ASLI INSIGHTS: Asia Unpacked | 9 January 2025

🌏 Indonesia joins BRICS, Johor-Singapore SEZ set to boost regional economy, China’s EV market heats up, US-India strengthen tech ties, and TikTok faces Supreme Court scrutiny.

This week’s Asia top news:

1) Indonesia Joins BRICS, Redefining Global Order

Indonesia officially joined the BRICS group (Brazil, Russia, India, China, South Africa) on January 7, 2025, marking a pivotal moment in its geopolitical and economic trajectory. This membership signifies Indonesia's rising influence among emerging economies and its commitment to reshaping the global order. Analysts emphasise its potential to strengthen trade, investment, and cooperation among member states. The Jakarta Post highlights that Indonesia’s entry could challenge Western dominance by aligning with BRICS’ multipolar vision, particularly in legal and economic frameworks. However, it also poses challenges, including balancing relations with Western partners while navigating the bloc's internal dynamics and competing priorities.

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2) New Johor-Singapore SEZ Boosts Economy

Malaysia and Singapore have signed an agreement to establish the Johor-Singapore Special Economic Zone (JS-SEZ), aiming to attract global investment and facilitate the movement of goods and people between the two countries. The zone, encompassing the Iskandar Development Region and Pengerang, will offer tax incentives and focus on sectors such as manufacturing, logistics, tourism, energy, and healthcare. The initiative targets the development of 50 projects and the creation of 20,000 skilled jobs within the first five years. Both nations emphasise that this collaboration leverages their combined strengths to enhance competitiveness and economic growth.

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3) China’s EV Market Sees Renewed Subsidies and Intensifying Competition

China has renewed its electric vehicle (EV) trade-in subsidy for 2025, offering 20,000 yuan (US$2,728) to buyers replacing old vehicles with EVs, maintaining the incentive level from 2024. This move aims to sustain EV sales momentum, which saw a 38% increase to 10.68 million units in 2024. Concurrently, Chinese EV manufacturers, including Nio and Li Auto, are extending purchasing incentives into 2025, such as subsidies and zero-interest financing, to remain competitive in a price war entering its third year. These combined efforts underscore China's commitment to bolstering its EV market amid intensifying competition.

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4) US-India Bolster Strategic Tech Partnership

India and the US are bolstering ties in semiconductors, AI, and space amid fears of policy changes under a potential Trump administration. National Security Adviser Jake Sullivan’s visit to New Delhi highlighted efforts to protect joint ventures and advance strategic technologies. The US is also easing regulations to boost civil nuclear cooperation with Indian firms, addressing liability law hurdles. Additionally, India has stressed the economic benefits of H1B visas, vital for skilled professionals in IT. These steps underscore the nations' commitment to a resilient partnership, navigating political shifts while fostering innovation and economic growth.

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5) TikTok’s Future in the Balance as Supreme Court Considers Ban

The U.S. Supreme Court will hear arguments on January 10, 2025, regarding the Protecting Americans from Foreign Adversary Controlled Applications Act (PAFACA), which requires TikTok’s Chinese parent, ByteDance, to divest or face a U.S. ban. The Biden administration defends the law, citing national security concerns over potential Chinese access to American data. TikTok argues the ban infringes on First Amendment rights, affecting free expression. President-elect Donald Trump has called for delaying the ban for further review. The Court’s ruling will shape the balance between national security and free speech, setting a precedent for government control over digital platforms.

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