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ASEAN chairmanship a ‘strategic opportunity’ for PH exports

The head of the Philippine Exporters Confederation, Inc. (PHILEXPORT) called for the enhancement of cooperation with the Association of Southeast Asian Nations (ASEAN) to drive Philippine export growth and economic prosperity, specifically through targeted collaboration in key sectors, addressing trade barriers, and strengthening ASEAN supply chain resilience.

PHILEXPORT president Sergio R. Ortiz-Luis, Jr. in a speech at a business gathering in Makati said the “Philippines’ role as ASEAN Chair this year presents a rare strategic opportunity” to take steps to enable Filipino exporters to expand their presence in the regional market and deepen their participation in the ASEAN supply chain by forging stronger bilateral and regional partnerships that benefit all member states.

He added that to support its exporters, the Philippines should leverage this chairmanship to “push for faster implementation of ASEAN trade facilitation measures, stronger MSME participation in regional trade, practical cooperation on supply chain resilience, and clearer pathways for digital and green exports.” 

Ortiz-Luis said bilateral and regional partnerships should move from broad cooperation to “more targeted, sector-driven collaboration” in priority sectors such as electronics, agribusiness, halal products, renewable energy components, creative industries, and services including digital, healthcare and tourism.

He also urged addressing regulatory friction, one of the most significant barriers to trade. The export leader noted that differences in standards, customs procedures, rules of origin, and documentation continue to slow trade in the region.

These hurdles can be resolved by enhancing ASEAN partnerships through stronger commitments to mutual recognition agreements, interoperable digital trade platforms, and predictable border procedures, he said at the February 18, 2026 economic forum outlook.

Ortiz-Luis likewise pushed for strengthening supply chain resilience through diversification. “The Philippines can position itself as a reliable node in regional value chains—particularly in semiconductors, manufacturing support services, and high-value food exports—by building partnerships based on complementarity rather than competition.”  

At the same time, the chief executive suggested a number of regional priorities that can benefit the ASEAN export sector. These shared priority areas include sustainability, green and digital initiatives, maritime security, artificial intelligence, and youth engagement.

Noting increasing global demand for traceability, low-carbon production, and ESG compliance, he pressed for deeper ASEAN cooperation in green standards, sustainable logistics, and renewable energy.

It is important as well for ASEAN to accelerate toward a digital single market to reduce export costs, and bolster maritime cooperation and security to ensure smooth trade flows. 

Moreover, Ortiz-Luis underscored how crucial it is to forge new ties beyond the region by “deepening engagement with ASEAN Plus partners in advanced manufacturing, clean energy, and digital skills.”  

On the national front, he said the Philippine government must strive to strengthen local exports as a “growth anchor” amidst rising global headwinds, supporting domestic enterprises through trade facilitation, access to finance, and market diversification.

It is also vital, according to him, to attract investments not just by addressing corruption and infrastructure gaps but also enhancing policy predictability, skilled labor, and effective public-private collaboration. 

Finally, manufacturing and tourism must be supported as key economic engines, as Ortiz-Luis called for the reduction of energy costs, increased logistics efficiency, and upskilling of the workforce, and proposed regional branding to boost tourism as a “powerful export in its own right” for the country. 

“For Philippine exporters, strengthening ASEAN partnerships is not just a diplomatic exercise. It is an economic imperative,” he concluded.

PHILEXPORT News and Features
Photo: PHILEXPORT Archives
Published: February 20, 2026

Indonesia Becomes A Regional Trade Hub

Indonesia is strategically positioned to become a hub for Islamic trade and investment in the Asia-Pacific region, particularly with the recent launch of the B57+ Asia-Pacific Regional Chapter. This initiative aims to enhance connections among producers, financiers, and markets.

Arsjad Rasjid, the chairman of the Indonesian Business Council's supervisory board, remarked, “Indonesia has geographical advantages and earned the trust of Muslim countries. We are prepared to link Muslim businesspeople with real business opportunities, ranging from partnerships to significant investments.”

He highlighted that while the Islamic world has a vast market scale, a considerable population, and robust production capacity, it remains fragmented in terms of trade and investment connectivity. The B57+ Asia-Pacific Regional Chapter, therefore, is intended to serve as an inclusive, practical, and execution-oriented business platform for all economic sectors.

