Putin Says Budapest Meeting Is Only a Postponement, Japanese Economy Faces 'Double Challenges'

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Summary:

Japan's factory activity shrinks at the fastest pace in 19 months in October; U.S. existing home sales hit a seven-month high in September......

[Quick Facts]

1. Putin: Budapest Meeting with Trump more of a postponement than a cancellation.

2. EU Leaders postpone decision on using frozen Russian Assets to aid Ukraine until December.

3. Japan's factory activity shrinks at the fastest pace in 19 months in October.

4. Japan's core inflation accelerates, Takaichi Sanae faces the first 'Hot Potato'.

5. Zelensky: Any form of Territorial Exchange with Russia is unacceptable.

6. Russian Spokeswoman: New U.S. and EU Sanctions on Russia will not have the expected effect.

7. U.S. existing home sales hit a seven-month high in September.

[News Details]

Putin: Budapest Meeting with Trump more of a postponement than a cancellation

On October 23rd, Russian President Vladimir Putin said in a media interview that the new U.S. sanctions against Russia are aimed at pressuring the country but will not have a significant impact on its economy. Putin stated that under the current circumstances, the U.S. president decided to cancel or postpone the meeting—more accurately, Trump said it was postponed. Putin reiterated that dialogue is always better than any form of confrontation, and even more so than war. Therefore, Russia has consistently advocated for dialogue, and this position remains unchanged.

EU Leaders postpone decision on using frozen Russian Assets to aid Ukraine until December

The European Union delayed its decision on whether to use frozen Russian central bank assets to aid Ukraine until December. Earlier, Belgium requested stronger guarantees to ensure it would not be held liable for risks associated with a €140 billion ($163 billion) loan. According to sources familiar with the matter, EU leaders asked the European Commission to draft several options for consideration at their next summit, with the goal of reaching a final agreement by the end of the year.

Japan's factory activity shrinks at the fastest pace in 19 months in October

According to S&P Global, Japan Manufacturing PMI (preliminary reading) for October dropped to 48.3, the lowest since March 2024. The index has remained below the 50.0 no-change threshold for four consecutive months. Sub-index data showed that while the decline in factory output slowed from September, the contraction in new orders accelerated, highlighting weak manufacturing demand. However, the drop in new export orders in October was the slowest since March. Data also indicated that Japan’s exports grew in September—the first increase in five months. The PMI showed that output expectations also rebounded to a three-month high.

Compared to service providers, manufacturers were more optimistic about the year ahead, with many expecting a global economic recovery, new product launches, and stronger demand for electronics to help boost output.

Overall, Japanese business activity remains challenging, as the services sector also saw slower growth. The Japan Services PMI fell to 52.4 in October from 53.3 last month. The Composite PMI dropped to 50.9 in October from 51.3 last month—the slowest pace in five months. Inflationary pressures continued to build, with both input and output cost growth rates higher than in September.

Japan's core inflation accelerates, Takaichi Sanae faces the first 'Hot Potato'

Japan's key inflation gauge accelerated due to rising energy costs, underscoring the challenges facing new Prime Minister Takaichi Sanae and keeping the Bank of Japan on track for further interest rate hikes. Japan's core CPI and national CPI both rose 2.9% year-on-year in September, a slight rebound from the previous month. This first inflation report since Takaichi Sanae became prime minister on Tuesday supports her efforts to prioritize the cost-of-living crisis. The country's key inflation indicator has stayed at or above the BOJ's 2% target for three and a half years, and most economists expect a rate hike in December or January.

Economist Taro Kimura said they have pushed back the baseline scenario for the next 25-basis-point BOJ rate hike from October to December. Due to the U.S. government shutdown leading to missing key U.S. data and rising trade tensions, the BOJ may want more clarity before reducing stimulus.

Zelensky: Any form of Territorial Exchange with Russia is unacceptable

On October 23rd, Ukrainian President Volodymyr Zelensky made a speech at a press conference in Brussels, saying that any form of territorial exchange with Russia is unacceptable. A peace plan should start with a ceasefire, followed by negotiations. He emphasized that greater pressure must continue to be exerted on Russia before it would come to the negotiating table.

Zelensky also said that Russia's frozen assets should be used to purchase weapons from Europe and the United States, and Ukraine should also use these funds to develop its own arms production. Zelensky clarified that Ukraine has not used long-range weapons provided by the U.S. to strike targets inside Russia and revealed that Ukraine's independently developed long-range strike capability now has a range of up to 3,000 kilometers.

