Realized local investment decreased 70% in the first half as compared to the first six months of last year. To avoid paying Indonesia's taxes, local investors have begun to invest in global legal entities. In the first half, realized foreign investment increased 153% as compared to the first half of last year.

The government stands to lose billions of pesos from a tax and savings law. A tax-exemption law could cause the government to lose as much as P15 billion next year. In addition, the government could lose P11 billion a year from the Personal Equity Retirement Account. This law allows Filipinos to save money that will provide liquidity for domestic financial markets.

After the government declared a state of emergency, investors in the Stock Exchange of Thailand fled quickly as Thai stocks fell 2.33%. Experts say that the hit that Thai stocks took could have been much worse. The Stock Exchange of Thailand closed at 659.51, down 15.71.

In the first half of the year, trade between Vietnam and Japan increased 45.5% as compared to the same period last year. Trade was worth over $8.1 billion. At this rate, trade between the two countries could exceed the 2010 target of $15 billion. Exports of oil to Japan surged in the first half. Furthermore, Vietnam shipped more coal, coffee, and small motors to Japan than it did last year in the first half.

With the expectation of increasing economic problems in the second half, Finance Minister Surapong Suebwonglee promised to focus on pro-growth measures for the next six months. The government will aim to raise consumers' purchasing power, increase exports, and ease liquidity constraints for small to medium-sized enterprises. Furthermore, the government is ready to quicken disbursements for the country's megaprojects.

Bank Negara Indonesia (BNI), a state-owned lender, will spin off its sharia unit into a joint-venture with Saudi Arabia-based Islamic Corporation for the Development of the Private Sector (ICD). BNI will probably get a 20 to 30% stake while ICD will have the remainder. Due to this joint-venture, BNI should increase the number of customers in the Middle East.

By the end of 2008, the Bangko Sentral ng Pilipinas (BSP)expects to increase revenues. In the first half of this year, the BSP had a net loss of P7.59 billion, much lower than the loss of P31.73 billion during the same period last year. Expenses in June, though, increased to P39.60 billion as compared to only P28.45 billion last year. The BSP expects to improve its financial position because the central bank is not facing the heavy inflows of foreign exchange that it experienced last year.

Thailand's healthy economic growth this year is due mostly to an increase in exports and high farm prices. Thailand grew 5.9% in the first half of the year while many nations faced recession. Prices for rice, cassava, natural rubber, palm oil, and sugarcane increased, allowing incomes in the agricultural sector to soar.

Indonesia, Southeast Asia's largest economy, has the lowest average price of cigarettes in the world, and analysts believe the livelihoods of 12 million people are directly or indirectly dependent on the country's tobacco and cigarette sector. Finance Ministry's Director General of Customs and Excise Anwar Surpijadi said he was concerned a further rise in the excise would hurt the cigarette industry and risk the jobs of its millions of workers. He also disagreed with analysts who believe a 60 percent rise in excise duty would boost state revenue, cut the number of smokers and retain a robust cigarette industry.

CapitaLand Ltd the largest real estate company in South East Asia by market capitalisation. Whose CEO, Kee Teck Koon, said the company had already submitted the proposal to Bursa Malaysia and is awaiting approval. The company will group its shopping mall assets in Malaysia, namely the Gurney Plaza in Penang, the Mines Shopping Fair in Seri Kembangan, Selangor and Sungai Wang Plaza in Kuala Lumpur for the trust, he told reporters after the topping-up ceremony of Tower D at Lot J, KL Sentral today.