Asia

Southeast Asia’s post‑pandemic tourism rebound has been powerful but patchy, with major markets returning to roughly 80–100 percent of 2019 visitor levels while showing widely different trajectories this year. The six largest destinations — Thailand, Vietnam, Indonesia, Malaysia, Singapore and the Philippines — together received about 114 million international visitors in 2024, roughly 89 percent of 2019 levels, yet patterns since then point to a region recovering unevenly and, in some cases, cooling again (The Diplomat explainer).

The morning mist lifts from Wat Pho’s golden spires as another stream of international visitors begins exploring Bangkok’s ancient temples. Yet behind these familiar scenes, Thailand’s tourism industry faces a complex reality that mirrors broader challenges across Southeast Asia.

Thailand stands as the region’s undisputed tourism leader, welcoming 35 million international visitors in 2024—a remarkable recovery that outpaces most regional competitors. However, this achievement masks underlying vulnerabilities that could reshape the kingdom’s tourism landscape in 2025 and beyond.

Japanese students are increasingly turning their sights to Asian study destinations such as Taiwan, South Korea, Malaysia and the Philippines as inflation and a weakened yen make traditional Western options more costly. This shift is visible in recent outbound volumes and agent surveys showing both a rebound in overall numbers and a marked rise in short- to mid-term programmes in Asia, a change that creates new opportunities — and new responsibilities — for Thai universities and the broader education and service sectors in Thailand (Japan Times report).

Economic pressures drive historic shift from Western universities

A silent revolution is transforming Japan’s education landscape. As living costs soar and the yen weakens, thousands of Japanese students are abandoning dreams of studying in America, Australia, and Britain. Instead, they’re choosing Thailand, Malaysia, South Korea, and Taiwan — destinations that promise quality education without financial devastation.

The numbers tell a compelling story. More than 70,000 Japanese students ventured abroad in 2024, marking a robust recovery to 90% of pre-pandemic levels, according to the Japan Association of Overseas Studies. Yet the destinations have fundamentally changed. Asian countries now capture unprecedented market share, growing faster than traditional Western powerhouses since 2020.

An OECD report released this spring warns that rapidly growing cities across Southeast Asia face a funding gap for green, resilient and inclusive urban development unless governments diversify financing instruments, strengthen subnational creditworthiness and crowd in private investment through targeted risk-sharing tools and project pipelines. The report, Financing Sustainable Cities in Southeast Asia: Diversifying Instruments and Leveraging Private Investment, focuses on the ASEAN‑5 — Indonesia, Malaysia, the Philippines, Thailand and Viet Nam — and argues that existing public budgets and traditional bank lending will not be enough to deliver mass transit, flood defences, clean water, affordable housing and low‑carbon energy at the speed cities need. The analysis, issued by the OECD and presented at regional events in April–May 2025, lays out practical steps for national and local policymakers to mobilise a broader mix of instruments — municipal bonds, green and sustainability bonds, blended finance facilities, public‑private partnerships with stronger safeguards, and value‑capture tools — while improving governance and transparency to make urban projects bankable for institutional investors (OECD report).

A groundbreaking OECD study released this spring delivers a stark warning that Southeast Asia’s rapidly expanding urban centers stand at a financial crossroads, with traditional funding mechanisms proving catastrophically inadequate for the green infrastructure revolution these cities desperately need. The comprehensive analysis, titled “Financing Sustainable Cities in Southeast Asia: Diversifying Instruments and Leveraging Private Investment,” focuses laser-sharp attention on the ASEAN-5 nations—Indonesia, Malaysia, the Philippines, Thailand, and Vietnam—revealing how conventional public budgets and standard banking relationships cannot possibly deliver the mass transit systems, flood protection networks, clean water infrastructure, affordable housing developments, and low-carbon energy installations these urban areas require at breakneck speed. International development experts who presented the OECD findings at high-level regional conferences throughout April and May 2025 outlined an ambitious roadmap requiring national and local policymakers to fundamentally restructure their approach to urban finance through innovative instruments including municipal bonds, green and sustainability-linked securities, sophisticated blended finance facilities, reformed public-private partnerships with enhanced social safeguards, and strategic value-capture mechanisms that improve governance transparency to make urban projects genuinely attractive to major institutional investors.

