Australia
China
India
Indonesia
Japan
Malaysia
Philippines
Singapore
South Korea
Taiwan
Thailand
Vietnam
China’s ongoing struggles, US trade policy, and geopolitical tensions – Asia continues to face various challenges in 2025. There are also some key events investors should monitor.
Trump 2.0 (January)
The return of Donald Trump to the White House is one of the key events globally watched in 2025. The “Made in USA” policies and tariffs are expected to pressure global growth, particularly for Asia’s export-driven economies with trade surpluses with the US. Countries with sizable domestic markets like India and Indonesia are more insulated, while China faces significant challenges from proposed 60% tariffs, potentially bearing the brunt of these measures. However, Trump invited Chinese President Xi Jinping to his inauguration on January 20, and both have been in contact since the US election. It remains open, though, if Xi will attend.
China National People’s Congress (March)
Following a turbulent year in 2024, China is expected to stabilise its economy through targeted stimulus and continued investment in advanced technologies like AI and renewable energy. The first stimulus of the year came on January 8, when Bejing announced the expansion of the national trade-in program to boost sluggish consumer spending. The government said it will subsidise up to 20% of sale prices on goods in 12 categories, including digital tools such as smartphones or household equipment like dishwashers.
The annual Two Sessions in March will be pivotal for policy announcements, particularly around economic restructuring and green initiatives. The premier will unveil the country’s GDP growth target. Analysts expect China to stick to the goal of “about 5%”.
Sri Lanka’s 2025 Budget (February)
Sri Lankan President Anura Kumara Dissanayake is set to unveil his government’s first national budget, a critical moment for his administration as the nation is dealing with a fragile economy. Sri Lanka is navigating the halfway point of its four-year, $3 bn bailout program from the International Monetary Fund (IMF) following its 2022 bankruptcy declaration. The budget will outline the government’s approach to meeting stringent financial targets tied to the bailout.
Elections in Asia 2025
Australia elections (H1)
Australians will head to the polls before May 17, 2025, with cost-of-living pressures and skyrocketing housing prices among the key issues on voters’ minds. Recent polls see a close race between the ruling Labor Party and the Liberal–National Coalition, in favour of the Coalition. With 78 seats, the government under Prime Minister Anthony Albanese currently has only a slim majority in the House of Representatives.
Japan’s Upper House Election (July)
Japan’s political landscape will take centre stage with the upper house election scheduled for mid-2025. For Prime Minister Shigeru Ishiba the election will be crucial. His ruling Liberal Democratic Party (LDP) lost its majority in the more powerful House of Representatives in a general election last year. Currently, LDP and its coalition partner Komeito hold the majority of the 248-member upper house.
Singapore election (November)
Singapore’s 2025 general election in November is expected to be a pivotal moment for Prime Minister Lawrence Wong, who took over in May. As one of Asia’s key financial hubs, the election will likely influence trade, taxation, and foreign investment policies, especially amid ongoing global economic shifts. Investors will watch closely for any leadership or policy direction changes that could impact Singapore’s pro-business environment and regional economic role.
This month, the city-state raised its corporate tax rate, which is in line with OECD global minimum tax standards. Corporates now face a minimum of 15% tax. It remains to be seen if this will hurt Singapore’s reputation as a business-friendly financial hub.
