January 10, 2025 • 9 mins
In this episode, Michelle welcomes listeners and introduces the top stories impacting Southeast Asian markets. She delves into the Johor-Singapore Special Economic Zone, discussing its potential and the challenges it faces. The focus then shifts to Indonesian nickel mining, examining its output and impact on the global market. Michelle explores strategic shifts in the global supply chain and Indonesia's evolving role within it. The episode also addresses Indonesia's membership in BRICS, considering its prospects and strategic implications. The episode concludes with a summary and closing remarks, encouraging listeners to stay informed on these dynamic market developments.
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Welcome back to the Southeast Asia MarketsWeekly Brief.
I’m your host, AI Michelle.
Here are our top stories today...
First, Rafizi Ramli discusses how theJohor-Singapore Special Economic Zone could add
RM125 billion yearly to Malaysia's grossdomestic product and rival Klang Valley within
(00:20):
ten years.
Second, Indonesia's nickel move may cut globalsupply by thirty-five percent, according to
Macquarie.
Third, we explore the opportunities that awaitIndonesia with its entry into BRICS.
Let's dive into our first story.
Economy Minister Rafizi Ramli has announced thesignificant potential of the Johor-Singapore
(00:43):
Special Economic Zone, or JS-SEZ, to boostMalaysia's economy.
In a recent fireside chat at the MalaysiaEconomic Forum, Rafizi expressed confidence
that the JS-SEZ could contribute an impressiveRM125 billion annually to the country's gross
domestic product over the next decade.
(01:05):
This substantial economic boost is expected toposition the JS-SEZ as a formidable rival to
the Klang Valley, traditionally Malaysia'seconomic powerhouse.
Rafizi highlighted that the JS-SEZ presentsboth challenges and opportunities, leveraging
the complementary strengths of Johor inMalaysia and Singapore.
(01:28):
This collaboration offers a compelling valueproposition to global investors, particularly
as companies seek to navigate geopoliticaluncertainties and supply chain disruptions.
The strategic location of the JS-SEZ nearSingapore enhances its attractiveness as a hub
for investment and innovation.
The zone is designed to become a regionaleconomic powerhouse by attracting both foreign
(01:52):
and local investments, fostering job creation,and promoting sustainable development.
Its primary objectives include enhancingindustrial capacity, improving infrastructure,
and driving technological innovation whilemaintaining a focus on sustainability.
Johor aims to establish itself as a regionalhub for manufacturing, logistics, technology,
(02:15):
and tourism, with key developments concentratednear the Johor-Singapore border.
Let's shift our focus to Indonesia, where thegovernment's recent considerations around
nickel mining output are stirring significantconversation in the global market.
According to a recent report by MacquarieGroup, the potential cuts to Indonesian nickel
(02:38):
mine output could remove more than one-third ofthe global supply.
This presents a notable upside risk to nickelprices, creating a ripple effect that could
impact various industries reliant on thiscritical metal.
The Indonesian government is deliberating deepcuts to nickel mine quotas, potentially
reducing them from two hundred seventy-twomillion tons in 2024 to as low as one hundred
(03:04):
fifty million tons this year.
This would mark a substantial forty percentdecrease from Macquarie's base case scenario,
signaling a drastic reduction in the output ofthis essential battery metal.
While Macquarie views cuts of this magnitude ashighly unlikely, the possibility of
lower-than-expected mine output from theworld's largest nickel producer remains a
(03:24):
significant concern for market stability.
Last year, nickel experienced its secondconsecutive annual loss, primarily due to
booming Indonesian output coupled withweakening demand from battery manufacturers and
the stainless steel sector.
This year, traders are closely monitoringChina's economic stimulus efforts and the new
(03:46):
United States administration's tariff policy,both of which could heavily influence nickel
demand and pricing.
Indonesia's mine output is a critical swingfactor for nickel prices globally.
The country, which accounts for more than halfof the global nickel production, struggled to
meet demand last year due to government-imposedrestrictions.
