International News 13 November 2025
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Malaysian Ringgit Outperforms as Regional Currencies Weaken on Fed Policy Caution
The Malaysian ringgit strengthened 0.34% to 4.122 per U.S. dollar in Wednesday’s (Nov 12, 2025) Asian trading session, outperforming most regional peers amid investor caution over the Federal Reserve’s next policy moves. According to Reuters data (0208 GMT), the Japanese yen slipped 0.12% to ¥154.33, the South Korean won fell 0.25% to ₩1,467.10, and the Indonesian rupiah eased 0.21% to Rp16,715 per dollar. Other Asian currencies, including the Singapore dollar (1.303), Thai baht (32.43), and Philippine peso (58.98), also weakened slightly against the greenback. The ringgit has emerged as one of Asia’s best-performing currencies in 2025, rising 8.39% year-to-date, supported by steady global oil prices that bolster Malaysia’s energy exports and by expectations that Bank Negara Malaysia (BNM) will maintain a stable interest rate policy to sustain domestic growth. In contrast, the Indonesian rupiah and Indian rupee have weakened 3.74% and 3.33%, respectively, against the U.S. dollar this year.
Southeast Asia’s Digital Economy Surges Past US$300 Billion, Fueled by E-Commerce and AI Growth
Southeast Asia’s digital economy is projected to exceed US$300 billion by the end of 2025, marking a decade of strong expansion, according to the latest e-Conomy SEA 2025 report by Google, Temasek, and Bain & Company. The report now covers all 10 ASEAN countries, including Brunei, Cambodia, Laos, and Myanmar. The region’s gross merchandise value (GMV) is expected to reach US$300 billion, while digital industry revenue will climb to US$135 billion, driven by profitability improvements across e-commerce, online travel, ride-hailing, food delivery, and digital media. E-commerce remains the key driver, generating US$185 billion in GMV and US$41 billion in revenue this year, supported by the rapid rise of shoppertainment, which now contributes 25% of total online sales, up from under 5% in 2022. The report also highlights Southeast Asia’s growing AI ecosystem, with private funding rising 15% to US$8 billion in the past year. Singapore dominates AI investment, capturing 55% of regional funding, equivalent to US$1.31 billion between late 2024 and mid-2025, and hosting nearly 500 of the region’s 700 active AI startups. This AI momentum is driving Southeast Asia’s emergence as a global magnet for digital infrastructure, with data center capacity expected to expand 180% in the coming years. However, as Singapore’s energy capacity approaches its limit, cloud providers are shifting expansion toward Malaysia and neighboring countries. Despite valuation caution, analysts see AI and digital integration as enduring investment themes, reinforcing Southeast Asia’s role as one of the fastest-growing digital economies in the world.
U.S. Treasury Yields Fall as Weak Labor Data Fuels Fed Rate-Cut Expectations
U.S. government bond prices rose in Asian trading on Wednesday (Nov 12, 2025) after private-sector labor data signaled a slowdown in hiring, bolstering expectations for further Federal Reserve rate cuts. The yield on the 10-year Treasury fell 3.1 basis points to 4.079%, while the 2-year yield declined 3.1 basis points to 3.56%, according to LSEG data. The move came after the ADP payroll report showed that U.S. companies had been cutting over 11,000 jobs per week through late October, suggesting cooling labor demand. Analysts at ANZ Bank noted that any further weakness in the labor market could prompt the Fed to accelerate its rate-cutting cycle. According to the CME FedWatch Tool, market bets on a December rate cut edged slightly higher following the data. The U.S. bond market had been closed on Tuesday for Veterans Day, and trading resumed amid uncertainty caused by the ongoing government shutdown, which has delayed key economic reports. As Congress moves closer to a deal to reopen the government, investors anticipate that the September labor report will be among the first major data releases once normal operations resume.