Asia Pacific News
LAST UPDATE: September 24, 2025
BOK Member Weighs Timing of Rate Cut This Year Amid Debt Concern
A member of the Bank of Korea (BOK) is considering the timing of a rate cut this year, balancing the need to support the economy with concerns about household debt. The BOK has been under pressure to ease monetary policy, but high debt levels present a risk to financial stability.
Insight
The BOK’s dilemma highlights a common challenge for central banks globally: stimulating growth without creating asset bubbles or worsening existing debt problems. The decision will likely depend on the central bank’s assessment of the trade-off between economic growth and financial stability.
India central bank likely stepping in via state banks to support rupee, traders say
Traders report that the Reserve Bank of India (RBI) is likely using state-run banks to intervene in the foreign exchange market to support the rupee. The intervention is aimed at preventing a sharp depreciation of the currency amid global and domestic economic pressures.
Insight
The use of state-owned banks as a proxy for central bank intervention is a common strategy to maintain discretion and avoid direct market disruption. This suggests the RBI is committed to maintaining a stable currency, which is crucial for controlling imported inflation and maintaining investor confidence.
Malaysia cuts savings estimate from fuel subsidy change to around $950 million annually, report says
A report indicates that Malaysia has revised its estimated annual savings from a fuel subsidy change down to approximately $950 million. The government’s plan to adjust fuel subsidies is part of a broader fiscal reform agenda, but the revised figure suggests the impact may be smaller than initially projected.
Insight
This news highlights the political and economic complexities of removing subsidies. Governments often face pressure to provide relief to citizens, and as a result, the full extent of a reform’s intended benefits may not be realized.
Taiwan August export orders beat forecasts on solid AI demand
Taiwan’s export orders exceeded expectations in August, primarily driven by strong global demand for products related to artificial intelligence. This marks the seventh consecutive month of growth for export orders, underscoring Taiwan’s critical role in the global technology supply chain.
Insight
The strong performance of Taiwan’s export orders, particularly in the AI sector, illustrates the country’s economic resilience and its key position in the high-tech industry. It shows that despite broader global economic uncertainties, demand for specific advanced technology remains robust.
Taiwan Curbs Chip Exports to South Africa in Rare Power Move
Taiwan has imposed a ban on chip exports to South Africa, a rare move that leverages its dominance in the semiconductor industry. The action is reportedly a response to South Africa’s diplomatic shift toward Beijing.
Insight
This is a significant instance of a country using its economic strength, specifically its control over a critical technology like semiconductors, as a diplomatic tool. It signals Taiwan’s willingness to use its “chip power” to counter diplomatic pressure from countries allied with China.
Vietnam PM calls for more housing to cool real estate prices
Vietnam’s Prime Minister is calling for increased housing supply to help cool the country’s real estate market. The government is concerned about rising property prices, which are becoming a barrier to homeownership for many citizens.
Insight
This action highlights how government intervention is often seen as a necessary measure to address market imbalances and ensure housing affordability. The focus on increasing supply suggests that the government believes the issue is primarily a structural one, not just a speculative one.
Nuclear Talks Are Out As Kim Courts Trump
The Wall Street Journal reports that nuclear talks between the US and North Korea are off the table as North Korean leader Kim Jong Un focuses on engaging with President Donald Trump. This shift reflects a change in diplomatic strategy and a preference for personal-level negotiations.
Insight
The pivot from formal nuclear negotiations to a more personalized diplomatic approach with a specific political figure is a risky strategy. It indicates North Korea’s belief that a direct relationship with Trump offers a more favorable path to its goals than traditional diplomatic channels.