Religious Affairs Minister Nasaruddin Umar emphasized that the B57+ initiative aligns with the principles of Islamic economics, which focus on justice, cooperation, and strong connections to the real sector. He also pointed out the importance of the halal economy in fostering Indonesia’s economic growth and addressing the needs of the business community.

“The halal economy is a key driver of Indonesia's economy. With a large and fully integrated market from upstream to downstream, it has the potential to stimulate growth, expand access to financing, and enhance Indonesia’s competitiveness in global value chains,” he stated.

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Thailand’s Factory Output Surges 2.52% in December, Beating Forecasts

Thailand’s manufacturing production index (MPI) climbed 2.52% year-on-year in December 2025, outperforming expectations for a 0.9% decline. This marked a rebound from November’s contraction and was supported by increased auto production, strong industrial export activity, and government stimulus measures. The surge in vehicle output was a key contributor to the improved industrial performance. Despite this monthly growth, the MPI for the full year 2025 still recorded a modest -0.78% decline, as a strong Thai baht continued to raise export prices and dampen the country’s competitive edge in global markets.

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Team Thailand Secures THB 500B in Investment at WEF 2026

Thailand’s participation in the World Economic Forum Annual Meeting 2026 (WEF 2026) in Davos, Switzerland, has significantly strengthened international confidence in the Thai economy. Led by the Prime Minister along with key cabinet members, “Team Thailand” engaged with global leaders across sectors, helping attract more than THB 500 billion in investment commitments from both existing and new projects.

Officials highlighted that Thailand’s active presence showcased the country as a strategic economic hub in the ASEAN region, particularly in modern agro-industry, food and bio-industry, electric vehicles, smart electronics, and data centers. Thailand’s role as host of the 2026 IMF–World Bank Annual Meetings further underscores its position on the global stage, bringing together finance ministers and central bank governors and enhancing opportunities for future trade and investment. 

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EU Steps Up Trade Engagement with ASEAN Amid Global Trade Uncertainty

The European Union is accelerating its trade engagement with ASEAN countries as part of a strategy to diversify economic partnerships amid growing global trade uncertainty, particularly following political shifts in the United States. The move aims to strengthen supply chain resilience and reduce reliance on traditional markets.

The EU has launched and resumed trade negotiations with several ASEAN members, including Malaysia, the Philippines, and Thailand, highlighting ASEAN’s rising importance as a strategic hub for trade, investment, and critical supply chains in the global economy.

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Thailand’s Investment Pledges Jump 67% in 2025, Reflecting Global Investor Confidence

Thailand Sets Record with Investment Pledges of 1.88 Trillion Baht in 2025

Thailand achieved a new milestone in investment performance in 2025 with total investment pledges reaching THB 1.88 trillion (approx. USD 60.42 billion) — a 67% increase from the prior year. The Board of Investment (BOI) reported that overall investment applications grew 11% to 3,370 projects, with foreign direct investment (FDI) jumping 66%, signaling strong confidence in Thailand’s shift toward digital, advanced technology, and innovation-driven economic sectors. 

The approved projects are expected to generate over 220,000 jobs, drive domestic material utilization exceeding THB 1 trillion, and boost annual export value by more than THB 2 trillion. This robust investment uptake underscores Thailand’s appeal as a strategic destination for global investors and supports sustained economic momentum into 2026.

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Thai exports beat forecast in December, but set to slow in 2026, commerce ministry says

Thailand’s exports surged in December 2025, rising 16.8% year-on-year to about US$28.8 billion, significantly beating market expectations of around 8.7%. This strong performance was led by electronics and electrical appliances, contributing to a 12.9% full-year export growth in 2025 — the highest in four years and highlighting Thailand’s continued trade momentum. 

Despite the strong year-end figures, the Thai Ministry of Commerce warned that export growth could slow in 2026 due to headwinds such as a stronger Thai baht, rising U.S. tariffs, and ongoing global trade uncertainties, potentially dampening the export outlook for the year ahead. 

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UOB AM Launches ASEAN Dividend ETF

UOB Asset Management (UOBAM) is set to launch the UOBAM Ping An FTSE ASEAN Dividend Index ETF on the Singapore Exchange (SGX) on 29 January 2026. This fund marks the first dividend-focused ASEAN ETF listed on SGX, offering investors a cost-efficient way to access a diversified portfolio of dividend-paying companies across ASEAN markets. 

