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Business Times
2 days ago
- Business
- Business Times
The best deal with Trump is no deal
THE 46th Asean Summit took place this week against a backdrop of a changing world order, with multilateralism and globalisation in retreat. As Asean leaders confront the global economic uncertainty, created by the current US administration's policies, the most strategic response to President Donald Trump's tariff-driven approach is disengagement – not negotiation or appeasement. Ignoring Trump is not passivity – it is strategic defiance. By refusing to be drawn into asymmetrical negotiations, Asean can safeguard its interests and let the costs of protectionism fall squarely on the US economy. Trump's depiction of China, Japan, South Korea, India, and Asean as job thieves is not just misleading – it is a deliberate distortion of economic reality. From 2021 to 2024, US unemployment averaged just 3.8 per cent – among the lowest not only in the developed world, but globally – exposing the falsehood that foreign economies are siphoning off American jobs. In fact, the US economy soared to a record US$29.3 trillion in 2024, retaining its status as the world's largest economy, with per capita income of US$86,000. Structurally, 81 per cent of US GDP stems from services, which employ 79 per cent of American workers – in fact 91 per cent when including the self-employed. Manufacturing, though politically resonant, accounts for only a sliver of employment. Tariffs, particularly against Asia, under the guise of 'saving jobs', distort this reality and risk harming the very global networks that power US growth. For decades, Asean has contributed significantly to US prosperity. In goods, Asean's supply of semiconductors and machinery is critical to sustaining US manufacturing competitiveness. At the same time, the region's demand for American aircraft and defence equipment supports thousands of high-skilled jobs across the United States. In services, Asean is a major destination for US exports – ranging from finance and education to digital platforms – contributing significantly to America's trade surplus. In 2024, the US recorded a US$24.4 billion services surplus with Asean. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up More broadly, US services exports reached US$1.11 trillion, while imports totalled US$812.2 billion, yielding a global services surplus of US$293.4 billion (Bureau of Economic Analysis). On investment, US firms channelled US$328.8 billion into Asean in 2024 alone, accounting for 22.5 per cent of total foreign direct investment into the region. Risks of aggression Yet, Trump's tariff aggression risks unravelling this mutually beneficial relationship. Punitive tariffs risk alienating a trillion-dollar trade partner, disrupting supply chains, and weakening America's own economic prospects. For over five decades, Asean has anchored US prosperity – economically, strategically, and diplomatically – by supplying essential intermediate goods, absorbing US services exports, and generating trillions in annual revenue for American companies operating throughout the region. How, then, should Asean respond to Trump's destructive approach? First, Asean should lead with principles. Trump's exploitation of trade in goods imbalances to justify tariffs must not be rewarded with preferential treatment. Disengagement from Trump is a firm reaffirmation of Asean's core values: non-alignment, multilateralism, and mutual respect. Asean should underscore its unwavering commitment to rules-based trade and regional stability. It remains open to partnerships with any country that respects international norms and embraces equitable cooperation. By insisting on World Trade Organization (WTO) principles of reciprocity and most-favoured nation (MFN) treatment, Asean rejects Trump's zero-sum logic. These principles were reaffirmed in the Asean Leaders' Statement of May 26-27, 2025 – a unified rejection of discriminatory trade practices. Asean must also partner other regions to uphold these rules. In an era of growing economic fragmentation, Asean's adherence to multilateralism offers one of the few remaining anchors of rules-based global trade. Second, Asean must mobilise the American business community, whose long-term interests lie in open, stable markets. These companies have profited enormously from Asean's openness. It is time they defend the very conditions that enabled their success. From Boeing to Apple, Microsoft, IBM, and Intel; from Freeport, ExxonMobil, and Chevron to platforms such as Starlink; from global consumer names such as McDonald's, Coca-Cola, Nike, and Unilever to banks such as Citibank, Visa, and Mastercard; from insurers AIG and Chubb to law firms Skadden and Baker McKenzie and consultancies such as McKinsey and BCG – these firms flourish on