ASEAN Week: Stay updated on ASEAN news throughout this week (May 3-9, 2569).

This week's ASEAN Week (May 3-9, 2569) provides an update on the latest developments in Southeast Asia over the past week.

For ASEAN Week, "Finance and Banking" will cover the latest news and developments in the ASEAN region throughout this week, from May 3-9, 2569, including:

• Changing direction! ASEAN accelerates search for new oil sources after Middle Eastern oil shortages hit hard, severely impacting Thailand and Vietnam.
• Indonesia recorded a larger-than-expected trade surplus despite a dip in exports, but faces risks from oil prices and war.
• "Philippine inflation surges to its highest level in three years, reaching 7.2%, driven by energy and transportation costs."
• The Indonesian central bank intervened in the market after the rupiah weakened to 17,422 per dollar. 
• The Prime Minister will fly to attend the ASEAN summit from May 7-9, highlighting Thailand as a link for regional cooperation.
• Vietnam is stepping up its crackdown on copyright infringement after the United States listed it as a top concern country regarding IP.
• The Thai-Vietnam Business Council unveils plans for 69 to boost bilateral trade value to US$2.5 billion, coinciding with the 50th anniversary of diplomatic relations.
• The Philippine economy is projected to grow at a slower pace, with a 2.8% expansion expected in Q1/69, due to the impact of the war and soaring oil prices.
• ASEAN leaders discussed the energy crisis and the Iran-Iran conflict, hoping to increase cooperation in coping with economic volatility.
• Malaysia is accelerating the upgrading of its real-time payment system in the AI ​​era following a surge in QR transactions in ASEAN.
• "Farmers in India, Vietnam, and Thailand are preparing to cope with a crisis of soaring fertilizer prices as the planting season begins." 
• The Central Bank of Malaysia has decided to keep its interest rate at 2.75% for the fifth consecutive time.
• Thailand and Cambodia are preparing for discussions on the sidelines of the ASEAN summit, as the border clashes remain unresolved.
• The Prime Minister is scheduled to meet with Hun Manet for trilateral discussions involving Thailand, Cambodia, and the Philippines today at 3:18.00 PM.
• The Prime Minister highlighted three ASEAN strategies: "Unity, Resilience, and Global Awareness" to cope with a volatile world.
• Vietnam is reclaiming 534 acres of land from the sea, while China is poised to build its largest island in the South China Sea.
• Indonesia and China connect their cross-border QR payment systems via Alipay+ to boost two-way trade.

The Thai-Vietnam Business Council unveils plans for 69 to boost bilateral trade value to US$2.5 billion, coinciding with the 50th anniversary of diplomatic relations.

The Thai-Vietnam Business Council announced its 2569 plan to boost bilateral trade to US$2.5 billion, coinciding with the 50th anniversary of diplomatic relations. This follows a projected total trade of US$2.36 billion by 2568, with Thailand maintaining a trade surplus and remaining a significant foreign investor in Vietnam, with cumulative investment exceeding US$1.52 billion across 789 projects. Vietnam, meanwhile, demonstrated strong economic growth with an 8.02% GDP expansion in the latest fiscal year, aiming to become a high-income country in the future. Future cooperation will focus on investment in the green economy, renewable energy, and digital sectors, as well as strengthening Thai-Vietnamese business linkages within global supply chains.

ASEAN leaders discussed the energy crisis and the Iran-Iran conflict, hoping to increase cooperation in coping with economic volatility.

ASEAN leaders met in the Philippines to discuss ways to strengthen economic cooperation and address the energy crisis stemming from the Iran-Iran conflict, amidst pressure on soaring oil and food prices and supply chain disruptions. The meeting also discussed key security issues, including the South China Sea dispute, the civil war in Myanmar, and border tensions between Thailand and Cambodia. The Philippines pushed for a joint statement on the Middle East crisis and proposed a mechanism for sharing oil reserves among ASEAN members to enhance preparedness for emergencies and mitigate the long-term impact on the regional economy.

"Farmers in India, Vietnam, and Thailand are preparing to cope with a crisis of soaring fertilizer prices as the planting season begins."

Farmers in India, Vietnam, and Thailand are facing immense pressure from soaring urea fertilizer prices at the start of the planting season. This follows the Iran-Iran conflict and the Strait of Hormuz crisis, which disrupted fertilizer production and transportation from the Middle East, a major global export source. Global urea prices have more than doubled compared to last year, driving up rice cultivation and transportation costs. The World Bank warns that if the situation persists, several Asian countries could face shortages of agricultural raw materials and reduced yields, increasing the risk to global food stability, as India, Vietnam, and Thailand are major rice producers and exporters at a time when many countries still rely heavily on rice imports.

