Selected Southeast Asian Countries Research Articles

The Nexus Between Financial Stability and Economic Growth in Southeast Asia

AbstractFinancial stability is an important part of economic growth. The main objective of this study is to analyse how financial stability (using Bank Z-Score) affects economic growth. The data used is country-level data from five selected Southeast Asian countries (Indonesia, Cambodia, Malaysia, Philippines, and Thailand) for the period 2011 – 2021 using the ARDL model approach. The results of this study found strong evidence that financial stability (banking stability) has a positive effect on economic growth for countries in the Southeast Asian region. This study also reveals that it is not only important financial stability variables to achieve economic growth, but investment and trade openness must also be increased if the country is to achieve its expected economic growth. A positive correlation between investment and trade openness suggests a potential for these factors to contribute to economic growth synergistically. Keywords:Financial Stability, Economic Growth, Bank Z-Score, ARDL

Disasters and capital accumulation: the case of Southeast Asia

ABSTRACT Countries in Southeast Asia are highly exposed to disasters and the exposure is increasing in recent years. Capital accumulation is one of the important factors as a buffer to shocks of disasters. We examine the impact of disasters on capital accumulation in selected Southeast Asian countries, using a dynamic stochastic general equilibrium (DSGE) approach. The result shows that frequent disasters lower the long-term capital stock. This paper also discusses policy measures of promoting capital accumulation and compare two policy options: i) providing subsidies to incentivize further investment; and ii) encouraging competition and concludes that a competitive environment will be critical to strengthen capital accumulation against disasters.

Air Transport Resilience, Tourism and Its Impact on Economic Growth

The aims of this study are to evaluate the influence of air transport and tourism on economic growth in selected Southeast Asian countries such as Thailand, Philippines, Vietnam, Indonesia, Malaysia, and Singapore in the period 1970 to 2021. The study applies the ordinary least squares (OLS), fixed effects (FEM), and random effects (REM), especially to robustness test of the research results by deploying the DOLS, and IV-GMM regression for endogeneity and autocorrelation analysis. The research results confirmed that air transport has a significant and positive impact on economic growth, especially because the positive impact increased in normal economic conditions and decreased during the COVID-19 pandemic. Therefore, if the air transport recovers, it is likely to boost economic development. In addition, there is no impact of tourism on economic growth. The research results also confirmed the positive impact of foreign direct investment and international trade on the economic growth of Southeast Asian countries; however, there is a negative impact of renewable energy consumption on economic growth.

Impact of Islamicity on the productivity of conventional and Islamic banks in selected southeast Asian countries

This study provides a new understanding of how bank-specific characteristics, the macroeconomic environment, and Islamicity affect the productivity of conventional banks (CBs) and Islamic banks (IBs) in selected Southeast Asian countries. The data of 153 banks, collected between 2015 and 2020, were used, and the influence of the selected factors was investigated by using panel data approaches, as well as the data envelopment analysis-based Malmquist productivity index (DEA-MPI). In the first-stage analysis, bank productivity was measured by using total factor productivity changes (TFPC), and in the second-stage analysis, panel regression analysis was performed, specifically, multiple panel regression analysis, which employed pooled ordinary least squares, a fixed-effects model, and a random-effects model. Parametric and nonparametric (Mann–Whitney and Kruskall–Wallis) tests found that the IBs were more progressive than the CBs. The findings indicated that unlike the IBs, change in the productivity of the CBs was adversely affected by economic Islamicity, as well as legal and governance Islamicity, which indicated that macroeconomic and legal structures that leaned toward Islamic values adversely affected the CBs. Meanwhile, the IBs were likely to be structured in line with such values and thus can mitigate the adverse impact of various factors. Both groups were negatively affected by human and political rights Islamicity, which indicated the use of a setup that could not benefit from Islamic values. This finding lends credence to the arguments in the literature that IBs mirror CBs in practice to remain competitive in their pricing based on market principles. The IBs were found to benefit from international relations Islamicity, which bodes well for the competitiveness of new players against the ancient setup of CBs in the globalized world.

