Asia Pacific Review
The embedded finance industry in Asia-Pacific is expected to grow by 13.9 percent annually to reach US$73.75 billion in 2024. The embedded finance industry is expected to grow steadily over the forecast period, recording a CAGR of 28.2 percent from 2024 to 2029. The region embedded finance revenues will increase from US$73.75 billion in 2024 to reach US$255.49 billion by 2029. Experts recorded that the embedded finance sector in the Asia Pacific region is rapidly evolving, driven by increased digital adoption and integration into non-financial platforms. Recent innovations, strategic partnerships, and regulatory advancements are propelling growth and enhancing financial inclusion. As the region’s digital economy matures, embedded finance is set to play a crucial role in shaping the future of financial services. The growth of embedded finance in the Asia Pacific region has accelerated significantly over the past few months, driven by increasing digital adoption and integrating financial services into non-financial platforms. This trend is expected to continue, focusing on sub-segments such as embedded payments, lending, and insurance, as companies leverage technology to enhance customer experiences and promote financial inclusion among underserved populations. In the forthcoming few months, further expansion is anticipated as businesses increasingly acknowledge the significance of providing integrated financial solutions. This transformative process is reshaping traditional financial services into seamless, user-friendly experiences. The region’s youthful demographic and rapid digital maturity are expected to drive this growth, with embedded finance becoming a vital component of the evolving digital economy in the Asia Pacific region.
China turns 75: can Xi fix its economy?
As China prepared to celebrate its Golden Week holiday and mark the 75th anniversary of the People’s Republic, the ruling Communist Party rolled out a raft of measures aimed at boosting its ailing economy.
The plans included help for the country’s crisis-hit property industry, support for the stock market, cash handouts for the poor and more government spending.
Shares in mainland China and Hong Kong chalked up record gains after the announcements.
But economists warn the policies may not be enough to fix China’s economic problems.
Some of the new measures announced by the People’s Bank of China (PBOC) on 24 September took direct aim at the country’s beaten-down stock market.
The new tools included funding worth 800bn yuan ($114bn; £85.6bn) that can be borrowed by insurers, brokers and asset managers to buy shares.
Japan’s new PM pledges to tackle deflation in first policy speech
Japan’s new Prime Minister Shigeru Ishiba has promised to help households cope with rising prices, in effect starting his campaign to voters ahead of a snap general election this month.
But Ishiba also told lawmakers in his first policy address on Friday that he would decisively conquer deflation, highlighting the delicate policy environment as Japan tries to engineer an exit from decades of virtually stagnant prices and low growth.
Ishiba’s pledges closely match the policy agenda of his immediate predecessor, Fumio Kishida, who stepped down in August. But in the face of historically low approval ratings and volatile financial markets, Ishiba, who was chosen by the ruling party to be its leader, will be forced to carry them out in what analysts called a “zero honeymoon” environment.
Sustainable economy for golden Indonesia 2045
A sustainable economy is a key pillar in the development of a nation. This concept emphasizes economic growth that does not harm the environment, preserves natural resources and ensures long-term social welfare. In addition, a sustainable economy strives to ensure that future generations can meet their needs. This idea aligns with achieving Sustainable Development Goals (SDGs) numbers four (quality education), eight (economic growth) and nine (industry, innovation and infrastructure). As a country located on the equator, Indonesia has great potential to implement a sustainable economy through approaches such as the green economy, blue economy and circular economy.
India and china reveal emerging market mistakes
Investors make two profound errors in their approach to emerging markets. First, they are entranced by gdp growth even though there is no evidence of a positive correlation between an expanding economy and stock market returns. Second, they assume that valuations are a reliable predictor of returns. The strong outperformance of indian stocks relative to chinese equities since the financial crisis of 2008 shows how wrong this approach has been.
The very word “emerging” suggests that less-developed economies with strong growth prospects can be expected to deliver superior investment returns. Let’s see how that turned out. Over the past 15 years, the chinese and indian economies have both grown rapidly. China’s gdp expanded by roughly 2 percent a year more than india’s, when measured in constant u.s. Dollars. Back in september 2009, the price-to-earnings multiple of the msci china index was 25 percent lower than for msci india index. Yet despite starting out cheaper and experiencing faster economic growth, the chinese stock market since 2014 has delivered total annual returns of just 2.5 percent in dollar terms. Indian stocks have compounded annually by four times that amount, according to jefferies.
‘Continuity of strategies key to economic growth’, says Malaysian PM in Pakistan visit
Malaysia’s Prime Minister Anwar Ibrahim, who landed in Islamabad a day earlier on three-day official visit, has highlighted the importance of continuity of policies for economic growth and investment.
The Malaysian premier made these comments while addressing the Pakistan-Malaysia High Level Business Dialogue in Islamabad earlier today (Thursday),
Ibrahim, who also called for promoting economic ties via the Association of Southeast Asian Nations (ASEAN) Forum, said close contacts between the business community are important to increase economic cooperation.
He also assured that Malaysia would continue its efforts to strengthen bilateral relations with Pakistan.
For Nepal World Bank expects 5.1 pc growth
The World Bank on Wednesday projected a growth of 5.1 percent for Nepal in the current 2024-25 fiscal year starting in mid-July, below the Nepali government’s 6 percent target.
Growing tourist arrivals, more hydropower generation and expected growth in paddy production shall contribute more to Nepal’s gross domestic product, the bank said in its Nepal Development Update report.
The South Asian country achieved a growth of 3.9 percent in 2023-24, noted the international financial institution.
The bank is expecting Nepal’s private sector to contribute more to its growth by taking advantage of the central bank’s loosening of monetary policies and easing of regulatory requirements.
