Asia Pacific News
LAST UPDATE: June 24, 2025
EFTA, Malaysia Sign Trade Deal To Boost Economic Ties
The European Free Trade Association (Iceland, Liechtenstein, Norway, Switzerland) and Malaysia signed a comprehensive Economic Partnership Agreement in Tromsø on June 23. It covers goods, services, investment, sustainable palm oil, and includes capacity-building efforts. Malaysia gains duty-free access for 90 %+ of its exports (efta.int).
Insight
This landmark deal deepens Malaysia–European ties outside the EU, diversifies trade avenues, promotes sustainability, and enhances professional mobility and high-tech cooperation—strengthening Malaysia’s economic resilience.
IMF Approves $1.3 Billion for Bangladesh as Reforms Advance
The IMF approved immediate disbursement of US $884 m under the Extended Credit/Fund Facilities and US $453 m under the Resilience & Sustainability Facility—totaling $1.33 bn—alongside SDR withdrawals and a six-month extension after successful third/fourth reviews .
Insight
The approved funds reflect macroeconomic stability and gradual reform in Bangladesh, including currency flexibility and tax changes—supporting reserve rebuilding, inflation control, and sustainable growth.
Sri Lanka makes key change to highest Treasury job, deputy minister is new Secretary
President Anura Kumara Dissanayake appointed Harshana Suriyapperuma, previously Deputy Minister of Finance and Planning and IMF bailout negotiator, as the new Secretary to the Treasury. He resigned his ministerial and parliamentary posts on June 20, formally assuming the role on June 23, replacing the retiring Mahinda Siriwardana (ptinews.com).
Insight
Moving a serving deputy minister into the top Treasury bureaucratic position signals a move toward integrating policy and implementation; it aims to ensure continuity in Sri Lanka’s IMF-backed recovery strategy by entrusting a key negotiator with full control over fiscal administration.
Impact of India’s large rate cut may be limited, says rate panel member
A member of India’s rate-setting Monetary Policy Committee stated that although the central bank initiated a large policy rate cut, its impact might be limited due to once-off fiscal measures and the broader global economic environment.
Insight
The caution highlights structural constraints in monetary policy response—emphasizing that sustainable growth will rely on broader reforms and demand outside fiscal stimulus.
Thailand considering pickup truck trade-in scheme to boost sales, minister says
Thailand’s commerce minister revealed plans to introduce a trade-in scheme targeting pickup trucks, offering financial incentives to boost sales in a segment hit by weakening demand amid economic slowdown.
Insight
This targeted subsidy underscores Thailand’s reliance on pickup manufacturing and signals a policy shift toward domestic stimulus—though it may distort the market in absence of structural support.
China Asks State-Owned Developers to Avoid Public Defaults
China’s State-owned Assets Supervision and Administration Commission has mandated that around 20 state-owned property developers must avoid defaulting on publicly issued debt, as part of efforts to contain the ongoing property crisis (bloomberg.com).
Insight
The directive signals Beijing’s intention to shore up market confidence by preventing public-sector land sales defaults—underscoring deep structural support for state developers amid private sector turmoil.
Japan Approves Plan to Cut Super‑Long Bond Sales by ¥3.2 Tln (~$22 Bln)
Japan’s Finance Ministry will reduce issuance of 20-, 30-, and 40-year government bonds by ¥3.2 trn through March 2026 to address volatility and weak demand, shifting focus toward shorter maturities .
Insight
This move shows a proactive strategy to stabilize bond markets, aligning issuance with demand and the Bank of Japan’s cautious tapering to manage liquidity without abrupt disruptions.
Japan PM Ishiba says focus for defence budget should not be a numerical target
Prime Minister Ishiba emphasized that Japan should determine its defence budget based on actual needs rather than setting arbitrary GDP-based targets, though coordination with the US remains important .
Insight
Ishiba’s remarks reflect a calibrated approach, avoiding headline-grabbing GDP targets while acknowledging alliance dynamics, thereby balancing domestic politics and strategic alignment.
