Malaysia’s economy grew 5.2pc in q3 on-year
Malaysia’s economy grew 5.2 percent in the third quarter from a year earlier, official advance estimates showed on Friday, accelerating from the first half of the year on strong domestic consumption.
In the second quarter, Malaysia’s gross domestic product had expanded by 4.4 percent on an annual basis, matching the pace set in the first three months of the year, despite a slowdown in exports.
The increase in the July-to-September quarter was underpinned by solid performances in all sectors, with domestic demand continuing to drive growth, the statistics department said in a statement.
Domestic consumption received a further boost by a series of government measures to support the economy, including a cut in interest rates in July and a one-off disbursement of cash aid to eligible Malaysians in August, Chief Statistician Mohd Uzir Mahidin said.
“Sustained capital investment and rising external demand further bolstered economic expansion, despite headwinds from uncertain trade policies,” he said.
Final third-quarter GDP figures are expected to be released on November 14.
Malaysia’s economy is projected to grow between 4 percent and 4.8 percent this year, slowing from last year’s 5.1 percent due to uncertainties around global trade and tariffs. In August, the United States imposed a levy of 19 percent on imports from Malaysia.
The government said this month that it expects economic growth of between 4 percent and 4.5 percent next year.
The services sector grew 5.1 percent from a year earlier in the third quarter, while manufacturing rose 4.0 percent, Mohd Uzir said.
The mining sector jumped 10.9 percent after declining 5.2 percent in the previous quarter, while construction was up 11.2 percent, he said.
Separate data released on Friday showed export growth jumping to 12.2 percent on an annual basis in September, up from 1.9 percent in August and surpassing an analyst forecast of 3.4 percent.
Rare earths tensions rise
Chinese state media on Thursday issued a seven-point rebuttal to US calls for Beijing to wind back its rare earth controls, as both sides struggle to move beyond a volley of barbs and accusations of blindsiding the other.
US Trade Representative Jamieson Greer on Wednesday called China’s new rare earth export restrictions “a global supply-chain power grab,” and suggested Beijing could stave off President Donald Trump’s threat to reimpose triple-digit tariffs on Chinese goods by shelving the measures set to take effect on November 8.
Beijing maintains it not only notified Washington before announcing the new licensing regime, but that the controls are also consistent with measures long in place in other major economies.
The US and China have been embroiled in a war of words since a September telephone call between Trump and Chinese leader Xi Jinping, with each accusing the other of stoking tensions weeks ahead of an expected meeting between the two men. Beijing attributes the ramped-up rhetoric to the US Commerce Department’s surprise expansion of its “Entity List” in late September to include companies in China and elsewhere that use subsidiaries to bypass export restrictions on chipmaking equipment and other high-tech goods.
Washington pins the start to China’s critical minerals move, which Trump described as “shocking.”
“The United States has long overstated national security concerns and abused controls, adopting discriminatory practices against China,” read one of seven infographics published by People’s Daily, the official newspaper of the governing Communist Party. The poster added that Washington maintains a control list over 3,000 items long, compared to the 900 on Beijing’s catalogue.
Can India do without Russia?
First came the tariffs in August – 50 percent duties on Indian goods, dressed up as punishment for buying Russian oil.
Then came US President Donald Trump’s claim on Wednesday that Indian PM Narendra Modi had privately agreed to end those purchases “within a short period of time”.
Next day, Russia responded cautiously, while India distanced itself from his comments.
Russia’s envoy in Delhi, Denis Alipov, said its oil was “very beneficial for the Indian economy and for the welfare of Indian people”. The Indian government said its import policy was “guided by the interests of the Indian consumer in a volatile energy scenario”, and later a spokesperson added he was unaware of “any conversation yesterday” between Modi and Trump.
Caught between an old ally in Moscow and mounting pressure from Washington, India’s energy policy has become a delicate balancing act. But just how critical is Russian oil to the Indian economy?
Last year, India, the world’s third-largest oil importer, bought $52.7bn of Russian crude – 37 percent of its oil bill – followed by Iraq, Saudi Arabia, the UAE, Nigeria, and the US.
But how did India’s energy mix come to look like this?
Before the Russian imports surged, India’s top 10 crude suppliers in 2021-22 were Russia, Iraq, Saudi Arabia, the UAE, the US, Brazil, Kuwait, Mexico, Nigeria, and Oman. The remaining 31 countries formed a long tail of smaller, opportunistic deals that ebb and flow with global prices.
Bangladesh economy rebounded in 2nd half of fy2025
According to the WB analysis, this economic recovery was supported by several positive trends, including strong exports, record remittances, and an increase in foreign exchange reserves.
The latest Bangladesh Development Update stated that the country is expected to maintain an upward growth trajectory in the medium term, but urgent reforms are critical to sustaining growth and job creation—especially for youth and women.
It projects GDP growth to rise to 4.8 percent in FY26 from 4.0 percent in FY25 and to reach 6.3 percent in FY27. External pressures eased in FY25 as a market-based exchange rate was adopted, foreign exchange reserves stabilized, the current account deficit narrowed, and exports grew robustly. Inflation moderated on the back of tight monetary policy, lower essential food import duties, and strong harvests.
However, the fiscal deficit widened amid weak tax revenue and higher subsidies and interest payments. Poverty increased between 2023 and 2024, and labour force participation fell from 60.9 to 58.9 percent, with women disproportionately affected. Of the three million additional working-age people outside the labour force, 2.4 million were women.