Russian Spokeswoman: New U.S. and EU Sanctions on Russia will not have the expected effect

Russian Foreign Ministry spokeswoman Maria Zakharova said at a regular press briefing on October 23rd that new sanctions imposed by the U.S. and EU on Russia will not achieve the desired effect and will instead harm the EU and the global economy. Zakharova said Russia has developed immunity to sanctions in recent years. Despite the sanctions, Russia will continue to develop its economic and political potential. The current U.S. administration is trying to emulate its predecessor by forcing Russia to sacrifice its national interests, while the result would be "the same-disastrous from a domestic political standpoint and detrimental to the stability of the global economy."

She also said that the new round of EU sanctions against Russia will not achieve the intended outcomes and will instead harm the EU itself. Russia reserves the right to respond in accordance with its own interests. On October 22nd, the U.S. announced sanctions on Russia's two largest oil companies, Rosneft and Lukoil. According to Bloomberg estimates, these two companies account for nearly 50% of Russia's total crude oil exports. The EU Council issued a statement on October 23rd, saying that the EU has formally adopted the 19th package of sanctions against Russia, including 69 new individual sanctions and various economic restrictions, mainly targeting Russia's energy, financial, and defense sectors.

U.S. existing home sales hit a seven-month high in September

U.S. existing home sales climbed to a seven-month high in September, but rising economic uncertainty and a stagnant labor market could dampen the boost from falling mortgage rates. The National Association of Realtors (NAR) reported on Thursday that seasonally adjusted existing home sales rose 1.5% in September to a seasonally adjusted annual rate of 4.06 million units—the highest since February and in line with economists' expectations in a survey.

Regionally, sales rose in the Northeast, South, and West but fell in the Midwest. Year-over-year, existing home sales surged 4.1%. NAR Chief Economist Lawrence Yun said that falling mortgage rates, as expected, drove home sales, and improved housing affordability also contributed to the rebound. In terms of market supply, the inventory of existing homes for sale in September surged 14.0% year-on-year to 1.55 million units, though still below pre-pandemic levels.

[Today's Focus]

UTC+8 15:15 France October Manufacturing PMI Flash

UTC+8 15:30 Germany October Manufacturing PMI Flash

UTC+8 16:00 Eurozone October Manufacturing PMI Flash

UTC+8 16:30 UK October Manufacturing PMI Flash

UTC+8 20:30 U.S. September CPI

UTC+8 20:45 ECB Governing Council Members Nagel and Villeroy Speak

UTC+8 21:45 U.S. October S&P Global Manufacturing PMI Flash

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Economic

China’s Currency Strategy: From Creditor to Architect of a New Monetary Order

China is leveraging its status as the world’s largest bilateral creditor to expand the global reach of the yuan. By converting dollar-denominated loans into yuan equivalents, Beijing is offering developing countries lower-cost refinancing options. The goal is clear: to elevate the yuan’s role in international finance, trade, and reserve holdings an effort that underscores China’s long-term strategy to reduce dependence on the US dollar-dominated system.

This policy comes with immediate fiscal costs for China. Countries like Kenya have cut debt servicing costs by hundreds of millions through these currency swaps Kenya alone saved $215 million annually by converting its railway loans to yuan. The causal mechanism is straightforward: lower domestic Chinese interest rates, compared to the stronger dollar environment, reduce borrowers’ costs while also decreasing the returns on Chinese-held debt. Yet, for China, the loss in interest income is a calculated expense in service of a more strategic objective: embedding the yuan into global debt markets and payments infrastructure.

Yuan-Denominated Financing Spreads Across Borders

Ethiopia’s move to restructure a portion of its $5.38 billion debt into yuan is part of a growing pattern. In 2025, a record 68 billion yuan ($9.5 billion) in bonds and loans have been issued outside China double the amount recorded in 2024. Countries including Hungary, Kazakhstan, and Sri Lanka are turning to yuan financing for infrastructure projects, and Indonesia is preparing its first yuan bond issuance. These shifts mark a structural diversification in global capital markets and suggest a cause-driven transition: as geopolitical and economic volatility disrupts traditional channels, China’s offer of yuan-denominated alternatives becomes more attractive.

China’s economic diplomacy in Africa is central to this currency strategy. Countries like Zambia, Djibouti, Senegal, and Mozambique are observing Kenya’s move closely, considering similar deals. The appeal lies in the potential for reduced fiscal strain and improved repayment terms. However, analysts caution that currency switching alone cannot resolve deeper structural debt burdens more comprehensive restructuring may be necessary in some cases. Still, the currency shift does provide a pathway for China to deepen its influence while positioning the yuan as a credible medium of exchange in South-South relations.