Unveiling the Impact of the Digital Economy on Future Employment: A Comparison Study among Selected Southeast Asian Countries

Unveiling the Impact of the Digital Economy on Future Employment: A Comparison Study among Selected Southeast Asian Countries

The Role of Relationship between Money Supply and Exports in the Context of Economic Development through Increasing the Resilience of Foreign Exchange Reserves: Evidence from Selected Asian Countries

The importance of building foreign exchange reserve performance is the main requirement in safeguarding the economy in the global order from potential risks and threats originating from the external sector. This has become an important discussion in recent times, but several previous studies have not answered the urgency in building sustainable economic resilience, especially in countries that have economic experience with economic shocks caused by potential risks originating from the external sector. Ordinary-Least Square (OLS) analysis chosen to prove impact of financial stability and international trade on the growth and resilience of foreign exchange reserves as external liquidity for several countries in Asia during 1990 – 2020. The results of this research show that in the long term, both the money supply variable and exports as an independent variable have a positive and significant influence in increasing the resilience of the external liquidity performance of selected Southeast Asian countries. Our policy recommendations emphasize the importance of maintaining the resilience of foreign exchange reserves as external liquidity in order to increase economic resilience in the global economic arena. The government should provide the main focus in increasing policies by increasing the role of the external sector itself through international cooperation.

China’s Financial Statecraft under Xi Jinping Administration in Selected Southeast Asian Countries

With China’s economic rise and influence, financial statecraft has increasingly been deployed to serve the country’s national interest. The growth of China’s financial statecraft in the region has drawn greater media and academic attention. Notwithstanding the abundant literature on China’s financial statecraft in Southeast Asia, the previous studies lack a detailed analysis of various financial statecraft instruments deployed by China. To get a better understanding of China’s deployment of financial statecraft over the years under Xi Jinping’s administration, this article fills the gap in the existing literature by delving into various factors that influenced various financial statecraft instruments with respect to the objectives, trends or patterns and agencies involved in the region. Given Xi’s successful bid for continued political rule by eliminating a term limit on the presidency as well as the escalating China-US strategic rivalry, it is important to examine how the interaction of domestic and international forces has shaped the evolution of financial statecraft in Southeast Asia. Due to the changes in domestic politics and shifts in the geopolitics and geoeconomics, an important question that deserves our attention is how these changes has influenced China’s deployment of various financial statecraft instruments in different Southeast Asian countries. The paper focuses on two middle-income countries (i.e., Malaysia and Thailand) and two low-income countries (i.e. Cambodia and Laos) in the region.

Asymmetric linkages among fintech, oil prices, governance, and growth in Southeast Asian economies

Fintech's disruptive potential in Southeast Asia can revolutionize financial inclusion and accelerate economic growth, warranting a comprehensive analysis of its interplay with oil prices, governance, and overall economic development. Against this backdrop, this study analyze the quantile-dependent (asymmetric) influence of oil prices, cumulative financial technology index, and institutional quality on economic growth for selected Southeast Asian countries from 1996 to 2021. Method of Moments Quantile Regression (MMQR) is used to analyse the asymmetric relationship, while the Dumitrescu-Hurlin Panel Causality test applies to the intrinsic casualty. The study's outcomes exposed the positive (negative) influence of Fintech and governance (oil prices); however, there marginal impact substantially varies at lower a higher growth quantiles. Labor headcount and capital stocks are among the main contributor of economic growth, specifically at higher growth quantiles (countries). Bi-directional causality has been confirmed through Dumitrescu-Hurlin Panel Causality test between Fintech, oil prices and governance with economic growth. Therefore, Generalized Method of Moment and Augmented Mean Group is further applied for robustness. After controlling reverse causality and endogeneity issues, the prior outcomes are validated. These findings offer valuable outcomes.

Impact of Internet use on industrial value added: evidence from Southeast Asian countries

The Internet facilitates real-time communication and collaboration, enabling seamless coordination in industrial processes. This enhanced connectivity can increase efficiency and productivity in the production chain. Moreover, the Internet provides a platform for businesses to reach a global audience. Expanded market access can contribute to the growth of industrial activities, fostering international trade, and positively impacting industrial value added. Therefore, this study seeks to explore how Internet usage impacts industrial value added across eight Southeast Asian countries, using a sample collected from the World Bank and Global Economy from 1991 to 2021. Two regression methods were employed: fixed-effects and Driscoll-Kraay standard error models. The research findings indicate that Internet growth has a positive effect on industrial value added in Southeast Asian countries. Additionally, the results reveal a positive correlation between industrial value added, economic growth, and trade openness. This study contributes to a deeper understanding of the connection between Internet usage and industrial value added, with profound implications for the economic restructuring of selected Southeast Asian countries.

