ASEAN SME NEWS

 
Latest ASEAN news

US companies scale back investments in China, eye ASEAN and India as new manufacturing bases

ASEAN is emerging as a major beneficiary of shifting U.S. investment away from China. Rising trade tensions and tariffs have prompted many American companies to seek alternative production bases. ASEAN countries, with lower labor costs and improving infrastructure, are attractive new hubs. India and Mexico are also gaining attention, but ASEAN offers geographical proximity to China’s supply chains. The diversification trend strengthens ASEAN’s role in global manufacturing networks.

According to the U.S.-China Business Council, nearly 70% of U.S. firms face tariff impacts. About 88% report business challenges linked to political tensions between Washington and Beijing. As a result, only 48% of firms plan new investments in China in 2025, down from 80% last year. Some U.S. companies are also losing Chinese customers who prefer non-U.S. brands.

While China remains vital for its market size, ASEAN is increasingly viewed as a safer growth option.

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Thailand aims to meet this year's rice export target by focusing on strong markets, official says

Thailand faces a significant drop in rice exports—down 25% year-on-year to 4.3 million metric tons in the January–July 2025 period. The decline stems from heightened global competition, notably India's resumption of rice exports, reduced demand from major buyers like Indonesia and the Philippines, and a stronger baht, which has appreciated 5.8% against the U.S. dollar, dampening the export value, which fell 35.4% to 86.4 billion baht (US$2.67 billion). Despite these headwinds, the country remains committed to its 2025 export target of 7.5 million metric tons.

To bridge the gap, Thailand is zeroing in on high-demand markets—including China, the Middle East, Japan, and the United States—where performance has remained relatively strong. Notably, rice exports to the U.S. climbed 4.3% in the January–July period. Officials expect annual U.S. exports to approach 800,000 metric tons, nearly on par with 2024 despite existing tariffs. 

The strategy hinges on channeling efforts into markets showing resilience in demand. Commerce Ministry official Arada Fuangtong acknowledged the challenges ahead—summed up as the outlook being "dim"—yet emphasized that the government “will try our best” to meet the year-end target. 

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Thailand aims to meet this year's rice export target by focusing on strong markets, official says

Thailand faces a significant drop in rice exports—down 25% year-on-year to 4.3 million metric tons in the January–July 2025 period. The decline stems from heightened global competition, notably India's resumption of rice exports, reduced demand from major buyers like Indonesia and the Philippines, and a stronger baht, which has appreciated 5.8% against the U.S. dollar, dampening the export value, which fell 35.4% to 86.4 billion baht (US$2.67 billion). Despite these headwinds, the country remains committed to its 2025 export target of 7.5 million metric tons.

To bridge the gap, Thailand is zeroing in on high-demand markets—including China, the Middle East, Japan, and the United States—where performance has remained relatively strong. Notably, rice exports to the U.S. climbed 4.3% in the January–July period. Officials expect annual U.S. exports to approach 800,000 metric tons, nearly on par with 2024 despite existing tariffs. 

The strategy hinges on channeling efforts into markets showing resilience in demand. Commerce Ministry official Arada Fuangtong acknowledged the challenges ahead—summed up as the outlook being "dim"—yet emphasized that the government “will try our best” to meet the year-end target. 

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Thailand car production drops in July, local sales up

In July 2025, Thailand’s car production declined by 11.39% year-on-year, totaling 110,616 units—marking the first drop in three months after a rise of nearly 12% in June. The slump was primarily due to weakened export demand amid uncertainty over U.S. tariffs, resulting in a 13.27% fall in vehicle exports compared to July of the previous year.

Despite this production dip, domestic car sales continued to grow, marking the fourth consecutive month of year-on-year gains. Sales rose 5.84%, supported notably by a striking 35% increase in electric vehicle (EV) sales. However, pickup truck sales remained sluggish due to tighter lending conditions and a generally sluggish economic environment.

The Federation of Thai Industries expects that overall car sales for 2025 may still reach 600,000 units. Thailand continues to serve as Southeast Asia’s largest automotive production hub and remains a vital export base for leading global automakers such as Toyota and Honda 

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Thailand sees surge in foreign investment in first half of 2025, EEC leads growth

Thailand attracted 502 foreign companies in the first half of 2025, with total investment reaching 111.5 billion baht (around US$3.1 billion). This marks a 30% increase in the number of approved companies and a 37% growth in investment value compared to the same period in 2024. The approvals included 123 direct foreign business licenses and 379 investment promotion certificates issued by the Ministry of Commerce’s Department of Business Development. 

