ASLI INSIGHTS: Asia Unpacked | 26 Jul 2025
From tariffs to subsidies, Asia endures a tumultuous week – both figuratively and literally. As Thai-Cambodian border tensions rise, Philippines welcomes the US with open arms amidst Trump’s anti “woke” AI plan while Malaysia’s PM announces a one-off cash handout.
Top news in Asia this week:
1. Escalation at Thai-Cambodian Border: Civilians dead
Armed clashes erupted between Thai and Cambodian forces along their disputed border near the Ta Muen Thom temple. Thailand reported at least 12 deaths, including 11 civilians and one soldier, primarily due to Cambodian artillery strikes. In retaliation, Thailand deployed F-16 fighter jets on Cambodian military targets. Both nations accused each other of initiating the violence, leading to the closure of all border checkpoints and the expulsion of each other's diplomats. The conflict is rooted in a long-standing border dispute dating back to colonial times, with both countries claiming ownership of territories and historical sites like the Preah Vihear temple. International bodies have called for de-escalation and peaceful negotiations to resolve the crisis.
Read more:
https://edition.cnn.com/world/live-news/thailand-cambodia-border-dispute-07-24-25-intl-hnk
2. Anwar’s Relief aid: Cash, Fuel Cuts, Toll Freeze, Public Holiday
On July 23, 2025, Prime Minister Anwar Ibrahim announced a cost-of-living relief package in response to rising public discontent and upcoming protests. The plan includes a one-time RM100 cash handout for all Malaysian adults (about 22 million individuals), distributed via MyKad from August 31 to December 31. Total aid for 2025 has been increased to RM15 billion. Additionally, RON95 petrol will be reduced to RM1.99/L for citizens, toll hikes on 10 highways are frozen, and an extra public holiday on September 15 is announced. Critics note supportive economic stimulus, while analysts warn it could strain fiscal targets pending subsidy reforms.
Read more:
3. Philippines permits US imports for 1% Tariff drop
On July 22, 2025, President Trump unveiled a bilateral trade framework with the Philippines: U.S. imports from the Philippines will face a 19 percent tariff—a one-point reduction—while U.S. exports face zero tariffs, notably on cars. Manila also pledged to buy more American goods, and both nations reaffirmed defence cooperation amid China tensions. Philippine officials and exporters praised the strategic value and marginal tariff cut, but farmers, industry groups, and opposition lawmakers criticized the deal as unfair, warning it favors U.S. interests, risks undermining local livelihoods, and threatens domestic manufacturers.
Read more:
4. France Leads Shift with Palestinian State Recognition This September
French President Emmanuel Macron has declared that France will formally recognise the State of Palestine at the UN General Assembly in September 2025, becoming the first major Western and G7 nation to take this step. The move was tied to the worsening humanitarian crisis in Gaza, with Macron calling for an immediate ceasefire, the release of hostages, urgent humanitarian aid, and the gradual demilitarisation of Hamas. The Palestinian Authority welcomed the recognition as a significant step toward their right to self-determination. Israeli officials, however, denounced the decision, viewing it as a concession to violence and a threat to national security. This development follows the breakdown of ceasefire talks in Doha, which saw the U.S. and Israel pull out due to frustrations over the negotiation process. Macron’s announcement is part of a wider diplomatic push, which also includes a two-state solution summit jointly hosted by France and Saudi Arabia in New York at the end of July.
Read more:
https://www.bbc.com/news/articles/ckg5g4p3245o
https://edition.cnn.com/2025/07/24/world/macron-france-palestinian-statehood-trump-latam-intl
5. Trump’s anti “woke” AI Plan Aims to Outpace China with Deregulation
On 23 July 2025, the Trump administration released a sweeping AI Action Plan designed to reassert U.S. global leadership in artificial intelligence and counter China's growing dominance in the sector. The plan promotes rapid infrastructure development, deregulation, and increased federal funding—contingent on states aligning with federal AI policy. Export rules will be loosened to support U.S. tech abroad, and the government will restrict use of AI models deemed “woke.” Critics argue the plan weakens consumer, labor, and environmental protections, while supporters frame it as a strategic response to China’s state-driven AI push. China, meanwhile, reaffirmed its own path toward AI self-reliance.
Read more:
https://www.aljazeera.com/economy/2025/7/23/trump-administration-unveils-wide-ranging-ai-action-plan
https://aimagazine.com/news/inside-trumps-plans-to-boost-us-ai-and-ban-woke-models