Nexus between Personal Remittances, Financial Deepening, Urbanization, and Renewable Energy Consumption in Selected Southeast Asian Countries: Evidence from Linear and Nonlinear Assessment

This study examines the correlation between personal remittances, financial development, urbanization, and renewable energy utilization in Southeast Asian countries for the period 1991-2020. The study employs both linear and nonlinear analyses to examine the symmetric and asymmetric effects of these variables on renewable energy consumption. The results offer a plethora of significant insights. To commence, it is noteworthy that there exists an adverse correlation between financial deepening and the utilization of renewable energy, thereby challenging the prevailing notion that these two factors are positively interconnected. This demonstrates that the increasing financial growth in South Asian countries could potentially have adverse effects on the environment and hinder the implementation of renewable energy solutions. Furthermore, previous studies have demonstrated a positive correlation between urbanization and the utilization of renewable energy sources. The utilization of renewable energy technology is encouraged in cities due to factors such as population density, resource availability, and supportive legislation. Thirdly, personal remittances exhibit a varied impact, yielding favorable long-term consequences in Bangladesh and Pakistan, while conversely resulting in negative long-term effects in India and Sri Lanka. The findings indicate the necessity for governmental interventions aimed at mitigating the adverse effects of remittances, while simultaneously optimizing their positive influence on the utilization of renewable energy. Trade openness is positively correlated with long-term utilization of renewable energy, suggesting the potential for international trade in renewable energy resources. Nevertheless, it is worth noting that there is a negative correlation between trade liberalization and the utilization of renewable energy in the short term. This highlights the importance of implementing additional policy measures to address this issue. This study contributes to our comprehension of the intricate connections among personal remittances, financial deepening, urbanization, and energy consumption in Southeast Asian nations. It offers valuable insights for policymakers, researchers, and practitioners involved in advancing sustainable energy transitions and environmental sustainability.

Consumers’ perceptions of food fraud in selected Southeast Asian countries: a cross sectional study

Southeast Asia is projected to be the fourth largest economy in 2050, where agriculture and food are key sectors contributing to the regional’s GDP. However, ensuring food safety and traceability remains a challenge in the region and this offers ripe opportunity for fraudsters to take advantage of the system. This study aims to provide an overview of consumers’ concern about food fraud in selected countries in Southeast Asia. A cross-sectional online survey was implemented in Indonesia, Malaysia, the Philippines, Thailand, and Vietnam, yielding 1393 valid responses. Multiple Correspondence Analysis (MCA) was conducted first to reduce the large dataset containing nominal variables. After that, ordered logistic regression was performed to predict food fraud concern, with independent variables being dimensions derived from MCA, total knowledge and experience, and demographic characteristics. We found that respondents from Vietnam and Malaysia were significantly more worried about food fraud compared to other countries. Concerns about food fraud were influenced by increased demand for food fraud control, perceived risks of different types of food fraud, information sources from media and personal networks, information sources from credible organisations, and self-experience of food fraud. Practical and policy recommendations for the region were suggested. This is the first empirical study on consumers’ concern about food fraud in Southeast Asia. The study embodies the UK Global Food Security and UN Sustainable Development Goal No. 2 ethos of providing the growing global population with access to safe food.

A mini review on the Community Pharmacy practice experiences in selected Southeast Asian countries

The aim of this short review article is to deliver enough data and information on several studies on the experiences related to Community Pharmacy during COVID-19 pandemic in selected Southeast Asian countries. The spread of COVID-19 infections across countries challenges different health care professionals including Community Pharmacists to perform under difficult circumstances. During the pandemic, the key functions in public health and medication therapy of Community Pharmacists were highlighted. These are significant contributions that they can impart in an outbreak of infectious diseases. In the countries under Southeast Asian region such as Indonesia, Malaysia, Philippines, Singapore Thailand and Vietnam, Community Pharmacy practice became challenging but it is the first point of contact in the health care systems of the said countries. In the response to the pandemic, Community Pharmacists extended their duration of services not just in their respective health care establishments but as well as thru communication lines and ensuring continuity of medicine supply in societies. Thus, Community Pharmacy practice is very substantial in the primary healthcare system in times of global health crisis.

