle and buffaloes from Thailand with immediate effect
(16 March 2022) On 16 March 2022, Malaysia lifted the ban on the import of cattle and buffaloes from Thailand with immediate effect. According to Malaysia’s Veterinary Services Department (DVS), the decision came following an agreement with the Thai Department of Livestock Development (DLD) on measures to control Lumpy Skin Disease (LSD). Malaysia had suspended the import of cattle and buffaloes from Thailand on 8 June 2021 after assessing the risk of LSD, which was reported to be contagious in more than 41 provinces in the country. The decision by DVS was made following several improvements in import rules and procedures, and also took into account mitigation measures that can be taken in Thailand to control the spread of LSD. The DVS stated it expects the supply of buffalo and cattle to remain sufficient ahead of the Hari Raya Aidilfitri celebration in May 2022.

THE PHILIPPINES
Authorities mull four-day working week to reduce fuel costs on Filipino businesses and workers  
(16 March 2022) In the face of rising energy costs, Filipino authorities have rejected calls by lawmakers and transport groups to suspend excise taxes on petroleum products, instead suggesting alternative solutions including more subsidies for affected sectors as well as a four-day working week. The government is expecting to collect US$2.5 billion in 2022 from excise taxes on fuel, and it is believed that suspending the excise tax would cut government revenue this year by 0.5% of GDP. A three-month wage subsidy has also been proposed by the labor department. The Finance Secretary also said that suspending the excise tax on fuel will increase this year’s deficit to 8.2% of GDP from a projected 7.7%, and the debt ratio to 61.4% of GDP from a 60.9% estimate.

VIET NAM
Coal-fired power plants in Viet Nam face shortage of coal supplies due to COVID-19 disruptions
(17 March 2022) Coal-fired power plants in Viet Nam are currently facing a shortage of coal supplies as COVID-19 impacted the operations of local miners, as well as due to the high global cost of importing the fuel. In February 2022, power plants operated by state utility EVN only received 69% of coal agreed in contracts with state-run miners Vinacomin and Dong Bac. Vinacomin stated that its operations had been impacted by a shortage of miners due to the COVID-19 pandemic. The ongoing war in Ukraine has also pushed up prices for oil, gas and coal in international markets. The country’s coal imports in the first two months of 2022 fell 17.9% from a year earlier to 3.89 million tonnes, though the value more than doubled to US$859 million. Viet Nam’s Ministry of Industry and Trade has said Vietnam would limit its coal exports to 2 million tonnes in 2022.

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MALAYSIA
Malaysia to open its international borders in April
(8 March 2022) Malaysia will fully reopen its borders on 1 April 2022 following the prolonged lockdown since the pandemic hit in 2020. Vaccinated travellers will not need to go through a quarantine period though they will be required to undergo a Real Time-Polymerase Chain Reaction (RT-PCR) test two days before departure and a professional Rapid Test Kit-Antigen (RTK-Ag) test within 24 upon arrival. Unvaccinated travellers will need to undergo five days of quarantine upon arrival and they will be subjected to the same COVID-19 protocols as unvaccinated locals which include not being allowed to dine in at restaurants.

SINGAPORE
Singapore extends vaccinated travel lanes to more countries
(4 March 2022) Singapore will open a new vaccinated travel lane (VTL) with Vietnam and extend its VTLs to Malaysia’s Penang and Indonesia’s Bali effective 16 March 2022. The extended VTLs will kick off with four daily flights each way between Singapore and Penang, as well as two daily flights from Bali-Denpasar to Singapore. Singapore’s new VTL with Vietnam will be launched a day after Vietnam reopens its borders for international tourism, restoring two-way quarantine-free travel between the countries. Applications for these new VTL routes will open on 13 March 2022.

