Srettha Thavisin’s dramatic fall; Nusantara’s challenging rise
This week in Asean:
- Thailand: PM Srettha Thavisin dismissed for gross ethics violation
- Vietnam: Remains classified as a non-market economy by the US
- Indonesia: Scales back Independence Day celebrations at its new capital
- Malaysia: 99 Speed Mart launches the country’s biggest IPO in seven years
Dear BT reader,
Thailand’s political scene received a major blow on Wednesday (Aug 14) when its Constitutional Court dismissed Prime Minister Srettha Thavisin for gross ethical violations by appointing a minister who had served jail time.
This decision came less than a year after the real estate mogul rose to power following weeks of parliamentary deadlock last August. It also marks the fourth removal of a Thai premier by the court in 16 years.
Political uncertainty ensues as the parliament races to elect a new leader, with Srettha’s Pheu Thai Party, the largest in the ruling coalition, moving quickly to put forward Paetongtarn Shinawatra, the daughter of former Thai leader Thaksin Shinawatra, as its PM nominee.
Paetongtarn will then stand for a parliamentary vote on Friday morning, which requires her to secure the support of more than half of the 493 members of the Lower House.
Regardless of Paetongtarn’s success, the sacking of Srettha comes at a tricky time for the government, which has struggled to revitalise Thailand’s troubled economy. With weak exports and consumer spending, high household debt and over a million small businesses facing loan access issues, the upheaval risks further disrupting economic policies amid ongoing challenges.
Could this be the swan song for the Pheu Thai Party, which has locked horns with Thailand’s influential establishment and royalist military for two decades? The curtain is about to rise soon.
For our readers based in Singapore, we hope you have had an enjoyable National Day break just as we did.
PM Lawrence Wong, who was sworn in on May 15, is set to deliver his first National Day Rally address on Aug 18.
Regarded as one of the city-state’s most important political speeches of the year, the speech will spell out key economic and social policies. It is expected that he will speak about enhancing social safety nets, including boosting support for families and helping those who face employment issues.
Concluding our Asean chips series, our regional correspondents spotlight Vietnam and Indonesia this week.
Vietnam is ramping up its semiconductor ambitions by enhancing workforce training. The country plans to send 1,500 engineers abroad for chip design roles and 5,000 for other chipmaking jobs over the next six years.
In contrast, Indonesia lags behind its regional peers, despite possessing significant semiconductor resources. The region’s largest economy currently hosts only one chip company, majority-owned by the Germany-based Infineon Technologies. Although initiatives are underway to catch up, including partnerships with global tech giants and tax incentives, progress remains slow.
For a succinct overview of South-east Asia’s chips race, check out our infographic. There are more stories in the sections below. Hope you enjoy them too. See you next week!
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Indonesia is holding its Independence Day celebrations on Aug 17 in both Jakarta and its new capital city, Nusantara.
The festivities were originally planned to mark Nusantara’s inauguration as the new seat of government. However, with construction delays and lack of funding plaguing this flagship project of outgoing President Joko Widodo, the upcoming celebration is likely to be a more scaled-back affair.
Asean in brief
- Asean currencies turn the tide against the greenback after a rocky start to the year South-east Asia’s struggling currencies are regaining their footing against the US dollar, following a tough first half of the year that saw some of them plunge to new lows and others hitting multi-year troughs nearly every day. Read more
- Doubts cast over Tesla’s EV ambitions in South-east Asia Malaysia’s Ministry of Investment, Trade and Industry on Thursday (Aug 8) dismissed a report on Thai news portal The Nation that alleged US electric vehicle behemoth Tesla has dropped plans to build manufacturing plants in Thailand, Malaysia and Indonesia. Read more
- Convenience-store chain 99 Speed Mart launches Malaysia’s biggest listing in seven years Malaysian convenience store chain 99 Speed Mart Retail Holdings has launched its RM2.4 billion (S$715 million) listing, in what would be the country’s biggest debut in seven years. Read more
- Vietnam set for a wave of global hotel brands amid booming demand for travel Soaring demand for travel in Vietnam this year is being powered by foreign arrivals – already higher than in pre-pandemic times – as well as a thriving domestic tourism industry. Read more
- Indonesia’s quick commerce startups lose speed amid tight competition and funding crunch Once hailed as the fastest-growing sector during the Covid-19 pandemic, Indonesia’s quick commerce industry is losing steam. Several home-grown startups are leaving the market or pivoting to new ventures. Read more
- Indonesia’s new capital Nusantara set to face first major test Despite delays and funding woes, Indonesia’s new capital Nusantara is near the end of its first phase of development, with visible – though limited – progress made in the building of homes, the presidential palace and a key highway. Read more
- ‘Jokowi Effect’: Reflecting on Indonesia’s era of progress Armed with a bold vision, President Joko Widodo has steered South-east Asia’s largest economy through the choppy waters of global economic uncertainty. The Business Times offers a compelling snapshot of Indonesia’s dynamic transformation over the last ten years. Read more
- US, Japan keen on US$15 billion Philippine projects as ties grow The United States and Japan are very interested to help fund at least US$15 billion worth of projects on the Philippines’ main island, in signs that enhanced security ties are leading to greater economic benefits. Read more