open markets and regional cooperation. Yet if influential corporations – such as Elon Musk's Tesla and Starlink, or Meta (which owns Facebook and Instagram, whose leadership aligns with Trump's nationalist agenda) or media outlets such as Fox News, which amplify protectionist rhetoric – continue to disregard Asean's strategic relevance, the region must take note. These firms must harness their influence in Washington to counter economic nationalism. If they fail to speak up – or worse, remain complicit – Asean is right to reconsider the privileged access they enjoy in its markets. Asean should make clear that market access is not a blank cheque. In today's contested global economy, partnerships must be reciprocal. If US firms benefit from Asean's openness but fail to defend the frameworks that enable it, Asean has every right to reassess their privileged access. Last, Asean should let the US deal with the consequences of its own policies. Trump has made clear – through sweeping tariffs and nationalist rhetoric – that he has little regard for Asean, or for America's own longstanding allies, including the European Union, Canada, Japan, and South Korea. He is unlikely to change. He responds neither to diplomacy nor to data, but only to two constituencies: his domestic political base and a narrow circle of business elites. So let them feel the impact. If Trump slaps tariffs on Asean, it will be US firms – those dependent on South-east Asian supply chains – who will bear the consequences: higher costs, logistical delays, and eroded competitiveness. Ultimately, they may be the only voices he listens to. Strategic discipline Trying to reason with Trump is a dead end. Asean should instead invest in building economic resilience: deepen regional integration, diversify trade partners, and expand strategic alliances. Let the pressure come from within. This is not retreat – it is strategic discipline. Sometimes, the most strategic move is to stand back and let the costs of bad policy speak louder than diplomacy ever could. Moving forward, following the conclusion of the Asean summit and the Asean-GCC-China Economic Forum, there is now a critical window for Asean to assert a bold economic agenda. The region must double down on intra-Asean trade, fully utilise the Asean+1 free trade agreements and Regional Comprehensive Economic Partnership (RCEP), strengthen Asean+3 with China, Japan, and Korea cooperation, and deepen strategic ties with partners across the EU, Middle East, Eurasia, Latin America, and Africa. Diversifying not only trade and investment but also currency use and payment systems will be essential to building a more autonomous and future-ready Asean. As Trump turns inwards, Asean must turn outwards. The writer is secretary general of the International Economic Association. The commentary reflects her personal views.
Business Times
4 days ago
- Business
- Business Times
Malaysian assets to gain as funds slash US exposure: CIMB
[KUALA LUMPUR] Malaysia could end up among the biggest beneficiaries in emerging markets if the Trump administration's disruptive trade policies trigger a further sell-off in US assets, according to a top executive at CIMB Group Holdings. 'We could potentially see a lot of capital freed up and move to emerging markets,' Novan Amirudin, chief executive officer of CIMB, Malaysia's third-largest bank by market value, said. 'Malaysia has all the parameters that tick the boxes for investors as they look at asset allocation and investments,' he said. Uncertainty over US fiscal and trade policy is denting the appeal of US assets, with emerging market investors expecting the asset class to benefit as some of that cash finds its way into stocks and bonds of developing countries. Global funds bought US$45.6 million of Malaysian equities so far this quarter, making the country the only emerging South-east Asian nation to see inflows, according to Bloomberg-compiled data. Novan pointed to Malaysia's political stability and the government's commitment to improving the country's fiscal position as key factors that make the nation stand out. Since taking over as Prime Minister in late 2022, Anwar Ibrahim has accelerated economic and political reforms after a revolving door of leaders from 2018 to 2022 affected investor confidence. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up While Malaysia's economic expansion is expected to come in slightly lower than the 4.5 to 5.5 per cent official growth estimate for the year, strong domestic demand is likely to anchor growth. And though the country kept borrowing costs unchanged earlier in May, traders are pricing in an interest rate cut within the next six months. Bank Negara Malaysia has 'always been very proactive', said Novan, who took charge at CIMB in 2024. He said the government's policies on energy transition, manufacturing and the semiconductor industry would draw more foreign investments. Technology giants including Microsoft and have pledged to invest billions of US dollars in the country's infrastructure, with Malaysia approving a record amount of investments last year. A planned special economic zone with Singapore will also help 'mitigate uncertainties that a lot of businesses and corporations are seeing today', Novan said. BLOOMBERG