Japanese investors dominated the scene with 99 companies investing 43.0 billion baht (US$1.2 billion). They were followed by the United States (72 companies, 2.8 billion baht ≈ US$78 million) and China (65 companies, 18.3 billion baht ≈ US$508 million). Singapore and Hong Kong rounded out the top five sources of foreign investment. 

The Eastern Economic Corridor (EEC) stood out as the top recipient, attracting 158 foreign companies and 62.9 billion baht (about US$1.7 billion), accounting for 56% of total foreign investment value in Thailand. This also represented a 36% increase in company registrations in the EEC compared to the first half of 2024. Key sectors drawing investment included retail trading, plastic engineering research, data center services, digital platforms, and contract manufacturing.

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Trade deal with U.S. will boost Thailand's competitiveness, confidence, minister says

Thailand has secured a new trade deal with the United States, reducing tariffs on its exports to 19% from a previously proposed 36%, putting the country on par with regional peers such as Indonesia and Vietnam. Finance Minister Pichai Chunhavajira said the agreement strengthens bilateral ties with Washington and will boost Thailand’s competitiveness in global markets.

The government expects the lower tariff to increase investor confidence, stimulate economic growth, and create new opportunities. To support local industries and farmers who may face challenges under the new trade environment, Thailand plans to introduce subsidies, soft loans, tax incentives, and regulatory reforms.

Reflecting the deal’s impact, the Finance Ministry raised its 2025 economic growth forecast slightly from 2.1% to 2.2%. The United States remains Thailand’s top trading partner, accounting for 18.3% of total exports last year, mainly in electronics and rubber, while Thailand imports crude oil, machinery, and chemicals from the U.S.

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Trade rep chief touts future-ready sectors

Thailand is recalibrating its trade strategy amid growing geopolitical tensions, economic fragmentation, and supply chain disruptions. Thailand Trade Representatives President Nalinee Taveesin emphasized that uncertainty has become the new normal and stressed the importance of deep international cooperation and agility in responding to global shifts. To bolster its economic resilience, the country is pursuing more free trade agreements with the EU, UK, and South Korea, intensifying regional integration through ASEAN and RCEP, and even seeking OECD membership to align with innovation-led economie.
 
On the home front, Thailand is building future-ready supply chains designed to withstand external shocks. The Eastern Economic Corridor is positioned to become a leading hub in the region for advanced manufacturing, logistics, and innovation, while also serving as a gateway to ASEAN market.
 
Meanwhile, the country is advancing its digital transformation and preparing for the future of work. This includes empowering SMEs with digital tools, access to financing, and cross-border platforms to ensure the benefits of digitalization are widespread and inclusive.

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Minister outlines economic blueprint

Minister at the Prime Minister’s Office and Minister of Finance and Economy II Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah yesterday shared insights on Brunei Darussalam’s current economic status and the direction towards national economic progress to achieve Goal 3 of Brunei Vision 2035: ‘A Dynamic and Sustainable Economy’.

In his presentation ‘Economic Blueprint for Brunei Darussalam – Economic Growth and Diversification Through Technology and Innovation’, he highlighted the role of technology and innovation in the efforts to develop and diversify the national economy, as well as ongoing initiatives and future plans aimed at advancing economic development.

The development status of micro, small and medium enterprises (MSMEs) was also discussed. He also outlined six guiding principles and policies for the Economic Blueprint: productive and vibrant businesses; skilled, adaptive and innovative people; an open and globally-connected economy; a sustainable environment; high-quality and competitive economic infrastructure; and good governance and public service excellence.

On Brunei Vision 2035, the minister said, “Although there are 10 more years to go, the next five years will be very important for Brunei. If we can perform well, we will start to see the benefits in the following five years.”

He also revealed several foreign direct investments such as a marine yard expected to be operational early next year and an investment from India expected to take off in 2027, as well as Hengyi’s Phase Two. He added that several investors from China have also shown strong interest to invest in Brunei.

Source: Borneo Bulletin

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Brunei breaks ground on largest 30MW solar power plant

Brunei Darussalam marked a major milestone in its clean energy journey with the groundbreaking ceremony for the country’s largest solar photovoltaic power plant, a 30-megawatt (MW) facility in Kampong Belimbing.

Developed by Seri Suria Power (B) Sdn Bhd—a joint venture of Serikandi Oilfield Services, Khazanah Satu (a government-linked company), and Malaysia’s Solarvest Holdings subsidiary Atlantic Blue—the solar plant is sited on a remediated 32.29-hectare landfill. Scheduled for operation by the end of 2026, it will produce over 64,000 megawatt-hours annually, powering more than 15,500 homes and offsetting an estimated 41,000 tonnes of CO₂ each year.

