Asia Pacific News
LAST UPDATE: June 24, 2025
Japan PM to face tough upper house election on July 20
Japan will hold an upper house election on July 20, announced by the government. PM Shigeru Ishiba faces low approval ratings and pressure from inflation issues, with his LDP-Komeito coalition struggling after poor lower-house showing.
Insight
This election is pivotal for Ishiba’s fragile minority government, facing challenges from low approval, inflation, and the slip in his party’s dominance. His ability to secure enough seats will strongly influence legislative power and stability.
Japan’s Akazawa Says Still Working on Date for Next Trade Talks
Ryosei Akazawa, Japan’s chief trade negotiator, said they’re still planning the next ministerial-level trade talks with the U.S., without setting a firm date.
Insight
The lack of a fixed schedule signals both countries’ caution, perhaps due to Japan’s upcoming July 20 election, which may limit Tokyo’s flexibility on trade concessions.
BOK Sees Rate at Midpoint of Neutral Range, Flags Growth Risks
The Bank of Korea kept interest rates steady at 2.75%, declaring it sits mid-range of neutral, but warned of downside risks amid sluggish growth.
Insight
By holding rates, BOK signals concern over weak growth, possibly exacerbated by U.S. tariffs. The strategy is to carefully balance inflation control with economic support.
US, South Korea trade ministers reaffirm commitment to reaching tariff deal
Trade ministers from the U.S. and South Korea reaffirmed their dedication to conclude a tariff deal swiftly, focusing on exemptions in key sectors like autos and steel.
Insight
Both governments are signaling unity and urgency to finalize tariff relief before the agreed pause expires. This cooperation is crucial for confidence in bilateral trade and global supply chains.
‘Tiger-fighter’ takes helm at China-backed development bank
Former anti-corruption official Zou Jiayi has been appointed president of the Asian Infrastructure Investment Bank, earning the nickname “tiger-fighter”.
Insight
The choice of an anti-corruption figure underscores China’s efforts to boost the AIIB’s legitimacy and governance quality, showing ambition to rival Western-led institutions.
China’s Xi urges Singapore leader to jointly resist ‘hegemony’
Chinese President Xi Jinping met Singapore’s PM Lawrence Wong in Beijing on June 24, urging him to stand together against “hegemony” and trade protectionism. (chinaglobalsouth.com, hongkongfp.com, barrons.com)
Insight
Xi’s message underscores China’s strategic push to rally Asian nations to counterbalance U.S. influence. Singapore’s role as a neutral yet significant trade hub makes the appeal symbolic and diplomatically nuanced.
Thai cabinet approves projects worth $3.5 bln to stimulate economy
On June 24, Thailand’s cabinet greenlit 115 billion baht (~$3.5 billion) in infrastructure spending—including roads, power networks, and water supplies—to offset economic slowdown and U.S. tariff pressures.
Insight
This stimulus, expected to boost GDP by ~0.4 percentage points and create soft loans for exporters, is a targeted short-term fix amid political instability and external trade costs.
Thai PM assures ruling coalition is stable as dispute with Cambodia escalates
Also on June 24, PM Paetongtarn Shinawatra insisted her coalition remains intact and a cabinet reshuffle has been completed, despite internal dissent over a leaked phone call with Cambodia.
Insight
Paetongtarn’s message aims to counter growing no-confidence motions. However, previous party exits and simmering tensions hint at enduring governmental fragility.
Malaysia Consumer Inflation Growth Slows to 51‑Month Low
Consumer inflation in Malaysia slowed to 1.2 % in May 2025—the lowest level since February 2021—driven by softer food, energy, and petroleum prices.
Insight
The deceleration reflects broad global disinflationary trends (e.g., lower oil prices). While easing living-cost pressures, it could signal weak domestic demand, potentially prompting policy adjustments.
Malaysia to Boost Venture Capital With Tax Incentives
The Malaysian government announced a 5 % concessionary tax for up to 10 years on VC funds investing at least 20 % locally, alongside a 10 % rate for VC/PE managers.
Insight
By enhancing tax efficiency and expanding fund structures, Malaysia is making a strategic push to attract funding into local startups, aiming to deepen the domestic innovation ecosystem.
India Eyes US Trade Deal by July Though Challenges Remain
India and the US are intensively negotiating an interim trade agreement before a July 9 deadline, when a 26% tariff could be reinstated. Finalizing the deal is proving difficult due to disagreements over agricultural products, GM crops, medical devices, and data localization (news.moomoo.com, m.economictimes.com).
Insight
The pressing July 9 deadline adds urgency, but sticking points—farm protection, GMOs, and regulatory barriers—highlight deep structural differences. Attention to balancing domestic political sensitivities in India and tariff relief in the US will determine progress.
