Southeast Asia is charging ahead in 2025, with the region’s economy powering up on the back of a pre-tariff surge in trade and production. According to McKinsey’s latest Southeast Asia Quarterly Economic Review, Vietnam led the pack with nearly 8 % year-on-year growth—the country’s fastest pace in more than a decade—while other major markets saw solid gains driven by strong exports, industrial output, and resilient consumer spending.

Thailand has introduced the Thailand Taxonomy, a national framework launched in 2025 to classify economic activities based on environmental sustainability and guide the country’s transition toward its 2065 net-zero emissions target.

Thailand’s introduction of the Thai ESG Fund in late 2023 — a tax-incentivized retail investment program — has reshaped the country’s corporate bond market by driving strong investor demand for newly issued ESG bonds.

Indonesia is positioning itself as the most stable gateway to the ASEAN region, with its blue-chip stocks serving as a strong foundation for regional economic growth. Supported by robust domestic consumption, steady government-driven expansion, and consistent corporate performance, companies listed in the LQ45 and IDX30 indices continue to demonstrate resilience amid global uncertainty.

Thailand’s automotive industry is expected to experience flat production growth of around -0.5% to 0.5% annually between 2025 and 2027, pressured by weak domestic demand, declining exports, and global trade risks.

Variations in money velocity play a significant role in shaping inflation dynamics, particularly in economies transitioning toward digital currencies like Indonesia.

Indonesia’s signing of the Indonesia–Canada Comprehensive Economic Partnership Agreement (ICA-CEPA) in Ottawa marks a historic milestone, symbolizing the first free trade agreement between Indonesia and a North American country, and between Canada and an ASEAN member state.

Thailand faces a critical moment in reaffirming its commitment to peace and responsible conflict management along the Cambodian border. The recent dispute between activist Guntouch “Gun Jompalang” Pongpaiboonwet and Senator Angkhana Neelapaijit highlights the need for greater coordination between civic expression and state policy.

Indonesia stands at a crossroads in redefining its foreign policy to match its growing global weight and ambitions. A genuine overhaul must begin with a clear articulation of national interests, supported by strategic use of three key pillars: foreign policy instruments, channels, and diplomatic infrastructure.