Business Times
5 days ago
- Business
- Business Times
Batam, Johor, Da Nang: Asean's new growth cities
[HO CHI MINH CITY] Infrastructure development and breakthrough incentives within special economic and trade zones are drawing global businesses, investors and talent beyond Asean's traditional metropolises to emerging 'second cities' such as Johor Bahru, Da Nang and Batam. While smaller and less globally known than capital cities or primary metropolises like Kuala Lumpur, Jakarta, or Ho Chi Minh City, these rising hubs are capturing attention for their investment potential, quality of life and innovation ecosystems. 'These shifts reflect a broader trend of decentralisation, synergistic and regional growth within Asean,' said Govinda Singh, executive director at Canada-based investment management company Colliers International. He added: 'What sets successful rising cities apart is their ability to enable ease of doing business, investment in infrastructure and long-term policy stability.' Why 'second cities' are taking off In today's competitive environment, he noted that investors seek clear value propositions, such as cost advantages, special economic zones, talent pipelines and logistics connectivity. 'Ultimately, it's not just about being cheaper than the capital cities; it's about leveraging comparative strengths, being smarter, more specialised and investment-friendly,' he added. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Sam Cheong, head of group foreign direct investment advisory at UOB, observed that traditional economic hubs like Singapore, Jakarta or Ho Chi Minh City are increasingly facing resource constraints to accommodate the needs of foreign direct investment effectively. This has given rise to the emergence of new hubs, especially those near established ones. The Business Times takes a closer look at these emerging cities that have been in the spotlight in recent years. Johor Bahru: Riding Singapore's ripple Johor Bahru's strategic southern location, less than 30 km from Singapore, positions it uniquely. The Johor-Singapore Causeway, a vital link handling over 300,000 daily crossings, is one of the busiest border checkpoints in the world. In January 2025, Malaysia and Singapore officially launched the Johor-Singapore Special Economic Zone (JS-SEZ), a cross-border initiative by both nations to harness the power of their proximity. Siva Shanker, chief executive officer of the estate agency at Rahim & Co International, said: 'With ongoing infrastructure projects and various incentives in place, the JS-SEZ presents compelling opportunities for business owners considering relocation or expansion in this region.' Amid the ongoing global trade headwinds, Dr Wong Chin Yoong, an economics professor at Universiti Tunku Abdul Rahman Malaysia, said that the potential of cities like Johor Bahru could drive greater intra-Asean collaboration, as the region requires a development strategy that buffers it from geo-economic risks. 'This necessitates greater intra-Asean interdependence through cooperative initiatives that minimise exposure to super power competition, enhance regional resource sharing, and cultivate Asean as a significant regional power in both production and consumption,' he said. The demand for Johor Bahru real estate is rising on the back of the progress made in the building of the railway shuttle linking Singapore and Johor Bahru and the establishment of the JS-SEZ. PHOTO: BT FILE Batam: Indonesia's fast-charging digital hub In Indonesia, Batam, located about 20 km south of Singapore, is also fast rising as a key hotspot for investments for data-centre operators, power developers and semiconductor manufacturers, giving Johor a run for its money as the top destination for companies expanding beyond the city-state. The growth is especially bolstered by Batam's Special Economic Zone perks and direct subsea cable links that tether it seamlessly to Singapore's digital backbone. For example, the Nongsa Digital Park, located on Batam's north-eastern tip and designed to support the digital economy, is a few kilometers away from the landing of 13 submarine cables that link it directly with various parts of Indonesia, Singapore, Malaysia and the US West Coast. The city's biggest win so far was Apple's landmark US$1 billion commitment to produce AirTags on the island, marking a major milestone in Batam's evolution into a regional tech and data