Southeast Asian students are suddenly at the center of a global tug‑of‑war over talent. Governments from Australia to Norway are rewriting rules and budgets to pull in learners from ASEAN, while Japan, South Korea and Taiwan are rolling out ambitious targets and post‑study work routes to keep students in the region. A new report by DW synthesizes these moves and the intensifying competition for international enrollments, underscoring that Southeast Asia has become the third‑largest source region for outbound students globally. For Thai families weighing where to study, and for Thai universities deciding how to compete, the landscape is changing fast—and in their favor if they act quickly and strategically.

An extraordinary global competition has erupted for Southeast Asian students, transforming international higher education recruitment into a high-stakes diplomatic and economic battleground. Universities across continents are dismantling decades-old admission policies and launching multi-million-dollar campaigns specifically targeting ASEAN learners, recognizing Southeast Asia as the world’s third-largest source of mobile students. This unprecedented shift represents far more than simple enrollment competition—it signals a fundamental realignment of global academic power that positions Thai students and institutions at the center of a transformative opportunity. Recent comprehensive analysis reveals that governments from Australia to Germany are implementing radical policy changes, offering unprecedented scholarships, and creating entirely new pathways designed exclusively for Southeast Asian applicants. For Thai families contemplating international education and Thai universities seeking global partnerships, this moment presents both remarkable opportunities and critical strategic decisions that will shape educational trajectories for the next generation.

Ancient human species were island-hopping in Asia over a million years ago, according to new research published in Nature and highlighted by UK’s Natural History Museum—a finding that revolutionizes our understanding of human migration and adaptation in the prehistoric world. Researchers have uncovered stone tools in Sulawesi, Indonesia, dated between 1 and 1.5 million years ago, pointing to a mysterious lineage of ancient humans who reached Southeast Asia’s remote Wallacean islands far earlier than previously believed. These discoveries not only challenge existing theories on early human dispersal, but also underscore the resilience and ingenuity of ancient hominins in overcoming formidable natural barriers.

Investors scouring Asia for promising stocks are looking beyond household names, identifying “undiscovered gems” with robust fundamentals poised for growth even as global markets remain turbulent. The latest research, published August 6, 2025, by investment analytics platform Simply Wall St and reported by Yahoo Finance, highlights a slate of standout companies from China, Japan, and across East Asia, offering insights with timely relevance for Thailand’s own business and investment landscape. Amid economic uncertainties, the resilience of select Asian firms sheds light on strategies that Thai entrepreneurs, policymakers, and investors could consider to stay competitive and resilient in a dynamic regional economy.

An environmental crisis of unprecedented scale now engulfs Southeast Asia as China’s systematic closure of polluting industries has triggered massive relocation of contaminating manufacturing operations, overwhelming waste processing systems and toxic material disposal infrastructure throughout the region. This industrial exodus, representing a troubling evolution of traditional economic development patterns, delivers substantial employment opportunities alongside devastating environmental consequences that threaten public health and ecological stability across Thailand, Vietnam, Malaysia, and Indonesia. China’s enforcement of stringent environmental regulations since 2018 has compelled thousands of polluting enterprises to seek alternative operational bases in Southeast Asian nations with weaker regulatory oversight, effectively exporting environmental degradation rather than eliminating harmful industrial practices entirely.

Seven weathered stone tools discovered deep within Sulawesi’s ancient sediments have fundamentally transformed scientific understanding of human intelligence and maritime capabilities, revealing that prehistoric ancestors successfully navigated Indonesia’s treacherous ocean barriers more than one million years ago. This extraordinary archaeological breakthrough, recently published in Nature, extends confirmed evidence of early human presence in Southeast Asia by an unprecedented 800,000 years, forcing researchers worldwide to completely reconsider when our ancestors first developed the sophisticated cognitive abilities necessary for deliberate ocean crossings. The discovery provides revolutionary insights into prehistoric problem-solving capabilities, demonstrating that unknown human relatives possessed remarkable planning skills and technological innovation that enabled systematic colonization of isolated islands across some of Earth’s most challenging oceanic terrain.

