ASEAN Press

Category: Economy

  • Malaysia’s economic performance exceeded expectations in 2024

    Recently, data released by the Malaysian Statistics Department showed that in the fourth quarter of 2024, Malaysia’s gross domestic product (GDP) grew by 5% year-on-year. In 2024, Malaysia’s GDP grew by 5.1% compared with 2023, far exceeding 3.6% in 2023, reaching 1.93 trillion ringgit (1 ringgit is about 0.226 US dollars) at current prices.

    Statistical data show that in 2024, Malaysia’s service industry grew by 5.4% year-on-year, industry grew by 4.2% year-on-year, and agriculture grew by 3.1% year-on-year.

    Zafir, Minister of Investment, Trade and Industry of Malaysia, said that driven by investment and export growth, Malaysia’s economic performance last year “exceeded expectations.” Last year, Malaysia’s investment grew by 12% year-on-year, the best performance in nearly 12 years; exports of electrical and electronic products also achieved significant growth.

    The Bank Negara Malaysia released a report that Malaysia’s overall inflation rate and core inflation rate both dropped to 1.8% last year. In comparison, these two figures will be 2.5% and 3.0% respectively in 2023. Inflation is expected to remain within controllable range in 2025.

    The Bank Negara Malaysia predicts that in 2025, Malaysia’s GDP is expected to grow by 4.6% compared with 2024. The continued growth of domestic demand and investment will provide a solid foundation for Malaysia’s economic growth this year. On the other hand, the slowdown in global trade growth and the US tariff policy will be unfavorable factors affecting Malaysia’s economic growth.

  • From January to November, Fujian’s imports and exports to ASEAN exceeded 400 billion yuan

    According to statistics from Fuzhou and Xiamen Customs, in the first 11 months, Fujian’s imports and exports to ASEAN amounted to 406.31 billion yuan, a year-on-year increase of 9.1%, accounting for 22.4% of the province’s total imports and exports during the same period, and the import and export value hit a record high during the same period. ASEAN continues to maintain its position as Fujian’s largest trading partner. Among them, exports amounted to 257.42 billion yuan, a year-on-year increase of 12.9%; imports amounted to 148.89 billion yuan, a year-on-year increase of 3.1%.

    Private enterprises are full of vitality, and the role of “main engine” of foreign trade continues to play. In the first 11 months, private enterprises in Fujian Province imported and exported 263.61 billion yuan to ASEAN, a year-on-year increase of 15%, accounting for 64.9% of the province’s total imports and exports to ASEAN during the same period. During the same period, state-owned enterprises imported and exported 90.34 billion yuan, and foreign-invested enterprises imported and exported 52.32 billion yuan.

    Data shows that Indonesia, Malaysia and Vietnam are the main countries in Fujian Province’s trade with ASEAN. In the first 11 months, Fujian Province’s imports and exports to them were 116.31 billion yuan, 78.4 billion yuan and 61.72 billion yuan respectively, accounting for 63.1% of the total imports and exports of the province to ASEAN in the same period. Trade with Singapore and Laos has increased significantly. In the first 11 months, Fujian Province’s imports and exports to them were 44.83 billion yuan and 1.08 billion yuan respectively, up 69.1% and 1.5 times year-on-year respectively.

    The continued growth in energy demand has pushed energy products to become Fujian Province’s largest import commodity. In the first 11 months, Fujian Province imported 54.05 billion yuan of energy products from ASEAN, up 18.3% year-on-year, accounting for 36.3% of the total imports from ASEAN in the same period. Among them, imported coal and lignite were 30.88 billion yuan, accounting for 20.7%; imported crude oil was 13.46 billion yuan, a substantial increase of 2.8 times year-on-year.