Indonesia deepens ties with China
Indonesia is strengthening its position as a global center for halal business, a market currently worth $3 trillion and projected to reach $4.5 trillion by 2030. Halal refers to products and practices that comply with Islamic law, including food, pharmaceuticals, cosmetics, and financial services, ensuring they are permissible for Muslim consumers.
At a major halal festival held last month in Tangerang, near Jakarta, the Halal Indo 2025 x Industrial Festival drew 27,000 visitors and 346 exhibitors, with deals totaling $450 million.
For Indonesia, the world’s largest Muslim-majority country, the festival was a statement of ambition — a showcase of its drive to expand its leadership in the global halal industry.
The festival also showed how important partnerships are. Among others, Indonesia signed an agreement with China’s Food and Drug Corporation Quality and Safety Promotion Association (FDSA). The two sides will work together on halal industry growth, research, training, and business support. The idea is to push more companies to build partnerships and grow together.
This builds on earlier steps. In November, President Prabowo Subianto went to Beijing. There, Indonesia and China agreed to strengthen food security and halal trade. Soon after, Jakarta hosted a food fair that brought together 175 companies from both countries.
The two have also agreed to mutual recognition of halal certificates. Indonesia’s halal authority (BPJPH) now accepts certificates from 37 agencies in 16 countries, including China. That makes trade smoother and avoids extra checks.
BOJ to raise rates
The Bank of Japan will continue raising interest rates if economic and price developments move in line with its forecasts, BOJ Deputy Governor Shinichi Uchida said, reaffirming the bank’s stance of scrutinising data in making policy decisions.
The remarks largely followed his comments this month reiterating that the business mood was improving in Japan, even as U.S. tariffs weigh on exports, a sign that conditions for another interest rate hike were falling into place.
“If our economic and price forecasts materialise, we will continue to raise interest rates in accordance with improvements in economic and price conditions,” Uchida told a meeting of Japanese credit unions in a speech on Friday.
“We will judge without any pre-conception whether our forecasts will materialise, while scrutinising domestic and overseas economic and price developments as well as financial market moves.”
The comments echoed those of Governor Kazuo Ueda on Thursday that the central bank would scrutinise various data in deciding whether to raise interest rates in October.
Uchida also pointed to high uncertainty surrounding overseas economic and price developments, due to trade policies.
“It’s necessary to closely monitor how these developments may affect financial and foreign exchange markets, as well as Japan’s economy and prices,” he said.
The BOJ ended a massive, decade-long stimulus programme last year and raised rates to 0.5 percent in January, on the view that Japan was on the cusp of durably hitting its inflation target of 2 percent.
While inflation has exceeded 2 percent for more than three years, Ueda has stressed the need to tread cautiously in raising borrowing costs to ensure price rises are driven by wage gains and robust domestic demand.
Highlighting the BOJ’s growing attention to inflationary pressure, two of its nine board members proposed unsuccessfully to raise rates in September, which heightened market bets for a rate hike in October.
But expectations of a rate hike receded after fiscal dove Sanae Takaichi’s surprise victory in the ruling Liberal Democratic Party leadership race on October 4.
Nepal’s Gen Z rush to register to vote after uprising
In Nepal’s capital, young would-be voters line up enthusiastically to register for the first elections since deadly anti-corruption protests toppled the government, the worst unrest in decades.
For many, it will be their first time participating in an election, and they see it as a chance to shape the future of their country of 30 million people, burdened by deep economic woes.
At least 73 people were killed in the September 8-9 protests that left parliament, courts and government buildings in flames.
The unrest was triggered by a brief ban on social media but was fuelled by long-standing frustration over economic hardship and corruption.
Within days of the government’s collapse, 73-year-old former chief justice Sushila Karki was appointed interim prime minister to steer the Himalayan nation until elections on March 5, 2026.
“The pillar of this new government is built on the dead bodies of students,” said student Niranjan Bhandari, 21, as he waited to provide biometric data to complete his registration.
“That’s why, in the upcoming election, we want to uproot the old faces who have been clinging to power for too long,” he added.
“I’m here to register for my new voter identity card for that very reason.”
Continued reform process and good economic momentum: Sri Lanka
Sri Lanka’s implementation of its four-year IMF Extended Fund Facility programme (2023-2026) is moving forward, confirmed by the IMF’s agreement on its fifth review of the programme. As a result, Sri Lanka will receive a further disbursement of about USD 350 million (out of a total loan of USD 3 billion) upon completion of the IMF Executive Board review.
Sri Lanka remains on a favourable recovery path following its external debt default and deep financial and economic crisis. More than two and half years after the IMF bailout, Sri Lanka’s economy has been on a gradually improving trajectory, growing by 5 percent in 2024 and 4.8 percent in the first half of this year according to the nation’s central bank. This solid momentum is confirmed by inflation levels, which, after a year of deflation, have been back in positive territory since August – supported by rising domestic consumption – and are expected to be at around 5 percent next year. The rupee has also been rather stable over the past 18 months, showing a slow return of confidence. Rising tourism receipts and workers’ remittances have also helped to support growth and keep the current account in surplus since 2023. As a result, foreign exchange reserves have surged, tripling their import cover from one month at the end of 2022 to three months in mid-2025.