hub. Nongsa Digital Park is a designated Special Economic Zone in Indonesia focusing on digital technology and tourism activities. PHOTO: NONGSA DIGITAL PARK Da Nang: From Vietnam's holiday haven to investment hotspot Da Nang, one of Vietnam's most popular tourist destinations, is now showcasing a new identity – that of an investment hub. The city is strategically located in central Vietnam, between the country's two major economic centres in the north and the south, Hanoi and Ho Chi Minh City, respectively. It is home to two deep-water ports, Tien Sa Port and the developing Lien Chieu Port, which are vital gateways in the eastern extremity of the East-West Economic Corridor, connecting Vietnam, Laos, Thailand and Myanmar across the Greater Mekong Sub-region. 'Naturally, the combination of the holiday lifestyle and the business lifestyle will be a magnet for a lot of people,' said Andy Khoo, managing director at Terne Holdings, a Singapore-based investment group. Starting January 2025, Da Nang became the first city in Vietnam officially approved to pilot a Free Trade Zone. Plans are afoot to develop it across 10 dispersed locations connected to Lien Chieu seaport and Da Nang International Airport. Another key driver is its designation as one of the two locations for Vietnam's international financial hub, along with Ho Chi Minh City, with 'unprecedented' financial mechanisms being developed and the authorities actively working to attract multibillion-dollar investments. Da Nang has allocated six land parcels for the development of the city's international financial hub, including the 9.7-hectare site overlooking the estuary of the Han River. Richard McClellan, founder and principal at Ho Chi Minh City-based RMAC Advisory, said: 'With a smaller scale than Ho Chi Minh City, Da Nang offers an ideal environment to experiment with new initiatives within a controlled and managed space.' Da Nang has allocated six land parcels for the development of the city's international financial hub, including the 9.7-hectare site overlooking the estuary of Da Nang's iconic Han River (above). PHOTO: JAMILLE TRAN, BT Ayutthaya: Thailand's 'Silicon Valley' Ayutthaya is an emerging city in Thailand's central-west economic corridor, where some 40 per cent of approved foreign investment projects in the first quarter of the year are located, said UOB's Cheong. The other up-and-coming city is Samutprakarn, which is in the Bangkok Metropolitan Region. These cities are part of the evolution of Thailand – traditionally known for its tourism industry – into an industrial powerhouse, particularly through its economic corridor initiatives. The strong infrastructure connectivity to ports and airports offers a geographical advantage for several of its rising hubs. 'These cities are within an hour's drive from Bangkok and are tipped to be the 'Silicon Valley' of Thailand,' he said. 'The availability of a higher-skilled labour force can be found in these cities, and strong policy support for these prioritised sectors is drawing more high-value investment.' Ayutthaya, 70 km north of Bangkok, was once the historic capital of a kingdom and is now a tourism hotspot. The city is also a key stop on the Thai-Sino high-speed rail system currently under construction. When completed, the high-speed rail will connect Bangkok to Nakhon Ratchasima, and ultimately to China via Laos, further strengthening its position as a potential logistics hub. Ayutthaya Historical Park in Ayutthaya. Ayutthaya is where one of the six stations on the Bangkok-Nong Khai high-speed rail project is to be located. The project is part of the broader Pan-Asian Railway Network. PHOTO: PIXABAY Additional reporting by Tan Ai Leng in Kuala Lumpur, Elisa Valenta in Jakarta, and Goh Ruoxue in Singapore
Business Times
6 days ago
- Business
- Business Times
Asean must keep joining global supply chains, Thai Minister says
[BANGKOK] South-east Asian nations should look at ways to further integrate their supply chains regionally and around the world to reap the benefits of economies of scale and gain access to larger markets, Thailand's foreign minister said. Some countries in the region are already working together to produce more complex goods such as semiconductors, and Asean officials do see the potential that comes from being part of the global supply chain, Maris Sangiampongsa said. 'That is the key that leads to the integration, more and more deepening of our relationships and integration of our members of Asean,' Maris said. 'We have to share the advantage in the manufacturing. That means we share the opportunities for supply chains for the global market.' Maris was responding to a question on concerns about an influx of cheap imports into Thailand. A survey of chief executives of Thai companies released last month showed that almost 71 per cent of the participants were worried about cheap Chinese goods flooding Thai markets, leading to lower use of production facilities or more factory closures. 