#Asean

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.

A forthcoming OECD study warns that Southeast Asia’s fast-growing cities face a funding crisis. Traditional budgets and standard bank lending can no longer deliver the mass transit, flood protection, clean water, affordable housing, and low-carbon energy systems needed at scale. The report, Financing Sustainable Cities in Southeast Asia: Diversifying Instruments and Leveraging Private Investment, focuses on Indonesia, Malaysia, the Philippines, Thailand, and Vietnam. It recommends a shift toward municipal bonds, sustainability-linked securities, blended finance, enhanced public-private partnerships with social safeguards, and value-capture mechanisms to attract long-term institutional capital.

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.

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).

Tourists planning their next getaway may notice rising costs—sometimes in the form of new climate-focused fees attached to hotel stays, ferry tickets, or entry to national parks and protected sites. Far from being just another burden on the traveller’s wallet, a new wave of tourist taxes is reshaping how the tourism industry responds to the escalating climate crisis, aiming to preserve some of the world’s most treasured and vulnerable destinations for future generations.

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 surge in sophisticated cybercrime has put Southeast Asia at the center of a global fraud wave. Criminal networks run multi-billion schemes that not only steal money but also exploit workers through trafficking and forced labor. The impact threatens Thailand’s economy, digital transformation goals, and citizen safety as criminals exploit regional links and regulatory gaps to grow their operations.

This menace goes beyond traditional scams. It involves cybercrime, human trafficking, forced labor, and money laundering on a large scale. Research by the United Nations Office on Drugs and Crime shows that organized groups—mainly linked to China—have built extensive scam infrastructures across Cambodia, Laos, Myanmar, and the Philippines. These facilities position Thailand as both a recruitment source and an operational hub, making the country a frontline in this regional crisis.

Artificial intelligence is moving from niche technology to a central instrument in development strategy. As economies and tech firms expand AI capacity, AI-enabled assistance is shaping a new form of support for lower- and middle-income countries. For Thailand and its neighbors, this shift could redefine how development work is done, with implications for economic competitiveness, governance transparency, and social equity.

The trend arrives as traditional aid channels—loans, infrastructure projects, and exchange programs—stagnate in parts of the world. In contrast, AI platforms offer subsidized access to data analytics, machine learning models, and predictive tools. These capabilities support health care, education, poverty mapping, and disaster response. Thai policy experts and technology leaders are watching closely, mindful that smarter data use could upgrade public services and citizen well-being.

Artificial intelligence (AI) is rapidly transforming from a bleeding-edge technology to a critical tool in international development, positioning itself as the new form of foreign aid for lower- and middle-income countries. As global powerhouses and leading technology firms ramp up their investments in AI infrastructure and capacity-building initiatives across Africa, Southeast Asia, and Latin America, a new era in cross-border assistance is taking shape—one that could profoundly alter the development landscape for Thailand and its neighbors.

A long-standing border dispute over Prasat Preah Vihear and Prasat Ta Muen Thom continues to test diplomacy and public sentiment. These Khmer-era sanctuaries sit near contested lines and have become flashpoints that threaten both cultural heritage and regional stability. Local communities and heritage professionals worry that renewed clashes could damage irreplaceable relics and disrupt livelihoods.

Ta Muen Thom, a 12th-century site built with laterite, lies close to an ill-defined frontier. It attracts Thai and Cambodian visitors who cherish its archaeological remains and spiritual significance. The site’s dual religious importance makes it particularly vulnerable to patrols and occasional skirmishes, illustrating how memory and identity influence contemporary security concerns.

A sharp uptick in cross-border violence has unsettled communities along the Thai-Cambodian frontier. Thai authorities confirm at least 12 civilian deaths, with damage spreading to homes, a petrol station, and a hospital on the Thai side as gunfire, rocket-propelled grenades, and bombardments continue. The conflict reportedly began when a Cambodian drone appeared near Thai positions, followed by troop movements. Dialogue attempts faltered before shooting began around 8:20 am local time. Observers note the use of multiple heavy weapons, underscoring the seriousness of the clash.

Southeast Asia is swiftly gaining recognition as a dynamic epicentre for global innovation and risk capital, no longer just a region of “potential” but a real-world laboratory where data, technology, and diverse cultures converge at an unprecedented scale. As global demand for artificial intelligence (AI) infrastructure skyrockets, the region is attracting billions in investment and new interest from the East and West, positioning itself at the very heart of the world’s digital economy.

A new wave of investment and innovation is reshaping Southeast Asia into a genuine hub for AI and technology. The region is no longer merely potential; it is becoming a living laboratory where data, people, and diverse cultures converge at scale. As demand for AI infrastructure grows, billions flow in, drawing attention from both Western and Eastern tech ecosystems. Thailand stands to benefit as regional investment accelerates and global players eye local markets.

A Golden Visa could offer a lifeline to Thailand’s economy as growth slows and tourism softens. Policy discussions at a recent conference highlighted a program that would grant residency in exchange for investments and property purchases. Proponents say the plan could bolster GDP, ease public debt pressure, and spur domestic spending.