“This is more than a construction project. It is a symbol of Brunei Darussalam’s commitment to sustainable development and energy diversification,” said Seri Suria Power director Dato Paduka Awang Haji Jamain bin Haji Julaihi. “We are laying the foundation for a cleaner, more resilient Brunei, committed to sustainable energy for generations to come.”

Source: Borneo Bulletin

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Brunei’s unemployment rate drops to 4.7pc

More citizens enter the workforce

Brunei Darussalam’s unemployment rate fell to 4.7 per cent in 2024, down from 5.1 per cent the previous year, as more locals secured jobs in both the public and private sectors, according to the latest Labour Force Survey (LFS) released by the Department of Economic Planning and Statistics (DEPS).

The decline in unemployment comes as the country’s employed population rose by 2.9 per cent, reaching 222,300 people — a notable increase from 216,000 in 2023. The boost was largely driven by strong job growth in the private sector, which recorded a 4.0 per cent increase, compared to 0.3 per cent in the public sector.

Among sectors, the wholesale and retail trade industry led with an 18.3 per cent jump in employment, followed by construction (15.8 per cent) and accommodation and food services (13.5 per cent) — signalling rising demand and business activity in domestic services and infrastructure.

Local workforce highlights

Of the total labour force of 233,200 persons aged 18 and over, 95.3 per cent were employed, while 10,900 people remained unemployed. The majority of those unemployed had secondary education or below (54.1 per cent), and those aged 25 to 64 years made up nearly 60 per cent of the unemployed population.

Meanwhile, more than half of local workers (58 per cent) were employed in the private sector, showing a steady shift away from public sector reliance. By field of employment, locals were mainly employed in public administration (26.0 per cent), wholesale and retail trade (12.6 per cent), and education (12.1 per cent).

In terms of occupation, the largest group were service and sales workers (25.6 per cent), followed by professionals (22.5 per cent) and technicians and associate professionals (15.4 per cent).

Source: Borneo Bulletin

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Policy reforms, investment crucial for strong digital economy: report

The digital economy boasts a rising contribution to Philippine economic growth in terms of value-added and employment, but it still needs to realize its full potentials through investments and policy and regulatory reforms, with the aim to improve internet connectivity across the country, says a new report.

“The Philippines possesses significant opportunities in the platform economy, Industry 4.0, the gig economy, the sharing economy, and the algorithm economy,” asserts the Philippine digital economy report that forms part of the ASEAN Digital Community 2045: Country Perspectives, a recent publication by the Economic Research Institute for ASEAN and East Asia (ERIA).

However, the Philippine report warned that policy bottlenecks are hindering the growth of the digital economy even with the various plans and programs being implemented to advance the digital transformation of the Philippines.

The Philippine Statistics Authority defines “digital economy” as constituting the activities that leverage knowledge, information, and information and communication technology (ICT) to spur economic growth. Digital economy encompasses digital-enabling infrastructure, digital transactions under e-commerce, and digital media. 

In 2022, the Philippine digital economy reached P2.08 trillion, contributing 9.4% to the country’s gross domestic product, and employed 6.05 million people, said the ERIA report.

“Although enabling policies and programmes have been introduced, inadequate digital infrastructure impedes the development of smart cities, contributing to the country’s lag in digital transformation. Outdated policies and regulatory barriers hinder infrastructure development, whilst bureaucratic inefficiencies drive up expansion costs for enterprises,” said chapter author Francis Mark Quimba.

He urged the government to continue with policy and regulatory reforms and investment in specific network segments to improve internet connectivity, especially in areas outside urban centers. 

Quimba also pushed for addressing the fragmented policy support for the digital economy. “It is recommended that the various strategies from different government roadmaps be consolidated into a single official policy framework,” he said.

Aside from policy bottlenecks, the report identified a shortage of internet service providers (ISPs) as among the other contributors to the Philippines’ lackluster digital economy performance compared to its neighbors in the Association of Southeast Asian Nations (ASEAN).

It pointed to a national ICT and household survey conducted in 2019 by the Department of Information and Communications Technology (DICT) indicating that only 54% of the 2,617 surveyed barangays were covered by telecommunication companies and around 20% lacked ISPs altogether. 

In a GMA News report dated August 14, 2025, the media outlet said President Ferdinand Marcos Jr. is currently reviewing the proposed Konektadong Pinoy Act, the legislative measure that aims to liberalize and modernize the Philippines’ internet infrastructure by allowing the entry of new ISPs without the need to secure a legislative franchise. 

