South Asia economy · May 2026

Thailand’s minimum wage has risen just 1.7% annually, leading to stagnant real incomes, while the Middle East conflict is causing factory closures and rising layoffs in the country, according to reports. Singapore enters the Hormuz reopening from a position of strength, but PM Wong warns the global crisis is far from over. Southeast Asia’s second largest economy has lowered its economic growth forecast for 2026. Japan is helping Vietnam with 4 million barrels of crude oil. Indonesia posted a Rp 240 trillion budget deficit in Q1 2026.