Policy Banks as Instruments of Financial Engineering

China’s ability to absorb these shifts without incurring major losses stems from its centralized financial architecture. Policy banks, rather than commercial institutions, are the main lenders to developing countries. These banks can issue yuan-denominated bonds at lower costs than dollar debt, ensuring that the financial gap from lower interest income is offset. As such, China is not only acting as a development financier but also as an ecosystem builder, using policy tools to create a sustainable environment for international yuan adoption.

China’s domestic deflation and loose monetary stance contribute to favorable conditions for yuan lending. At the same time, global dissatisfaction with US monetary policy especially under a second Trump administration characterized by erratic tariffs and growing US debt has fueled a desire for alternatives. The yuan’s stability, reinforced by capital controls and PBOC interventions, contrasts with a dollar that has lost 7.5% in value this year, undermining its haven status.

Building Infrastructure for a Yuan-Based System

Beijing is not stopping at loan conversions. It has expanded bilateral currency swaps with over 30 countries and opened access to its domestic repo markets and a fast settlement system via Hong Kong. These developments aim to encourage the use of the yuan in cross-border trade, financial investment, and sovereign borrowing. According to Ding Shuang of Standard Chartered, China is trying to build an “ecosystem” for the renminbi one where its usage is reinforced by structural access points across global financial networks.

Despite growing momentum, economists note that interest rate advantages alone cannot ensure long-term currency dominance. Structural reforms such as easing capital controls, liberalizing exchange rates, and deepening market access for foreign investors are still lacking. As Louis Kuijs of S&P Global Ratings points out, these elements are critical for a genuine, sustained trend toward yuan internationalization.

Yet, symbolic steps are accumulating. China’s massive gold purchases and rising yuan reserves in some central banks point to slow but deliberate diversification away from the dollar. PBOC Governor Pan Gongsheng recently acknowledged that the future monetary system may feature “a few sovereign currencies that coexist, compete, and counterbalance each other” a veiled nod to Beijing’s ambition for a multipolar financial order.

China’s decision to trade financial gains for strategic positioning reflects a longer-term geopolitical calculus. The renminbi’s global ascent is not being left to market forces alone it is being engineered through targeted debt policies, financial infrastructure, and diplomatic influence. While structural barriers remain, the foundation for a more prominent global yuan is being laid brick by brick, as Beijing counters the US dollar’s dominance not through confrontation, but through quiet, calculated expansion.

Source: Bloomberg

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Political

The Trump administration is pushing regulators to dramatically accelerate the process of allowing the booming data-center sector to connect to power grids.US Energy Secretary Chris Wright urged the Federal Energy Regulatory Commission (FERC) on Thursday to grant expedited reviews for data-centre grid connections, according to documents reviewed by Bloomberg News. Under a draft proposed rule Wright sent to the agency, those reviews would be limited to 60 days, a seismic shift for a process that currently can drag on for years.

Faster approvals would help US President Donald Trump deliver on his artificial-intelligence (AI) ambitions and scale up an industry he sees as vital to competing with China. It would also be a boon for so-called hyperscalers keen to build new energy-hungry data centres that are increasingly confronted with concerns about how their massive appetites for electricity will impact utility bills for neighbouring residential neighborhoods."To usher in a new era of American prosperity, we must ensure all Americans and domestic industries have access to affordable, reliable and secure electricity," Wright wrote in a letter to FERC members. "To do this, large loads including AI data centres served by public utilities, must be able to connect to the transmission system in a timely, orderly and non-discriminatory manner."

This type of rule change has been eagerly anticipated by tech and power executives in the aftermath of the FERC's rejection of a request by Talen Energy Corp to directly supply an Amazon.com Inc data centre from a Pennsylvania nuclear plant.But it also risks pushback from states grappling with soaring power demand from data centres, new factories and electric vehicles — and the resulting higher utility bills.Under the proposed rule, data centres could win a speedy review if they include new power plants or agree to curtail usage in response to regional grid strain during high-demand periods such as heatwaves. A data centre vying to locate next to an existing power plant, like the Talen-Amazon proposal, would need to undergo a study to determine if that generation capacity is needed to maintain grid reliability.

Wright said his plan is in keeping with the president's goals of "revitalising domestic manufacturing and driving American AI innovation, both of which will require unprecedented and extraordinary quantities of electricity," as well as substantial investment in the nation's power grids.