SINGAPORE
Singapore plans to shift from VTLs to fully open borders
(9 March 2022) Singapore is planning to allow all fully vaccinated travellers from “low risk” and “general travel” categories to enter the country without having to undergo quarantine according to its transport minister who was speaking during a session in parliament, though a timeline was not mentioned. According to him, the timing of this will depend on the public health situation in the country among other things. Passenger traffic at Changi Airport was at 3% of pre-COVID levels in early 2021 but thanks to the introduction of VTLs in September 2021, this figure rose to around 15% in December 2021.

SINGAPORE  
Singapore aims to up exports to US$733 billion by 2030
(7 March 2022) Singapore’s trade and industry minister unveiled a new plan that aims to grow the country’s exports to at least US$733 billion (S$1 trillion) and offshore trade to US$2 trillion by 2030. This will be achieved through the Trade 2030 strategy which will see the country growing its trade volume by widening the types of activities that it participates in and helping local enterprises break into overseas markets, as well as the Enterprise 2030 strategy which will help local enterprises at every stage of their growth. The new plan comes in addition to the Manufacturing 2030 plan launched in 2021 which aims to increase manufacturing value-add by 50% by 2030.

INDONESIA   
Indonesia tightens palm oil export curbs in a hit to global supplies
(9 March 2022) Indonesia will heighten its restrictions on palm oil exports for at least six months beginning 10 March 2022 by requiring exporters of crude palm oil and olein to sell 30% of their supplies locally, up from the current 20% requirement. The new restrictions come as the government looks to increase domestic supplies and suppress inflated cooking oil prices. The move could remove some 100,000 tonnes of palm oil each month from the global market, adding to a squeeze in global vegetable oil supplies caused by Russia’s invasion of Ukraine, a key global supplier of sunflower oil.

THAILAND
Thai exports under GSP and FTA privileges surged in 2021  
(4 March 2022) Thai exporters’ use of privileges provided under free trade agreements (FTAs) and Generalised System of Preferences (GSP) arrangements grew by 31.4% and 28.1% respectively in 2021, bringing the utilisation rate of FTA privileges to 78.2% up from 2020’s 76.5%. The FTAs that saw the highest growth in utilisation were ASEAN, China, Japan, Australia and India. Imports under FTA privileges also grew by 28.5% in 2021. Separately, Thai exporters’ utilisation of the Regional Comprehensive Economic Partnership (RCEP) rose by over 200% month-on-month as more exporters sought to utilise the agreement. Privileges for exports to Japan were the most in-demand.

LAOS
Laos aims for annual GDP growth of at least 4%
(9 March 2022) The Lao government is targeting annual economic growth of at least 4% per annum from now till 2025 with annual GDP per capita income reaching US$2,880 by the same. The service sector is expected to contribute to 40.7% of GDP and grow at an annual rate of 6% during the period, followed by industry which will account for 32.3% of GDP and grow at 4.1%, and then the agriculture sector that will represent 15.3% of GDP and grow at 2.5% annually. Several initiatives will be implemented in the coming years to achieve this, including modernising the revenue collection system, reducing the national debt, and reducing red tape to attract more foreign investment.

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ASEAN
ASEAN manufacturing PMI remains resilient in February 2022 despite rising COVID-19 infections
(01 March 2022) Despite a broad increase in the number of COVID-19 infections across ASEAN, the ASEAN manufacturing PMI as measured by IHS Markit remained resilient in February 2022. ASEAN manufacturing PMI in February was little changed at 52.5, down from 52.7 in January 2022. Readings above 50.0 signals an improvement or increase on the previous month, and February’s reading was the fourth strongest in the nine-year history of the ASEAN PMI. The growth in ASEAN manufacturing output has been attributed to improving new orders performance. According to data collected by IHS Markit, five of the seven ASEAN constituent nations reported new orders growth. However, it was noted that supply constraints continued to present itself as a key hindrance to better manufacturing output performance, with suppliers’ delivery times across the ASEAN region continuing to lengthen at a rate faster than the series average in February. This has been attributed to input shortages, transportation delays and manpower issues, and is expected to prolong upward price pressures.