A new wave of relocating industries, dubbed the “new flying geese,” is bringing both foreign capital and mounting waste to Southeast Asia as China tightens its environmental regulations. This phenomenon, highlighted in a recent Nikkei Asia opinion article, signals a momentous shift in regional manufacturing that may reshape Southeast Asia’s economies and environment for years to come.

The “flying geese paradigm” originally described how industrialization travels in formation from advanced economies to less-developed ones—first from Japan, and more recently from China to Southeast Asia. Today, as China ramps up its enforcement on pollution and waste, manufacturers and recycling businesses—long byproducts of foreign investment—are relocating their operations to Southeast Asian countries such as Thailand, Vietnam, Malaysia, and Indonesia. This move is accompanied not just by new jobs and capital inflows but also by an influx of plastic, electronic, and other hazardous wastes in their wake (CFR; National Geographic).

Comprehensive financial analysis identifying Asia’s most undervalued enterprises with exceptional growth trajectories has uncovered strategic investment opportunities that could revolutionize Thailand’s approach to regional economic integration and sophisticated capital allocation strategies. Research conducted by leading financial analytics platforms reveals ten carefully selected Asian companies demonstrating extraordinary resilience, innovative business architectures, and remarkable financial performance despite challenging global economic conditions characterized by supply chain disruptions, energy price volatility, and shifting consumer demand patterns across multiple sectors. These discoveries provide Thai investors, policymakers, and business leaders with actionable intelligence for identifying similar domestic opportunities while developing sophisticated methodologies that leverage proven success frameworks to strengthen Thailand’s competitive positioning within Southeast Asia’s dynamic economic ecosystem.

Thailand is being urged to overhaul its tourism strategy to seize a burgeoning opportunity in the Asia-Pacific luxury travel market, as affluent travelers from countries like China and India shape the future of the regional hospitality industry. Recent market research indicates that the nation’s traditional approach risks falling behind more agile competitors unless authorities and private-sector partners move quickly to upgrade infrastructure, embrace luxury-focused branding, and deliver exclusive experiences on par with global leaders (Travel and Tour World).

Thailand’s tourism sector stands at a critical juncture as industry leaders demand comprehensive strategic overhaul to capitalize on unprecedented growth in Asia-Pacific luxury travel demand. Affluent travelers from China, India, and emerging Southeast Asian economies increasingly influence regional hospitality market evolution, prompting urgent calls for infrastructure modernization, premium branding initiatives, and exclusive experience development. Recent market analysis by Travel and Tour World reveals that Thailand’s traditional volume-based tourism model faces existential challenges from more adaptable regional competitors who rapidly embrace luxury-focused strategies. The Kingdom must act decisively to upgrade its hospitality infrastructure, refine its global brand positioning, and deliver world-class premium experiences that match international luxury standards.

Malaysia is rapidly stepping out of the shadows as South-East Asia’s most underappreciated travel destination, buoyed by fresh research and a remarkable spike in international visitors. Long overshadowed by its bustling neighbors Thailand and Indonesia, Malaysia’s natural beauty, vibrant multicultural cities, and eco-tourism adventure are now drawing increasing attention—with experts urging Thai travelers and industry stakeholders to take note before the tourism rush turns the nation’s tranquil charms mainstream.

Positioned at the heart of ASEAN, Malaysia boasts lush rainforests, dazzling metropolises, and some of the region’s most pristine coastlines. Yet it is often regarded as merely a stopover on long-haul routes, especially in comparison to Thailand’s famed beaches or Indonesia’s Bali. Recent research and the latest field reports suggest this perception is swiftly changing. Following the resumption of direct British Airways flights from London to Kuala Lumpur and a 20% jump in tourist arrivals in the first months of 2025 compared to 2024, Malaysia is on the brink of a tourism renaissance (The Telegraph).

