Indian economy: war situation in gulf starts severe negative impact
The war situation in the Gulf has started having a severe negative impact on the Indian economy.
According to the sources, the foreign investors are withdrawing capital from Indian bonds and the stock market at a record pace. It is said that since the start of the war, investors have withdrawn a total of $12.14 billion from India. Furthermore, due to the Gulf tension, there is a risk of further increase in inflation in India due to the increase in oil prices in the global market.
Economy: decoding china’s ‘new strategic opportunities’
An international seminar held at Renmin University of China on Monday brought together scholars to discuss what China calls “new strategic opportunities.” A new book by Wang Wen, Dean of the Chongyang Institute for Financial Studies, argues that China could leverage these opportunities to sustain its growth and potentially become the world’s largest economy by 2035. CGTN reporter He Jingyi spoke with Wang about the key opportunities, risks, and outlook for China’s development.
Malaysia moves to tighten rules for expats
Until recently, Sanjeet, a business consultant from India, thought of Malaysia as home.
After living and working in the Southeast Asian nation for more than a decade, he had become comfortable with the climate, people and way of life.
“Once I had crossed the five-year mark, Malaysia seemed like an ideal long-term choice,” Sanjeet, who is in his 40s and asked to use a pseudonym, told Al Jazeera.
“One gets used to what Malaysia has to offer.”
But after a recent move by the Malaysian government to reduce the country’s reliance on foreign workers, Sanjeet’s plans – and those of thousands like him – have been plunged into doubt.
From June onwards, the minimum salary threshold for foreign workers to obtain a visa will be raised by as much as twofold, and employers will be limited in how long they can sponsor the same visa-holder.
“What was surprising was that this came out of the blue,” Sanjeet said.
“It does leave room for doubt in terms of long-term plans, which include things like buying a house or car here.”
Malaysia, which transformed into one of Southeast Asia’s most developed economies after gaining independence from Britain in the 1960s, has been an attractive destination for foreign labour for decades.
Many of the 2.1 million documented foreign workers in the country take on manual labour for salaries of around the monthly minimum wage of 1,700 ringgit ($430).
A much smaller pool of foreign workers is employed in highly-paid specialised sectors such as finance, semiconductors, and oil and gas.
In 2024, Home Affairs Minister Saifuddin Nasution said the country’s high-salaried expatriate population – estimated at 140,000 people – pumped about 75 billion ringgit ($19bn) into the domestic economy and contributed approximately 100 million ringgit ($25m) in taxes each year.
| Nepal In Statistics | ||||||
|---|---|---|---|---|---|---|
| Last | Previous | Highest | Lowest | Value | Reference | |
| Balance of Trade | -158336 | -147325 | 1407984 | -167318 | NPR Million | Jan/26 |
| Current Account | 2140032 | 221707 | 2140032 | -623376 | NPR Million | Dec/24 |
| Current Account to GDP | 5.2 | 3.9 | 5.4 | -12.5 | percent of GDP | Dec/24 |
| Exports | 26128 | 25509 | 44610 | -253098 | NPR Million | Jan/26 |
| Imports | 184463 | 172834 | 299677 | -1661082 | NPR Million | Jan/26 |
| Gold Reserves | 7.99 | 7.99 | 7.99 | 0 | Tonnes | Dec/24 |
| Tourist Arrivals | 1147548 | 1014882 | 1197191 | 9388 | Persons | Dec/24 |
| Foreign Direct Investment | 8401 | 6170 | 19513 | -470 | NPR Million | Dec/24 |
| Terms of Trade | 108 | 108 | 164 | 90.5 | points | Feb/26 |
| Terrorism Index | 0.29 | 1.11 | 6.86 | 0.29 | Points | Dec/25 |
China’s economic bullying of Japan will backfire
In response to hypothetical remarks by Japanese Prime Minister Takaichi Sanae about possibly recognizing a Taiwan contingency as a “survival-threatening situation” – a circumstance that would allow the Japanese government to dispatch troops into harm’s way – China has embarked on a wholesale diplomatic and economic campaign to admonish the prime minister. In doing so, China wants to make abundantly clear the consequences that Japan would face for meddling in what Beijing regards as its internal affairs, namely Taiwan.
