24/02/2026

BIZ & FINANCE TUESDAY | FEB 24, 2026 17 Indonesia’s govt spending jumps 26% in January

DBS forms three-year partnership with Granite Asia SINGAPORE: Singapore’s biggest bank, DBS Group, said yesterday it had formed a three-year partnership with investment firm Granite Asia to roll out investment products for DBS wealth clients and provide financing and deal support to fast-growing Asian companies. The partnership starts with the closing of a US$110 million (RM428 million) artificial intelligence-focused initial public offering fund managed by Singapore-based Granite Asia and distributed exclusively to DBS wealth clients, the firms said in a statement. The fund will give the clients access to investments in IPOs. DBS, Southeast Asia’s largest bank by assets, said it would also support Granite Asia’s funds and portfolio companies with services including subscription financing, corporate loans, M&A advisory, bond issuance support and IPO preparation. Granite Asia said it planned to develop additional funds for DBS clients and offer co-investment opportunities under the partnership. Granite Asia has about US$10 billion in assets under management and co-managed capital, according to the statement. – Reuters

o Q1 GDP growth seen between 5.5% and 6%, says Finance Ministry

JAKARTA: Indonesia reported a 54.6 trillion rupiah (RM12.7 billion) budget deficit in January, the equivalent of 0.21% of its GDP, with total spending jumping 26% from a year earlier due to the costs of President Prabowo Subianto’s free meals programme. The government of Southeast Asia’s biggest economy spent 227.3 trillion rupiah in January, up 25.7% from the same month of last year. This outpaced the 20.5% growth in total revenues, which reached 172.7 trillion rupiah, reflecting a fall in tax refunds and matching data released earlier this month. The monthly deficit was much larger than the 0.09% recorded in January last year. Investors are watching the government’s fiscal position closely after a turbulent start to 2026 in Indonesia’s financial markets, triggered by concerns about the country’s fiscal health, the independence of its central bank

Thai January exports beat forecast, US shipments surge BANGKOK: Thailand’s exports surged in January, data showed yesterday, and the Commerce Ministry expects them to increase in coming months even as the baht’s strength remains a concern and there is uncertainty about US tariffs. Customs-cleared exports, a key economic driver, surged 24.4% in January from a year earlier, the fastest pace in four years and well above a forecast rise of 9.35% in a Reuters poll. Imports rose 29.4%, leading to a wider-than-expected trade deficit of US$3.3 billion in January. Exports were driven by the electronics cycle and AI-related demand and those trends should continue, said Nantapong Chiralerspong, head of the Trade Policy and Strategy Office. Shipments to the US, Thailand’s largest market, surged 43.1% in January from a year earlier, while shipments to China jumped 35.1%. Nantapong said the strength was not due to transshipment. US President Donald Trump has set tariffs at 15% after the Supreme Court struck down his tariff regime, below the 19% rate that was being levied on Thailand. Nantapong said trade talks would continue, and noted competitors with previously higher tariffs will also have the lower rate. Finance Minister Ekniti Nitithanprapas said the equal tariff rate should see exports accelerate in the first half and attract investment flows, supporting growth. Whether GDP can grow 3% this year remains uncertain, and Thailand must continue trade negotiations and expand free-trade agreements, Ekniti said. The baht’s strength is a major concern, and improving tourism and rising exports are likely to see it strengthen further, Nantapong said. – Reuters economic growth, which could reach between 5.5% and 6% in the first quarter. Growth was 5.39% in the fourth quarter of 2025, already the highest in three years. Earlier this month, rating agency Moody’s cut Indonesia’s bond-rating outlook to “negative”, citing reduced predictability in policymaking, and investors are paying close attention to the assessments of two other major rating agencies, Fitch and S&P. Fitch Ratings is due to meet several Indonesian institutions this week as it prepares its sovereign rating assessment, said Febrio Kacaribu, head of the Finance Ministry’s fiscal policy office. He said the data released by the ministry yesterday should alleviate any potential worry. “We see that what we have just presented will be very good in reflecting the very solid side of Indonesia’s real economic activity, and the state budget is also very good,” Febrio said. – Reuters

programme doubled ... This will contribute to growth, especially in household consumption,” Suahasil said. Social spending reached a total of 9.5 trillion rupiah in January. The government aims to expedite spending in the first quarter to reach 809 trillion rupiah, up by about 30% compared to the same period of 2025, in a bid to provide more momentum for economic growth, Finance Minister Purbaya Yudhi Sadewa said. Spending on free meals in the first quarter is estimated to reach 62 trillion rupiah, while another 15 trillion rupiah will be used for food handouts and other fiscal stimulus measures. Purbaya said government spending will further drive

and the transparency of its stock exchange. Prabowo’s ambitious free meals programme cost the government 19.5 trillion rupiah in January, compared with just 45.2 billion rupiah in January 2025, when the programme was just starting, said Deputy Finance Minister Suahasil Nazara. The programme, aimed at providing free lunch to students and pregnant women, had reached 60.24 million recipients as of February 21, Suahasil said, compared with under 550,000 recipients at the end of January 2025. The programme is designed to reach 83 million recipients when fully implemented. “Spending on the social aid

Lula and Lee shake hands prior to their meeting at the presidential Blue House in Seoul yesterday. – AFPPIC

South Korea, Brazil agree to expand cooperation SEOUL: South Korean President Lee Jae Myung held summit talks in Seoul yesterday with Brazilian President Luiz Inácio Lula da Silva, where they agreed to expand cooperation in sectors including trade, key minerals, technology and culture. The leaders plan to elevate the bilateral relationship into a The two presidents oversaw the signing of 10 memorandums of understanding (MOUs) spanning trade and industrial policy, core minerals, digital economy Brazil is South Korea’s largest trading partner in South America, making economic cooperation a key part of the agenda. Lula said Brazil holds large rare-earth reserves and has substantial nickel deposits, and that his government hoped to attract investment from South Korean companies.

for social and economic progress,” Lee wrote. “I support your life, your struggle and your achievements, which will remain forever in the history of global democracy.” The leaders, who first met at the G7 summit in Canada last year and later at the G20 summit in South Africa, appear to have bonded over shared experiences of childhood factory work and workplace injuries. The talks took place in South Korea’s presidential Blue House, the first large-scale official welcome ceremony to be held since Lee moved his office back to the building. – Reuters

including artificial intelligence, agriculture, health and biotech, small-business exchanges and joint policing against cybercrime, narcotics and other transnational threats. In earlier remarks, Lee said the two sides adopted a four-year action plan to map out concrete steps for expanding bilateral cooperation, from strategic minerals to defence and space industries, as well as food security.

strategic partnership, and for the countries to work together to support stability on the Korean Peninsula, Lee said. “Peace, built on conditions where conflict isn’t needed, is the strongest form of security,” the South Korean president told a joint press conference.

In a message posted to X earlier in the day, Lee welcomed Lula, who is in Seoul for his first state visit in 21 years, pointing out the similarities in their backgrounds. “As a former child labourer, you proved with your whole life that democracy is the most powerful tool