(04:09):
This led to record imports from thePhilippines, underscoring the volatility in the
nickel market.
The potential reduction in Indonesian nickelproduction aligns with broader strategic shifts
in the global supply chain.
As the world continues to pivot towardselectric vehicles and renewable energy
technologies, the demand for battery metalslike nickel is poised to surge.
(04:31):
This makes Indonesia's policy decisionsparticularly influential, not only for the
immediate market dynamics but also forlong-term industry trends.
In summary, while the probability of drasticcuts remains uncertain, the conversation
surrounding Indonesia's nickel output is atestament to the interconnectedness of global
(04:51):
markets.
Investors and industry stakeholders will needto remain vigilant, adapting to the evolving
landscape as Indonesia navigates its role as adominant player in the nickel market.
Let's delve into our third story of the day,which focuses on Indonesia's recent entry into
the BRICS economic grouping.
(05:12):
This is a significant milestone for Indonesia,marking it as the first Southeast Asian nation
to join this influential bloc.
BRICS originally comprised Brazil, Russia,India, China, and South Africa, but now
includes Indonesia, expanding its reach andinfluence.
The inclusion of Indonesia, the largest economyin Southeast Asia, into BRICS is expected to
(05:35):
bring a myriad of economic benefits.
Experts have praised this move, highlightinghow it could bolster Indonesia's economy,
attract more investments, expand market access,and enhance its international standing.
According to Luhut Binsar Pandjaitan, chairmanof Indonesia's National Economic Council,
joining BRICS will help Indonesia diversify itsmarket reach, particularly amidst global
(06:00):
economic uncertainties.
Traditionally, Indonesia's exports have beenheavily reliant on Western markets.
However, as Nailul Huda from the Center ofEconomic and Law Studies points out, BRICS
membership could help Indonesia reduce thisdependency.
The inclusion of Middle Eastern countries inBRICS aligns with Indonesia's strategic goals
(06:21):
to tap into these emerging markets, offeringsubstantial benefits for Indonesia’s export
sector.
From an economic perspective, Telisa AuliaFalianty, a professor of monetary economics at
the University of Indonesia, notes thatIndonesia's involvement in BRICS could
potentially increase its economic growth by 0.3percent.
(06:43):
For Indonesia, BRICS presents an opportunity tocreate a more competitive business environment
and to play a significant role in the bloc'seconomic agenda.
Beyond economic implications, Indonesia's entryinto BRICS also amplifies its global influence.
The Ministry of Foreign Affairs views thismembership as a strategic step to enhance
(07:04):
collaboration with other developing nations,rooted in principles of equality, mutual
respect, and sustainable development.
As stated by Minister of Foreign Affairs,Sugiono, the BRICS agenda closely aligns with
Indonesia's national priorities, including foodand energy security, poverty eradication, and
human capital development.
(07:26):
Rolliansyah Soemirat, spokesperson forIndonesia's Ministry of Foreign Affairs,
underscores BRICS as a pivotal platform forstrengthening South-South cooperation.
This membership allows Indonesia to have agreater voice in global decision-making
processes and to advocate for the aspirationsof the Global South.
Indonesia's role in BRICS is set to expand itssphere of influence, contributing to global
(07:50):
balance and addressing critical issues such asclimate change and sustainable development.
Economist Wijayanto Samirin from ParamadinaUniversity describes Indonesia's BRICS
membership as a strategic move to enhance itsbargaining power on the global stage.
It enables Indonesia to shape the direction andframework of BRICS, thus playing a key role in
(08:12):
the organization's future.
International relations expert Muhammad SyaroniRofii emphasizes that BRICS membership allows
Indonesia to expand its network of globalpartnerships, amplifying the voices of the
Global South.
In summary, Indonesia's entry into BRICS is notjust an economic boon but also a strategic
(08:33):
geopolitical maneuver.
It positions Indonesia as a vital player inboth regional and global arenas, with the
potential to influence key internationalagendas and foster stronger multilateral ties.
