This week's ASEAN Week (June 28 – July 4, 2569) provides an update on the latest developments in Southeast Asia over the past week.
For ASEAN Week "Bank Finance" This week, from June 28th to July 4th, 2569, we will be covering the latest news and developments in the ASEAN region.
- The Iran-Iran conflict exacerbates the "ASEAN economy," causing inflation to soar and the ADB to warn of the risk of stagflation.
- The Philippines has cut its GDP target until 2573, impacted by the Iran-Iran conflict and El Niño, which is weakening the peso.
- Escaping high electricity bills! The Philippines sees a surge in solar power installations, driving it to become the world's leading importer of solar panels.
- Malaysian durian prices have plummeted as exports fail to meet Chinese and Singaporean standards, resulting in a massive influx of returned durians into the domestic market.
- The Philippines has raised its minimum wage in Manila by a record 12% to cope with soaring living costs.
- An Indonesian court has sentenced GoJek co-founder to 10 years in prison in a Chromebook procurement corruption case.
- Indonesia's inflation surged to 3.34%, the highest in three months, nearing the central bank's upper limit.
- Dr. Kobsak analyzes Indonesia's situation, warns Thailand to maintain fiscal discipline, and advises preparing for a new global trade war.
- Bangkok Bank is confident that Indonesia will continue to experience strong growth and will remain its flagship international business.
- The State Bank of Vietnam warns that inflation will remain high throughout the year, and will continue to support the currency and promote lending.
- Thailand, the Philippines, and Argentina are rising stars in the global supply chain, benefiting from companies reducing their dependence on China.
- Vietnam's economy grew by 8.39% in Q2/69, exceeding expectations, driven by a 28.1% surge in exports and foreign investment.
- Singapore is projected to be among the top 5 global financial centers by 2568, surpassing China and Luxembourg.
The Iran-Iran conflict exacerbates the "ASEAN economy," causing inflation to soar and the ADB to warn of the risk of stagflation.
The Iran-Iran conflict has driven up energy prices, putting pressure on inflation and purchasing power in several ASEAN countries, particularly the Philippines and Indonesia. This has led to reduced spending and a shift toward cheaper goods. Meanwhile, the Asian Development Bank (ADB) warns that if the conflict is prolonged, the region could face stagflation, a situation of economic slowdown coupled with high inflation. Even though oil prices have begun to fall, the impact on the cost of living and consumption is likely to persist.
Thailand, the Philippines, and Argentina are rising stars in the global supply chain, benefiting from companies reducing their dependence on China.
A report by Verisk Maplecroft indicates that Thailand, the Philippines, and Argentina have the potential to become new global manufacturing bases and supply chain hubs, driven by multinational corporations diversifying away from China. Thailand is boosted by investment in electronics and AI industries, while the Philippines stands out for its skilled workforce and Argentina benefits from trade agreements. Although Vietnam, Malaysia, Mexico, and Brazil remain key manufacturing centers, increasing supply chain risks could open opportunities for Thailand and other emerging countries to attract more investment in the long term.
The Philippines has cut its GDP target until 2573, impacted by the Iran-Iran conflict and El Niño, which is weakening the peso.
The Philippine government has continuously lowered its economic growth targets until 2573, while also revising upward its inflation forecast and anticipating the peso to depreciate more than previously estimated, impacted by the Iran-Iran conflict, El Niño, and weak consumer confidence. The government believes that budget spending and infrastructure investment will help support the economy, but warns that prolonged conflict in the Middle East will perpetuate pressure on inflation, the currency, and economic growth.
Escaping high electricity bills! The Philippines sees a surge in solar power installations, driving it to become the world's leading importer of solar panels.
Filipinos are increasingly installing rooftop solar panels to cope with soaring electricity costs, driven up energy expenses following the Middle East crisis. This has resulted in a 145% surge in imports of solar panels from China in the three months to May. The country's solar power capacity is projected to nearly triple within two years, although the market still faces constraints related to installation costs, equipment quality, and public access to financing.
The Philippines has raised its minimum wage in Manila by a record 12% to cope with soaring living costs.
The Philippines has announced a record 12% increase in the minimum wage in the Manila metropolitan area, affecting over 1.1 million workers. The increase will be gradually implemented starting in July 2569 to mitigate the impact of rising living costs and inflation, although labor unions believe the raise is insufficient. While inflation has begun to slow, it remains significantly higher than the Philippine central bank's target.
