ASEAN Express: July 3, 2026

Vietnam: Ends FTA Negotiations with EFTA

(CNA Taipei, July 3) Vietnam and the European Free Trade Association (EFTA) officially announced on July 2 that negotiations for a comprehensive Free Trade Agreement (FTA) between the two sides have concluded.

EFTA, composed of Switzerland, Norway, Iceland, and Liechtenstein, and Vietnam completed 21 rounds of formal negotiations, with the final agreement reached at a meeting held in Reykjavik, Iceland.

The agreement covers trade in goods and services, investment and government procurement, intellectual property rights, as well as sustainable development and small and medium-sized enterprises.

Laos: Signs 10 Community Development Project Agreements with India

(CNA Taipei, July 3) The governments of Laos and India signed a Memorandum of Understanding (MOU) on July 2 to implement 10 quick-impact projects under the Mekong-Ganga Cooperation (MGC) framework during the 2026-2027 fiscal year, strengthening bilateral development cooperation and supporting community development across Laos.

The Lao News Agency reported that the agreement was signed at the Ministry of Foreign Affairs by Indian Ambassador Yogeshwar Sangwan and representatives from 10 beneficiary provinces in Laos. The Lao Deputy Minister of Foreign Affairs also attended the ceremony as a witness, along with other officials from the Ministry of Foreign Affairs and the Indian Embassy.

Singapore: Economic Growth Forecast Raised Driven by AI Investment and Construction Boom

(CNA Taipei, July 3) Several major research institutions in Singapore have raised the country's economic growth forecasts, driven by resilient economic activity, continued increases in AI-related investments, and a booming construction sector. Furthermore, easing geopolitical tensions in West Asia have reduced downside risks to economic growth.

DBS Group Research raised its forecast for Singapore's real Gross Domestic Product (GDP) growth in 2026 from 2.8% to 4.3%, and its forecast for 2027 from 2.3% to 3%.

The research department noted that the cooling of tensions between the United States and Iran helps alleviate stagflationary pressures and reduce downside risks to economic growth. Simultaneously, the continuation of the global AI economic cycle, strong momentum in the financial services sector, and a construction boom all support a positive overall outlook.

Philippines: Department of Agriculture to Ban Imports of White Rice with 5% Broken Rice Content

(CNA Taipei, July 3) The Philippine Secretary of Agriculture stated that the Department of Agriculture "will not allow" the import of white rice with a 5% broken rice content, with only imports of rice with 25% broken rice content and other lower-quality varieties being permitted.

The Manila Times reported that the Department of Agriculture stated the move aims to protect domestic rice farmers and prevent a repeat of the rice price collapse experienced last year.

Myanmar: Central Bank Sells Foreign Exchange to Support Edible Oil Importers and CMP Enterprises

(CNA Taipei, July 3) The Central Bank of Myanmar sold over US$3.3 million to edible oil importers and over US$20,228 to Cut, Make, and Pack (CMP) enterprises on July 1.

The Myanmar Times reported that the Central Bank of Myanmar continues to release foreign exchange into the market to stabilize the foreign exchange market and curb currency depreciation pressure.

Malaysia: June Manufacturing PMI Recovers to 50.7, Returning to Expansionary Territory

(CNA Taipei, July 3) Latest data from S&P Global shows that Malaysia's Manufacturing Purchasing Managers' Index (PMI) in June recovered to 50.7 from 49.0 in May, moving back above the 50.0 threshold that separates expansion from contraction. This indicates that Malaysia's manufacturing sector has regained growth momentum after a brief slowdown.

According to a report by MBSB Research, as the first half of 2026 draws to a close, the stabilization and rebound in new orders, along with strong production output, have been the main drivers of this manufacturing sector improvement, signaling a healthier overall business environment.

Thailand: Raises Export Forecast for This Year, Expects 10% Growth Driven by AI

(CNA Taipei, July 3) The National Shipping Council of Thailand today significantly raised Thailand's export growth forecast for this year from the January estimate of 2% to 4% to 8% to 10%. The council pointed out that exports in the first five months of this year have already increased by 17% year-on-year, driven by demand for electronics and AI-related goods, and growth is expected to continue in the second half of the year.

However, the council also warned that geopolitical tensions and global trade uncertainties could slow the pace of growth. Compared to last year's export growth of 12.9%, the Bank of Thailand last month raised its economic growth forecast for 2026 to 2.3% and projected an annual export growth rate of up to 14%.

Cambodia: SMEs Upgrading Energy-Saving Equipment Can Apply for Low-Interest Loans Up to US$1 Million

(CNA Taipei, July 3) Cambodia has launched a financing program allowing local small and medium-sized enterprises (SMEs) to apply for preferential interest rate loans of up to US$1 million (approximately NT$32.61 million) to introduce energy-saving equipment and renewable energy technologies. This program aims to reduce operating costs for businesses and enhance market competitiveness.

This "Energy Efficiency Financing Program" operates through a newly established "Energy Efficiency Revolving Fund" with a total capital of US$20 million. Eligible SMEs can obtain long-term financing of up to 10 years with interest rates as low as 5.5%, making it one of the most favorable loan programs for the energy efficiency sector in Cambodia.

Indonesia: June Manufacturing PMI Plummets to 46.9, Sharpest Contraction in One Year

(CNA Taipei, July 3) Latest data from S&P Global shows that Indonesia's Manufacturing Purchasing Managers' Index (PMI) in June plummeted to 46.9 from the 50.0 threshold in May, entering its sharpest contraction in one year. The main reason is the renewed decline in new orders, with overall demand experiencing its fastest fall in a year.

The depletion of new orders, coupled with the fastest pace of increase in ex-factory prices in nearly 13 years, has severely impacted Indonesia's manufacturing sector, leading to increasing calls for government intervention.

*For more information, please contact Section Chief Chang Li-chuan at (02) 2505-1180 ext. 792 or EMAIL: mia@mail.cna.com.tw

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