Malaysia leads Southeast Asia
Malaysia is now the fastest-growing digital economy in Southeast Asia with a year-on-year increase of 19 percent, and on track to reach $39 billion in gross merchandise value (GMV) this year, according to the 10th edition of the e-Conomy SEA Report 2025.
The report, released by Google, Temasek, and Bain & Company, noted Malaysia’s e-commerce continues to expand at a healthy pace, making up the biggest driver of the country’s digital economy and reaching $20 billion by 2025. The sector has grown 21 percent year-on-year in GMV, the second-fastest rate in Southeast Asia (SEA).
This was supported by rising platform consolidation with large regional players leveraging significant economies of scale, and expanding video commerce engagement that converted attention into sales with minimal friction.
Malaysia’s online travel recorded 19 percent growth in GMV, the fastest in Southeast Asia, driven by improved air connectivity, visa liberalization measures, and large-scale digital tourism campaigns building momentum ahead of “Visit Malaysia 2026”.
Meanwhile, digital financial services show continued double-digit growth, with digital payments set to reach $213 billion USD in gross transaction value (GTV) by 2025.
This momentum is supported by Malaysia’s rapid shift toward cashless payments, including a 28 percent surge in digital payment usage reported by Bank Negara Malaysia, and cross-border acceptance has scaled significantly with the DuitNow QR standard now interoperable across an increasing number of Southeast Asian markets.
At the regional level, Southeast Asia’s digital economy is projected to surpass $300 billion in GMV by 2025, growing 15 percent year-on-year and outperforming the region’s first forecast by 1.5 times.
As the world’s fifth largest economy with a population of over 680 million, Southeast Asia has rapidly digitalized over the past decade, showing strong resilience and monetization capabilities despite global headwinds such as the Covid-19 pandemic, inflation, and supply-chain pressures.
China economy: Ningbo Zhoushan port hits historic milestone
The world’s largest port, Ningbo Zhoushan, in China’s eastern Zhejiang Province, has reached another historic milestone. On Tuesday, the 40-millionth container of the year was loaded, marking the first time the port has ever handled that many containers in a single year. CGTN’s Chen Tong takes a closer look at what has supported this strong performance.
This is a landmark moment – on December 2, the 40-millionth container of the year was loaded at China’s Ningbo Zhoushan Port.
With one month left in 2025, this number has already surpassed last year’s total.
CEN JIANJIANG Deputy Director of Business Department, Ningbo Zhoushan Port Company “We now operate over 300 shipping routes and have expanded its services to the Arctic Ocean this year.”
CHEN TONG Ningbo, Zhejiang Province “The Ningbo-Zhoushan Port majorly serves factories in the Yangtze River Delta, which is China’s economic powerhouse. In the first 10 months of the year, foreign trade value in Zhejiang Province, for example, jumped by over 5 percent from a year ago. This robust growth is the backbone of the shipping industry.”
To learn more, I visited one of the largest shipping agencies in Ningbo.
Wang Zhanyou has been in the shipping forwarding business for decades.
This is the busiest time of the year for him, as factories rush to ship their cargo before year-end. This year, his business has hit yet another record.
WANG ZHANYOU Chairman, Union Ocean Shipping “We’ve forwarded 278,200 containers this year, marking a 17 percent increase compared to last year.”
Economic volatility continues, with tariffs affecting foreign trade in recent months. But Wang says factories near Ningbo Zhoushan Port have been actively shifting their strategies to target other destinations.
India’s strong economic growth
The better-than-expected growth of India’s economy, driven by strong performance in the domestic consumer and manufacturing sectors, highlights its near-term resilience despite a slowdown in exports and US import tariffs.
While India’s 8.2 percent year-on-year growth figure in the July to September quarter was the fastest among major economies, analysts warn that the headline numbers may not provide a true picture of the challenges it faces.
Private consumer spending, which accounts for more than half of India’s gross domestic product, rose 7 percent, fuelled by low inflation, according to official data released on Friday. Manufacturing output increased by 9.1 percent over the same period.
The rosy picture on the domestic front was in stark contrast to India’s external trade outlook. The country’s merchandise exports fell by 11.8 percent to US$34.4 billion in October. Shipments to the US declined by 8.5 percent – a second straight month of contraction.
In response to the slowdown in its exports, India has been stepping up diversification into new markets.
N.R. Bhanumurthy, director of Chennai-based Madras School of Economics, said the visit by Russian President Vladimir Putin to New Delhi this week was a “clear signal” that India was prioritising trade diversification.
As for trade with the US, tariffs on Indian goods are expected to be reduced significantly by the end of this year as Delhi and Washington continue to engage in trade talks, according to Bhanumurthy.
Last week, Commerce Secretary Rajesh Agrawal told Indian senior industry executives that both sides had been holding extensive trade talks in the past few months. “It is now only a matter of time to find the right landing zone for both countries,” he said.
China views its economic relations with Indonesia?
In 2025, Indonesia and China marked the 75th anniversary of their diplomatic ties, highlighting how the relationship has matured into one of the Indo-Pacific’s most consequential. The commemoration signals not merely symbolism but the growing weight of a partnership that is expanding in trade, investment, and defence. At the same time, both states navigate cooperation alongside the imperative of maintaining autonomy.