A mini review on the Community Pharmacy practice experiences in selected Southeast Asian countries

A mini review on the Community Pharmacy practice experiences in selected Southeast Asian countries

A Verification of Okun’s Law: The Case of Southeast Asian Countries

The study investigates the relationship between unemployment and economic growth in selected Southeast Asian countries using annual time series from 2000 to 2020. Panel OLS, fixed effect, and Random effect were performed with an error correction method to ascertain the relationship between explanatory variables and response. The error correction term indicated a long-run relationship between unemployment and economic growth. The study used two models to evaluate the relationship between unemployment and economic growth. Model one explains how economic growth affects unemployment, while model two is devoted to examining the effect of unemployment on economic growth. The test results for model one indicated that the Random effect is the best-fitted model and concluded that economic growth has no significant influence on unemployment. However, Foreign Direct Investments makes a negative influence on unemployment. Further, model two investigates the effect of unemployment on economic growth, where Pooled OLS was selected. According to the test statistics, it can be concluded that unemployment harms economic growth, while Foreign Direct Investments and Inflation have a positive influence on economic growth. However, trade openness makes a negative effect on economic growth. Therefore, it can be concluded that the validity of Okun's law in Southeast Asian countries is limited.

How are Southeast Asia Countries Embracing Green Home Technology?

Physical development, which includes real estate activities, is currently very active in developing countries. This is especially true in Southeast Asian countries that aim to transform their countries into developed countries. Southeast Asia is rapidly industrialising and growing; this growth has resulted in a rise in energy consumption and environmental effects. Deforestation, landslides, pollution and the greenhouse effect have all been impacted by the global development process, which began in developed countries. Therefore, the idea of a green home or green building which embraces green technology has received attention. A green home is a set of household systems that reduce demand for natural resources and carbon emissions, resulting in improved human well-being, social equality, and a green economy. It incorporates eco-friendly strategies for water and waste management systems, such as rainwater harvesting and water recycling, in addition to energy-efficient structures. A green home is more than just a green building, but it symbolises a sustainable lifestyle based on environmentally friendly technologies and practices. This article aims to review the application of green technology in housing and to explore green homes in selected Southeast Asian countries. Secondary data was used for the purpose of this study. The review of articles found that Singapore is on the cutting edge of most technical advancements compared to Malaysia, Indonesia and Thailand. Meanwhile, Malaysia, Indonesia and Thailand are concerned about housing affordability as this is the foundation for the majority of housing initiatives in these three countries, especially in Malaysia and Thailand.

A Comparative Legal Analysis on Non-Performing Loans Definition and its Sale Framework in Malaysia, Thailand, Indonesia and Philippines

With Covid-19 banking and financial relief measures in the region recently came to an end, it is viewed that non-performing loans ratio’s may increase and there may be a more proactive behaviour by financial institutions in dealing with their non-performing assets including disposing their non-performing loans comprising of both unsecured and secured products by way of sale and purchase to third parties. The purpose of this article is to analyse the current legal definition of non-performing loans in selected Southeast Asian countries together with international organisations recommended definitions. The article will further examine selected Southeast Asian prevailing legislations and regulations that governs the sale of non-performing loans. The author intends to adopt a multi-method research strategy primarily doctrinal legal research as well as qualitative research approach. This article aims to contribute to the legal fraternity and people in general with an overview of the current position in selected Southeast Asian countries.

THE INTERDEPENDENCE BETWEEN POVERTY AND HOMELESSNESS IN SOUTHEAST ASIA: THE CASE OF MALAYSIA, INDONESIA, THAILAND, AND SINGAPORE

Homelessness is a chronic issue in almost nearly every nation globally whether in underdeveloped, developing or advanced countries. In Southeast Asia, homelessness is rife due to various reasons, where poverty is notably one of the most prominent factors. This conceptual paper reviews past literature focusing on the issue of homelessness in selected countries in Southeast Asia namely, Malaysia, Indonesia, Singapore, and Thailand. The issue of poverty and homelessness has been a long-standing issue across the continent. The increase in homelessness due to poverty increases the challenge of reintegrating homeless individuals into society as most are denied the opportunity of permanent shelter. Living on the streets also implies that most of them are heavily dependent on support from both the government and society. This review of past literature reveals that homelessness and poverty are mutual, interdependent phenomenon that occurs simultaneously. All four countries (Malaysia, Indonesia, Thailand and Singapore) demonstrated that poverty is a significant trigger for the issue of homelessness, whereby most individuals are forced to live on the streets due to the vicious cycle of poverty. This review also significantly provides an overview on the issue of homelessness and poverty in the selected Southeast Asian countries, addressing the gap of limited research on the area of homelessness collectively in the region.

