Race to become Asia’s top entertainment hub; Thai PM Srettha seeks closer ties with EU

This week in Asean:

• Vietnam: US$12 billion fraud trial against property queen Truong My Lan begins
• Malaysia: WTO backs EU in deforestation case against Malaysia
• Indonesia: February inflation rises to 2.75% on soaring rice prices
• Philippines: Push for companies to fund US$43 billion infrastructure projects resumes

Dear BT reader,

Pop icon Taylor Swift is in town this week but while her fans are on an adrenaline rush, certain South-east Asian countries are peeved over Singapore’s exclusive deal with the American pop star.

The furore over whether the grant from the Singapore Tourism Board played a decisive role in Taylor Swift’s team choosing Singapore as her only stop in the region underscores the race among the neighbours to become Asia’s top entertainment hub.

As countries beef up their infrastructure to woo world-class acts, our journalist Goh Ruoxue examined the ongoing projects across key Asian cities, which include concert halls, airports and railway links. The fierce competition has also prompted Singapore to step up its investments, with the latest move including a plan for a new indoor arena.

Continuing with the infrastructure theme, Thailand’s ‘salesman’ Prime Minister Srettha Thavisin embarked on a seven-day visit to Germany and France, from Mar 7 to 14. Srettha’s top agenda includes pushing for a free trade agreement between Thailand and the European Union and advocating for visa exemptions for holders of Thai passports, as noted by the Thai government’s spokesperson.

It is envisaged that Srettha’s visit is also aimed at attracting investors for the 1 trillion baht land bridge project and to promote Thailand’s thriving electric vehicles sector. During his European visit, Srettha has scheduled meetings with business leaders in the aviation, automobile, tourism and retail industries.

Many analysts expect Indonesia to be one of the top performers across Asean in 2024. This positive sentiment may receive a further boost as the presumed president Prabowo Subianto has announced an ambitious economic growth target of 8 per cent in the next five years. This aims to vault the country to advanced-economy status by 2045. Not only is the 8 per cent target higher than outgoing Joko Widodo’s goal of 7 per cent, it also exceeds Bank Indonesia’s forecasted growth of 4.7 to 5.3 per cent over the next two years. Our Indonesia correspondent Elisa Valenta looked into Prabowo’s plan to deliver his ambition: would extensive investment do the magic or would budget deficits overshadow it all? 

These are just a taste of the stories we have on the region. Do keep scrolling to find out more. See you next Friday!

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Prime Minister Lee Hsien Loong met Australian Prime Minister Anthony Albanese alongside other Asean leaders at the Asean-Australia Special Summit, held from Mar 4 to 6 in Melbourne, Australia. PM Lee stressed the importance of closer Asean-Australia ties in maintaining regional peace and stability as the US-China power rivalry plays out in South-east Asia.

Asean in Brief

• Asian cities build big as infrastructure woes take centre stage in region’s Taylor Swift tussle Aa talk rages on over whether Singapore’s exclusivity deal with American pop icon Taylor Swift was a smart business move or “not what good neighbours do”, a more pressing issue regarding the state of infrastructure in key cities in the region has been thrust into the spotlight. Read more
• How Asean’s new US$2 trillion digital economy pact paves the way for seamless trade, data flow Negotiations are under way for the Asean Digital Economy Framework Agreement, which will be the world’s first regional digital economy agreement. Read more
• Five things to know about Vietnam’s multi-billion-dollar fraud case involving property queen Truong My Lan The trial of Vietnam’s biggest fraud case began on Tuesday (Mar 5), with real estate tycoon Truong My Lan taking centre stage. Along with 85 accomplices including top bank officials, she is accused of bribery and embezzlement that led Saigon Commercial Bank to suffer staggering losses of 415 trillion dong (S$22.6 billion). Read more
• CapitaLand Development plans 11,000 more homes in Vietnam by 2028 CapitaLand Development, the development arm of Singapore’s CapitaLand Group, intends to grow its residential portfolio in Vietnam to 27,000 units by 2028. Read more
• Australia and Vietnam upgrade relations, to begin talks on critical minerals Australian Prime Minister Anthony Albanese said on Thursday (Mar 7) that the country was raising ties with Vietnam to the level of a comprehensive strategic partnership, with an annual dialogue on minerals amid a push to diversify supply chains away from China. Read more
• Malaysia’s Employees Provident Fund announces highest-ever dividend payout of RM57.8 billion in 2023 Malaysia’s Employees Provident Fund announced its highest dividend payout of RM57.8 billion (S$16.4 billion) for 2023, comprising a 5.5 per cent dividend for members under the conventional savings account and 5.4 per cent for members under the syariah savings account. Read more
• Saturation of malls in Malaysia’s Klang Valley as more join the fray When The Exchange TRX opened in Malaysia’s new international financial district in Kuala Lumpur last November, the mega-development became the latest mall to compete for the attention – and wallets – of shoppers in the country’s capital. Read more
• Asia’s growth star Philippines woos companies for projects worth US$43 billion The Philippines is reviving a push for companies to help fund infrastructure from airports to bus lanes now worth US$43 billion, aiming to keep its lustre as one of Asia’s growth stars amid limited fiscal space. Read more
• Soaring rice prices drive Indonesia’s inflation to 2.75% in February Indonesia’s inflation rate increased to 2.75 per cent in February, exceeding forecasts by economists, according to data by the country’s statistics bureau on Friday (Mar 1). Read more
• Indonesia’s Prabowo aims high, shoots for 8% GDP growth in next 5 years Indonesia’s presumed president Prabowo Subianto has set an ambitious economic growth target of 8 per cent in the next five years – over his upcoming term – to vault South-east Asia’s largest economy to advanced-economy status by 2045. Read more