Changing direction! ASEAN accelerates search for new oil sources after Middle Eastern oil shortages hit hard, severely impacting Thailand and Vietnam.

ASEAN countries are rapidly diversifying their oil import sources following the US-Iran conflict which disrupted shipping routes through the Strait of Hormuz. This has led many countries to reduce their reliance on Middle Eastern oil and instead import from the US, Brunei, Libya, as well as countries in Africa and South America. Thailand has significantly reduced imports from the UAE and Saudi Arabia while increasing imports from Brunei and Libya. Vietnam, heavily impacted by its over 80% dependence on Kuwait oil, is scrambling to find new suppliers. Singapore has reduced its Middle Eastern oil imports by over 60% and has increased its reliance on the US. Analysts believe Russia may become a crucial backup source in the future, although supply remains insufficient. Meanwhile, ASEAN's economy continues to be supported by exports and the demand for technology and AI, sustaining the region's growth.

Thailand

The Prime Minister will fly to attend the ASEAN summit from May 7-9, highlighting Thailand as a link for regional cooperation.

Prime Minister Anutin Charnvirakul is preparing to attend the 48th ASEAN Summit from May 7-9, 2569, in Cebu City, Philippines, under the theme "Stepping Towards a Shared Future." Thailand will promote its role as a "connector" for regional cooperation in areas such as energy security, food security, and addressing cross-border challenges amidst a volatile global situation stemming from conflicts and geopolitical pressures. Thailand will utilize multilateral and bilateral discussions to create tangible results in the economic, security, and safety sectors of ASEAN citizens.

The Thai Prime Minister met with Cambodian Prime Minister Hun Manet to discuss the Thai-Cambodian border on the sidelines of ASEAN, hoping to reduce tensions and restore trust.

Thailand and Cambodia are set to hold discussions with the Philippines on the sidelines of the ASEAN summit in Cebu to address the fragile border situation, despite both sides maintaining a ceasefire agreement following last year's violent clashes that left nearly 150 dead and displaced over 300,000 people. Thai Prime Minister Anutin Charnvirakul affirmed that the negotiations must prioritize protecting Thailand's sovereignty and interests. The Philippines, as the ASEAN chair, will facilitate the discussions to help de-escalate tensions and restore trust between the two countries, amidst ongoing conflicts including overlapping maritime areas and the recent cancellation of a joint energy agreement between Thailand and Cambodia.

The Prime Minister highlighted three ASEAN strategies: "Unity, Resilience, and Global Awareness" to cope with a volatile world.

Prime Minister Anutin Charnvirakul proposed three key strategic approaches at the 48th ASEAN Summit's Retreat Session in the Philippines to help ASEAN cope with an increasingly volatile and unpredictable world, stemming from tensions in the Middle East and a changing global order. He emphasized strengthening regional "unity," increasing "resilience" through maintaining ASEAN centrality, and reinforcing ASEAN's role as a credible partner on the world stage. He stressed the need for ASEAN to shift from a reactive approach to proactive responses to global crises and proposed a gradual re-engagement of ASEAN with Myanmar to support negotiations and the implementation of the Five-Point Consensus. He reiterated that ASEAN remains a crucial foundation for regional stability amidst current global turmoil.

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Vietnam

Vietnam is stepping up its crackdown on copyright infringement after the United States listed it as a top concern country regarding IP.

Vietnam is stepping up its crackdown on intellectual property infringement, including counterfeit films, online games, goods, and trademarks, after the United States ranked it among the countries of highest concern regarding intellectual property protection. The country aims to increase law enforcement cases by 20%. The Vietnamese government acknowledges that this problem negatively impacts the investment climate and businesses. The US may consider implementing trade measures under Section 301 if Vietnam fails to resolve the issue, amidst stalled trade negotiations between the two countries due to tariff disputes and the circumvention of trade measures through third countries.

Vietnam is reclaiming 534 acres of land from the sea, while China is poised to build its largest island in the South China Sea.

Vietnam is accelerating its expansion in the South China Sea, reclaiming an additional 534 acres of land in the past year, bringing its total reclaimed land to 2,771 acres. It is also proceeding with the development of infrastructure and air navigation systems in the Spratly Islands. Meanwhile, China continues to expand its influence, possessing over 5,460 acres of artificial islands and developing Antelope Reef into the largest island in the South China Sea, amidst a protracted sovereignty dispute between the two countries, despite continued diplomatic efforts by both nations.

ฟิลิปปินส์

The Philippine economy is projected to grow at a slower pace, with a 2.8% expansion expected in Q1/69, due to the impact of the war and soaring oil prices.

