January 3, 2025 • 8 mins
In this episode, Michelle welcomes listeners and introduces key economic trends in Southeast Asia. She explores Vietnam's evolving capital market, focusing on recent amendments to securities law and their implications. The discussion then shifts to Singapore, examining its economic growth forecast and the flexibility of its policies. Michelle highlights Singapore's pioneering role in cryptocurrency regulation, analyzing its impact on the financial landscape. The episode concludes with closing remarks and an encouragement for listeners to follow the podcast for more insights.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Welcome back to the Southeast Asia MarketsDaily Brief.
I’m your host, AI Michelle.
Here are our top stories today...
First, Vietnam's capital market transformationpaves the way for double-digit growth.
Second, Singapore's economy grew four percentin 2024, advance estimate shows, marking the
(00:22):
fastest post-pandemic growth.
Third, Singapore's crypto regulation positionsit as Asia's new leader, attracting global
blockchain giants.
Let’s dive into our first story.
Vietnam is taking bold steps to transform itscapital markets, with an ambitious goal of
achieving eight percent economic growth by 2025and setting the stage for double-digit growth
(00:46):
from 2026 to 2030.
Under the leadership of Prime Minister PhamMinh Chinh, the country is focusing on
efficient capital mobilization as a cornerstoneof its strategy.
Historically, Vietnamese businesses haveheavily relied on short-term bank financing,
which often limits access to the broadercapital markets and long-term financial
(01:07):
instruments.
Recognizing this, Vietnam is actively workingto diversify and strengthen its capital
markets, which have traditionally been smallerin scale compared to regional peers.
Key initiatives include upgrading the stockmarket, leveraging sovereign debt to fund
critical infrastructure projects, andtightening regulations in the corporate bond
(01:27):
market.
These efforts come on the heels of a crackdownon corrupt real estate tycoons, aiming to
bolster investor confidence and transparencyacross the board.
Vietnam is also eyeing inclusion in majoremerging-market indices like FTSE or MSCI by
2025.
Such a development could potentially attract upto twenty-five billion dollars in foreign
(01:50):
investments by 2030.
Despite some challenges, like net foreigninvestor selling due to geopolitical tensions
and a weaker dong, the VN-Index still rose bytwelve percent in 2024, driven largely by
domestic investors.
Looking ahead, Vietnam plans to amend itsSecurities Law and implement information
(02:12):
technology upgrades in 2025 to further boostmarket transparency and efficiency.
The corporate bond market has already shownpromising signs of recovery, with a sixty
percent increase in bond issuance in 2024,supported by recent legal amendments that
enhance transparency and permit foreignparticipation, provided they meet professional
(02:32):
investor criteria.
Meanwhile, the government bond market remains avital fundraising mechanism for large-scale
infrastructure projects, though it does facechallenges like low yields and limited
diversity among investors.
On the innovation front, Vietnam is setting upa trial carbon credit market from 2025 to 2028,
(02:53):
with plans for a nationwide launch by 2029, andis also working on establishing a legal
framework for virtual assets by May 2025.
This comes amid increasing cryptocurrencyownership and global recognition of Vietnam's
high crypto adoption rates.
These strategic moves underscore Vietnam’scommitment to fortifying its capital markets as
(03:15):
a lever for sustained economic growth.
However, to fully realize this potential, thecountry must focus on achieving regulatory
clarity, enhancing infrastructure, andstrategically engaging with investors.
Let's now turn our attention to Singapore,where the economy experienced remarkable growth
(03:36):
in 2024, marking its fastest expansion sincethe pandemic.
According to preliminary government data,Singapore's Gross Domestic Product grew by four
percent, significantly accelerating from a onepoint one percent increase in 2023 and a three
point eight percent rise in 2022.
(03:57):
This impressive growth was highlighted by afour point three percent rise in the fourth
quarter alone, surpassing the median forecastof three point three percent in a Reuters poll
of economists.
Economists have noted that Singapore isentering 2025 in a favorable position, with
growth on a high and inflation sitting belowtwo percent.
(04:19):
Maybank economist Chua Hak Bin attributes thispositive outlook to the strategic shifting of
supply chains to Southeast Asia and a surge inshipments ahead of potential higher United
States tariffs.
These factors are expected to continue fuelingmanufacturing growth in the first half of 2025.
However, the trade ministry has temperedexpectations, forecasting a more cautious
(04:43):
growth rate of one to three percent for 2025.
OCBC economist Selena Ling suggests that thisconservative prediction is grounded in current
external challenges, including the possibilityof renewed tariffs under a second Trump
administration and the potential tapering ofpre-tariff shipment activities.
Despite these concerns, Ling remains optimisticthat growth will not slow down too drastically,
(05:07):
with expectations of a baseline growth ofaround two percent.
Furthermore, the recent annual inflation rateof one point nine percent, the lowest in nearly
three years, provides the Monetary Authority ofSingapore with the flexibility to adjust
monetary policy if necessary.