MALAYSIA
Malaysia to benefit from higher oil and gas prices caused by Ukraine conflict
(03 March 2022) Malaysia is expected to benefit from higher oil and gas prices caused by Russia’s invasion of Ukraine. As a net oil and gas exporter, Malaysia is expected to benefit from the price increase, as long-term liquefied natural gas (LNG) prices are normally linked to crude oil contracts. Specifically, higher oil and gas prices are expected to be beneficial both due to the taxes collected from the oil extracted in the country, as well as greater profits for state-owned oil and gas multinational Petronas, which can then trickle down to the government. The effects of higher fuel prices at the pump will be dependent on whether the Malaysian government agrees to absorb the difference through fuel subsidies. However, this spike in energy prices is expected to be short-lived, especially if a prolonged war leads to another global recession that dents demand for fuel and leads to lower prices down the line.

SINGAPORE, RUSSIA
Singapore to apply sanctions against Russia, including financial measures and export controls
(28 February 2022) The Singaporean government announced on 28 February 2022 that it will apply sanctions against Russia in protest of the latter’s invasion of Ukraine last week. Singapore’s foreign minister announced that among the sanctions that Singapore would impose on Russia include export controls on items that could be used by Russia against Ukrainians. As well, Singapore will block certain Russian banks and financial transactions connected to Russia. The Foreign Minister stated that specific measures were being worked out and would be announced shortly. This announcement is unprecedented by Singapore, who rarely issues sanctions of its own against other countries, and is the first among its regional neighbors and comes independent of ASEAN, which on 26 February called for a de-escalation of the conflict and for dialogue and respect of international law and U.N. commitments.

INDONESIA  
Inflation in February 2022 lower than expected due to government subsidies cushioning blow of surging commodity prices
(01 March 2022) Inflation in Indonesia in February 2022 was weaker than expected, as government subsidies helped cushion the blow of surging commodity prices. Consumer prices rose 2.06% year-on-year in February, below the median estimate of 2.2% in a Bloomberg survey of economists. Prices also shrank by 0.02% on a monthly basis, due to price caps on cooking oil and a surplus of poultry and eggs production which tamed food inflation. However, core inflation, which strips out government-controlled and volatile prices, stood at 2.03%, rising at its fastest pace since August 2020. Core inflation was within the central bank’s target range of 2%-4%, and indicated that domestic demand in Indonesia remained resilient despite surging COVID-19 cases. It is believed that inflation could soon accelerate to 3%. The government is considering raising retail gasoline prices now that oil has breached US$100 a barrel in order to ease the burden of subsidies on the budget.

THE PHILIPPINES   
Philippines government agrees to include nuclear power into country’s energy mix
(03 March 2022) On 28 February Philippines President Rodrigo Duterte signed an executive order to include nuclear power in the country’s energy mix, as the Philippines seeks to phase out its coal-fired power plants amid seasonal power outages and high electricity prices. The executive order also directs an inter-agency panel to look into reopening the abandoned Bataan Nuclear Power Plant (BNPP), which was built in 1984 but abandoned two years later due to safety concerns. The BNPP plant has operated as a tourist attraction since 2009 in order to defray maintenance costs. The Philippines Energy Undersecretary said a regulatory framework for nuclear power still required legislation and its future also hinged on the agenda of the next administration, which will be formed following elections in May 2022.

THAILAND
Thailand to ease requirements for its quarantine-free entry program starting on 01 March 2022  
(28 February 2022) Thailand will ease its requirements for its quarantine-free entry program starting on 01 March 2022, despite fighting its largest infection rate since the pandemic began. Under the new requirements, visitors to the country must take a PCR test upon entry then perform a self-test with an antigen kit on the fifth day of their stay. Previously, travelers had to take a PCR test on the first and fifth day, show proof of a hotel reservation, then wait at the hotel throughout the first five days pending test results. From March onwards, only proof of accommodation for the first day is required. As well, mandatory insurance for foreign visitors will be reduced from US$50,000 to US$20,000. International visitors to the country must still present proof of vaccination at least 14 days prior to departure, as well as proof of a negative PCR test taken no more than 72 hours before traveling to the country. The government projects growth of 3.5% to 4.5%, but this will depend on whether its crucial tourism sector will recover.