The Philippine economy grew by only 2.8% in the first quarter of 2026, lower than market expectations and slowing from the previous quarter. This was amid pressures from soaring oil prices due to conflicts in the Middle East, a weakening peso, and government corruption issues that impacted domestic investment and consumption. Domestic investment contracted by 3.3%, while industrial growth was negative, making the Philippines one of the slowest-growing countries in the region. Meanwhile, the central bank faces limitations in providing further economic stimulus due to inflationary pressures and a continuously weakening currency.

"Philippine inflation surges to its highest level in three years, reaching 7.2%, driven by energy and transportation costs."

Philippine inflation in April surged to 7.2%, the highest in three years and exceeding market expectations. This was driven by rising energy prices following the Middle East crisis, resulting in a 21% increase in transportation costs. Housing, electricity, and fuel prices rose by 8%, while food prices, particularly rice and fish, continued to climb. This comes amidst the country's dependence on oil imports from the Middle East for over 90% of its economy. The situation is putting pressure on the Philippine central bank, which recently raised interest rates for the first time in over two years. The government is also rushing to implement measures to subsidize fuel and control the prices of essential goods to mitigate the impact on the public and maintain economic stability amidst high energy cost volatility.

Malaysia

Malaysia is accelerating the upgrading of its real-time payment system in the AI ​​era following a surge in QR transactions in ASEAN.

Malaysia is accelerating the upgrading of its real-time cross-border QR payment systems in the AI ​​era, driven by the rapid growth of digital transactions. PayNet is projected to process over 8.44 billion transactions by 2568, while international QR transactions within ASEAN have increased 2.5-fold. Amid concerns from financial and cybersecurity authorities about the risks of online fraud and AI potentially automating transactions, Malaysia is expediting the development of real-time fraud detection systems, including AI-powered transaction behavior analysis and money tracing mechanisms in collaboration with banks and security agencies. The country is also promoting the concept of "AI sovereignty" and ASEAN-level cooperation to ensure the security and trustworthiness of its future digital financial infrastructure.

The Central Bank of Malaysia has decided to keep its interest rate at 2.75% for the fifth consecutive time.

The Central Bank of Malaysia has kept its policy interest rate unchanged at 2.75% for the fifth consecutive time, amid risks from the escalating conflict in the Middle East that are pressuring the economy and increasing the government's energy subsidy burden. Although the economy still grew by 5.3% in the first quarter, it has begun to slow due to the impact of the energy and industrial sectors. The central bank believes the current interest rate level is appropriate for maintaining economic stability and controlling inflation. Malaysia is considered one of the countries in the region that has handled the energy crisis best, thanks to its low inflationary pressures and the continued strengthening of the ringgit, which is projected to become one of the strongest currencies in Asia by 2026.

Indonesia

Indonesia and China connect their cross-border QR payment systems via Alipay+ to boost two-way trade.

Indonesia and China have launched a cross-border QR payment system, officially integrating Indonesia's QRIS standard with Alipay+ and UnionPay. This aims to facilitate cross-border transactions and support Indonesia's over 40 million MSMEs in accessing over 1.4 billion Chinese users. Alipay and UnionPay users can instantly scan and pay at QRIS-enabled merchants in Indonesia, while Indonesian users can use their e-wallets to pay at over 80 million Chinese payment points. Furthermore, both countries are committed to promoting the use of local currencies in transactions to reduce costs and exchange rate volatility, while continuously enhancing the digital economy and financial inclusion in the Asian region.

The Indonesian central bank intervened in the market after the rupiah weakened to 17,422 per dollar.

Bank Indonesia (BIND) urgently intervened in the money market after the rupiah weakened to a new low of 17,422 rupiah per US dollar amid sell-offs in emerging markets stemming from concerns over a Middle Eastern conflict and soaring oil prices. The central bank employed several measures, including intervention in overseas NDF markets, domestic currency trading, and government bond purchases, to stabilize the currency. Several other Asian currencies, such as the Indian rupee and the Philippine peso, also faced weakening pressure. BIND affirmed that it will continue to monitor and manage the market to ensure currency movements reflect economic fundamentals.

Indonesia recorded a larger-than-expected trade surplus despite a dip in exports, but faces risks from oil prices and war.

Indonesia reported a trade surplus of $3.32 billion in March, exceeding expectations, driven by lower-than-expected import growth. Exports contracted by 3.1% due to weak global demand, particularly from China, as well as a decline in mining and agricultural exports. Meanwhile, the rupiah weakened to a new low amid concerns over a potential war with Iran and soaring energy prices, which could increase import costs and pressure the economy in the coming period. Despite inflation slowing in April and the government continuing energy subsidies to stabilize prices, the central bank expects to maintain its policy interest rate at 4.75%, but will closely monitor geopolitical risks and global oil prices.

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