Malaysian durian prices have plummeted as exports fail to meet Chinese and Singaporean standards, resulting in a massive influx of returned durians into the domestic market.
Malaysia is facing a durian price crisis due to an oversupply and durians not meeting export standards set by China and Singapore. As a result, the government is urgently purchasing 1,000 tons of durian to process into durian paste and expanding into new export markets such as Canada, the UK, Japan, and New Zealand. Meanwhile, the Department of International Trade Promotion (DITP) sees this as an opportunity for Thailand to reinforce its strengths in durian quality and expand exports of smart farming technology and food processing machinery to Malaysia.
An Indonesian court has sentenced GoJek co-founder to 10 years in prison in a Chromebook procurement corruption case.
An Indonesian anti-corruption court has sentenced Nadeem Makarim, former education minister and co-founder of GoJek, to 10 years in prison for corruption related to the procurement of Google Chromebooks for public schools. He was also ordered to pay a fine of 1 billion rupiah and 809,600 billion rupiah in damages to the state. The court ruled that the project's specifications favored Google products and the purchase price was nearly double what it should have been.
Indonesia's inflation surged to 3.34%, the highest in three months, nearing the central bank's upper limit.
Indonesia's inflation rate rose to 3.34% in June, the highest in three months and higher than market expectations, driven by rising fuel prices, logistics costs, and a weaker rupiah. The Bank of Indonesia (BI) continues to monitor inflationary pressures and is prepared to implement monetary policy measures to maintain economic stability.
Dr. Kobsak analyzes Indonesia's situation, warns Thailand to maintain fiscal discipline, and advises preparing for a new global trade war.
Dr. Kobsak Pootrakul stated that Indonesia is a potential market for Thailand due to its growing economy and large consumer base. Despite pressure from populist policies and capital market volatility, Indonesia maintains strong economic fundamentals. He cited Indonesia as a lesson for Thailand to maintain fiscal discipline to preserve investor confidence amidst risks from global trade wars, geopolitical conflicts, and the influx of Chinese goods. Meanwhile, Bangkok Bank continues to expand its network in Indonesia to support Thai entrepreneurs investing abroad and to cope with Thailand's low economic growth.
Bangkok Bank is confident that Indonesia will continue to experience strong growth and will remain its flagship international business.
Mr. Chartsiri Sophonpanich, President and CEO of Bangkok Bank, confirmed that Indonesia remains a strategic market and a key player for the bank's international business, given its strong economic potential and high growth opportunities. The bank will leverage the PermataBank network to support Thai investors and provide rupiah-denominated loans to mitigate exchange rate risk. Meanwhile, the bank sees growth potential in Vietnam, Malaysia, and the Philippines, while targeting approximately 3% loan growth this year. The bank believes it can maintain its loan quality target despite global economic volatility stemming from trade wars and oil prices.
The State Bank of Vietnam warns that inflation will remain high throughout the year, and will continue to support the currency and promote lending.
The State Bank of Vietnam (SBV) warned that inflation is likely to remain high throughout the year due to the impact of conflicts in the Middle East and global economic uncertainty. The SBV will continue to manage liquidity, maintain the stability of the dong, and keep its 2569 credit growth target at 15% to support the economy. However, the government needs to significantly accelerate economic growth in the second half of the year to achieve double-digit growth targets amidst global trade pressures and inflation risks.
Vietnam's economy grew by 8.39% in Q2/69, exceeding expectations, driven by a 28.1% surge in exports and foreign investment.
Vietnam's economy expanded by 8.39% in the second quarter of 2026, exceeding market expectations of 7%, driven by strong manufacturing, exports, and foreign direct investment (FDI). Exports in June surged 28.1% and FDI increased by 61%. Despite facing risks from US tariffs and higher energy costs, the government remains committed to boosting the economy to achieve its 10% growth target for the year.
Singapore is projected to be among the top 5 global financial centers by 2568, surpassing China and Luxembourg.
Singapore is projected to become the world's fifth-largest financial center by 2025, up from ninth in 2015, according to New Financial rankings, following its continued attraction of foreign bank assets and cross-border investment. The United States, the United Kingdom, Hong Kong, and Germany will continue to dominate the top four globally.
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