Source: Theedgemarkets

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Commodity

Gold Stabilizes After Volatile Correction

Spot gold posted a modest rebound of 0.3% on Thursday, recovering part of the roughly 6% loss accumulated over the previous two sessions. This brief recovery signals that the market may be undergoing a short-term technical adjustment rather than a fundamental reversal of its bullish trajectory. The shift in sentiment appears to be driven by investor caution following an overheated rally, which had pushed gold prices beyond sustainable levels in the short term.

According to Hebe Chen from Vantage Global Prime, gold’s movement resembles an overstretched elastic band snapping back suggesting the recent correction is a necessary technical reset rather than a shift in macroeconomic fundamentals. With spot gold still trading comfortably above the $4,000 threshold, the structural pillars of the rally, including safe-haven demand and the “debasement trade,” remain intact. This suggests a causal mechanism in which temporary overbought conditions trigger corrective price action, while underlying drivers continue to support medium-term upside potential.

Debasement Concerns and Rate Cut Expectations Sustain Long-Term Bullishness

The so-called debasement trade, in which investors avoid fiat currencies and sovereign bonds due to concerns about fiscal instability and ballooning deficits, continues to attract gold buyers. Since mid-August, this narrative has contributed significantly to the 55% year-to-date surge in gold prices. Furthermore, expectations that the Federal Reserve will enact at least one quarter-point interest rate cut before year-end reinforce the metal’s appeal as a non-yielding asset. These policy-driven factors exert a direct influence on gold pricing, highlighting a clear cause-and-effect relationship.

Recent weakness coincided with a notable withdrawal from gold-backed exchange-traded funds, which saw the largest single-day reduction in holdings in five months on Wednesday. This outflow reflects investor profit-taking and caution amid rising volatility. Concurrently, traders have been actively hedging against further price swings, as evidenced by the elevated one-month implied volatility, which spiked to its highest level since 2022 earlier this week. These dynamics are more than coincidental investor flows and option positioning are responsive mechanisms to perceived instability in the market.

Technical Reset, Not Structural Breakdown

With gold settling at $4,107.92 per ounce in New York, the metal appears to have found temporary support. Analysts suggest that as long as prices remain above the psychologically and technically significant $4,000 level, the broader narrative of gold as a safe haven remains credible. The market is now in a phase of recalibration, balancing profit-taking behavior against macroeconomic uncertainties including geopolitical tensions, inflation, and fiscal credibility.

Meanwhile, silver rose 0.6%, indicating some spillover demand within the broader precious metals complex, while palladium and platinum experienced slight declines. The Bloomberg Dollar Spot Index was mostly unchanged, suggesting that currency effects played a minor role in Thursday’s movements.

Source: Bloomberg

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HSBC Holdings Plc and major Chinese lenders could show a brighter outlook for the region's banking sector, with earnings season in China coming into full swing.HSBC's plan to acquire the remaining stake in Hang Seng Bank Ltd. will likely dominate its upcoming earnings, as investors scrutinize potential benefits from revenue synergies and cost optimization. Both HSBC and Standard Chartered Plc could also benefit from a private wealth surge in Hong Kong, Bloomberg Intelligence said.

China's biggest banks including Industrial & Commercial Bank of China Ltd., China Construction Bank Corp., Agricultural Bank of China Ltd. and Bank of China Ltd. could also see improved revenues next year as rates bottom out and loan growth stays resilient, BI added. The banks could also see lending activity expand as China kicks off its fourth plenum to map out its economic plan.Elsewhere in financials, Japan's Nomura Holdings Inc., India's Kotak Mahindra Bank Ltd. and Indonesia's largest lender PT Bank Mandiri are also due to report.

Saturday: Kotak Mahindra Bank's earnings are seen little changed as analysts expect lending margins have bottomed for the July-Sept. cycle, assuming no further rate cuts. Commentary on loan growth will be key as market watchers look for clues on how businesses are responding to rate cuts and a reduction of consumption taxes.

Sunday: No notable earnings.

Monday: Posco Holdings' operating profit likely fell for a seventh consecutive quarter, consensus shows. Earnings are set to improve in the second half on cost savings and efficiency gains, BI said. Losses in its battery materials unit likely peaked in the second quarter as initial costs eased and lithium prices rose, BI added.

