Daily BriefsMacro

Daily Brief Macro: Indonesia: Bumper Trade Surplus and FDI Inflows Undergird IDR and more

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

By Nicholas Chia

  • 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

By Manu Bhaskaran

  • 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

By Caixin Global

  • 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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