Bangladesh’s economy stabilising on exports and remittances
Bangladesh’s economy has gradually been recovering from political instability and a banking loan scam, according to a review by the Metropolitan Chamber of Commerce and Industry (MCCI). “Exports posted robust growth during the period as did the earnings from remittance inflows. The slide experienced by the foreign exchange reserves was halted, and the exchange rate of Bangladeshi Taka (BDT) against US dollars stabilised, although some volatility in the reserve position continues to persist,” said the review. Improved trade and current account balance, along with the overall balance of payments situation, have allowed for some easing of import restrictions. The economy as a whole has been moving towards macroeconomic stability, according to the MCCI review titled Economic Situation of Bangladesh, conducted for the October-December quarter (Q2) of the 2024-25 fiscal year. However, the economy still faces significant challenges, including inflationary pressures, a shortfall in revenue collection, slow public spending, diminished job opportunities, a sluggish investment climate, and the need to rebuild public confidence in the banking system, the review noted.
Singapore has to secure long-term economic growth
More than eight in 10 business leaders said after Budget 2025 that they were satisfied with the help provided, according to the Singapore Business Federation (SBF). But in the long term, they would like even more assistance with issues like manpower costs, said Mr Musa Fazal, SBF’s chief policy officer, sharing the feedback from the ground. One area in particular where companies hoped to get more support was regarding foreign workers, he said. “Manpower issues continue to be a key concern for businesses – manpower costs, manpower availability. Many businesses still rely on foreign manpower… to augment their local workforce. “There’s a lot in the Budget about how we can upskill and upgrade the local workforce, but on the foreign manpower side… could (S Pass levies and qualifying salaries) be deferred in order to relieve some of the cost pressures on businesses?” Mr Musa said. He was speaking at a post-Budget panel organised by The Straits Times as part of The Usual Place podcast. Minister in the Prime Minister’s Office Indranee Rajah and labour economist Walter Theseira from the Singapore University of Social Sciences were also on the panel.
For 2025 digital transformation strategy Sri Lanka sets budget
The Sri Lankan government has set aside US$10 million (3 billion Sri Lankan rupees) for digital transformation strategies this year, aspiring to generate $15 billion in revenue through the digital economy in five years with a unique digital ID and new legislation for digital services after the launch of a governing digital body. The Sri Lanka Unique Identity Project (SL-UDI) will be a key element of this transformation and by eliminating duplications in identity records across government departments, SL-UDI seeks to ensure data accuracy and efficiency in government operations. In 2023, India granted Sri Lanka $5.4 million toward the SL-UDI project. As of January, India’s contribution has risen to SLRS 10.4 billion ($35 million) of an estimated SLRS 20 billion ($67.3 million) total. Sri Lanka’s President Anura Kumara Dissanayake announced strategic initiatives to position the country as a leading digital economy in South Asia. The government is committed to strengthening regulatory frameworks, fostering technological innovations, and boosting financial inclusion to drive economic growth, he said in his 2025 Budget Speech last Monday.
| Sri Lanka | ||||||
|---|---|---|---|---|---|---|
| Details | Last | Previous | Highest | Lowest | ||
| Currency | 296 | 296 | 372 | 93.87 | Feb/25 | |
| Stock Market | 16345 | 16672 | 17322 | 0 | points | Feb/25 |
| GDP Annual Growth Rate | 5.5 | 4.7 | 16.12 | -17.1 | percent | Sep/24 |
| Unemployment Rate | 4.1 | 4.7 | 16.6 | 3.7 | percent | Sep/24 |
| Inflation Rate | -4 | -1.7 | 67.4 | -4 | percent | Jan/25 |
| Interest Rate | 8 | 8 | 15.5 | 4.5 | percent | Jan/25 |
| Balance of Trade | -823 | -502 | 110 | -1101 | USD Million | Dec/24 |
| Current Account | 303 | 432 | 690 | -1695 | USD Million | Sep/24 |
| Current Account to GDP | 1.8 | -2 | 1.8 | -19.3 | percent of GDP | Dec/23 |
| Government Debt to GDP | 104 | 114 | 114 | 16.3 | percent of GDP | Dec/23 |
| Government Budget | -10.2 | -11.7 | -5 | -11.7 | percent of GDP | Dec/22 |
| Corporate Tax Rate | 30 | 30 | 42 | 15 | percent | Dec/25 |
| Personal Income Tax Rate | 18 | 18 | 35 | 15 | percent | Dec/25 |
U.S. threatens tariffs and builds walls around its economy, China opens up
The United States is threatening to impose tariffs on its major trading partners. In the meantime, China is consolidating its position as the world’s manufacturing and technological innovation hub by increasing trade with the Global South. If the American role in globalization has been to consume the world’s products and resources by building on a foundation of ever-increasing debt, China’s has been to make tangible goods for the international market. China is opening up its economy, especially to the nations of the Global South. Effective December 2024, China eliminated all tariffs on goods from the least developed countries. Chinese Premier Li Quang has also described China as an economic opportunity for global investment.