Tuesday: HSBC could cancel its share buyback as part of the Hang Seng deal, BI said. Its wealth unit likely continued to perform well on strong client inflows, while tariff and trade-related volatility will have supported wholesale transaction banking.Wednesday: SK Hynix's third-quarter operating profit likely rose on solid DRAM and NAND chip demand. DRAM shipments likely grew from AI demand, while NAND prices improved on a better product mix, BI said. The company may project higher shipments for both in the fourth quarter on seasonal strength, BI added.

Thursday: Standard Chartered's pretax profit is expected to drop as net interest margin contracts. The bank plans to return at least $8 billion to shareholders between 2024 and 2026, so further buybacks and other capital return plans will be in focus.

Source: Bloomberg Europe

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Economic

Historic Firm Becomes Modern Tech Star

Founded in 1885, Fujikura has undergone a remarkable transformation, evolving from a manufacturer of silk and insulated wires into a global leader in optical fibre production. The company’s relevance has surged in 2025 as AI-driven demand for data center infrastructure particularly high-performance fibre optics has placed it at the center of one of the year’s strongest investment narratives. Its stock has gained more than 160% year-to-date, vastly outperforming the Nikkei 225, which itself hit a record high with a 22% increase.

The primary catalyst behind Fujikura’s extraordinary ascent is the explosive growth of generative AI and the associated boom in data center construction. These centers rely heavily on high-capacity, low-latency optical fibre networks to move massive volumes of data at speed. Fujikura’s historical expertise in fibre technology having developed the world’s first optical fibre in 1959 now positions it as a crucial supplier in the global AI race.

Approximately 75% of Fujikura’s optical fibre output is exported, serving major global players like Alphabet (Google). This export orientation strengthens the causal link between international AI infrastructure expansion and Fujikura’s rising revenues and valuation. The company is not simply benefiting from a correlated sector trend it is directly supplying the core components that enable the AI ecosystem to function at scale.

Political Tailwinds Enhance Investor Optimism

The election of Prime Minister Sanae Takaichi has reinforced bullish sentiment, particularly following her administration’s pledge to prioritize strategic investment in AI and emerging technologies. This development caused Fujikura shares to rise an additional 6% this week alone. This policy endorsement injects confidence into the medium-term outlook, supporting a sustained capital expenditure cycle that would benefit firms like Fujikura with high-capacity expansion potential.

The firm is already responding proactively to rising demand. In February, it expanded output at an existing site, and by August it committed ¥45 billion (approximately $298 million USD) to construct a new fibre production facility. These moves reflect not only confidence in long-term demand but also Fujikura’s readiness to scale its manufacturing footprint in alignment with anticipated global AI infrastructure needs.

Market Comparisons Highlight Fujikura's Rise

Fujikura’s market capitalization, now around $33 billion, places it in the same league as long-established industrial leaders like Daikin and Komatsu. This surge underscores a broader shift in Japan’s equity market where traditional industrials with ties to AI infrastructure are capturing investor attention. The movement mirrors global trends, especially in the US, where companies such as Nvidia and Microsoft members of the so-called “Magnificent Seven” are fueling equity performance across sectors.

In Japan, similar patterns have emerged. Heavyweights like Advantest, Tokyo Electron, and SoftBank have dominated the Nikkei’s performance since September. Yet, investors are now digging deeper into the AI value chain, seeking secondary beneficiaries. Fujikura has become the archetype of this search, prompting analysts like Kazuaki Shimada of IwaiCosmo Securities to declare a new phase of investor interest: the hunt for “the next Fujikura.”

Other Winners Suggest Sector-Wide Repricing

Fujikura is not alone in this AI infrastructure revaluation. Mitsui Kinzoku, which produces server components for data centers, has soared 192% in 2025, while JX Advanced Metals has surged fourfold since its market debut in March. These cases highlight a widespread repricing of Japan’s industrial tech ecosystem as investors recalibrate valuations in light of long-term AI infrastructure demand.

Fujikura’s extraordinary performance is not a speculative anomaly but the result of strategic positioning, historical expertise, and timely political and market tailwinds. As AI continues to reshape global computing infrastructure, firms supplying the foundational components like optical fibres stand to benefit most directly. Fujikura exemplifies how a legacy industrial company can reinvent itself as a modern tech infrastructure leader, attracting global capital in the process.

Source: Bloomberg

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As Malaysia prepares to host the 47th Asean Summit next week, I have been reflecting on how far we have come — and how much further we still have to go. The conversations around the Asean Digital Economy Framework Agreement (DEFA) will be front and centre, setting the direction for how our region trades, pays, and connects in the years ahead.We have long been ahead of the curve in digital payments. From the early rise of e-wallets to the convenience of DuitNow transfers, cashless living has become second nature for many of us. But lately, I have started to wonder: what's next after "cashless"?

