In his first major policy speech since his re-election President Joko Widodo promised to press ahead with plans to boost infrastructure spending, reduce bureaucracy and open up the economy to foreign investors. But the lack of any mention of changes to the country’s inflexible labour laws suggests he will continue to shy away from the tough reforms that we think are needed to improve the country’s long-run prospects.
Meanwhile, Thailand looks set for a period of political and economic uncertainty after neither the military nor the opposition gained enough seats in March’s general election to control parliament.
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