VIET NAM
Vietnam moots cut on environmental tax on fuel due to soaring global energy prices
(03 March 2022) Viet Nam’s Finance Ministry stated they would propose to the government to cut its environmental tax on fuel due to soaring global energy prices. The ministry is seeking approval to lower the tax by 25% on gasoline to US$0.13 per litre, while also reducing the tax on diesel fuel and lubricants to US$0.09 per litre. Tax on kerosene would be cut by half to US$0.02 per litre. Domestic gasoline prices rose in line with global energy prices, and has caused inflationary pressures which has impacted businesses and people’s purchasing power. Viet Nam’s consumer price index in the first two months of 2022 rose 1.68% from a year earlier, led by an increase in transport costs, with gasoline prices up 45.3%. Viet Nam plans to keep inflation below 4% in 2022, and believes that with a cut in effect from April to year-end, the CPI would drop by 0.67%.

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SINGAPORE
Singapore announces 2022 budget proposals
(21 February 2022) Singapore’s finance minister announced the country’s 2022 budget proposals in parliament on 18 February 2022 which included a slew of tax hikes as the country expects government expenditures to increase to over 20% of GDP by 2030. The bulk of the increase in spending is expected to go to healthcare as the country maintains a “multi-layer public health defence” against COVID-19. The proposal also includes a US$372.61 million jobs and business support package, as well as allocations for infrastructure improvements, digital upskilling, and co-funded wage increases for lower-wage workers between 2022 and 2025.

SINGAPORE
Singapore unveils major tax measures to fund spending needs
(19 February 2022) Singapore’s finance minister announced a slew of tax measures during his budget presentation in parliament last week which includes the implementation of a long-delayed goods and services tax increase from 7 to 8% starting in 2023 then from 8 to 9% in 2024, an increase in personal income taxes for high-income individuals, an increase in property tax rates for high-end properties and non-owner-occupied residential and investment properties, an increase in taxes on luxury cars, and an increase in taxes on carbon emissions.

SINGAPORE, INDIA
Singapore, India to boost cooperation in science and technology
(23 February 2022) India and Singapore signed a memorandum of understanding to boost collaborations in research and development in fields of mutual interest. Singapore shared three areas where the countries could “push the boundaries” through cooperation: (i) DeepTech, particularly artificial intelligence and the internet of things especially in the construction and built environment sector, (ii) CleanTech, in line with both countries’ carbon mitigation goals, with a focus on greening the power and transportation sectors, especially in aviation and maritime transport, and (iii) genome and bioinformatics research.

THAILAND  
Thailand to ease COVID-19 requirements for international travellers
(23 February 2022) The Thai government will further relax requirements for fully vaccinated international visitors beginning 1 March 2022. Visitors will only need to take one reverse transcription-polymerase chain reaction (RT-PCR) test 72 hours before leaving for Thailand, one more RT-PCR test upon arrival, and one more self-administered test five days after arrival. Visitors need only spend their first night upon arrival in quarantine at a hotel or an approved quarantine facility. The government previously required visitors to spend their fifth day after arrival at a pre-booked accommodation to undergo a second RT-PCR test. The required travel insurance coverage has also been lowered from US$50,000 to US$20,000.

VIETNAM  
Vietnam hit by fuel shortages as hundreds of retailers run dry
(23 February 2022) Some 300 petrol stations in Vietnam were forced to halt sales due to fuel shortages caused by the rally in crude oil prices as well as labour shortages as workers throughout the supply chain contract COVID-19. Fuel supplies were also impacted as the country’s largest refinery reduced its capacity in mid-January due to financial constraints. The Vietnamese government has directed its ministries to propose adjustments to taxes on petrol and oil products and announced plans to auction around 102 million litres of its RON-92 petrol from national reserves.

