Happy New Year!
According to the Chinese zodiac, 2025 ushers in the Year of the Snake. The Chinese character for the animal is thought to represent a serpent emerging from the ground after hibernation, and connotes the unveiling of something hidden or the start of a movement or something new. In Japan, snakes are considered auspicious because they constantly shed their skin and grow, symbolizing renewal and transformation.
So, what kind of new beginnings might we see in the Year of the Snake? Will we witness something new and unexpected, like a serpent emerging out of nowhere? The inauguration of the new U.S. president might be the first thing that comes to mind for many. Donald Trump will take office on Jan. 20, marking his return to the White House. His presidency is expected to have major global reverberations, particularly through policies such as high tariffs and stricter immigration rules.
Since last year's U.S. presidential election, Nikkei Asia has regularly reported on how the new Trump administration might impact Asia from various perspectives, including security, trade and tech supply chains. However, predicting what will actually happen is difficult, as Trump's words may not necessarily translate into actions, and he may introduce entirely different policies than the ones he has talked about.
In Japan, the new Diet session begins later this month, and Prime Minister Shigeru Ishiba and his ruling Liberal Democratic Party, which suffered a historic defeat in last year's lower house elections, will face tougher challenges from the opposition than ever. The opposition now holds a majority of seats for the first time in 30 years. It remains very unclear whether the ruling bloc will be able to pass the budget for the 2025 fiscal year by the end of March.
Ishiba is scheduled to visit Indonesia and Malaysia this month and is also considering a meeting with Trump as soon as February, according to the latest updates. However, the prime minister's weak support base at home could jeopardize his diplomatic leverage. Many pundits believe there won't be any room for him to make tangible diplomatic achievements before the upper house election this summer.
In Southeast Asia, whose growing wealth is a focus of the ASEAN Money feature we launched in 2024, Malaysia will chair the Association of Southeast Asian Nations this year. The country has gone through an extended period of political turmoil marked by frequent leadership changes, but current Prime Minister Anwar Ibrahim has now been in power for over two years and presides over a relatively stable government. As the bloc's chair, Malaysia will be tasked with guiding ASEAN through some difficult issues, such as the South China Sea dispute, the Myanmar crisis and rising inflation.
In South Asia, India will continue to assert its presence as a leader of the Global South, while the political situations in neighboring countries such as Bangladesh, Sri Lanka and Pakistan -- strained by significant economic pressures -- could remain a source of instability in the region.
With the potential for unpredictable developments across many parts of Asia this year, we will need to stay flexible and adapt quickly, just like a snake. We will remain committed to delivering the dynamic news our readers are looking for.
My suggested reads
1. Vietnamese consumers are on a spending spree that extends not only to homes, but also to items once considered luxuries in the Communist nation, such as cars, air conditioners, high-end smartphones and premium cosmetics. Driving this shift is a combination of rapidly rising incomes and cultural changes, propelling the purchasing power of the upper middle class to a level on par with neighbors the country once lagged far behind.
2. Immigrant tech workers in the U.S. are worrying that Donald Trump's return to the White House will also mean a return of the disruptive immigration policies of his first term. And while Trump supporter Elon Musk has called to "greatly increase legal immigration," there is little hope the billionaire will have much sway on this sensitive issue.
3. Players in Japan and overseas have been catching Pokemons in card form for 28 years, but they are a bigger deal now than ever. Collectors are paying millions of dollars for rare individual cards, while The Pokemon Co. is churning out new cards at a record pace. The trading card boom, which started during COVID-19, has been a blessing for Japanese toy and printing companies and Akihabara landlords.
4. Hanoi's success in luring international businesses to build factories in Vietnam has come at a price. Booming energy demand and creaking power transmission grids have seen the country ramp up its use of coal so much that this year it will likely become one of the world's top five coal importers for the first time, casting a dark shadow over its green policy ambitions.
5. A small company in northern Japan has developed robotic wolves and eagles designed to scare off bears, birds and other critters that can threaten humans or their crops. Ohta Seiki hopes to sell up to 2,000 of its Monster Wolves -- with their menacing movements and flashing LED eyes -- across the country, and the company has also received inquiries from more than 10 overseas markets, including the U.S. and Europe.
Wishing you a wonderful New Year!
Shin Nakayama
Follow me on X (formerly Twitter) @ShinNakayama_NA
Sign up for the weekly Editor-in-chief's picks newsletter here.
