Asia Pacific News
LAST UPDATE: June 13, 2025
IMF Says Sri Lanka’s Progress Is ‘Tremendous’ & Electricity Tariff Revision Under Review
The IMF praised Sri Lanka’s reform momentum under its Extended Fund Facility, noting review of a 15% electricity tariff increase and changes to bulk supply guidelines; access to the next ~$344 million tranche awaits Exec Board approval.
Insight
The positive IMF appraisal reinforces reform credibility and fiscal consolidation, while tariff changes demonstrate strategic use of utility pricing as a conditional lever in the aid-program framework.
China Eyes Stronger Cooperation With ECB Amid Global Trade Tensions
Chinese Premier Li Qiang met ECB President Lagarde in Beijing, proposing enhanced coordination on monetary policy and international monetary system reform, alongside renewed institutional engagement.
Insight
Beijing’s outreach signals a concerted effort to strengthen global financial partnerships as trade tensions rise—positioning China and the EU as counterweights to U.S. economic influence.
China to Extend Duty-Free Market Access to 53 African Nations
China announced it will expand duty-free treatment to imports from 53 African countries, broadening existing zero-tariff policies previously limited to least-developed nations.
Insight
The move underscores China’s use of trade liberalization as a geopolitical tool to deepen ties with Africa, offering a boost in competitiveness and diplomacy amid broader global trade realignment.
Trump’s Auto Tariffs Strike at the Heart of Japan’s Economy
U.S. imposed 25% tariffs on foreign-made cars and parts is expected to cost Japanese auto makers—Toyota, Honda, Subaru—over $19 billion in this fiscal year, threatening profits and economic recovery.
Insight
The tariffs expose Japan’s vulnerability to trade shocks, pushing firms to reassess global production footprints and diplomatic strategy amid escalating U.S. protectionism.
India’s inflation falls to 2.82% in May in longest run below target in 6 years
May consumer price inflation eased to 2.82%, the lowest annual rate since early 2019 and the fourth consecutive month below the RBI’s 4% target—largely due to falling food prices—and supported the central bank’s recent 50 bp rate cut.
Insight
The sustained low inflation strengthens the RBI’s case for maintaining a neutral stance, potentially paving the way for future easing while keeping an eye on monsoon trends and growth dynamics.
Air India Dreamliner crashes into Ahmedabad college hostel, kills over 240
Reuters
A Boeing 787‑8 Dreamliner (Flight AI171) en route to London crashed less than a minute after takeoff from Ahmedabad into a medical college hostel, killing over 240 people; only one British passenger survived by using the emergency exit.
Insight
The crash marks India’s deadliest aviation disaster in a decade and highlights critical safety concerns around modern aircraft operation; rescue coordination and international investigation efforts are now under intense scrutiny.
Bangladesh considers ‘settlements’ with tycoons accused of funnelling assets abroad
Bangladesh’s interim government, led by Nobel laureate Muhammad Yunus, is exploring financial settlement deals with tycoons accused of siphoning assets abroad—using civil suits and freezing domestic accounts—to help fund international asset recovery and legal drives.
Insight
This strategy balances legal pragmatism with political accountability: settlements could accelerate asset recovery and revenue generation, but risk perceptions of leniency in high-profile corruption cases.
Thai Exporters Face $600 Million in Added Costs as Port Congestion Worsens
Congestion at Thailand’s Laem Chabang port is causing exporters and importers to incur an estimated $600 million in additional annual logistics costs, driven by delayed shipments and elevated bottlenecks.
Insight
The rising congestion underscores the vulnerability of global supply chains to infrastructural bottlenecks. To preserve competitiveness, Thailand’s export sector must invest in port capacity and streamline customs processes.
Malaysia Seeks Below 10% US Tariffs for Key Sectors: Bernama
Malaysia’s government is seeking U.S. tariff relief below 10% for priority sectors—such as palm oil and furniture—during upcoming negotiations, aiming to reduce the current 24% rate imposed on its exports.
Insight
This targeted strategy reflects pragmatic diplomacy: Malaysia is aligning economic interests behind tariff relief while balancing relations amid U.S.–China tensions, hoping to safeguard export sectors.
Australian Regulators Say Global Fragmentation Is Accelerating
Australia’s Council of Financial Regulators warned that global fragmentation is accelerating due to shifting trade policies, geopolitical volatility, and financial-market shocks, heightening systemic risk and volatility.
Insight
The alert shows regulators are preparing for structural global shifts. Heightened vigilance could spur policy moves to enhance domestic buffers and systemic resilience.
RBNZ Policymaker’s Closed-Door Talk Raises Transparency Concerns
RBNZ MPC member Prasanna Gai is set to speak at a closed-door event to business leaders in Auckland, raising questions over transparency, media access, and the potential for private influence on monetary policy.
Insight
The lack of public access to such policy-facing discussions could erode trust in central bank openness. Going forward, the RBNZ may need to formalize disclosure practices to sustain credibility.