The ETF tracks the FTSE ASEAN ex REITs Target Dividend Index, designed to enhance dividend yields compared with the broader FTSE ASEAN Index, and aims to pay at least 6% annual dividends in 2026–2027 — one of the highest among Singapore-listed ETFs. Its diversified holdings include key companies from Singapore, Indonesia, Thailand, Malaysia, and the Philippines, such as DBS Group, OCBC, UOB, Malayan Banking, Astra International, and PTT. The product responds to growing investor demand for income strategies amid a low-rate environment while capturing ASEAN’s long-term growth potential.

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ASEAN Is the Place to Do Business in 2026

With a stable operating environment, beneficial supply-chain adjustments, and opportunities arising from the Johor-Singapore Special Economic Zone, ASEAN remains an appealing region for business.
 
“This is a place to be, and the supply chain shifts are in favour of us. We are exporting a lot more to the US, selling to the rest of the world and also on our own, we have strong fundamentals – our population, our income growth – to support them,” said UOB head of research Suan Teck Kin.

He also stated that ASEAN will continue to benefit from the shifts in supply chain and trading with China. Additionally, the trade in Southeast Asia remains stable for exports and imports despite threats from US tariffs in 2025, further added that ASEAN continues to rank as a top destination for investment.

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Vietnam, Thailand Strengthen Bilateral Cooperation

The foreign ministers of Vietnam and Thailand held discussions to enhance bilateral relations, reaffirming their long-standing friendship and comprehensive strategic partnership. Both sides agreed to deepen political trust through continued high-level exchanges and to develop a concrete action plan for cooperation for the 2026–2030 period.

Economic, trade, and investment cooperation remains a key pillar, with both countries promoting the “Three Connections” strategy and expanding collaboration in energy, green transition, digital economy, and logistics. They also reaffirmed commitments to security cooperation and to maintaining peace, stability, and unity within ASEAN.

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Measures to enhance PH’s role in ASEAN’s economic landscape pushed

The country can strengthen intra-ASEAN economic linkages by reducing trade costs, improving micro, small and medium enterprises (MSME) participation in regional production networks and reviewing non-tariff measures, according to a new study by the Philippine Institute for Development Studies (PIDS).

The discussion paper, “ASEAN Economic Community through the Years: Benchmarking, Emerging Trends, and Future Pathways,” authored by PIDS Senior Research Fellow Francis Mark Quimba, Supervising Research Specialist Mark Anthony Barral, and former Research Analyst Alliah Mae Salazar, provides an updated assessment of the ASEAN Economic Community (AEC) Blueprint 2025.

The AEC Blueprint 2025, aimed at fostering deeper regional integration, competitiveness, and economic resilience, has recently been adopted. This as the Philippines prepares to chair the 2026 Association of Southeast Asian Nations (ASEAN) Meetings.

“The participation of MSMEs in ASEAN-wide production networks remains limited. This calls for dedicated technical support, finance access, and regional certification schemes to help scale and integrate MSMEs,” the paper said.

Quimba, Barral and Salazar said that while average tariffs decline, non-tariff measures (NTMs) –such as regulatory inconsistencies, technical standards, and border procedures– continue to impose hidden costs, and have become the main obstacle to deeper intra-ASEAN trade integration. 

“A review of existing and emerging NTMs, especially in agriculture, pharmaceuticals, and electronics, should be undertaken with a view toward streamlining and aligning with regional practices and standards,” they said.

The authors said the Philippines benefits from Regional Comprehensive Economic Partnership (RCEP) and ASEAN+1 free trade agreements, however, trade costs remain high due to fragmented border processes. 

“Harmonizing customs procedures, mutual recognition of standards, and real-time digital logistics tracking can significantly reduce costs,” they added. 

The paper also proposed developing targeted investment corridors in manufacturing, services, and agribusiness that are tailored for ASEAN investors. 

“Coordination between BOI (Board of Investments), PEZA (Philippine Economic Zone Authority), and subnational governments can be a key to offering consistent, predictable incentives, and land-use arrangements,” it said. 

The study likewise urged faster adoption of digital economy measures through improved regulations, rural connectivity, expanded digital skills programs, and enhanced interoperability across government systems.

It also underscored the importance of enhancing sustainable trade and investment policies and aligning these with climate and green standards, expanding renewable energy and climate-smart agriculture, and engaging proactively in ASEAN-level climate finance mechanisms. 