For Beijing, Indonesia functions as a strategic partner and hub which an economic centre of gravity securing critical mineral supply chains for electric vehicles and renewable industries. Indonesia relations also serve as a geopolitical buffer on the southern flank of the South China Sea and key energy corridors to the Indian Ocean. Indonesia is seen as a pivotal Global South actor that can bolster China’s nonalignment narrative in platforms such as the United Nations, G20, and BRICS+.
Bilateral trade in 2024 reached US$135 billion, making China Indonesia’s largest trading partner. China is also the country’s second-largest foreign investor, investing in various sectors, including energy, smelters, and transportation infrastructure. During Prabowo Subianto’s state visit to Beijing in November 2024, both governments agreed on new investment commitments worth US$10 billion, covering mineral downstreaming, renewable energy, and digital infrastructure.
This indicates that Indonesia’s exports to China remain heavily reliant on critical minerals and commodities – with minimal technological value added. The reliance on Chinese inputs means that much of Indonesia’s industrial expansion, as stated in the government’s downstreaming policy, largely depends on the stability of Chinese supply chains.
Nepal slashes pricey permit to boost tourism
Nepal is preparing to open one of its last untouched frontiers for foreigners by slashing the costly permit to enter Upper Mustang, a rugged plateau of ochre cliffs, hidden valleys and centuries-old Buddhist heritage.
The government has announced plans to replace the flat US$500 charge for a 10-day stay with a daily US$50 rate, a shift that tourism entrepreneurs believe will make the destination more accessible and help drive the local economy.
“We have been lobbying to reduce the permit fee for a long time, and this is a welcome move,” said Sagar Pandey, president of the Trekking Agencies’ Association of Nepal. “Previously, it would have taken 10 days to trek to Upper Mustang, but now it’s accessible by road and can be done in a few days. So, the hefty US$500 fee seems outdated.”
While the cabinet decided to reduce the entry fee last week, the rule will go into effect only after immigration regulations are amended. The Department of Immigration is still waiting for formal confirmation from the government, according to an official.
Upper Mustang, once the ancient kingdom of Lo, is part of the trans-Himalayan region in northern Nepal bordering Tibet. It is known for its Tibetan culture, dramatic landscapes, monasteries, sky caves and cave paintings.
Mustang opened to foreigners in 1992, with lower-region towns like Jomsom and Kagbeni, and Muktinath temple now part of the Annapurna Circuit trek. But Upper Mustang largely remained restricted until a few decades later due to lack of roads and geopolitical sensitivity.
Thailand promotes GWS 2026
Thailand’s successful bid to host the Global Wellness Summit 2026 (GWS 2026) in Phuket in November 2026, led by the Department of Thai Traditional and Alternative Medicine, in collaboration with the Thailand Convention and Exhibition Bureau (TCEB), marks more than just an international conference strategy.
It is a symbolic milestone for Thailand, signaling Phuket as a world-class wellness investment destination for global visitors seeking a healthy lifestyle in a perfect environment.
Pongsadhorn Pokpermdee, Director-General of the Department of Thai Traditional and Alternative Medicine, explained that the GWS 2026 would bring in at least 324 million baht in short-term revenue, with over 500-600 global leaders from more than 50 countries attending.
This event is expected to create an economic multiplier effect, benefiting premium services, MICE businesses, and local operators, driving wellness and health tourism’s economic value to over 10 billion baht by 2026.
On the other hand, the wellness industry is being elevated from a service sector to a new economic engine (new S-curve) for the country. Thailand’s success is rooted in cultural assets—unique traditions that have been developed into internationally recognised products.
These include Thai massage, herbal medicine, and Thai traditional medicine, which offer a holistic approach to health and wellness.
furthermore, Pongsadhorn highlighted that Thailand’s wellness strategy aligns perfectly with the global longevity consumer trend. Consumers in this category seek not just a longer lifespan but a healthier lifespan.
Thailand is well-positioned to meet this demand comprehensively, making GWS 2026 a crucial platform for Thai entrepreneurs to connect directly with global investors, industry leaders, and buyers. It will facilitate collaboration and business innovation, laying the foundation for a sustainable future.
MOF calls for public input on strengthening Singapore’s economy
The Ministry of Finance (MOF) has launched its public consultation for Singapore Budget 2026, inviting Singaporeans to share feedback on key themes such as advancing the economy, securing good jobs, and strengthening social support. According to a press release on Tuesday (Dec 2), individuals, organisations and businesses have until Jan 12 to submit their views ahead of the Budget announcement in February 2026.
For the theme of advancing the economy, MOF highlighted that sustainable economic growth is crucial for creating quality jobs and new opportunities. However, Singapore must balance innovation and growth with limited land and resources, while also tackling climate-related challenges. The consultation seeks ideas on how the country can build a stronger entrepreneurship and innovation ecosystem, help local companies scale globally, and support businesses in adopting emerging technologies such as artificial intelligence (AI) to drive transformation and unlock new growth areas.
Under securing good jobs, MOF noted that rapid technological advancements, including AI, are reshaping industries and the future of work. With global shifts toward resilience
over efficiency, Singaporeans face both challenges and opportunities in their careers. Key questions focus on how to better prepare students and workers for quality jobs, the barriers employees face in keeping their skills relevant, how employers can be encouraged to invest in career and skills development, and how seniors can remain productive while balancing work, life and retirement needs.