If the President takes no action by August 24, 2025, the bill will reportedly automatically lapse into law. 

Another issue hindering the digital economy is the prohibitive cost of ICT services in the country, with poor internet quality exacerbating the issue, said the paper.

In 2021, the Philippines ranked third in ASEAN for the most expensive ICT services, while in 2022, it was found that the average cost of 1 gigabyte of data in the Philippines was higher than most ASEAN countries.  The 2022 Digital Quality of Life Index by Surfshark also indicated that internet services remain unaffordable despite some improvements. 

Other challenges include a scarcity of secure internet servers, trust and data privacy concerns, and a job market that lacks digital skills.

“A lack of skills and low digital adaptability are primary concerns in the digital economy,” said the document. “In 2021, the Philippines ranked 54th in digital and technological skills and 58th in the World Digital Competitiveness ranking, down from 46th in 2017, indicating a decline in talent, education, and training.”

Furthermore, the limited access to financing and a general lack of awareness among enterprises of the digital support programs of the government are also major challenges. 

“The costs associated with joining e-commerce platforms also reduce the profitability and sustainability of small businesses. Information on training and funding support is crucial, yet studies… have documented a general lack of awareness amongst stakeholders regarding government efforts,” the document observed.

Published: August 15, 2025
Photo source: Canva

Emerging opportunities for APEC: greenfield investments, AI potential

Economic growth in the Asia-Pacific Economic Cooperation (APEC) region has slowed despite early trade gains, yet new opportunities are taking shape driven by the transformative potential of artificial intelligence (AI) while greenfield investment remains a bright spot, according to the latest APEC Regional Trends Analysis. 

“Greenfield investments in AРЕС remain resilient, driven by the shift toward strategic and high growth sectors amid digitalisation and structural transformation,” it said.

In a news alert, APEC Policy Support Unit Director Carlos Kuriyama, analyst Rhea Crisologo Hernando and researcher Glacer Niño Vasquez said announced greenfield projects in APEC reached USD595 billion in 2024, up 56 percent compared to the level in 2021, underscoring investor confidence in new capacity and innovation. 

“Sustained investments in innovation and digitalization signal an ongoing shift toward productivity-enhancing sectors, which bodes well for APEC’s growth trajectory,” they said.

Kuriyama, Hernando and Vasquez said digital technologies, particularly AI, are poised to amplify these gains.

They cited modelling estimates suggesting that when treated as a productivity shock, AI adoption could raise gross domestic product (GDP) by 1.3 percent to 3.9 percent. 

On average, APEC economies already score above global  averages on AI readiness, highlighting strong potential to capture digital dividends, they added.

The report said APEC's advancing Al readiness positions the region to leverage digital innovation for productivity gains, contingent on supportive policy frameworks.

“Still, digital capacity remains uneven across the region, with persistent gaps in digital skills limiting broader adoption. Closing these gaps will be key to unlocking AI’s full economic potential and ensuring that its benefits reach all people, across communities, sectors and economies,” Kuriyama, Hernando and Vasquez said.

They said that despite the emergence of new technologies and the relative resiliency of greenfield investments in productivity-enhancing projects, downside risks are expected to dominate, marked by policy uncertainty, geopolitical tensions, and elevated debt levels as legacy from the pandemic.

APEC’s growth slowed to 3.5 percent in the first quarter of 2025, down from 3.8 percent a year earlier, reflecting weaker demand and heightened global uncertainty. Regional growth is now projected at 3.0 percent in 2025 and 2.9 percent in 2026.

“Early trade gains, driven by businesses rushing to ship goods before new trade restrictions take effect, gave the economy a short-term boost. However, sustained momentum requires consistent reforms and renewed investment in productivity,” Kuriyama, Hernando and Vasquez said.

Merchandise trade in APEC posted solid growth in the first quarter of 2025 as businesses moved shipments forward, hedging against possible new trade restrictions. Export and import values rose by 5 percent and 7.7 percent, respectively, while volumes climbed even faster, by 7 percent and 7.9 percent. 

“This expansion suggests that early-year trade gains were driven by risk-mitigation strategies rather than a sustained rebound in demand, and may taper off as temporary factors fade. Trade momentum remains highly sensitive to policy developments,” they said.

Services trade exports slowed to 6 percent in the first quarter of 2025 from 11 percent a year earlier, with travel services exports contributing to the decline.

PHILEXPORT News and Features
Published: August 15, 2025
Photo source: Canva

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