Diagnostic work-up and systemic treatment for advanced non-squamous non-small-cell lung cancer in four Southeast Asian countries

BackgroundLung cancer is the second most common cancer and leading cause of cancer mortality worldwide. Recent advances in molecular testing and targeted therapy have improved survival among patients with metastatic non-small-cell lung cancer (NSCLC). We sought to quantify and describe molecular testing among metastatic non-squamous NSCLC cases in selected Southeast Asian countries and describe first-line therapy chosen.Patients and methodsA retrospective study was conducted based on incident lung cancer cases diagnosed between 2017 and 2019 in Lampang (Thailand), Penang (Malaysia), Singapore and Yogyakarta (Indonesia). Cases (n = 3413) were defined using the International Classification of Diseases for Oncology third edition. In Singapore, a clinical series obtained from the National Cancer Centre was used to identify patients, while corresponding population-based cancer registries were used elsewhere. Tumor and clinical information were abstracted by chart review according to a predefined study protocol. Molecular testing of epidermal growth factor receptor (EGFR), anaplastic lymphoma kinase (ALK) gene rearrangement, ROS1 gene rearrangement and BRAF V600 mutation was recorded.ResultsAmong 2962 cases with a specified pathological diagnosis (86.8%), most patients had non-squamous NSCLC (75.8%). For cases with staging information (92.1%), the majority presented with metastatic disease (71.3%). Overall, molecular testing rates in the 1528 patients with stage IV non-squamous NSCLC were 67.0% for EGFR, 42.3% for ALK, 39.1% for ROS1, 7.8% for BRAF and 36.1% for PD-L1. Among these patients, first-line systemic treatment included chemotherapy (25.9%), targeted therapy (35.6%) and immunotherapy (5.9%), with 31% of patients having no record of antitumor treatment. Molecular testing and the proportion of patients receiving treatment were highly heterogenous between the regions.ConclusionsThis first analysis of data from a clinically annotated registry for lung cancer from four settings in Southeast Asia has demonstrated the feasibility of integrating clinical data within population-based cancer registries. Our study results identify areas where further development could improve patient access to optimal treatment.

China’s growing digital reach: explaining citizens’ high approval rates of fintech investments in Southeast Asia

Recent years have witnessed a rise in global investments in the digital economy. The growing digital reach of Chinese tech companies is responsible for at least part of this transformation. Yet, little is known about how host country citizens view China’s increasing stature in the digital sphere. Focusing on Chinese investments in mobile payment platforms (CIM), this article explains citizens’ levels of approval of Chinese outward investments in the digital economy. Based on online surveys conducted in four selected Southeast Asian countries – Thailand, Malaysia, Indonesia, and the Philippines – this research shows that citizens of these four countries perceive the benefits of CIM to outweigh the risks, with approval rates to be higher for Thailand and Malaysia, and lower for Indonesia and the Philippines. We find these high levels of approval for CIM to be significantly associated with perceived personal benefit, such as price reductions and an increase in purchasing choices. By contrast, country-level factors, such as geopolitical concerns about China, do matter in some contexts, but overall show less explanatory influence. These results shed light on citizens’ views of different types of foreign investments and of China, and support previous arguments on the separation between consumer behavior and politics.

Corporate innovation efficiency in Southeast Asian countries

This study aims to examine how innovative activities influence corporate innovation efficiency in selected Southeast Asian countries, including Vietnam, Laos, Cambodia, Malaysia, Indonesia, and Thailand. The data were collected from the World Bank, and Tobit regression was used. The research results show that product or service innovation activity and process innovation activity have a positive impact on the innovation efficiency of firms. Moreover, the research finds a difference in the effect of innovative activities on corporate innovation efficiency in country-income groups. The paper is of great significance in the current period because countries in Southeast Asia are encouraging businesses to increase innovation to improve their integration and competitiveness.