    Mechanical and electrical products and labor-intensive products are the main export commodities. In the first 11 months, Fujian Province exported 88.7 billion yuan of mechanical and electrical products to ASEAN, a year-on-year increase of 13.5%, accounting for 34.5% of the province’s total exports to ASEAN during the same period; among them, the export values ​​of flat panel display modules, lamps, lighting devices and their parts, and general machinery and equipment were 5.29 billion yuan, 3.69 billion yuan, and 3.63 billion yuan, respectively, up 54.5%, 36.7%, and 13.5% year-on-year. During the same period, the export of labor-intensive products was 73.63 billion yuan, a year-on-year increase of 6.7%, accounting for 28.6%; mainly textiles and clothing and plastic products, with exports of 40.26 billion yuan and 14.79 billion yuan, respectively, up 6% and 36.1% year-on-year.

  • ASEAN countries accelerate the construction of railway projects

    According to The Economist, taking a train built by French colonists that runs through Vietnam from north to south, connecting the capital Hanoi and Ho Chi Minh City, is a rare option to experience the local customs and culture of Vietnam. However, this train runs slowly, with a speed of only 50 kilometers per hour, and the whole journey takes a long 36 hours. Most people would rather take a plane that only takes 2 hours.

    The total length of railways in the entire Southeast Asia region is only 24,000 kilometers. They are not only old, but also slow, isolated and disconnected from each other. For decades, leaders of Southeast Asian countries have been discussing the many benefits of building railways. Now, this vision is gradually becoming a reality.

    In recent years, the joint construction of the “Belt and Road” has promoted the construction of important infrastructure projects such as the China-Laos Railway, the Jakarta-Bandung High-Speed ​​Railway, the China-Thailand Railway and the Malaysia East Coast Railway. This not only brings convenience to local people’s travel, but also promotes regional connectivity and helps accelerate the development of regional economic integration. Through the construction of high-quality railway networks, countries such as Laos, Indonesia, Thailand and Malaysia have been able to build closer economic ties. These railway projects are not only a landmark achievement of bilateral cooperation between China and ASEAN countries, but also inject new vitality into the regional modernization process.

    One of the important driving forces is the near-high-speed railway from Kunming, China to Vientiane, Laos, which will be completed in 2021. This railway has always been the first section of the railway to Singapore. David Lampton of Johns Hopkins University said that the completion of the Kunming-Laos Railway has produced a chain reaction. Thailand announced that it would speed up the construction of a high-speed railway to Laos; Malaysia will restart the long-stalled railway construction project with a total investment of US$25 billion to connect 㯰; Vietnam recently announced plans to build two railways from Hanoi to the Chinese border.

    In 2023, Indonesia’s first Jakarta-Bandung high-speed railway will be put into use. As of the end of September this year, the cumulative passenger volume of the Jakarta-Bandung high-speed railway has exceeded 5.4 million. The Jakarta-Bandung high-speed railway has become the most popular fashion hotspot in the local area. This high-speed railway has not only enhanced Indonesia’s level of connectivity, but also enhanced Indonesia’s position in regional economic integration.

    At the 2024 Global Sustainable Transport Summit, Thailand’s Deputy Prime Minister and Minister of Transport Suriya said that the first phase of the China-Thailand Railway (Bangkok to Nakhon Ratchasima section) has been completed by 35% and is scheduled to be completed within the next four years. The second phase of the project will connect Nakhon Ratchasima to Nong Khai Province and is expected to be completed in 2028. The China-Thailand Railway project is an important milestone in the cooperation between the two countries. It not only represents China’s technological advantages in infrastructure construction, but also demonstrates the high level of mutual trust between China and Thailand. As a key component of regional economic integration, the China-Thailand Railway is expected to greatly enhance Thailand’s status as a transportation hub in Southeast Asia, enhance its influence in Southeast Asia, and provide new impetus for Southeast Asian economic development.

    At present, China is still the largest overseas investor in infrastructure construction in Southeast Asia. According to the Lowy Institute, an Australian think tank, as of 2022, China has participated in 24 of the 34 large-scale projects in Southeast Asia (with a capital investment of more than US$1 billion), of which 6 projects are railways, accounting for 60% of the total investment.