Alright, that's a wrap for this episode.
If you enjoyed this brief, and would like tostay updated on latest episodes, don’t forget
(08:53):
to click ‘Follow’ in your podcast app.
Thanks again for listening, and hope to catchyou next time.
Welcome back to the Southeast Asia MarketsWeekly Brief.
I’m your host, AI Michelle.
Here are our top stories today...
First, Rafizi Ramli discusses how theJohor-Singapore Special Economic Zone could add
RM125 billion yearly to Malaysia's grossdomestic product and rival Klang Valley within
(00:20):
ten years.
Second, Indonesia's nickel move may cut globalsupply by thirty-five percent, according to
Macquarie.
Third, we explore the opportunities that awaitIndonesia with its entry into BRICS.
Let's dive into our first story.
Economy Minister Rafizi Ramli has announced thesignificant potential of the Johor-Singapore
(00:43):
Special Economic Zone, or JS-SEZ, to boostMalaysia's economy.
In a recent fireside chat at the MalaysiaEconomic Forum, Rafizi expressed confidence
that the JS-SEZ could contribute an impressiveRM125 billion annually to the country's gross
domestic product over the next decade.
(01:05):
This substantial economic boost is expected toposition the JS-SEZ as a formidable rival to
the Klang Valley, traditionally Malaysia'seconomic powerhouse.
Rafizi highlighted that the JS-SEZ presentsboth challenges and opportunities, leveraging
the complementary strengths of Johor inMalaysia and Singapore.
(01:28):
This collaboration offers a compelling valueproposition to global investors, particularly
as companies seek to navigate geopoliticaluncertainties and supply chain disruptions.
The strategic location of the JS-SEZ nearSingapore enhances its attractiveness as a hub
for investment and innovation.
The zone is designed to become a regionaleconomic powerhouse by attracting both foreign
(01:52):
and local investments, fostering job creation,and promoting sustainable development.
Its primary objectives include enhancingindustrial capacity, improving infrastructure,
and driving technological innovation whilemaintaining a focus on sustainability.
Johor aims to establish itself as a regionalhub for manufacturing, logistics, technology,
(02:15):
and tourism, with key developments concentratednear the Johor-Singapore border.
Let's shift our focus to Indonesia, where thegovernment's recent considerations around
nickel mining output are stirring significantconversation in the global market.
According to a recent report by MacquarieGroup, the potential cuts to Indonesian nickel
(02:38):
mine output could remove more than one-third ofthe global supply.
This presents a notable upside risk to nickelprices, creating a ripple effect that could
impact various industries reliant on thiscritical metal.
The Indonesian government is deliberating deepcuts to nickel mine quotas, potentially
reducing them from two hundred seventy-twomillion tons in 2024 to as low as one hundred
(03:04):
fifty million tons this year.
This would mark a substantial forty percentdecrease from Macquarie's base case scenario,
signaling a drastic reduction in the output ofthis essential battery metal.
While Macquarie views cuts of this magnitude ashighly unlikely, the possibility of
lower-than-expected mine output from theworld's largest nickel producer remains a
(03:24):
significant concern for market stability.
Last year, nickel experienced its secondconsecutive annual loss, primarily due to
booming Indonesian output coupled withweakening demand from battery manufacturers and
the stainless steel sector.
This year, traders are closely monitoringChina's economic stimulus efforts and the new
(03:46):
United States administration's tariff policy,both of which could heavily influence nickel
demand and pricing.
Indonesia's mine output is a critical swingfactor for nickel prices globally.
The country, which accounts for more than halfof the global nickel production, struggled to
meet demand last year due to government-imposedrestrictions.
(04:09):
This led to record imports from thePhilippines, underscoring the volatility in the
nickel market.
The potential reduction in Indonesian nickelproduction aligns with broader strategic shifts
in the global supply chain.
As the world continues to pivot towardselectric vehicles and renewable energy
technologies, the demand for battery metalslike nickel is poised to surge.