Although the central bank maintained a steadypolicy at its October review, analysts
(05:31):
speculate that a policy shift might beconsidered later in 2025, depending on the
impact of the incoming United StatesPresident's economic measures.
In summary, while Singapore's economy isshowing robust signs of recovery and growth,
the landscape for 2025 remains cautiouslyoptimistic, with economists keeping a close
(05:53):
watch on external influences and policydirections.
The city's strategic position in Southeast Asiaand its adaptability to shifting global trade
dynamics continue to bolster its economicresilience.
Finally, let's delve into Singapore'sburgeoning role as a leader in the
cryptocurrency landscape.
(06:14):
The city-state is making waves with itsforward-thinking regulations under the Payment
Services Act, which have become a magnet forglobal blockchain giants like Okx and Upbit.
Singapore's robust economic growth, coupledwith its balanced regulatory framework, is
instilling confidence in its burgeoning cryptoecosystem.
(06:36):
As the cryptocurrency market witnesses abullish surge, with Bitcoin reaching one
hundred thousand dollars by the end of 2024,Singapore is strategically positioning itself
to stay ahead of the curve.
By attracting major players in the industry,Singapore is not just competing with, but is
outshining its regional rival, Hong Kong, inthe race to become Asia's top crypto hub.
(06:58):
The Monetary Authority of Singapore has alreadylicensed over two hundred payment institutions
under the Payment Services Act.
This comprehensive regulatory framework,introduced in 2020 and updated in April 2024,
ensures stringent management, compliance, andrisk controls to protect investors and
stabilize the crypto market.
(07:19):
These updates have been pivotal in restoringconfidence after the tumultuous market events
of 2021 and the collapse of several firms in2022.
Singapore's approach is particularly appealingbecause it strikes a balance between promoting
innovation and maintaining safety.
This strategy is solidifying its position as aglobal leader in the cryptocurrency space.
(07:43):
While Hong Kong offers unique staking services,Singapore is paving the way for more innovative
financial products and refined regulations,which are set to boost adoption in the coming
years.
In a world where many regions are tighteningcrypto regulations, Singapore is rolling out
the welcome mat for blockchain innovation.
(08:03):
The city's clear strategy to attract globalcompanies is not only enhancing its reputation
but is also steering the crypto industrytowards a brighter and more secure future.
As a result, Singapore is emerging as a keyplayer in shaping the digital economy of
tomorrow.
Alright, that's a wrap for this episode.
(08:23):
If you enjoyed this brief, and would like tostay updated on latest episodes, don’t forget
to click ‘Follow’ in your podcast app.
Thanks again for listening, and hope to catchyou next time.
Welcome back to the Southeast Asia MarketsDaily Brief.
I’m your host, AI Michelle.
Here are our top stories today...
First, Vietnam's capital market transformationpaves the way for double-digit growth.
Second, Singapore's economy grew four percentin 2024, advance estimate shows, marking the
(00:22):
fastest post-pandemic growth.
Third, Singapore's crypto regulation positionsit as Asia's new leader, attracting global
blockchain giants.
Let’s dive into our first story.
Vietnam is taking bold steps to transform itscapital markets, with an ambitious goal of
achieving eight percent economic growth by 2025and setting the stage for double-digit growth
(00:46):
from 2026 to 2030.
Under the leadership of Prime Minister PhamMinh Chinh, the country is focusing on
efficient capital mobilization as a cornerstoneof its strategy.
Historically, Vietnamese businesses haveheavily relied on short-term bank financing,
which often limits access to the broadercapital markets and long-term financial
(01:07):
instruments.
Recognizing this, Vietnam is actively workingto diversify and strengthen its capital
markets, which have traditionally been smallerin scale compared to regional peers.
Key initiatives include upgrading the stockmarket, leveraging sovereign debt to fund
critical infrastructure projects, andtightening regulations in the corporate bond
(01:27):
market.
These efforts come on the heels of a crackdownon corrupt real estate tycoons, aiming to
bolster investor confidence and transparencyacross the board.
Vietnam is also eyeing inclusion in majoremerging-market indices like FTSE or MSCI by
2025.
Such a development could potentially attract upto twenty-five billion dollars in foreign
(01:50):
investments by 2030.
Despite some challenges, like net foreigninvestor selling due to geopolitical tensions
and a weaker dong, the VN-Index still rose bytwelve percent in 2024, driven largely by
domestic investors.
Looking ahead, Vietnam plans to amend itsSecurities Law and implement information
(02:12):
technology upgrades in 2025 to further boostmarket transparency and efficiency.
The corporate bond market has already shownpromising signs of recovery, with a sixty
percent increase in bond issuance in 2024,supported by recent legal amendments that
enhance transparency and permit foreignparticipation, provided they meet professional
(02:32):
investor criteria.