The first salvo of the campaign was a provocative online post by the Chinese consul general in Osaka, which implied that Takaichi’s head should be “cut off” because of what he perceived to be her insensitive remarks. Then came restrictions on seafood imports from Japan. Even more concerning was the reported strengthening of export controls on rare earth materials, which Takaichi described as “economic coercion aimed at forcing other countries to submit to its claims.”
However, China’s strong-arm tactics against Japan have not borne fruit; in fact, they may have backfired. They strengthened Takaichi’s resolve to consolidate power by calling a snap election, which her Liberal Democratic Party (LDP) won in a landslide. The public – including many who did not vote for her, according to polling – has approved of her government’s approach toward China. Moreover, structural changes that have taken place in Japanese politics this year make it even more likely that a firm approach toward China will endure.
First, the ruling party’s coalition reshuffle has set in motion a far-reaching transformation in Japanese security policy. While the LDP’s former coalition partner, Komeito, prided itself on acting as a brake on its partner’s more activist foreign policy instincts, Nippon Ishin no Kai, which has replaced it, seeks to unleash such inclinations. The new coalition has already embarked on policy reforms agreed upon in its coalition agreement. It has submitted a joint proposal to the government to loosen restrictions on arms exports, and the government has recently established an “International Peace Mediation Unit” focused on engaging in conflict resolution efforts – both policy initiatives outlined in the agreement.
Nippon Ishin no Kai goes beyond the LDP’s consensus position on security matters in other areas as well. Regarding self-defense, the party argues that Japan should lift geographical limitations and enable the Self-Defense Forces to assist its allies when they are in dire need. It also advocates making the U.S.-Japan Security Treaty a truly equal alliance and expanding the existing framework to include Australia and the Philippines. To this end, Nippon Ishin proposes the establishment of a “Four Seas Alliance” aimed at deterring China.
With regard to China, some of the more vocal figures calling for the expulsion of the Chinese consul general in Osaka were members of Nippon Ishin, suggesting that the party seeks to adopt a tougher China policy rather than a more conciliatory one.
Strait of Hormuz: Indonesia’s economic test
With the Strait of Hormuz now effectively disrupted, the world is entering a new phase of energy insecurity. For Indonesia, the consequences are not hypothetical. They are already unfolding—through rising fuel costs, a weakening currency, and mounting pressure on a fragile fiscal system.
Roughly a fifth of global oil supply passes through Hormuz. Any sustained disruption sends immediate shockwaves through crude markets, and those shocks are now feeding directly into Indonesia’s domestic economy. Despite years of subsidy reform, the country remains structurally exposed to global oil price volatility. As prices climb, the government faces mounting pressure to adjust fuel prices, subsidized liquefied petroleum gas (LPG)—especially the widely used 3-kilogram cylinders—and potentially electricity tariffs. The result is a rapid escalation in the cost of living, with middle- and lower-income households bearing the brunt.
This is not merely an energy story. It is an inflation story—and a dangerous one. Indonesia is simultaneously confronting the risk of prolonged drought linked to a potential super El Niño. Agricultural output is under threat just as fertilizer prices rise due to disruptions in petrochemical supply chains and surging logistics costs.
Fiscal pressures are intensifying in parallel. Indonesia’s energy subsidy and compensation system remains highly sensitive to global price movements and exchange rate fluctuations. As oil prices rise, so too does the cost of maintaining price stability domestically. A weakening rupiah compounds the problem, increasing the cost of imported fuel and swelling subsidy obligations. Even modest currency depreciation can add billions of dollars in additional government spending, rapidly narrowing fiscal space.
The real danger lies in the interaction of these shocks. Rising oil prices tend to coincide with capital outflows from emerging markets, placing further downward pressure on the currency. In such a scenario, Indonesia faces a dual burden: higher energy import costs and a more expensive fiscal response. Scenario-based estimates suggest that the combined impact could reach tens of billions of dollars, forcing difficult trade-offs between maintaining subsidies, protecting social spending, and preserving fiscal credibility.
The external sector is already feeling the strain. Industries reliant on imported inputs—ranging from manufacturing and automotive production to food processing and petrochemicals—are confronting higher costs as the rupiah weakens and global prices rise. These pressures will inevitably be passed through to consumers, reinforcing inflationary trends and eroding purchasing power.