Markets

Malaysia’s 1Malaysia Development Berhad (1MDB) scandal reached a crescendo in July 2016. The US Attorney General claimed that more than US$3.5 billion belonging to 1MDB was ‘allegedly misappropriated by high-level officials of 1MDB and their associates’ between 2009 and 2015....

Without networks within the military, and having no effective power over the political parties, President Joko Widodo (Jokowi) has been constrained in his political manoeuvres. To combat this, Jokowi has installed retired army generals to important civilian posts as coordinating...

During the second bi-monthly monetary policy decision in August this year, the Reserve Bank of India maintained the policy repo rate under the liquidity adjustment facility as unchanged at 7.25%. As a consequence, the reverse repo rate against the liquidity...

EM ended last week on a soft note, as Fed tightening expectations ratcheted up.  The December Fed funds futures contract has an implied yield of 0.5%, the highest since June 2.  Note that on June 3, US rates plunged after...

Federal treasurer Scott Morrison’s diagnosis of the risks and challenges confronting the Australian economy, as set out in his Bloomberg Address in Sydney, is hard to fault. Federal treasurer Scott Morrison’s diagnosis of the risks and challenges confronting the Australian economy, as...

Reserve Bank of India Deputy Governor Patel has been named to succeed outgoing Governor Rajan; political risk is back in South Africa; the Colombian government and the FARC rebels have reached a final peace agreement; S&P cut the outlook on...

Background In February 2016, the Bank of Japan (BOJ), in order to reach a 2% inflation target, initiated a negative interest rate policy by increasing massive money supply through the purchase of long-term Japanese government bonds (JGBs). This policy flattened...

Joko Widodo’s (Jokowi) victory in the 2014 presidential election was celebrated as it represented a major step forward for democracy in the world’s largest Muslim-majority country. Jokowi’s rise to power was unprecedented. It was largely the collective effort of volunteers...

The interaction between artisanal (small-scale) mining and agriculture in Africa still needs to be carefully considered by policy makers to ensure that people’s livelihoods and countries' export revenues aren’t threatened. It’s also important that the relationship between the two sectors...

Water and energy are indispensable inputs to modern economies. However, in China these are both under threat. China’s per capita quantity of fresh water is only one-quarter of the global average and its sparse water resources are unevenly distributed across...

Once again, President Joko Widodo has reshuffled his cabinet. One pleasant surprise is the return of Sri Mulyani Indrawati, who until recently was Managing Director and Chief Operating Officer of the World Bank. She accepted the offer to serve as...

The new Philippine president is waging a tough drug war, pushing economic growth domestically and greater pragmatism in foreign policy that could contribute to Southeast Asia’s future. The new Philippine president is waging a tough drug war, pushing economic growth...

The local business community is upbeat with the passing into law of Republic Act 10744, otherwise known as the Credit Surety Fund Cooperative Act of 2015 on 6 February 2016. Essentially, the said law provides for the creation and organization...

This year began with international media attention drawn to the weakness of China’s economy. This prediction was validated on 9 May 2016 when the People’s Daily ran on its front page an article written by President Xi Jinping that expounded...

Duterte is gaining in the war on drugs, but at a terrifying cost to Filipino society.  The Philippines is drowning in a wave of killings as the government of the newly proclaimed President Rodrigo Duterte combats the illegal drug trade....