China and ASEAN Quarterly Q1 2024

What’s Next For Foreign Investors In Malaysia?

In July 2023, the Malaysian government drafted its “Ekonomi Madani” reforms that would hopefully restore the country’s high economic growth momentum. Earlier in 2022, Malaysia was declared one of the top developing countries in Southeast Asia for foreign investment due to three factors: robust economic performance, highly qualified workforce, and strong integration with the global economy.

Looking back at the health crisis in 2020, there is no doubt that the ASEAN region experienced a significant decline in foreign direct investments (FDI). At the time, it could also be said that Malaysia experienced the worst FDI decline since 2009, however, the rebound was quick as the country tallied a record-breaking net inflow of USD 20.25 billion in 2021.

Can Thailand Buy Its Way Out Of A Growth Slump?

All eyes are on the Thai economy as it struggles to restore a robust growth momentum after the pandemic.

Thailand’s 2023 performance is below its average expansion of 3.64 per cent between 2010-2019 and is far from returning to the above 7 per cent growth trend seen in the previous decade, with record-high interest rates and elevated household debt restricting growth prospects. Weak external demand also dampened Thai exports.

A new dawn has come for Thailand as its new Prime Minister Srettha Thavisin seeks to boost the domestic economy through direct cash transfers to its citizens. Thavisin is also exerting indirect pressure on the Bank of Thailand (BOT) to roll back interest rate hikes introduced since 2022 to rein inflation in, but it will likely come at a huge cost.

Southeast Asia’s Growth Momentum Can Weather El Niño

Southeast Asian economies face kinder but ever-challenging times ahead in their quest to retain their title as global growth leaders.

There’s a Chinese proverb that says “The higher you grow, the deeper you bow.”

In this case, to sustain the momentum, countries in the subregion have to weather elevated inflation (particularly for food), high interest rates, and weak external demand amid China’s slowdown. Local currencies depreciated and stock markets slid for most of 2023, moving in step with global counterparts against the more competitive US dollar. Still, developing Asian economies remain promising spots for investment.

Business as usual in China after the NPC congress

The Chinese leadership presented their thoughts and plans at the NPC congress though investors didn’t find much inspiration.

Southeast Asia’s growth momentum can weather El Niño

Economies in Southeast Asia have to weather the persistent threat of El Niño on top of elevated inflation and weaker global demand as China’s economy continues to lose steam in 2024.

Can Thailand buy its way out of a growth slump?

Thailand plans to hand out THB 10,000 to 50 million citizens to boost its economy from its post-pandemic slump.

Private infrastructure funding is king as Philippines struggles with budget deficit, piling debt

The spotlight is on the private sector to realize the Marcos Jr. administration’s bold infrastructure goals as the national government navigates a tight fiscal space.

Seizing Indonesia’s golden visa opportunity

Golden visa holders can stay for longer periods in Indonesia compared to tourists or business travelers, but it comes at a hefty price. Will this give birth to more unicorn startups in Southeast Asia?

What’s next for foreign investors in Malaysia?

Malaysia must address investor concerns to sustain the growth in foreign investment inflows.

China in your hand

The financial markets are very focused on any initiatives from the Chinese political leadership in terms of moving domestic demand forward, particularly among households – maybe a dream becomes reality.