Asean’s Taylor tussle; Swift jump in Indonesia stocks
Goh Ruoxue
This week in Asean:
- Malaysia: Ringgit falls, falls and falls
- Cambodia: Singapore-based developer builds new township
- Thailand: Central bank stands pat amid Srettha’s rate-cut calls
Dear BT reader,
I remember in July last year when TikTok was ablaze with Singapore content creators cautioning people - in jest, of course - against visiting the city-state. Videos were accompanied with comments such as: “It’s not safe here”, “Chilli crab is awful”, “The Merlion is ugly” and “Island so small it may sink if there’s too many people.”
Why, you ask? It’s because of Taylor Swift. The American superstar’s fans in South-east Asia were gutted to discover that Singapore was her only regional tour stop, while Singaporeans were up in arms over fears they might not be able to get tickets for one of her six shows in March. Thus arose the Internet jokes. Swift is so influential that the term “Swiftonomics” was coined to describe her impact on the economy.
Perhaps another new word is needed for her influence on geopolitical ties. Thai Prime Minister Srettha Thavisin on Friday (Feb 16) claimed that Singapore of offering million-dollar subsidies for each concert in exchange for regional exclusivity, to which the Republic confirmed that a grant was given, but withheld further details. “If I had known this, I would have brought the shows to Thailand,” said Srettha. I sure hope there’s no “Bad Blood” here.
Indonesia investors are feeling more confident of late, after Defence Minister Prabowo Subianto declared victory in the presidential election. A day after the vote, the Jakarta Composite Index finished 1.3 per cent up, the highest since Dec 14. Our Indonesia correspondent Elisa Valenta reports on the biggest gainers. The country’s central bank also maintained its benchmark interest rate for the fourth straight meeting to shield the rupiah from volatility.
In other news, long gone are the days when one Singapore dollar would buy you 2.60 Malaysia ringgit. On Feb 20, the currency sank to RM3.568 against the Singdollar, its lowest level since 1998. Our Malaysia correspondent Tan Ai Leng writes about how this reflects on the nation’s economic growth.
Elsewhere in Cambodia, our Vietnam correspondent Jamille Tran brings to us this piece on Singapore-based real estate developer Sir Stamford Raffles Group’s freehold township project near the US$1.5-billion Techo Takhmao International Airport that opens in 2025, and the group’s Indochina strategy.
To our readers from Brunei, happy National Day! Feb 23 marks the ruby jubilee - or 40th anniversary - of the sultanate’s independence from British rule.
More stories lie ahead and as always, thank you for your invaluable support for The Business Times. Have a beautiful weekend.
Trending
What’s happening: A handful of mega infrastructure projects loom on Cambodia’s horizon. Notable ones include the US$1.5-billion airport opening in 2025 and the US$16-billion Ream City project in Sihanoukville. The Kingdom is also gunning for a US$4 billion upgrade of its Phnom Penh-Poipet high-speed rail.
Why you should care: While some are bullish on Cambodia’s growth, others allude to unrealised infrastructure projects in the country and concerns over what some critics describe as white-elephant projects.
Asean in Brief
- Digital banks should count on more than ecosystems, tech to expand in South-east Asia Market observers said that for digital banks to succeed in the region, they will need to depend on more than their tech capabilities and ecosystems. Read more
- 90% of startups worldwide fail; but data for South-east Asia incomplete As South-east Asia’s startup ecosystem continues to evolve, Tech in Asia has put together this piece to keep track of macro-level startup failure trends in the region. Read more
- Malaysia’s January exports exceed forecast to rise 8.7%, first expansion in 10 months Economists anticipate that Malaysia’s exports will continue their growth momentum, supported by a further uptick in the tech cycle and continuous demand from Asean countries as well as the US and China. Read more
- With air networks redrawn, Singapore emerges as the best connected among its regional rivals Across South-east Asia, pre-pandemic links with Europe have all but vanished as Philippine Airlines, Garuda Indonesia and Thai Airways cut flights. Read more
- New bids in to revive KL-Singapore high-speed rail, but govt funding remains missing link Analysts say that in order for the HSR to be commercially viable, private companies would need state support for land acquisition, subsidies for train tickets, and maintenance of the infrastructure. Read more
- Chinese tourists flock to South-east Asia as overseas travel bounces back Bookings to Singapore, Thailand and Malaysia collectively jumped more than 30 per cent from Feb 10 to 17 compared with 2019, according to travel website operator Trip.com. Read more
- What Prabowo’s presidency in Indonesia will mean for the world Some experts fear his focus on building Indonesia’s military may be viewed negatively in the region. Read more
- Indonesia’s KAI gets US$450 million loan from China to cover bullet train cost Indonesia has said that it is considering extending the railway by more than 700 km to its second-largest city of Surabaya in East Java. Read more
- Thailand plans 1.19 trillion baht public-private investment projects during 2020-2027 The government will also expedite other infrastructure projects which have high economic value. Read more
- Thai PM seeks emergency rate cut, pressuring central bank The policy rate standoff is the latest sign of discord between the Thai premier and the central bank chief after the duo publicly disagreed on the government’s plan for a cash stimulus and the assessment of South-east Asia’s second-largest economy. Read more