(04:31):
This makes Indonesia's policy decisionsparticularly influential, not only for the
immediate market dynamics but also forlong-term industry trends.
In summary, while the probability of drasticcuts remains uncertain, the conversation
surrounding Indonesia's nickel output is atestament to the interconnectedness of global
(04:51):
markets.
Investors and industry stakeholders will needto remain vigilant, adapting to the evolving
landscape as Indonesia navigates its role as adominant player in the nickel market.
Let's delve into our third story of the day,which focuses on Indonesia's recent entry into
the BRICS economic grouping.
(05:12):
This is a significant milestone for Indonesia,marking it as the first Southeast Asian nation
to join this influential bloc.
BRICS originally comprised Brazil, Russia,India, China, and South Africa, but now
includes Indonesia, expanding its reach andinfluence.
The inclusion of Indonesia, the largest economyin Southeast Asia, into BRICS is expected to
(05:35):
bring a myriad of economic benefits.
Experts have praised this move, highlightinghow it could bolster Indonesia's economy,
attract more investments, expand market access,and enhance its international standing.
According to Luhut Binsar Pandjaitan, chairmanof Indonesia's National Economic Council,
joining BRICS will help Indonesia diversify itsmarket reach, particularly amidst global
(06:00):
economic uncertainties.
Traditionally, Indonesia's exports have beenheavily reliant on Western markets.
However, as Nailul Huda from the Center ofEconomic and Law Studies points out, BRICS
membership could help Indonesia reduce thisdependency.
The inclusion of Middle Eastern countries inBRICS aligns with Indonesia's strategic goals
(06:21):
to tap into these emerging markets, offeringsubstantial benefits for Indonesia’s export
sector.
From an economic perspective, Telisa AuliaFalianty, a professor of monetary economics at
the University of Indonesia, notes thatIndonesia's involvement in BRICS could
potentially increase its economic growth by 0.3percent.
(06:43):
For Indonesia, BRICS presents an opportunity tocreate a more competitive business environment
and to play a significant role in the bloc'seconomic agenda.
Beyond economic implications, Indonesia's entryinto BRICS also amplifies its global influence.
The Ministry of Foreign Affairs views thismembership as a strategic step to enhance
(07:04):
collaboration with other developing nations,rooted in principles of equality, mutual
respect, and sustainable development.
As stated by Minister of Foreign Affairs,Sugiono, the BRICS agenda closely aligns with
Indonesia's national priorities, including foodand energy security, poverty eradication, and
human capital development.
(07:26):
Rolliansyah Soemirat, spokesperson forIndonesia's Ministry of Foreign Affairs,
underscores BRICS as a pivotal platform forstrengthening South-South cooperation.
This membership allows Indonesia to have agreater voice in global decision-making
processes and to advocate for the aspirationsof the Global South.
Indonesia's role in BRICS is set to expand itssphere of influence, contributing to global
(07:50):
balance and addressing critical issues such asclimate change and sustainable development.
Economist Wijayanto Samirin from ParamadinaUniversity describes Indonesia's BRICS
membership as a strategic move to enhance itsbargaining power on the global stage.
It enables Indonesia to shape the direction andframework of BRICS, thus playing a key role in
(08:12):
the organization's future.
International relations expert Muhammad SyaroniRofii emphasizes that BRICS membership allows
Indonesia to expand its network of globalpartnerships, amplifying the voices of the
Global South.
In summary, Indonesia's entry into BRICS is notjust an economic boon but also a strategic
(08:33):
geopolitical maneuver.
It positions Indonesia as a vital player inboth regional and global arenas, with the
potential to influence key internationalagendas and foster stronger multilateral ties.
Alright, that's a wrap for this episode.
If you enjoyed this brief, and would like tostay updated on latest episodes, don’t forget
(08:53):
to click ‘Follow’ in your podcast app.
Thanks again for listening, and hope to catchyou next time.
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