To me, the answer lies in becoming borderless.

A few months ago, I spoke to a local entrepreneur who sells handmade skincare products online. Her small business had grown steadily in Malaysia, but she was getting more orders from Indonesia and the Philippines. You would think that would be a dream scenario: demand from across the region. But she sighed and said, "It's just too complicated."Payments took days to clear. Exchange rates kept changing. Transaction fees stacked up. Sometimes, her profit margins disappeared before the products even reached customers.

She's not alone. Across Asean and throughout my career, I have met countless small business owners who share her frustration — entrepreneurs with regional ambition, trapped by borders that exist not on maps, but in our payment systems.While over 70% of Malaysian small and medium enterprises (SMEs) say regional expansion is vital for their survival, fewer than 15% have managed to do so. The opportunity is massive, yet most are still priced out by friction from navigating hundreds of different payment channels to managing volatile exchange rates.

And that's the irony. In a region that's home to 650 million people and with Asean's digital economy is projected to reach US$1 trillion (RM4.23 trillion) by 2030, many of our businesses still struggle to sell to one another.We like to say Asean is one market, but in practice, it's 10. Ten currencies, 10 sets of regulations, 10 different payment systems. It's no wonder regional trade often feels harder than it should be.Even as central banks pilot new payment linkages and fintechs build smarter infrastructure, the reality is that businesses on the ground still experience friction. Transfers are slow. Settlements are unpredictable. Compliance requirements differ from country to country.

I would know, given my own journey in the payments industry. From my years at Bank Negara Malaysia shaping financial policies, to building a payments start-up that solved problems I once wrote regulations for, I have seen both the promise and pain of digital transformation up close.Now in my new chapter at Xendit, together with my team of very capable engineers, we can change the realities for these businesses. Many of the merchants we work with are ready to expand regionally — they just need the right tools to make it happen. Having built payment infrastructure that allows businesses to accept payments, disburse funds and scale seamlessly across markets like Indonesia, the Philippines and Thailand, we have witnessed both the progress and the gaps that remain.

This isn't just a technical issue; it's a developmental one. The more time and money businesses spend navigating red tape and inefficiencies, the less they can focus on what actually matters: growing their business and creating value through economic contribution.

What a borderless future could look like

Imagine this, a Malaysian entrepreneur sells handmade crafts online and a customer in Jakarta finds her products and pays instantly through a local e-wallet in Indonesian Rupiah. She receives the money in ringgit within seconds, without worrying about exchange rates or hidden fees.Or picture a start-up in Manila paying a supplier in Kuala Lumpur seamlessly, without international wire transfers or waiting three business days.That's the world DEFA could unlock — one where payments move as easily as messages and where innovation isn't stopped by borders.

When payments become frictionless, small businesses can compete on a regional stage. They can reach new customers, diversify income, and contribute to the broader vision of Asean becoming the world's fourth-largest economy by 2030.As Malaysia chairs Asean this year, we have a rare opportunity to shape this transformation. However, leadership shouldn't just mean policy speeches or strategic blueprints. It should mean creating systems that actually work for the people using them — the entrepreneurs, gig workers, and everyday consumers whose livelihoods depend on simpler, faster, fairer payments.

Becoming borderless isn't about technology alone. It's about empathy and understanding the real frustrations businesses face and building solutions that make their lives easier. If Malaysia can continue taking that approach — combining innovation with empathy and ambition with practicality — we can help set the standard for what a truly connected Asean looks like.Because the future of this region won't be built by the biggest corporations or the flashiest tech. It will be built by the millions of small businesses who just need one thing to grow, the freedom to trade without borders.

As the region looks to Malaysia this year, the question isn't whether Asean can go cashless. It's whether we can go borderless and what each of us can do to make it happen.Regulators can accelerate the linkage of real-time payment infrastructure like the Real-Time Retail Payments Platform with networks across the region, building on Malaysia's existing connections with Indonesia and Thailand that have already made cross-border payments instant, safe and affordable. Banks can embrace application programming interface (API)-driven partnerships with fintechs to extend their reach. More importantly, businesses can and should not just demand but also adopt the financial infrastructure that turns Asean into a truly single home market.

Only then can we say we have truly moved the needle and unlocked the full potential of an integrated, inclusive digital economy.