Indonesia’s Valentine’s vote; Asean’s rail ambitions face hitch

This week in Asean:

• Malaysia: Ringgit hits fresh low
• Thailand: Holds key interest rate
• Vietnam: Seeks US$492 million in tech investments

Dear BT reader,

This year’s Valentine’s Day will be an extra special one for some 204 million Indonesians. They will be headed to the polls on February 14 to cast their votes for the president and legislative candidates, and our Indonesia correspondent Elisa Valenta will keep you updated on the world’s biggest single-day election. The final debate on the night of Feb 4 saw labour, healthcare and social aid issues being brought up. 

What’s headed down is the Malaysian ringgit, which touched a historical low of RM3.55 against the Singapore dollar on Wednesday (Feb 7). Compared with a year ago, the worst-performing currency in emerging Asia in 2023 has depreciated by about 10.5 per cent against the Singapore dollar. Our Malaysia correspondent Tan Ai Leng speaks with market observers about the ringgit’s weak showing. 

Staying in Malaysia, the fourth and penultimate instalment of our weekly “Crazy Rich Asians” series profiles Malaysian business magnate Robert Kuok, who founded a multinational conglomerate that now spans six continents. Ai Leng brings us this piece on Kuok, who has been dubbed the Sugar King of Asia as the centenarian once commanded a 10 per cent share of the global sugar market. 

Here’s a nugget of information: Kuok’s grandson is married to the granddaughter of Singapore’s late banking tycoon Wee Cho Yaw. The former UOB chairman died on Saturday, with bank employees bidding him a final farewell before his funeral on Wednesday. 

Last week, we spotlighted the fourth Asean digital ministers’ meeting that was held in Singapore. What’s paramount is that the Republic will host and inject S$10 million over the next decade to fund an Asean emergency response team that deals with cyberattacks in the region. Other deliverables include the launch of a guide on AI governance and another on model contractual clauses of Asean and the European Union. 

The region continues to make strides in its digital economy aspirations, most recently with Vietnam’s financial hub Ho Chi Minh City seeking to attract up to US$492 million worth of investments in various high-tech projects. The Saigon Hi-tech Park will set aside a combined area of about 10 ha for the proposed projects. Our Vietnam correspondent Jamille Tran brings us more on Vietnam’s foreign investment scene. 

Other grand ambitions of Asean include its long-time dream of connecting the region by rail. While Indonesia and Laos have launched rail links, the long-in-the-making ventures of countries such as Vietnam and Thailand trail behind. How achievable are Asean’s high-speed rail aspirations? Read this piece by me to find out. 

And that’s the bell, folks. You know how it is – keep scrolling for more good reads and as always, thank you for your invaluable support for The Business Times. Have a beautiful weekend.

Trending

What’s happening: Headed to Bali for Valentine’s Day? If you’re a foreign tourist, you’ll soon need to pay a tax of 150,000 rupiah (S$13) to visit the island. This levy will be collected per entry from Feb 14 onwards, so if you’re travelling to the surrounding islands, you’ll have to pay it again upon returning to Bali. 

Why you should care: In a push for sustainable tourism, several South-east Asian nations have introduced – or attempted to introduce – entry fees for foreign tourists. Aside from Indonesia, Thailand tried in June 2023 to tax foreign visitors but postponed the collection for fear of hurting its tourism industry.

Asean in Brief

• Japanese capital pours into South-east Asia, seeking growth The arrival of Japanese money in South-east Asia is also funnelled by other factors, such as the saturation of capital in Australia and New Zealand, and geopolitical tensions with China and South Korea. Read more
• Malaysia property deals up 8.8% to RM142 billion in first three quarters of 2023 Malaysia’s property market saw 293,095 transactions worth a total of RM142.5 billion (S$40.3 billion) in the first nine months of 2023. Read more
• Indonesia economy grows 5.05% in 2023 amid falling exports, slowing consumption The government’s statistics agency said on Monday (Feb 5) that gross domestic product slowed last year due to weaker exports driven by lower commodity prices. Read more
• Indonesia January inflation eases to 2.57%, in line with forecast Analysts expect that benign inflationary pressures and contained external pressures will enable the central bank to maintain its policy rate at 6 per cent in the first half of this year. Read more
• VinFast recalls nearly 6,000 units in Vietnam to replace switch The vehicles being recalled were manufactured from March to December last year. Read more
• Singaporeans flock to Malaysia for bargains as dollar hits record high The ringgit has been buffeted by weaker exports and Malaysia’s wide interest rate gap with the US. Read more
• China EV drive into Thailand galvanised by smog and subsidies With vehicle exhaust contributing much of the kingdom’s air pollution, the crisis has emerged as an opportunity for Chinese electric vehicle (EV) firms. Read more
• Philippine annual inflation at 2.8% in January The consumer price index in January was the lowest since October 2020 when the rate was 2.3 per cent. Read more
• CapitaLand Investment acquires 3 properties in South-east Asia Through the group’s logistics platform, it completed in December 2023 the acquisition of a 20 ha freehold greenfield site in Bangkok, which marks its first logistics property in Thailand. Read more