'When there's a big volume of products from China, it also helps the Thai economy because people can buy things cheaper than produced in Thailand,' he said. 'What I am trying to say is, we have to work and to find, to be able to see the advantage of working together with Asean, with China to fulfil the global supply chain.' China's economic ties with South-east Asia have soared in recent years, with free-trade deals and efforts to avoid US tariffs targeting Beijing driving trade and investment from Chinese companies and other multinationals into Asean. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Vietnam was the largest recipient of manufacturing investment from China last year, followed by Indonesia, according to US research company Rhodium Group, with both seeing around US$3 billion in newly announced Chinese manufacturing projects. Maris spoke on Sunday (May 25) after meeting with Asean foreign ministers who gathered ahead of the leaders summit this week. Key areas of focus are complexities surrounding the global trade war and navigating tense relations between superpowers. The US has indicated it will not negotiate with Asean as a bloc and will pursue bilateral discussions. Trade-reliant Asean countries are in a rush to negotiate with the US to lower imposed tariff rates, ranging from 10 to 49 per cent. Many have already pledged to increase purchases of a swathe of US goods to strengthen their case for lower tariffs. The urgency is because Asia, which manufactures most of the world's goods, is poised to be among the hardest hit in the global trade war. Countries must be able to work on security and economic concerns with either superpower as selecting sides on a per-issue basis is not feasible, Maris said. China was Asean's top trading partner in 2024, with total trade worth US$770 billion. Thailand has expressed its readiness to hold talks with the US – its biggest export market last year – after submitting a proposal detailing how it will boost imports of American goods and investments in the US, and strengthen bilateral cooperation. The country expects to reduce its trade surplus with the US by as much as US$15 billion annually – from about US$45 billion last year – with its recent initiatives to prevent the misuse of origin rules for exports. The US tariffs also came after Thailand joined Brics – in which China is a member but not the US – as a partner country, which should help it hedge against uncertainties with pathways into other global markets. Maris said Thailand is seeking a full membership but cannot say when that will happen. BLOOMBERG
Business Times
19-05-2025
- Business
- Business Times
Bali's digital nomad boom reshapes economy, raises costs
[BALI] When 24-year-old Jakub Valek moved to Bali to grow his UK-based digital firm, he joined a growing wave of remote workers reshaping the island's economy and redefining what it means to 'live in paradise'. The Polish marketing consultant arrived in July 2024 on Indonesia's remote work visa, drawn by Bali's creative energy and the booming digital market of South-east Asia's largest economy. 'Bali is well-known across Europe – it's a magnet for marketers. Being physically here allows me to understand the culture and connect with the community on a deeper level,' he told The Business Times, adding that it took two months for his application to be approved. Valek is among hundreds of remote workers drawn to Bali under Indonesia's digital nomad visa, part of a post-pandemic push to revive the island's tourism-reliant economy. But as more nomads arrive with foreign incomes and longer stays, their presence is quietly reshaping spending patterns, driving up housing costs, and redrawing the island's economic landscape. So far, around 633 applicants have been approved for the E33G visa, with about 77 per cent choosing to base themselves in Bali, cementing the island's status as the hub of Indonesia's digital nomad scene. This visa permits multiple entries and allows holders to live and work from Indonesia for up to a year. To qualify, individuals must meet several criteria – most notably, providing proof of employment with a company based outside Indonesia and earning a minimum of US$60,000 a year. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Russia stands out as the leading country of origin for applicants, reflecting the island's growing appeal to remote workers from across the globe. Before the launch of the digital nomad visa, Bali had already seen a surge in remote workers choosing the Island of the Gods as their home base. The country offers C1 Special Visit Visa that allows foreign nationals to stay in Indonesia for up to 60 days, with the possibility of renewing it twice for extended visits. Professor Azril Azahari, a tourism expert from Trisakti University, noted that Indonesia is moving away from mass tourism and embracing more curated, experience-driven travel. The focus is shifting towards the quality and duration of visitors' stays – and their economic impact on local communities – rather than merely boosting arrival numbers. 