Southeast Asia in May 2026: the most important developments in economy
In May 2026, Southeast Asia's economic news centred on Indonesia's push for greater state direction of its economy. President Prabowo called for the country to produce its own cars, computers and smartphones and announced plans to tighten controls on commodity exports. Indonesia's Danantara sovereign fund urged policymakers to listen to market signals, saying the export controls could raise revenues but also raised concerns about a stronger role for the state.
In energy and aviation, Aramco transferred a refining complex in Malaysia to Petronas. Airbus won an order for as many as 150 A220 aircraft from AirAsia. Singapore Airlines reported a net profit held down by the difficulties of Air India, which it co-owns; Air India was reported to be furloughing staff and cutting flights as the war worsened its finances. Singapore Airlines also delayed the rollout of new seats, while THAI said it plans more flights to Europe despite concerns over fuel costs. Garuda Indonesia re-entered the top 25 airlines as its turnaround continued.
In Singapore, the bakery company Gardenia is moving production to Malaysia, with 141 employees retrenched, and said the decision goes beyond cost-cutting. Singamas shares fell sharply after US Justice Department allegations against its chief executive, Teo Siong Seng, who took leave from the Singapore Business Federation and an economic task force. City Developments reported a slump in first-quarter property sales.
Elsewhere, Vietnamese electric vehicle maker VinFast's plan to shift $7 billion in debt drew warnings from analysts and investors, and North Carolina sued the company over a delayed electric vehicle project. Genting reported higher first-quarter profit, while Genting Malaysia fell into a loss. In Thailand, Prime Minister Anutin rallied the private sector, with a focus on small businesses, to counter the economic slump.
by WorldBrief & Maksim Micheliov | AI-generated summary
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