Asia Pacific News
LAST UPDATE: July 28, 2025
Japan’s Ishiba Stresses Resolve to Stay, Avoid Political Vacuum
Japanese Prime Minister Shigeru Ishiba has pledged to remain in office despite internal pressure following his Liberal Democratic Party’s loss of the upper house. He emphasized his duty to prevent a political vacuum and lead key U.S. trade negotiations. (AP News, The Edge Malaysia)
Insight
Ishiba’s determination reflects his belief that leadership continuity is critical during volatile political times. By staying, he aims to steer a new U.S. trade deal and manage internal dissent, though his position now depends heavily on younger LDP factions seeking change.
South Korea proposes shipbuilding project to US in trade talks, Yonhap says
Yonhap reports South Korea has proposed a multibillion‑dollar “Make American Shipbuilding Great Again” initiative during trade talks, which includes investment by Korean shipbuilders plus loans and guarantees to U.S. shipyards as part of a broader trade package. (MarketScreener, The Economic Times)
Insight
Seoul is leveraging its global shipbuilding strength to gain leverage over U.S. tariff threats. MASGA is pitched as a strategic U.S.–Korea partnership, aiming to revitalize American industrial capacity in exchange for tariff relief. It underscores South Korea’s pivot to industrial diplomacy.
North Korea says South Korea’s overtures ‘great miscalculation’
Kim Yo Jong, speaking for North Korea’s leadership, condemned South Korean President Lee Jae Myung’s peace overtures as “a great miscalculation,” rejecting reconciliation and saying that alliance with the U.S. made him no different from predecessors. (Reuters, Reuters)
Insight
North Korea is signaling distrust in Seoul’s new liberal leadership, asserting that symbolic gestures cannot erase past actions. This hardened tone suggests little room for dialogue despite South Korea’s attempts to reset ties.
Bangladesh Offers to Buy Boeing Planes to Sway Trump on Tariffs
Bangladesh has proposed purchasing 25 Boeing jets, modeled on a recent U.S.–Indonesia trade deal, to persuade President Trump to reduce or remove tariffs on Bangladeshi exports. (Bloomberg Law, Bloomberg.com)
Insight
Dhaka’s offer of a high‑profile Boeing purchase is a clear example of trade diplomacy aimed at offsetting U.S. trade pressure with big-ticket industrial deals. It reflects a pragmatic effort to engage directly with Washington’s economic policy agenda.
Thai, Cambodian leaders hold ceasefire talks in Malaysia
After five days of intense fighting along their shared border, the leaders of Thailand and Cambodia met in Malaysia under ASEAN chair Anwar Ibrahim to negotiate a ceasefire. They agreed to halt hostilities by midnight. (Reuters, Reuters, Reuters)
Insight
Malaysia’s mediation, backed by U.S. and Chinese involvement, helped secure an immediate ceasefire. This signals ASEAN’s potential in crisis management, though fragile trust and mutual skepticism remain.
Malaysia Central Bank Cuts 2025 Growth, Inflation Forecasts Amid Global Risks
Bank Negara Malaysia lowered its 2025 growth forecast to 4.0%–4.8% from 4.5%–5.5% and trimmed the inflation outlook to around 1.5%–2.3%, citing global trade tensions—especially U.S. tariffs—and geopolitical risks. (Reuters, AInvest, AInvest, Reuters)
Insight
The central bank’s cautious outlook reflects exposure to external shocks and supply chain pressures. The downward revisions suggest monetary easing may continue if trade uncertainty persists.
Philippine central bank on track for two more rate cuts in 2025
Governor Eli Remolona confirmed Bangko Sentral ng Pilipinas remains on track for two further policy rate cuts in 2025, contingent on growth and inflation developments; the easing phase continues. (Reuters, CNA)
Insight
BSP’s gradual rate cuts signal its cautious approach to supporting growth amid low inflation. The timing (“baby steps”) underscores efforts to balance recovery with price stability in a fragile post‑pandemic economy.
Tariffs, Duterte Risks Loom as Philippines’ Marcos Charts Last Years in Power
President Ferdinand Marcos Jr., fresh from tariff negotiations in Washington, is unveiling plans to boost growth via social programs and job creation in the latter half of his six‑year term amid political risk tied to Duterte-era alliances. (Extralehdet, Bloomberg.com, ザ・スター, X (formerly Twitter))
Insight
Marcos is positioning economic reform and U.S. engagement as pillars to secure his legacy, though internal political volatility—especially linked to Duterte’s legacy and tariff exposure—poses governance challenges.
Climate, gender in focus for World Bank in aid‑reliant Pacific Islands
The World Bank is emphasizing climate resilience and gender equality in its aid program for Pacific Island nations—even as U.S. support declines. It has relocated regional leadership closer to beneficiary countries and expanded programs in infrastructure, health, financial inclusion, and women’s workforce participation. The aid portfolio has grown to US $3.4 billion over the last decade. (Reuters)
Insight
The strategy reflects a shift toward deeper regional engagement and sustainable development, addressing both climate vulnerability and gender disparity. Locating leadership nearby may enhance project impact and responsiveness to local needs.
