In today’s briefing:
- Indonesia: Bumper Trade Surplus and FDI Inflows Undergird IDR
- Malaysia: Still Little Chance of a Much-Needed Political Renewal
- CX Daily: Why The World Is Burning Up This Summer
Indonesia: Bumper Trade Surplus and FDI Inflows Undergird IDR
- Indonesia is on the cusp of structural transformation as the industry policy is starting to produce results.
- Inflows of foreign investment are bouncing up. Nickel-rich Sulawesi is now on par with West Java in terms of their respective regional shares of FDI.
- The tailwind from commodity prices add to the current account buffers. The sizeable trade surplus in 2Q22 should also translate into a sizeable CA surplus (CAA estimate: 3.7%)
Malaysia: Still Little Chance of a Much-Needed Political Renewal
- Deep divisions within the major political parties bode ill for such renewal. The once-dominant UMNO is riven with factional infighting.
- But the rival Pakatan Harapan alliance is also beset with infighting and sharp differences over political strategy and so unable to regain popularity.
- One thing seems likely – the incumbent government will be tempted to use Budget 2023, to be announced in October, to win voters over.
CX Daily: Why The World Is Burning Up This Summer
- China’s leaders all inoculated with domestic Covid-19 vaccines, health official says
- China Merchants Bank drops banking venture with JD.com
- China expands cross-border cash-pooling trial for multinationals
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