Sri Lanka’s new president faces uphill battle for economy
September 21 was a day of many firsts in Sri Lanka. Millions of people went to the polls to vote in the first presidential elections since mass protests forced the country’s last elected president, Gotabaya Rajapaksa, from office in 2022.
It also marked the first time in Sri Lanka’s history that a second round of counting had to take place, after none of the candidates secured the 50 percent margin required for victory.
A count of the second-choice votes revealed the biggest shock in decades. In Anura Kumara Dissanayake, Sri Lankans for the first time elected a candidate who does not belong to the two major parties that have dominated the country’s politics since independence in 1948.
| Unemployment (year average) (%) | |||||
|---|---|---|---|---|---|
| Country | 2023 | 2024 | 2025 | 2026 | 2027 |
| Australia | 3.7 | 4.1 | 4.5 | 4.4 | 4.3 |
| China | 5.2 | 5.1 | 5.1 | 5.0 | 5.0 |
| Hong Kong | 3.0 | 3.0 | 2.9 | 2.9 | 2.8 |
| Indonesia | 5.4 | 4.8 | 4.7 | 4.7 | 4.7 |
| Japan | 2.6 | 2.5 | 2.5 | 2.5 | 2.5 |
| Malaysia | 3.4 | 3.3 | 3.2 | 3.2 | 3.2 |
| New Zealand | 3.7 | 4.7 | 5.0 | 4.7 | 4.5 |
| Philippines | 4.4 | 3.9 | 3.8 | 3.7 | 3.6 |
| Singapore | 1.9 | 2.1 | 2.0 | 2.0 | 2.0 |
| South Korea | 2.7 | 2.7 | 2.7 | 2.7 | 2.7 |
| Taiwan | 3.5 | 3.4 | 3.6 | 3.5 | 3.6 |
| Thailand | 1.0 | 1.0 | 1.0 | 1.0 | 1.0 |
| Source: S&P Global Ratings Economics. | |||||
| Real GDP Forecast Change from prior forecast (% year over year) | ||||||||
|---|---|---|---|---|---|---|---|---|
| Country | 2023 | 2024 | 2025 | 2026 | 2027 | 2024 | 2025 | 2026 |
| Australia | 2.0 | 1.1 | 2.2 | 2.4 | 2.4 | 0.0 | 0.1 | 0.0 |
| China | 5.2 | 4.6 | 4.3 | 4.5 | 4.5 | -0.2 | -0.3 | -0.1 |
| Hong Kong | 3.3 | 3.3 | 2.7 | 2.5 | 2.2 | 0.0 | -0.2 | 0.0 |
| India | 8.2 | 6.8 | 6.9 | 7.0 | 7.0 | 0.0 | 0.0 | 0.0 |
| Indonesia | 5.0 | 5.0 | 5.0 | 4.9 | 4.9 | 0.0 | 0.0 | 0.0 |
| Japan | 1.7 | 0.0 | 1.3 | 0.9 | 0.9 | -0.7 | 0.2 | 0.0 |
| Malaysia | 3.5 | 5.1 | 4.8 | 4.5 | 4.4 | 0.8 | 0.3 | 0.1 |
| New Zealand | 0.9 | 1.0 | 2.3 | 2.4 | 2.4 | -0.1 | -0.2 | -0.1 |
| Philippines | 5.5 | 5.7 | 6.2 | 6.4 | 6.5 | -0.1 | 0.1 | -0.1 |
| Singapore | 1.1 | 2.4 | 2.5 | 2.6 | 2.6 | 0.2 | 0.0 | 0.0 |
| South Korea | 1.4 | 2.3 | 2.0 | 2.0 | 2.0 | -0.3 | -0.4 | 0.0 |
| Taiwan | 1.3 | 4.2 | 2.1 | 2.4 | 2.4 | 0.2 | 0.0 | 0.0 |
| Thailand | 1.9 | 2.8 | 3.1 | 3.0 | 3.1 | -0.6 | -0.2 | -0.2 |
| Vietnam | 5.0 | 6.2 | 6.8 | 6.7 | 6.6 | 0.4 | 0.1 | 0.0 |
| Asia Pacific | 4.9 | 4.4 | 4.4 | 4.4 | 4.4 | -0.1 | -0.1 | -0.1 |
| Source: S&P Global Ratings Economics. | ||||||||
| Inflation (year average) (%) | |||||
|---|---|---|---|---|---|
| Country | 2023 | 2024 | 2025 | 2026 | 2027 |
| Australia | 5.6 | 3.5 | 3.4 | 3.1 | 2.9 |
| China | 0.2 | 0.5 | 1.0 | 1.2 | 1.6 |
| Hong Kong | 2.1 | 1.9 | 1.9 | 1.9 | 2.0 |
| India | 5.4 | 4.5 | 4.6 | 4.6 | 4.1 |
| Indonesia | 3.7 | 2.4 | 2.6 | 3.0 | 3.0 |
| Japan | 3.3 | 2.5 | 2.2 | 1.9 | 1.8 |
| Malaysia | 2.5 | 2.4 | 2.5 | 2.4 | 2.3 |
| New Zealand | 5.7 | 2.8 | 2.2 | 2.3 | 2.3 |
| Philippines | 6.0 | 3.4 | 3.1 | 3.0 | 3.0 |
| Singapore | 4.8 | 2.7 | 2.0 | 1.9 | 1.9 |
| South Korea | 3.6 | 2.5 | 2.1 | 2.0 | 1.9 |
| Taiwan | 2.5 | 2.2 | 1.5 | 0.8 | 0.8 |
| Thailand | 1.2 | 0.8 | 1.2 | 1.1 | 1.1 |
| Vietnam | 3.3 | 3.6 | 3.1 | 3.4 | 3.5 |
| Source: S&P Global Ratings Economics. | |||||