Asia-pacific office market faces headwinds
The Asia-Pacific office market experienced a challenging year in 2024, with prime rents resuming their decline after a brief period of stability.
Global consultancy Knight Frank’s Asia-Pacific Prime Office Rental Index for Q4 2024 shows a 1.6 percent drop in prime office rents over the full year, an improvement from the 2.4 percent decrease observed in 2023.
Despite the overall trend of declining prime rents in Asia-Pacific, 16 out of 23 monitored cities reported stable or increasing rents year-on-year, with Australian cities and Japan showing particular resilience.
Australian markets are projected to see some of the most substantial rental uplifts due to a contracting development pipeline. Brisbane emerged as a bright spot, leading the region with a strong 11.8 percent rental growth in 2024. This growth was attributed to sustained occupier demand and property owners pushing higher face rents to support valuations.
Regional vacancies are expected to rise, with rents likely to soften by 2 to 3 percent, primarily due to weak demand in Chinese mainland markets. Tokyo saw 3.9 percent year-on-year and 0.8 percent quarter-on-quarter increases in the prime office rents, suggesting potential workspace expansions by Japanese companies could strengthen leasing activity, particularly in core business districts near major transport hubs.
In China ice and snow economy a new source of growth
China’s drive to engage 300 million people in winter sports, an initiative set out by Chinese President Xi Jinping, has become a reality.
President Xi has paid close attention to the development of China’s ice and snow sports and industries.
In recent years, as winter sports and tourism surged in popularity across China, the ice and snow economy has witnessed significant growth.
Singapore: investment commitments up in 2024, sees challenges in 2025
Singapore’s Economic Development Board said geopolitical and economic uncertainties would pose challenges in 2025 as it reported on Thursday a rise in investment commitments in the city-state last year.
Fixed asset investment (FAI) commitments rose by S$0.8 billion to S$13.5 billion ($10.0 billion), while total business expenditure (TBE) commitments fell by S$0.5 billion to S$8.4 billion, the EDB said in a statement.
The manufacturing sector accounted for S$11.1 billion of the FAI commitments, led by investments in semiconductors and biomedical manufacturing, while TBE investment was driven by investment in headquarters and professional services.
“We anticipate significant headwinds from geopolitical and macroeconomic uncertainty,” the EDB said of the investment environment this year.
“Protectionist policies stemming from economic nationalism and trade frictions will weigh on companies’ investment decisions.”
The EBD said artificial intelligence was a growth area last year for investment, including through industry partnerships with Oracle and Amazon that will help train the local workforce in generative AI.
EDB Chairman Png Cheong Boon told a media briefing that Singapore’s strategy was to remain nimble and diversify its sources of investment, both in terms of sectors and countries. “That way, if there are restrictions on one market by one source or one product, then others will compensate for it and that will allow us to ensure that the industry continues to grow,” he said.
India’s economy forecast to grow 6.3-6.8pc in 2025-26
The Indian government’s economic report, coming a day ahead of the annual budget, is likely to project GDP growth of 6.3 percent-6.8 percent in 2025-26, according to two sources familiar with the matter.
The forecast suggests economic conditions will remain sluggish next year.
Growth is expected to slip to 6.4 percent in the current financial year – the slowest in four years – from 8.2 percent last year.
The economic survey will be released later on Friday. A spokesperson for the finance ministry did not immediately respond to an email from Reuters.
Early economic growth projections have a patchy record of accuracy.
However, this year’s growth estimate of 6.4 percent lands close to India’s Chief Economic Adviser V.
Anantha Nageswaran’s and his team’s initial projection of 6.5 percent-7 percent.
Prime Minister Narendra Modi, in his third term’s first full budget, is likely to provide policy boost for the world’s fifth-largest economy where high prices and tepid wage growth have crimped spending power in a blow to consumption.
Economists expect policy changes aimed at strengthening consumption and tariff cuts to encourage local manufacturing as ways to boost growth.
Building the future of Southeast Asia: Indonesia
ndonesia is attracting foreign investors with its growing middle class, young demographics, and abundant resources.
The newly-admitted member of the BRICS bloc of developing economies presents companies with a stable alternative to China, low tariffs to the 677 million people of the Association of Southeast Asian Nations (ASEAN) and a 25-year history of democratic transition.
At the Asia-Pacific Economic Cooperation summit in Peru last November, Indonesia’s new President Prabowo Subianto, who began his term in October, emphasized that foreign investments would be protected by a solid legal framework, and highlighted incentives and a commitment to liberalizing ownership laws.
Several global financial institutions—including the World Bank, the International Monetary Fund (IMF), and the Asian Development Bank—estimate that Indonesia’s economy will grow within the range of 5 to 5.1 percent in 2025.
Traditionally dependent on hydrocarbons and minerals, Indonesia’s digital economy is now booming thanks to high internet penetration and a tech-savvy population. The country’s tropical climate and enormous geothermal resources also offer compelling opportunities for early investors in carbon-free energy.
Nepal wants green hydrogen?
In recent years, green hydrogen has gained significant attention in Nepali energy discourse, emerging as a symbol of new ambition and opportunity. For Nepal, sitting on abundant water resources and with its often cited but largely untapped hydropower potential of 80 GW, the idea of channeling anticipated surplus electricity into generating green hydrogen fuel in coming years feels like a natural next step.
In August last year, Prime Minister K.P. Sharma Oli unveiled Nepal’s first hydrogen refueling station at Kathmandu University and launched the country’s first-ever hydrogen-powered car. Across media platforms and conferences, green hydrogen is hailed as a new opportunity for Nepal to join the global energy transition.
The buzz is undeniable. Optimistically, some studies suggest that Nepal could produce green hydrogen at some of the lowest costs globally – between $1 and $2 per kilogram – thanks to Kathmandu University’s Green Hydrogen Lab and its pioneering efforts in this space. However, production typically accounts for only about 15 percent of the total cost. The rest – distribution, storage, and refueling infrastructure – poses far greater and costlier challenges.
Malaysia commits to sustaining open economic policy
Malaysian Foreign Minister Mohamad Hasan made the remark during a parliamentary session on Tuesday.
The official said Malaysia will capitalize on opportunities for further strengthening bilateral relations and cooperation with the US.
He noted that the U.S. administration’s American First foreign policy has the potential to change the country’s approach to foreign relations and thus directly impacts Malaysia.
As a nation whose economy relies heavily on trade, Malaysia will certainly feel the effects either directly or indirectly. The Malaysian foreign ministry is carefully monitoring the situation, and will report to the cabinet from time to time, he noted.
Mohamad pointed out the Malaysia’s foreign policy also supports the principles of multilateralism that enable the nation and the international community to address increasingly urgent global challenges.
| Sri Lanka GDP | ||||
|---|---|---|---|---|
| Components | Last | Previous | Unit | Reference |
| GDP from Agriculture | 233389.00 | 236539.00 | LKR Million | Sep 2024 |
| GDP from Construction | 227442.00 | 209539.00 | LKR Million | Sep 2024 |
| GDP from Manufacturing | 898642.00 | 777045.00 | LKR Million | Sep 2024 |
| GDP from Mining | 50150.00 | 44648.00 | LKR Million | Sep 2024 |
| GDP from Public Administration | 148169.00 | 150377.00 | LKR Million | Sep 2024 |
| GDP from Services | 1824831.00 | 1580913.00 | LKR Million | Sep 2024 |
| GDP from Transport | 341985.00 | 282360.00 | LKR Million | Sep 2024 |
| GDP from Utilities | 45317.00 | 58396.00 | LKR Million | Sep 2024 |