The Brief: Asia's economy, 12 October 2026

Economies

Southeast Asia FDI Hits US$226bn, Singapore Lands Record US$143bn: Foreign direct investment into the region grew 8% in 2024, driven by new manufacturing and digital economy projects, according to the Singapore Economic Development Board.

Indonesia Mandates Travel Spending Cuts Amid Budget Pressure: Indonesia's government has ordered ministries to reduce unspent travel allocations by 30%, facing a budget deficit that widened to 1.24% of GDP by end-September due to rising energy costs.

Goldman Sachs sees higher Thai H1 2026 growth, no BOT rate hike: The investment bank projects Thailand's first-half 2026 GDP growth could rise to 2.9% from 2.4%, driven by expanded manufacturing data coverage, but cautions against immediate monetary tightening.

Markets

Indian Equities Recover: Domestic Inflows Counter Foreign Sales: India's Nifty 50 and Sensex ended an eight-week decline on October 9, supported by local investors buying ₹40,355 crore amidst high global oil prices.

Indonesia Forex Reserves Edge Down to US$146.3 Billion in September: Bank Indonesia's foreign exchange holdings saw a slight dip last month as the central bank continued rupiah stabilisation efforts, maintaining import cover above international benchmarks.

India's RBI Lifts Key Rate to 5.50%, Signals Further Tightening Amid Inflation: The Reserve Bank of India unanimously raised its benchmark repurchase rate by 25 basis points, marking the first hike since December 2024, driven by accelerating price pressures.

Indian Sensex, Nifty Snap Eight-Week Losing Streak: India's benchmark equity indices recovered last week, ending their longest decline in 25 years, driven by gains in technology and consumer goods stocks.

RBI to Provide Dollars Directly to State Oil Firms: The Reserve Bank of India will sell US dollars to Indian Oil, Hindustan Petroleum, and Bharat Petroleum from October 12, 2026, to cover their full daily import needs.

Crypto Industry Must Protect Investors From Violent Crime: The cryptocurrency sector must address the rising threat of physical violence, known as “wrench attacks,” against digital asset holders, according to Singapore's Asia Academy of Digital Economics.

Banking & Fintech

UOB, AWS Partner for ASEAN Hybrid Cloud Banking, AI Skills: The collaboration will establish a dedicated Singapore cloud environment, enhancing UOB's operational resilience and regulatory compliance across five Southeast Asian markets.

Temasek’s Seviora to Merge Three Asset Managers by 2027: Seviora, a Temasek-owned firm, plans to consolidate Azalea Investment Management, SeaTown Holdings International, and Seviora Capital under a single platform by January 2027.

Industries

LG Electronics boosts US premium appliance presence: The South Korean firm expands its Signature brand's retail access and AI-powered offerings, marking its tenth year in the market.

Phu My Hung Unveils Ho Chi Minh City Urban Transformation Plan: Phu My Hung is investing hundreds of millions of US dollars to transform its 34-year-old urban area in Ho Chi Minh City, with a US$150 million mixed-use complex and a US$30 million art centre among key projects.

Nvidia eyes Reflection AI acquisition or expanded investment: The chipmaker previously invested $800 million in the software development automation firm, which launched its Beam model on 7 October.

MBS, RWS Fined S$175,000 for Ad Breaches: Marina Bay Sands and Resorts World Sentosa received fines from Singapore's Gambling Regulatory Authority, detailed in its annual report for the financial year ending March 2026.

Singapore F1 hotel rates triple, occupancy lags 2025 record: Wyndham Singapore reported average daily rates for F1 weekend lead-in rooms between S$1,000 and S$1,200, with occupancy tracking five percentage points below last year.

Wealth

Gen Z Art Spending Doubles, China, Hong Kong Drive US$60 Billion Market: New Art Basel and UBS data shows younger wealthy collectors spent over twice as much as older generations last year, pushing global art sales to nearly US$60 billion.