MYANMAR, EU
EU sanctions Myanmar oil firm for providing resources to junta 
(22 February 2022) The European Union sanctioned another 22 individuals linked to Myanmar’s military regime as well as four entities known to be providing the regime with “substantive resources”. This includes Myanma Oil and Gas Enterprise, a state-owned oil and gas company and a partner of Thailand’s PTT. So far, TotalEnergies SE, Chevron Corp, and Mitsubishi Corp have announced that they were withdrawing from energy projects in the country. PTT, however, remains unfazed and has offered to acquire TotalEnergies and Chevron’s combined 59.5% stake in Myanmar’s Yadana gas field project.

ASEAN, CANADA
ASEAN-Canada trade volume reached US$19.9 billion in 2020
(19 February 2022) Trade between the ASEAN bloc and Canada came in at around US$19.9 billion in 2020, down 2.4% from 2019’s despite the pandemic. The figures were shared during the Prep SEOM-Canada Consultation held on 17 February 2022 via videoconference. Foreign direct investment from ASEAN to Canada also took a slight 0.9% year-on-year dip totalling US$1.2 billion in 2020, though foreign direct investment from Canada to ASEAN rose by 11.7% reaching US$12.5 billion. Both sides also discussed preparations for the negotiation of the ASEAN-Canada Free Trade Agreement (ACFTA).

RCEP Monitor

ASEAN
30.1% of Southeast Asian public figures confident US will provide leadership in championing global free trade
(16 February 2022) According to the State of Southeast Asia: 2022 Survey Report released by the ISEAS-Yusof Ishak Institute in Singapore, 30.1% of Southeast Asian public figures, including policymakers, academics, researchers, and civil society activists, were confident in the US providing leadership in championing global free trade, followed by China (24.6%) and ASEAN (15.5%). This was a jump from the 19.7% who expressed confidence in the US in the 2021 survey. However, an overwhelming 76.7% of respondents believed that they regarded China as the most influential economic power in Southeast Asia, while only 9.8% thought the same of the United States. In a question about the potential impact of China’s membership of the Comprehensive and Progressive Trade Agreement for Trans-Pacific Partnership (CPTPP) free trade agreement, 53.2% of respondents believed that it would create economic and political benefits to China, the US and other CPTPP members, including reducing economic tensions and allowing China to undergo domestic reforms. A further 46.8% of respondents believed that the US’ absence from the CPTPP would facilitate the rise of China’s influence in the region.
 

SINGAPORE
Senior executives in Singapore real estate firms flag rising inflation and interest rates as top risk
(17 February 2022) According to the most recent quarterly Real Estate Sentiment Index (RESI) by the National University of Singapore Real Estate (NUS+RE), nine out of ten senior executives in Singapore-based real estate companies flagged rising inflation and interest rates as the top potential risk factors which might adversely impact market sentiments in the next half of 2022. 73.3% of senior execs identified rising building costs as a key risk, while 65.8% of respondents selected tightening of financing and liquidity in debt markets. Inflation and interest rates topped concerns over rising construction costs, which had topped the list in the previous questionnaire. Meanwhile, the proportion of respondents who indicated "government intervention to cool the market" as a potential risk dropped to 39.5% from the previous 62.8%. The RESI study’s composite sentiment index, an indicator for overall real estate market sentiment, also fell for the third straight quarter to 5.4 in the fourth quarter from 6.6 in the third quarter, although the index stayed above 5, indicating overall sentiment on the property market's current and future conditions remained positive.
 