  • Vietnam’s planned high-speed rail project passes through 20 provinces and cities

    Recently, Vietnamese Prime Minister Pham Minh Chinh chaired a government meeting to focus on Vietnam’s railway projects, among which the top priority was the North-South Railway and how to connect with China’s railway projects. It is reported that the investment proposal for the North-South High-Speed ​​Railway project has been approved by the Central Committee of the Politburo of the Communist Party of Vietnam.

    The planned North-South High-Speed ​​Railway project is about 1,541 kilometers long, with a designed investment speed of 350 kilometers per hour and a total investment of about US$67.34 billion. Starting from Yuhui Station in Hanoi, it passes through 20 provinces and cities and ends in Ho Chi Minh City, where 23 passenger stations and 5 freight stations will be set up.

    Vietnam plans to bid for the selection of international supervision units, conduct surveys, and prepare feasibility studies from 2025 to 2026. By the end of 2027, site cleaning, bidding for contractors, and the construction of the Hanoi-Vinh City and Nha Trang-Ho Chi Minh City sections will be started. After that, from 2028 to 2029, the construction of the Vinh to Nha Trang section will be launched, and the investment of the entire line will be completed by 2035.

    Tran Quoc Phuong, Deputy Minister of Planning and Investment of Vietnam, said that investment expenditure is an important driving force for economic growth, and the North-South High-Speed ​​Railway investment project is the largest project in history. From now to 2035, this investment will promote an increase of about 0.97 percentage points in GDP, making an important contribution to Vietnam’s economic growth. The North-South High-Speed ​​Railway project will have a direct impact on many fields such as the construction industry, building materials supply industry, financial industry, and tourism industry.

  • Indonesian officials expect economic growth to be 5.2% in 2024

    The Indonesian Financial System Stability Committee (KSSK) expects Indonesia’s economic growth to reach 5.2% in 2024.

    Indonesian Finance Minister Sri Mulyani, who is also the chairman of the committee, said at a press conference on the 2nd that Indonesia’s overall economic growth in 2024 is expected to be between 5.0% and 5.2%. She said that the biggest driving force of Indonesia’s economy comes from household consumption and investment. At present, Indonesia’s consumption momentum is good and investment has begun to pick up. At the same time, the increase in exports has pushed up Indonesia’s trade surplus.

    The Indonesian Financial System Stability Committee, composed of institutions such as the Indonesian Ministry of Finance and the Indonesian Central Bank, believes that the Indonesian economy will continue to grow against the backdrop of the current global economic slowdown. In the future, the rupiah exchange rate is expected to run stably and have a trend of strengthening.

    According to data from the Indonesian Central Bureau of Statistics, Indonesia’s economy grew by 5.11% year-on-year in the first quarter of this year, exceeding 5.04% in the fourth quarter of 2023. This is also the highest increase in the country’s first quarter economic data since 2019.

    The Indonesian Financial System Stability Committee expects Indonesia’s economic growth in the second quarter to reach or slightly exceed 5.0% year-on-year. Despite a slowdown compared to the first quarter, household consumption and investment continued to grow.

    From a global perspective, the committee believes that economic pressure in the third quarter is likely to ease. But Mulyani also mentioned that Indonesia needs to pay attention to various risk factors in development.

    Relevant international organizations are optimistic about Indonesia’s economic development prospects. Earlier, the International Monetary Fund expected Indonesia’s economy to grow by 5% in 2024 and raised its forecast for 2025 to 5.1%. The Organization for Economic Cooperation and Development expects Indonesia’s economy to grow by 5.1% in 2024 and 5.2% in 2025. The Indonesian government’s expected target for economic growth in 2024 is 5.2%.

    Indonesian President Joko Widodo emphasized at the Indonesia Digital Economy and Finance Festival on August 1 that in the context of slowing global economic growth and increasing uncertainty, if Indonesia’s economy wants to continue to grow, it must make good use of all resources and opportunities.