Indonesia illustrates both the opportunities and constraints facing the Global South in pursuing green industrialization. While shifting global supply chains create openings to attract low-carbon investment, inward-looking policies in major economies and China’s dominance in clean-tech value chains limit latecomer advancement.

Growth accelerated to 6.9 per cent year on year in the fourth quarter of 2025, supported by strong performances in manufacturing, wholesale trade and finance & insurance.

The landmark security treaty signed by Prabowo Subianto and Anthony Albanese marks a strategic shift in Indonesia’s diplomacy toward a more engaged Indo-Pacific posture.

Singapore’s economy grew by 5.0 per cent in 2025, easing slightly from 2024 but remaining resilient amid strong external demand. Growth was driven mainly by manufacturing, wholesale trade and finance & insurance, with manufacturing expanding robustly.

Thailand’s February 8 general election resulted in a decisive lead for Prime Minister Anutin Charnvirakul’s Bhumjaithai Party (BJT), which secured 194 seats, while the People’s Party and Pheu Thai recorded notable declines. The outcome reflects voter support for parties emphasizing stability, nationalism, and the monarchy, particularly outside Bangkok.

Despite a turbulent 2025 marked by stalled efforts on Myanmar and renewed border tensions between Cambodia and Thailand, ASEAN demonstrated the resilience and global relevance of its partnership model through two major milestones: Timor-Leste’s accession as its 11th member and the substantive agreement of the ASEAN Digital Economy Framework Agreement (DEFA).

Indonesia’s inflation in 2025 shifted from an unusually low start to a more normalized level by year-end, driven mainly by the expiration of temporary administered price measures rather than weak demand, with inflation closing the year at 2.92% (YoY) and remaining within Bank Indonesia’s target range.

With the Gaza conflict showing no clear path to resolution, the United States has launched the Board of Peace (BoP) as a new platform for post-war stabilization and reconstruction, raising questions over legitimacy and its relationship with existing multilateral frameworks.

Ahead of Thailand’s 8 February election, the Pheu Thai Party has regained momentum despite recent setbacks by nominating Dr. Yodchanan Wongsawat, a Shinawatra-linked academic whose candidacy has revived voter support.