MALAYSIA
Daily COVID-19 cases in Malaysia hits record high of 27,831 due to Omnicron variant
(16 February 2022) Malaysia’s new COVID-19 cases reached a record high on 16 February 2022, with 27,831 cases recorded. This new wave has been driven by the more transmissible Omnicron variant, data from the health ministry showed. Malaysia now joins Singapore and Indonesia in dealing with the worst daily COVID-19 caseloads of the pandemic to date. However, hospital occupancy rates remain manageable, due to Malaysia’s high vaccination rate, with nearly 80% of the total population having completed their regime and more than half the adults having received booster shots. Instances of serious illnesses and deaths are also lower than in last year’s Delta wave, when the country’s health services were pushed to the brink. Almost 99% of daily cases as of now involve patients who show mild or no symptoms, according to data from the health ministry. Authorities believe that the omicron wave is expected to peak in the second half of March 2022.
 

INDONESIA  
Indonesia considering lifting all quarantine requirements for inbound travelers in April 2022
(14 February 2022) Indonesian authorities are considering lifting all quarantine requirements for inbound travelers in April 2022, as hospitalizations and fatality rates remain under control despite a resurgence in cases. As of now, the quarantine time for travelers with a third dose of vaccines will be reduced from five days to three starting on the week of the 21 February 2022. Indonesia is currently opening its borders more freely to those who are eligible, in line with neighboring countries. The government is also easing capacity restrictions to improve mobility, including increasing office capacity to 50% or more from the currently stipulated 25%. Authorities stated they intend to keep monitoring the COVID-19 situation with the intention to loosen curbs further.
 

THAILAND  
Cabinet approves package of financial incentives to encourage drivers and automakers to switch to electric vehicles
(18 February 2022) The Thai cabinet approved a package of financial incentives to encourage drivers to adopt electric vehicles, as well as for automakers to start manufacturing electric vehicles within the kingdom. The measures for 2022 and 2023 approved by the cabinet include subsidies of between US$2,200 and US$4,600, depending on the model and battery capacity, according to local media. The excise tax on these vehicles will also be cut to 2% from the usual 8%, while import duties will be lowered by between 20% and 40%. Automakers benefiting from the program will be required to start making electric vehicles in Thailand by 2024. Thailand is aiming to have electric vehicles account for 30% of production by 2030. Mercedes-Benz is set to become the first major automaker to manufacture electric vehicles in 2022, while Mitsubishi Motor and SAIC plan to start in 2023.
 

THE PHILIPPINES
Philippines central bank maintains accommodative policy stance for 10th straight meeting 
(17 February 2022) The Philippines central bank maintained its accommodative policy stance for the 10th straight meeting on 17 February 2022, indicating it would start exiting its pandemic support measures when the economic recovery has become sustainable or inflation risks have risen significantly. The Bangko Sentral ng Pilipinas left the benchmark rate at 2% on 17 February, its last rate move was a 25-basis point cut in November 2020. The Philippines is among other Asian economies such as India and Malaysia that have yet to adopt rate hikes in the face of rising inflation globally. The economy grew more quickly than forecast last quarter, underscoring expectations that output will return to pre-pandemic levels in 2022. Inflation slowed 3.0% year-on-year in January 2022, within the bank’s 2% – 4% target range. On Thursday, the bank raised its forecast for average inflation for 2022 to 3.7%, from the 3.4% it forecast in December.
 

VIET NAM
Samsung adds US$920 million to its investment in Viet Nam to produce circuit boards and camera modules
(17 February 2022) Samsung adds US$920 million to its investment in Viet Nam to produce circuit boards, camera modules and other parts. The Vietnamese province of Thai Nguyen stated that it had granted Samsung Electro-Mechanics Vietnam a certificate to increase capital to a total of US$2.27 billion, with the additional investment to be used to make mobile components including touch sensor modules, linear motors and lenses. Samsung is Viet Nam’s largest foreign investor and exporters, with factories across the country supplying Apple phones, fridges and washing machines. Samsung employs some 6,585 people in Thai Nguyen province, and will use the additional capital to fund housing and other construction.

RCEP Monitor