Meanwhile, the government bond market remains avital fundraising mechanism for large-scale
infrastructure projects, though it does facechallenges like low yields and limited
diversity among investors.
On the innovation front, Vietnam is setting upa trial carbon credit market from 2025 to 2028,
(02:53):
with plans for a nationwide launch by 2029, andis also working on establishing a legal
framework for virtual assets by May 2025.
This comes amid increasing cryptocurrencyownership and global recognition of Vietnam's
high crypto adoption rates.
These strategic moves underscore Vietnam’scommitment to fortifying its capital markets as
(03:15):
a lever for sustained economic growth.
However, to fully realize this potential, thecountry must focus on achieving regulatory
clarity, enhancing infrastructure, andstrategically engaging with investors.
Let's now turn our attention to Singapore,where the economy experienced remarkable growth
(03:36):
in 2024, marking its fastest expansion sincethe pandemic.
According to preliminary government data,Singapore's Gross Domestic Product grew by four
percent, significantly accelerating from a onepoint one percent increase in 2023 and a three
point eight percent rise in 2022.
(03:57):
This impressive growth was highlighted by afour point three percent rise in the fourth
quarter alone, surpassing the median forecastof three point three percent in a Reuters poll
of economists.
Economists have noted that Singapore isentering 2025 in a favorable position, with
growth on a high and inflation sitting belowtwo percent.
(04:19):
Maybank economist Chua Hak Bin attributes thispositive outlook to the strategic shifting of
supply chains to Southeast Asia and a surge inshipments ahead of potential higher United
States tariffs.
These factors are expected to continue fuelingmanufacturing growth in the first half of 2025.
However, the trade ministry has temperedexpectations, forecasting a more cautious
(04:43):
growth rate of one to three percent for 2025.
OCBC economist Selena Ling suggests that thisconservative prediction is grounded in current
external challenges, including the possibilityof renewed tariffs under a second Trump
administration and the potential tapering ofpre-tariff shipment activities.
Despite these concerns, Ling remains optimisticthat growth will not slow down too drastically,
(05:07):
with expectations of a baseline growth ofaround two percent.
Furthermore, the recent annual inflation rateof one point nine percent, the lowest in nearly
three years, provides the Monetary Authority ofSingapore with the flexibility to adjust
monetary policy if necessary.
Although the central bank maintained a steadypolicy at its October review, analysts
(05:31):
speculate that a policy shift might beconsidered later in 2025, depending on the
impact of the incoming United StatesPresident's economic measures.
In summary, while Singapore's economy isshowing robust signs of recovery and growth,
the landscape for 2025 remains cautiouslyoptimistic, with economists keeping a close
(05:53):
watch on external influences and policydirections.
The city's strategic position in Southeast Asiaand its adaptability to shifting global trade
dynamics continue to bolster its economicresilience.
Finally, let's delve into Singapore'sburgeoning role as a leader in the
cryptocurrency landscape.
(06:14):
The city-state is making waves with itsforward-thinking regulations under the Payment
Services Act, which have become a magnet forglobal blockchain giants like Okx and Upbit.
Singapore's robust economic growth, coupledwith its balanced regulatory framework, is
instilling confidence in its burgeoning cryptoecosystem.
(06:36):
As the cryptocurrency market witnesses abullish surge, with Bitcoin reaching one
hundred thousand dollars by the end of 2024,Singapore is strategically positioning itself
to stay ahead of the curve.
By attracting major players in the industry,Singapore is not just competing with, but is
outshining its regional rival, Hong Kong, inthe race to become Asia's top crypto hub.
(06:58):
The Monetary Authority of Singapore has alreadylicensed over two hundred payment institutions
under the Payment Services Act.
This comprehensive regulatory framework,introduced in 2020 and updated in April 2024,
ensures stringent management, compliance, andrisk controls to protect investors and
stabilize the crypto market.
(07:19):
These updates have been pivotal in restoringconfidence after the tumultuous market events
of 2021 and the collapse of several firms in2022.
Singapore's approach is particularly appealingbecause it strikes a balance between promoting
innovation and maintaining safety.
This strategy is solidifying its position as aglobal leader in the cryptocurrency space.
(07:43):
While Hong Kong offers unique staking services,Singapore is paving the way for more innovative
financial products and refined regulations,which are set to boost adoption in the coming
years.
In a world where many regions are tighteningcrypto regulations, Singapore is rolling out
the welcome mat for blockchain innovation.
(08:03):
The city's clear strategy to attract globalcompanies is not only enhancing its reputation
but is also steering the crypto industrytowards a brighter and more secure future.
As a result, Singapore is emerging as a keyplayer in shaping the digital economy of
tomorrow.
Alright, that's a wrap for this episode.
(08:23):
If you enjoyed this brief, and would like tostay updated on latest episodes, don’t forget
to click ‘Follow’ in your podcast app.
Thanks again for listening, and hope to catchyou next time.
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