Buzz over Fed rate cut hits Asean; Vietnam’s death-row tycoon stirs up hornet’s nest in Singapore

This week in Asean: 

• Thailand: Signs UK trade pact
• Malaysia: Forest City gets a new shine
• Indonesia: Sand producers hanker for mining permits

Dear BT reader,

Vietnam was left reeling in the wake of typhoon Yagi’s devastation last week, and is now bracing for another storm – this time, from former tycoon Truong My Lan – that is also threatening Singapore’s shores.

Our Vietnam correspondent Jamille Tran reports that more Singapore-based companies have been linked to the nation’s largest fraud case, involving the alleged laundering of trillions of dong and illegal money transfers across borders. Local officials have sought legal assistance from Singapore, reports Jamille in this must-read six-minute scoop that drills into the details. 

And, of course, the talk of the town this week: The Fed’s first rate cut in more than four years, which was by no means a small one. The half-point cut boosted Asian technology, real estate and other interest-sensitive stocks, reports our companies and markets correspondent Navene Elangovan in this reaction piece that spans indices, equities and currencies across Asia. 

Closer to home, South-east Asian central banks are due to kickstart their monetary-easing cycle, following in the Fed’s footsteps. We thought Bangko Sentral ng Pilipinas’ (BSP) pre-emptive cut in August was it for the region but then Bank Indonesia dropped a quarter-point shave that shocked markets hours before the Fed meeting. 

When will other neighbouring central banks cut and how will this affect South-east Asia’s largest economies? BT’s regional team provides the answers in this visual piece that maps out Asean’s economic landscape, spotlighting growth, inflation and currency prints – all of which local policymakers will assess as they navigate the impact of the Fed’s rate cut. Separately, macroeconomics journalist Renald Yeo examines how the move offers Singapore firms a silver lining, while banking journalist Tan Nai Lun looks at the impact on local banks. 

We’ve got a strong lineup of stories this week from our regional correspondents below; be sure to give them a scroll. Let me know what you’d like to see more of in our subsequent newsletters, too. Have a good weekend.

Trending

What’s happening: Intel has postponed the launch of operations of its new advanced packaging plant in Penang – Malaysia’s semiconductor hub – on weak demand and declining sales. 

What you should know: The chipmaking giant also said it was delaying plans to build two mega factories in Germany and Poland by approximately two years. Intel had earlier proposed a multibillion-dollar investment in Vietnam, Reuters revealed some months back but decided to shift it to Poland. 

Asean in brief

• Indonesia’s housing market poised for growth amid tax break extension The landed housing market in Indonesia has shown signs of stability, with residential property sales in the primary market rising despite fewer units being launched. Read more
• Indonesia’s trade surplus beat forecast in August Stronger exports were driven by increased shipments of non-oil and gas commodities such as gold and jewellery, fossil fuels, and electrical machinery, equipment, and their components. Read more
• Vietnam’s M&As rebound amid valuation challenges, sluggish deal closures Deal-making volume in Vietnam has doubled this year, although the growth in value has been marginal. Read more
• Vietnam removes pre-funding rule for foreigner investors in bid for market upgrade Currently, overseas investors must fully transfer funds before buying securities, a hurdle that has for years hampered the upgrading of the Ho Chi Minh City Stock Exchange. Read more
• Malaysia’s social media licensing plan could hurt innovation, SMEs: analysts The new licensing framework requires social media and messaging platforms with more than eight million users to obtain licences by Jan 1 next year. Read more
• Malaysia’s sultan to visit China, eyes infrastructure support The four-day visit will likely see the ceremonial ruler from the southern state of Johor seek support to revive projects boosting its connectivity to neighbouring Singapore. Read more
• Thailand to boost borrowing by 8% to US$78 billion to spur growth About S$43 billion, or 41 per cent of the total US$78 billion, will be fresh borrowing to mainly finance the budget deficit. Read more
• Malaysia and Cambodia launch cross-border QR payments connectivity The initiative is said to enable more than five million merchants in Cambodia and Malaysia, mostly small businesses, to access more customers, as both parties can now make and receive instant retail payments through mobile applications. Read more
• YouTube and Shopee partner in South-east Asia e-commerce tie-up An online shopping service will be launched in Indonesia, and eventually slated to expand to Thailand and Vietnam in a few weeks. Read more