Hello and welcome!👋
We’re entering Q4 territory, which can often feel like a sprint to the finish line.
This edition focuses on Southeast Asia, following my trips to Jakarta and Singapore with Bloomberg’s news events team. I find the region to be incredibly dynamic and fascinating, but not without significant socio-economic challenges. Nonetheless, ASEAN is forecast to become the world’s fourth largest economy by 2030, so major global players are taking notice.
As always, please feel free to share your thoughts and comments.
SOUTHEAST ASIA’S GROWTH JOURNEY
September was a mega month for international diplomacy, with world leaders attending ASEAN and G20 meetings as well as the UN General Assembly.
I was on location in Jakarta with Bloomberg Live Experiences for its CEO Forum, which took place on the sidelines of the 43rd ASEAN Summit. As voices from 'The Global South' come to the fore, it was the perfect time to be in Indonesia to hear different views on how Southeast Asia is managing political, demographic and economic shifts.
International trade: ASEAN members should seize the opportunity to improve long-term export competitiveness, and position themselves as viable alternatives for companies looking to make their supply chains more resilient. That was the consensus from our panelists, who were confident the region could thrive if regulatory standards were better aligned, particularly as the US and UK work to strengthen trade ties with Southeast Asia.
Cleaner energy sources: Indonesia's delayed $20 billion climate financing deal highlights the difficulties of juggling energy security, consumer costs and socio-economic development. The ASEAN bloc will require billions of dollars of funding to phase out fossil fuels and incorporate renewables into electricity production. Still, Indonesian government officials said they remain positive about their roadmap.
Financial inclusion: With tens of millions of unbanked people across Southeast Asia, fintechs are filling the void and finding ways to promote financial literacy, according to the region's start-up founders. They added that the next big step is reducing friction in cross-border payments, so businesses and tourists can truly benefit - and boost GDP.
Infrastructure investment: Indonesian minister Luhut Pandjaitan is in talks with Elon Musk to bring Starlink to rural areas of the country, which would help healthcare services and education. Other investors said they saw huge potential in Southeast Asia but mentioned concerns about transparency, political stability and a lack of bankable projects.
Indonesia will pass the ASEAN chairmanship baton to Laos in 2024.
CANADA’S FOREIGN POLICY
“We have significantly increased our presence, our focus, our attention and our engagement in the region,” Prime Minister Justin Trudeau told a packed room in Bloomberg’s Singapore office, after he attended the Asean Summit in Jakarta. [This was before his diplomatic row with India’s Narendra Modi.]
It was amazing to sit a few feet away from the Canadian leader as he spoke to Bloomberg New Economy's Erik Schatzker about the importance of the Indo-Pacific region as well as managing geopolitical risks.
Some key takeaways from the wide-ranging conversation:
Southeast Asia: Trudeau is looking to advance diplomatic, economic, business, climate and security partnerships. Ottawa is on track to sign a free trade deal with Indonesia within the next 12 months. Vietnam, the Philippines and Singapore are also receptive to growing trade with Canada.
Dialogue with Beijing: Canada's relationship with China is currently stable, but while it's not deteriorating, there's no room for political rapprochement. China has been very strategic about making countries “elbow each other out of the way for access to the Chinese market,” according to the prime minister.
Defence budget: Trudeau is committed to ramping up military spending, however, his government will not meet NATO's 2% of GDP target. “There are lots of things we need to do to protect democracies and not all of them involve more soldiers.”
Immigration policies: “Canadians remain positively inclined towards immigration.” Trudeau says his country has been successful at welcoming people and building communities, but admits this puts pressure on housing.
Thanks for reading! Take care and stay curious, Sara x