Thailand’s current economic picture makes the proposal timely. Growth has hovered around 2% for much of the past decade, with forecasts for 2025 pointing to a potential dip. Tourism remains a key driver, contributing roughly 12-15% of GDP, but arrivals have cooled, especially from China, dampening local consumption and business momentum. In addition, new US tariffs on Thai exports could affect sectors such as manufacturing and agriculture, underscoring the need to diversify capital sources.

Thailand is reshaping its tax system in 2025 with new withholding tax rules that affect foreign service providers and residents earning cross-border income. The changes aim to modernize administration, boost digital compliance, and strengthen revenue collection in a shifting global economy. Thai readers engaged in international business or remittance streams will want to understand how these updates could affect finances and operations.

Withholding tax is collected at the source, deducted by the payer before payment to the recipient. This mechanism reduces evasion and streamlines revenue collection. Beginning January 1, 2025, rules for foreign entities have become clearer. A digitization push centers the reform: all WHT filings must be submitted electronically via the Revenue Department’s e-filing platform. Paper filings are allowed only in exceptional cases with documented justification to the Area Revenue Branch Office. Tax professionals describe this as a significant shift designed to cut paperwork and improve administration. SMEs will need to adapt quickly, as late or incorrect filings can incur a monthly interest penalty plus fines.

Pope Leo XIV has called on world leaders, tech innovators, and global citizens to ensure the development of artificial intelligence (AI) is guided by ethics, human dignity, and the promotion of peaceful societies. In a message delivered during the AI for Good Summit in Geneva on July 10, 2025, the pontiff urged the international community to establish robust frameworks and regulations that put the “common good” at the center of the AI revolution. As artificial intelligence increasingly shapes key sectors from healthcare and education to governance, the Pope’s intervention underlines mounting concerns about the pace and direction of AI development worldwide.

A recent international dialogue on AI ethics, highlighted by a Vatican-led call for human-centered guidelines, resonates with Thai perspectives on community, respect, and responsible innovation. At the AI for Good Summit in Geneva, church and industry leaders urged leaders and technologists to place human dignity and peaceful societies at the heart of the AI revolution, aligning with core Thai cultural values of care and shared wellbeing.

Thailand stands at a pivotal moment in digital transformation. The rapid spread of AI offers opportunities for growth but also raises concerns about equity, privacy, and social cohesion. Thai policymakers, educators, business leaders, and citizens alike are called to consider these issues as technology advances, ensuring progress benefits all segments of society.

A recent feature by the Times of India has spotlighted the top seven most beautiful beaches across Asia, reigniting interest among Thai and international travelers for coastal destinations beyond the familiar. The article presents a diverse list, including Thailand’s renowned Maya Bay, alongside wonders from Myanmar, South Korea, India, the Philippines, Vietnam, and Indonesia. This overview comes as travel patterns shift post-pandemic, with Thais showing increased curiosity towards both domestic gems and nearby international shores, propelled by greater air connectivity and relaxed border measures (Times of India).

A wave of fresh travel features spotlights seven remarkable Asian beaches that redefine coastal escapes for Thai readers. From Myanmar’s powdery shores to Indonesia’s coral-hued sands, these destinations offer new frontiers for travelers seeking beyond the familiar.

Maya Bay in Thailand anchors the list, joined by stunning coastlines in six neighboring nations. Thailand’s tourism scene is experiencing a renaissance as domestic travelers venture overseas and rediscover hidden gems at home through improved regional links and smoother border processes.

A new era of digital inequality is emerging worldwide, as recent research reveals that artificial intelligence (AI) computing power is rapidly becoming concentrated in just a handful of countries and companies. This growing divide between AI “haves” and “have-nots” is set to disrupt economies, fuel geopolitical rivalries, and shape the scientific and social futures of entire nations, according to a major new investigation by Oxford University researchers and reporting by The New York Times (nytimes.com).

A new wave of digital inequality is forming as AI computing power concentrates in a few countries and firms. An Oxford University study, reinforced by in-depth reporting from a leading U.S. newspaper, shows that most powerful AI systems run on data centers owned by a handful of players. This gap threatens economic competitiveness, scientific progress, and national security for countries outside the core hubs, including Thailand.

The opening of OpenAI’s planned massive data center in Texas illustrates the scale of resources now required to run cutting-edge AI. In contrast, researchers in some regions operate aging hardware in makeshift facilities, underscoring a widening gulf in compute power that is outpacing growth elsewhere.

Bali is known worldwide for its beauty and spirituality, but it is now becoming Southeast Asia’s creative economy hotspot. Local talent, affordable production costs, and a strategic location are turning the island into a regional center for art, design, film, music, and digital startups. Major international conferences planned for 2025 highlight Bali’s evolving identity and offer a roadmap for other Southeast Asian economies, including Thailand, as the region seeks sustainable, innovation-led growth beyond tourism.