Malaysia is orchestrating one of Southeast Asia’s most impressive tourism transformations, evolving from a frequently overlooked regional stopover into a sophisticated destination that rivals Thailand’s traditional dominance in attracting international visitors. This strategic emergence offers both competitive challenges and collaborative opportunities for Thailand’s tourism sector, as Malaysia’s success demonstrates how thoughtful destination development, cultural authenticity, and sustainable practices can create compelling alternatives for travelers seeking experiences beyond overtouristed hotspots. For Thai tourism stakeholders, understanding Malaysia’s rise provides crucial insights into evolving traveler preferences and regional competition dynamics that will shape Southeast Asian tourism for decades.

Southeast Asia’s urban centres are facing unprecedented challenges as they attempt to finance the transition to sustainable, resilient, and climate-friendly cities, according to the latest analysis by the Organisation for Economic Co-operation and Development (OECD). The report—“Financing Sustainable Cities in Southeast Asia”—delves into the critical question of how city governments in the rapidly urbanising ASEAN-5 (Indonesia, Malaysia, the Philippines, Thailand, and Vietnam) can marshal the investments necessary to achieve their ambitious sustainability agendas. Against a backdrop of rising carbon emissions, increased climate risks, and mounting infrastructure needs, the report’s findings have major implications for cities across the region, including Bangkok, Chiang Mai, and other key Thai urban areas.

Southeast Asia’s urban transformation stands at a critical crossroads, with cities across the region—including Bangkok, Chiang Mai, and emerging Thai metropolitan areas—facing an unprecedented financing crisis that threatens their sustainable development ambitions. A groundbreaking analysis by the Organisation for Economic Co-operation and Development reveals how rapidly growing ASEAN cities are struggling to secure the massive investments required to combat climate change, manage urban growth, and build resilient infrastructure systems. For Thailand, these findings expose fundamental weaknesses in municipal finance structures that could determine whether the kingdom’s cities evolve into sustainable models or become cautionary tales of missed environmental opportunities.

A devastating wave of technologically advanced cybercrime operations has transformed Southeast Asia into the epicenter of a global digital fraud epidemic, with criminal syndicates orchestrating billion-dollar theft schemes while exploiting vulnerable workers through human trafficking networks. This escalating crisis directly threatens Thailand’s economic stability, digital transformation goals, and citizen safety, as sophisticated criminal organizations leverage regional connectivity and regulatory gaps to build unprecedented fraud empires that target both Thai nationals and international victims.

A recent surge in highly organized online scams running out of Southeast Asia has escalated into what experts are calling a global “scamdemic,” with billions of dollars stolen, hundreds of thousands of victims, and entire communities in Thailand and across the region at risk. The phenomenon, driven largely by transnational criminal networks, is now recognized as a crisis threatening personal safety, national security, and international cooperation.

What began as a relatively contained problem has exploded in scale and complexity, fueled by the COVID-19 pandemic, regulatory loopholes, and advances in digital communications. According to a report by the United Nations Office on Drugs and Crime (UNODC), fraud syndicates run primarily by Chinese organized crime have set up scam hubs in countries including Cambodia, Laos, Myanmar, and the Philippines, with operations increasingly targeting Thais and foreigners alike (VOA News). These criminal enterprises lure job seekers with false promises, only to force them into working in call center-like factories under threats of violence and, in some cases, death.

A wave of change is reshaping Asia’s demographics and economies, propelled by an often-overlooked force: women aged 50 and above. Across China, Japan, South Korea, and increasingly in Thailand, these mature female consumers are growing into influential tastemakers, dynamic drivers of the burgeoning “silver economy,” and central participants in new business, cultural, and societal trends. As Asia confronts declining birth rates and aging populations, research shows that the region’s 50+ female demographic is not only expanding rapidly but also transforming what it means to age — and to consume — in modern society (Jing Daily).

Southeast Asia’s dynamic cities are at the forefront of the global push toward sustainability, but a new report by the Organisation for Economic Co-operation and Development (OECD) sheds light on daunting obstacles facing city governments as they work to build cleaner, more inclusive, and climate-resilient urban environments. As detailed in the OECD’s latest publication, “Financing Sustainable Cities in Southeast Asia” (OECD), Southeast Asia’s urban population is rising rapidly, placing unprecedented pressure on sanitation, housing, transportation, and climate adaptation measures—yet local authorities struggle to marshal the funding, expertise, and institutional backing needed to deliver ambitious green infrastructure.