THE PAST WEEK
Indonesia to see 82% increase in number of ultra-high net-worth individuals in 2026-2031 period
According to research by UK-based real estate agent Knight Frank, Indonesia is projected to see the largest percentage increase globally in the number of ultra-high-net-worth individuals (UHNWIs) in the 2026-2031 period, with the number rising by 82%. UHNWIs are defined as those owning assets of at least USD 30 million. Read more.
Summary: Vietnam ranked fourth in the list, with 59% growth. The Philippines ranked ninth, with a 49% increase, and Singapore 10th with 46% growth. Thailand also makes the top 20, coming in at 17th with a 26% increase. In terms of the actual number of people, the number of UHNWIs in the five countries is expected to rise from 16,999 in 2026 to 25,847 in 2031. Research by McKinsey also found that liquid personal financial assets in Indonesia, Malaysia, the Philippines, Thailand, Vietnam, and Singapore will grow from USD 3.5 trillion in 2025 to USD 4.7 trillion in 2030.
Iran War erodes purchasing power across Southeast Asia
The economic spillover of the Iran War - in particular the disruption of the supply of oil, gas and some industrial chemicals - is eroding purchasing power across Southeast Asia. The Philippines and Indonesia remain particularly vulnerable given that their weak currencies have made their material imports even more expensive. Read more.
Summary: The Philippines posted 6.8% year-on-year headline inflation in May, easing a little from the 7.2% recorded in April, while Indonesia saw inflation creep up to 3.1% in May from 2.4% in April. Inflation in Thailand in May measured at 2.8%, while Vietnam reported 5.6% inflation. Malaysia's 2% inflation in May is the highest reading in nearly two years.
Three biggest foreign banks in Indonesia pull USD 640 million of earnings out of country
The three biggest foreign banks in Indonesia - namely the Indonesian units of Citigroup Inc., Standard Chartered Plc and HSBC Holdings Plc - have remitted a total of IDR 11.5 trillion (USD 640 million) out of the country over the last two years. The total amount remitted slightly exceeds their combined profits for the period. Read more.
Summary: It is believed that some banks in Indonesia are seeking to curb their exposure to Indonesia due to concerns over the country’s policy direction under President Prabowo Subianto. Prabowo has pushed for greater state intervention in the economy, such as expanding the economic power of its sovereign wealth fund Danantara. The higher profit repatriation also coincides with the decline of the rupiah.
The Philippines woos investors from China’s Greater Bay Area
The Philippines is attempting to position itself as a gateway to the Southeast Asian market for Chinese investors from the Greater Bay Area, which includes Hong Kong, Macau and nine cities in Guangdong province. Read more.
Summary: As the 2026 chair for ASEAN, the Philippines is committed to expanding ASEAN-Hong Kong ties that would create fresh avenues for both the bloc’s and Greater Bay Area growth. Manila pointed to promising sectors for collaboration with Hong Kong, including semiconductors, electronics and manufacturing services and renewables, alongside a booming agricultural export trade in coconuts, pineapples, bananas, ube and kalamansi.
Thailand mulling investments in US LNG export projects to bolster energy security
Thailand is considering investing in US liquefied natural gas (LNG) export projects as the country seeks to bolster its energy security in light of the ongoing closure of the Strait of Hormuz. Read more.
Summary: Thai state-owned PTT PCL is reportedly in discussions with developers for equity and supply on a long-term basis, including with Woodside Energy Group Ltd. about its Louisiana LNG facility (currently under construction and set to begin shipments in 2029). Talks are reportedly still in the early stages. PTT is currently looking for opportunities in several countries besides the US to expand its LNG portfolio. Thailand has seen its LNG supply upended by the Iran war, which has choked off shipments from the Middle East and driven up prices.
Malaysia and EU target 2027 for completion of free trade agreement talks
According to Malaysia’s Investment, Trade and Industry Deputy Minister Sim Tze Tzin, the fourth round of talks between Malaysia and the EU over the Malaysia-European Union Free Trade Agreement (MEUFTA) was held in Kuala Lumpur from 8-12 June. Both sides target 2027 for finalizing the pact. Read more.
Summary: The fourth round of talks saw the conclusion of three chapters of the MEUFTA, namely Customs and Trade Facilitation, Trade Remedies and Good Regulatory Practices. The transparency chapter was concluded during the second round of negotiations, followed by the small and medium enterprises chapter in the third round. Sim described the MEUFTA as a ‘game-changer’ that will integrate Malaysia more closely with the world's largest single market while unlocking new opportunities in high-technology services, green energy and digital trade.
STRATEGIC INSIGHTS
According to UK-based estate agent Knight Frank, countries in Southeast Asia will see some of the fastest growth in the number of ultra-high-net-worth individuals (UHNWIs) - defined as those owning assets of at least USD 30 million -- on a percentage basis than anywhere else globally. Four of the top 10 fastest-growing nations are expected to be in Southeast Asia, with Indonesia topping the list, with the number of UHNWIs projected to increase by 82%. Vietnam ranked fourth with 59% growth, the Philippines ninth with 49% growth, and Singapore 10th with 46% growth. Thailand also makes the top 20, coming in at 17th with a 26% jump. In terms of total number of people, the number of UHNWIs in the five countries is expected to rise from 16,999 this year to 25,847 in 2031.
As Knight Frank argued, the rise in the number of UHNWIs underlines the speed at which new centers of wealth are forming across the region, as well as the new regional drivers of wealth accumulation (such as the region’s tech sector). Many of the newly wealthy also hail from family-run conglomerates, who have managed to diversify their portfolios and acquire enough brand loyalty to succeed. The rise in the number of UHNWIs is expected to drive demand for industries such as wealth management, leisure travel, and wellness services. Governments may also target UHNWIs to tap into their capital to drive investments. However, concerns have also been raised about the political implications of greater socio-economic inequality, and the possibility of illicit activities such as money laundering and corruption.
Percentage increase in number of ultra-high net worth individuals (UHNWIs), 2026-2031 (%)
*UHNWIs defined as those with assets worth at least USD 30 million
Source: Knight Frank, Forbes
THE WEEK AHEAD: STRATEGIC WATCHLIST
Indian Prime Minister Narendra Modi to make official visit to Indonesia (7 July 2026)
Why it matters: Modi is set to meet with Indonesian President Prabowo Subianto, where both sides are expected to discuss increasing bilateral trade, investment, supply chain resilience, and collaboration in emerging technologies.
Growth Asia Summit 2026 (8 - 10 July 2026)
Why it matters: The Growth Asia Summit 2026 will be held at the Marina Bay Sands Expo and Convention Centre in Singapore. Key retailers in attendance include JD Health, Guardian, and Alpro Pharmacy to discuss the future of the food and wellness industry in Asia.
Source: Growth Asia Summit 2026: Retailers JD Health, Guardian, Alpro Pharmacy join major brands next week
Thai Prime Minister Anutin Charnvirakul to make official visit to Malaysia (9 - 10 July 2026)
Why it matters: Thailand seeks closer cooperation with Malaysia in tackling the southern insurgency in Thailand, including on curbing cross-border militant activities. The planned visit comes amid a recent surge in violence in Thailand's southern border provinces, including bombings and shootings targeting government officials and public infrastructure. The Thai-Malaysia border region sees extensive cross-border trade and daily travel.
Source: Thai PM to visit Malaysia next month for talks on southern insurgency