“As global supply chains demand compliance to sustainability standards, the Philippines should introduce carbon border measures, ESG (Environmental, Social, and Governance) incentives for exporters, and labeling schemes that are compatible with ASEAN and EU (European Union) green standards,” the study added. 

The private sector, meanwhile, is encouraged to deepen participation in regional supply chains, drive innovation through open collaboration, align with ASEAN sustainability frameworks, and support the green transition of supply chains. 

“Firms must diversify regional linkages beyond China and the US. The country must explore other markets and opportunities in its neighbors through strategic joint ventures or co-sourcing agreements,” the authors said.

PHILEXPORT News and Features
Photo Source: Canva and PIDS website
Published: January 23, 2026

Top trends redefining global trade in 2026 cited

Exports of services continue to grow faster than goods this year with digitalization accelerating servicification, while developing countries drive global export growth, according to the UN Trade and Development’s first trade report of the year. 

The January Global Trade Update identified 10 trends shaping global trade in 2026 –and the policies and actions needed to help countries navigate change and seize emerging opportunities. 

The report said that over the past decade, world services exports expanded by about 5.3 percent annually —more than twice the pace of goods trade— and now account for 27 percent of global trade. 

“In 2025, services export growth is expected to reach 9 percent, with momentum likely to continue in 2026. This reflects growing servicification, as services increasingly underpin production across sectors,” it said. 

“Advances in digital technology have made many services tradable at scale. Digitally deliverable services now represent 56 percent of global services exports, having grown at an average annual rate of 7.1 percent over the past decade,” it added. 

The report also cited the new barriers emerging as the global digital services trade rules tighten. Closing the digital divide –through infrastructure, skills and supportive regulation – will be critical if developing countries are to benefit from the fastest-growing segment of global trade. 

It said another trend shaping global trade this year is the surge in South–South trade, which is the trade between developing countries. 

South–South merchandise exports surged from about $0.5 trillion to $6.8 trillion between 1995 and 2025. Today, 57 percent of developing-country exports go to other developing economies, up from 38 percent in 1995, it added.

“This surge has been fueled largely by Asia’s regional value chains – especially in East and Southeast Asia – where high- and medium-tech manufacturing accounts for roughly half of South–South trade,” the report said, citing the United Nations Conference on Trade and Development (UNCTAD) calculations based on UNCTADStat data. 

The report said global economic growth in 2026 will moderate trade prospects, investment flows, and policy choices. 

“Slower growth affects trade through weaker export demand, tighter financial conditions, and greater exposure to shocks. Commodity-dependent economies may face heightened price volatility, while access to external finance could become more constrained,” it said.

As the impact on developing countries will be significant, the report said policymakers will need to adapt strategies —such as strengthening regional integration or digital trade– to counter global headwinds and build resilient development plans toward 2026. 

It said rising tariffs fuel trade uncertainty is another trend as governments are expected to continue using tariffs as protectionist and strategic tools in 2026.

“Smaller, less diversified economies are particularly exposed to rising tariffs and policy volatility. Limited capacity to redirect exports or absorb higher costs can lead to revenue losses, fiscal strain, and slower development. Tariff hikes on commodities may also threaten livelihoods and food security,” it added. 

Further, the UN report said trade-restricting and trade-distorting measures are on the rise as national policies reshape commerce.

In 2026, the use of non-tariff measures will expand, driven by environmental, social and security priorities alongside persistent protectionist pressures, it said. 

“While affecting global trade, their impact will fall unevenly, as smaller exporters and lower-income economies face rising procedural and compliance costs. More flexible global rules and targeted technical assistance will be essential to ensure inclusive implementation,” it added.

Other trends shaping global trade in 2026 include the reconfiguration of value chains, trade rule reform reaching a crossroads, environmental concerns remaining a key part of global trade initiatives, critical minerals facing volatility amid oversupply and geopolitical risks, and agricultural trade remaining vital for food security. 

“Nearly two-thirds of global trade occurs within global value chains, and changes in their configuration are creating new hubs and routes,” the report said. “Proactive measures, including improved logistics, workforce upgrading, and a stronger investment climate, are essential to remain integrated into global value chains.”

PHILEXPORT News and Features
Photo Source: Canva
Published: January 23, 2026