Bisinomics

India 

Narendra Modi has advised Indians not to travel abroad for  holidays and weddings. He also asked people to work from home  and use public transport. 

India is the world’s third-largest importer of oil. It faces a  ballooning economic challenge because of the sharp increase in  energy prices and an uncomfortably low level of reserves caused  by reduced supplies from the Persian Gulf following the virtual  closure of the Strait of Hormuz. 

‘We must curb our use of petrol and diesel,’ Modi said in a  speech. ‘In cities with metro lines, we should use the metro  wherever possible… We must also place a strong emphasis on  saving foreign exchange.’ As Indians braced themselves for a  further escalation in energy prices, Modi’s critics mocked him for  not practising what he was preaching by taking off on a  five-nation overseas trip. They said hands-on economic  management was the national priority. 

The Financial Times reported that India ‘imported $174 billion of  oil and gas last year, with two-thirds of natural gas and half of  crude oil imports [coming] from the Gulf’. India has returned to  sourcing oil from Russia – after obsequiously obeying orders  from United States President Donald Trump not to, before Mr  Trump partially waived sanctions in March. The Indian cabinet,  meanwhile, approved expanded gas production from coal on an  urgent basis. Shortage of cooking gas has disrupted homes and  debilitated hotel and restaurant businesses.  

Commuters crowd public transport in India as rising fuel costs and supply disruptions intensify pressure on households and businesses. Photo: EPA 

The FT reported that ‘higher import prices have hurt the Indian  currency and knocked investor confidence’. It added that ‘the  rupee has been among Asia’s worst-performing currencies since  hostilities began in the Gulf… Economists are concerned over the  war’s impact on India’s balance of payments, already under  pressure from foreign investors selling Indian stocks at the fastest  pace on record… As the Gulf crisis drags on, economists are  revising down their estimates for growth in India.’ 

Kazakhstan 

In contrast, Kazakhstan has since the start of the Iran war  experienced an appreciation in its currency, the tenge. Oil-rich,  the country has benefitted from the steep upward revision in  crude prices, leading to the strengthening of the currency. This  trend is likely to continue until international trade in oil  stabilises. The oil sector accounts for over 40% of the Kazakh  government’s revenues. 

Kazakhstan, though, is dependent on electricity from Russia. It  aims to exit from dependence on Russian imports by 2027, the  Times of Central Asia reported, following a restatement of the  goal by the country’s deputy energy minister, Sungat  Yessimkhanov. 

Rising global crude prices have strengthened Kazakhstan’s energy sector, even as the country faces domestic electricity challenges. Photo: Kazakhstan government website 

It is likely to fulfil that objective only if homes remain heated and  industry avoids shortages during peak demand. Kazakhstan has  had a power deficit because of years of underinvestment, rising  demand, ageing thermal plants and uneven regional output,  according to the same newspaper.

Uzbekistan 

Another Central Asian state, Uzbekistan, posted healthy activity  in its car industry, selling 121,601 vehicles between January and  April of this year, as per figures released by UzAvtosanoat and  reported by UZ Daily. 

UzAuto Motors, the largest automaker in Uzbekistan,  maintained its dominant position, selling 58,168 vehicles. The  company manufactures a wide range of models under various  brands, including American General Motors’ Chevrolet. Chinese  brands and Kia of South Korea are also noticeable in the  Uzbekistan market.  

Indonesia 

The energy crunch has affected oil-producing Indonesia because  its demand outpaces its crude output, so it is planning to expand  its nuclear power capacity. Significantly, director-general Alexey  

Likhachev of Russia’s state nuclear energy corporation Rosatom  was in Jakarta to meet the Indonesian president, Prabowo  Subianto, to discuss bilateral cooperation. 

Indonesia is exploring expanded nuclear energy  cooperation as Asian governments search for long-term energy security solutions. Photo: SouthEast Asian Gallery 

Bernama reported Likhachev as saying Rosatom was ready to  offer Indonesia ‘a comprehensive approach to developing its  national nuclear programme, including both large-scale nuclear  power projects and small modular reactors and floating power  units’. 

Malaysia 

In neighbouring Malaysia, economic growth for the first quarter  of the 2026 financial year was 5.4%, exceeding the prediction of  5.3%. The number had moderated from the 6.3% enlargement in  the previous quarter. 

The Star quoted the chief statistician of Bank Negara Malaysia,  Datuk Seri Mohd Uzir Mahidin, as saying ‘Malaysia’s economy  continued to expand in the first quarter of 2026, reflecting the  

underlying resilience and stable growth conditions amid a  challenging global environment.’ 

The country continued to record a surplus in its current account  balance for the same period amounting to RM15.2 billion,  equivalent to 3% of gross domestic product (GDP). This was  significantly higher than RM2.7 billion in Q4 of 2025. Mahidin  said this was attributed to, as The Star put it, ‘sustained external  demand for Malaysia’s exports alongside improving services  sector performance’. 

Singapore 

In the Chandler Good Government Index, Singapore retained its  top position for a fourth consecutive year. The seven pillars of  evaluation are: leadership and foresight, robust laws and policies,  strong institutions, financial stewardship, attractive marketplace,  global influence and reputation and helping people rise.  Singapore was ranked first in all categories except robust laws  and policies and global influence and reputation.

However, as Singapore Business spelled out, Singapore Airlines  (SIA) suffered a 57% year-on-year slump in net profit to $1.18  billion in the financial year ending 31 March last, because of its  shareholding in loss-making Air India. 

SIA suspended services to Dubai and Jeddah in February as a  result of the war in the Gulf and deferred the introduction of  flights to Riyadh until September 2026. The suspension of flights  to Dubai has been extended to 2 August. 

South Korea 

Samsung, South Korea’s giant electronics firm, faced a general  strike from 21 May. The strike threatened losses running into the  tens of trillions of won, not to mention semiconductor  production chaos and supply chain instability, Business Korea  reported. After the failure of labour-management negotiations,  Koo Yun-cheol, deputy prime minister and minister of economy  and finance, wrote on X: ‘We will continue supporting resolution  through principled negotiations under any circumstances.’ 

From aviation to semiconductor manufacturing, major  Asian corporations are facing mounting uncertainty from  supply chain and energy disruptions. 

Japan 

A group of lawmakers in Japan’s ruling Liberal Democratic Party  submitted a proposal to Prime Minister Sanae Takaichi to review  the country’s Companies Act, which would require shareholders  to own at least 30,000 shares in an enterprise to call extraordinary meetings or enter items on the agenda. At present,  a 10,000 shareholding is sufficient for the purpose. 

The Japan Times wrote the change ‘would bring the Japanese  market more in line with standards in other countries, where it is  normally more difficult for shareholders to directly participate in  governance’. It is expected this will ‘make Japan into a leading  financial centre’.