India gdp growth likely rebounded in Oct-Dec
India’s economy likely rebounded last quarter, expanding 6.3 percent, driven by increased government spending that helped offset weak household demand, according to a Reuters poll of economists who forecast relatively modest growth ahead. A national election in April-June last year forced the government to curb infrastructure spending, a key driver of economic expansion in recent years in what is still the world’s fastest-growing major economy. That dragged growth down to 5.4 percent in July-September, well below the 8.2 percent average last fiscal year. Since then, foreign investors have withdrawn billions of dollars from the equity market. But government expenditure likely rose in double digits during the last three months of 2024, suggesting an expected rebound in economic growth is more policy-driven than broad-based. That, in turn, has reinforced doubts about the economy’s ability to sustain momentum without continued support from New Delhi. Household consumption, which typically surges during the festive season from October to December, likely remained relatively sluggish.
In 2024 Malaysia sees record $86 bn of approved investments
Malaysia had approved investments of 378.5 billion ringgit ($85.8 billion) in 2024, a record figure and an increase of 14.9 percent from the previous year, its trade minister said on Tuesday. Malaysia received a slew of digital investments from major tech firms last year, including Alphabet’s (GOOGL.O) , opens new tab Google, helping to propel its economy with growth beating market expectations in the second and third quarters and the ringgit currency becoming one of Asia’s top performers in 2024. Minister Tengku Zafrul Aziz said of the total approved investments figure, 208.1 billion ringgit came from domestic investors while 170.4 billion ringgit came from foreign investment. The United States was Malaysia’s top foreign investor with a combined 32.8 billion ringgit, followed by Germany at 32.2 billion ringgit, China at 28.2 billion ringgit and Singapore at 27.3 billion ringgit, he said. The services sector received the bulk of the investments, at 66.8 percent of the total figure, or 252.7 billion ringgit.
Indonesian government plans to support economic growth
The Indonesian government plans to boost domestic economic growth through priority programmes. This was stated by Bambang Brodjonegoro, Special Adviser to the President for Economic Affairs and National Development. Brodjonegoro noted that Indonesia achieved an economic growth of 5.03 percent in 2024. The advisor emphasised that in order to maintain economic growth above 5 percent, the government must stimulate consumer demand. Two priority programmes are seen as key drivers of growth: the free nutritious meals and the 3 million subsidised housing programmes. Brodjonegoro explained that these programmes should have a multiplier effect on different sectors of the economy, creating new jobs and increasing incomes. In particular, the low-income housing programme will stimulate not only the construction sector, but also manufacturing and logistics, due to the need for a wide range of building materials.
Japanese real effective exchange rate is low level
The Japanese real effective exchange rate is now at its lowest level in 54 years. Despite the pressures of a depreciating yen — from import prices to debt repayment — Japan’s global competitiveness and financial markets make it well-equipped to handle these challenges. The Bank of Japan (BOJ) has tightened monetary policy cautiously. It abandoned negative rates on the uncollateralised overnight call rate in March 2024 and raised the target to 0.25 percent in July 2024 and to 0.5 percent in January 2025. The move in July sparked a 6 percent appreciation of the yen and a 12 percent drop in the stock market, while the move in January proved uneventful. BOJ Governor Kazuo Ueda has been waiting for what he calls good inflation — inflation driven by wage increases that increase consumption and aggregate demand — to tighten policy. Despite years of easy monetary policy and wages increasing 5.1 percent in the 2024 spring wage offensive, real disposable income has not increased. This has led to sluggish growth in real consumption. The BOJ may face pressure to tighten in order to resist a disorderly depreciation of the yen. This is especially true as the US Federal Reserve may slow monetary policy easing because of inflationary risks due to tariffs, large US budget deficits and the repatriation of illegal immigrants. The weak yen increases the prices of imported energy and food. This has raised average household costs in 2024 by 90,000 yen (US$590). To combat this, Japanese Prime Minister Shigeru Ishiba implemented stimulus measures to subsidise utility bills and provide cash for poorer households.
Maldives can navigate successfully between India and China
In January 2025, the Maldivian foreign and defense ministers made high-profile visits to New Delhi. Occurring against the backdrop of an administration that initially rose to power on an anti-India platform, these visits signal a striking recalibration of Maldivian foreign policy. Not long ago, anti-India rhetoric dominated the discourse of the government led by Maldivian President Mohamed Muizzu, leading to a sharp decline in Indian tourist arrivals and strained bilateral relations. Today, the tone has shifted completely, with the Maldives actively seeking to rebuild trust with its traditional neighbor amid an economic crisis. In recent years, the Maldives has felt compelled to execute several such reversals in its foreign policy as it has tried to navigate competition between India and China. The Maldives’ unique geography and economic structure make it vulnerable to external geopolitical pressures. In order to successfully navigate between Beijing and New Delhi without compromising its sovereignty, Malé should establish clear communication with the two major powers about the unique roles that they play in achieving the Maldives’ strategic objectives. Additionally, it should also cultivate stronger ties with other partners in Southeast Asia and beyond and diversify its economy in order to promote greater self-sufficiency.