'Now, the paradigm has shifted. Digital nomadism is no longer just a post-pandemic trend, it represents a broader global change in how we live and work,' he said. 'Indonesia is beginning to realise that it can no longer rely on mass tourism.' Samer Elhajjar, senior lecturer at the Department of Marketing at NUS Business School, sees this shift as part of a broader national ambition to reframe Indonesia as more than just a postcard destination. It is also a signal that the country is positioning itself as a competitive player in an emerging hub for remote talent and innovation. 'The government isn't just chasing short-term tourist dollars anymore,' Dr Elhajjar said. 'Traditionally, Bali relied heavily on short-term tourists, but nomads bring in more steady, year-round income.' The sheer number of scooters in Bali has become a growing concern, contributing to traffic congestion, noise pollution and safety issues particularly in densely populated tourist areas. PHOTO: ELISA VALENTA, BT Longer stays, lower spending This shift, however, comes with trade-offs. As Bali pivots from mass tourism to longer-staying digital guests, the economic flow is changing, raising questions about who truly reaps the rewards of this new wave. Christine Nababan, a long-time Bali resident and tour operator, has watched the island's digital nomad boom quietly reshape spending habits. In recent years, although the island still draws plenty of foreign tourists, she has noticed a drop in crowds at trendy cafes and upscale restaurants. Instead, remote workers are gravitating towards cozy co-working spaces, small locally owned coffee shops and warungs – humble local eateries known for their affordable prices. 'They'll grab a plate of nasi campur from a warung for lunch, then head to a cafe with strong Wi-Fi to work for the rest of the day,' she said. 'And of course, they zip around everywhere on scooters instead of taxis.' The increasing use of scooters by long-term tourists has added to Bali's growing concerns, exacerbating traffic congestion, noise pollution and safety issues, especially in densely populated tourist areas. As more remote workers arrive, often with foreign salaries in tow, prices for housing, food and services have surged. For many Balinese, daily life is becoming increasingly unaffordable in their own backyard. Ida Ayu Wayan Agustini, a 21-year-old Balinese student at Politeknik Internasional Bali, has been feeling the squeeze in her search for an affordable kost near her campus. Kosts, long considered the go-to option for local students and young workers, are small, budget-friendly rooms that may include a private or shared bathroom, and sometimes access to communal areas such as a kitchen or a lounge. Warungs – local eateries in Bali known for their affordable meals – have become a favourite among digital nomads. PHOTO: ELISA VALENTA, BT But as these humble lodgings become increasingly popular among long-staying foreign visitors, locals such as Ida Ayu are finding themselves priced out of even the most modest spaces. 'The search for a cheaper (room) is really tough now,' she said. 'Because once they (expats) move in, landlords often hike up the rent.' Shifting sands While tourists often gravitate towards hotels or all-inclusive resorts, digital nomads opt for more flexible living arrangements, such as apartments, private villas, or co-living spaces, where they can stay for weeks or even months. This shift is subtly transforming Bali's property market, with growing demand for long-term rentals and residential areas evolving into vibrant hubs for digital nomads. Bali saw around 6.3 million foreign tourists last year, a 24 per cent increase from the previous year. However, the hotel industry has yet to fully experience the benefits of this growth. The Indonesian Hotel and Restaurant Association (PHRI) has reported a consistent decline in hotel bookings across Bali over the past few years, with occupancy rates falling from around 70 per cent. With about 150,000 rooms available across the island, the downturn is raising serious concerns among players in the hospitality industry. Perry Marcus, secretary-general of PHRI Bali, notes a growing trend of visitors opting for private villas and residences – many of which operate informally and are not registered with the local authorities. These unregistered accommodations often offer lower rates, drawing long-stay guests and contributing to a decline in hotel occupancy. This has been further exacerbated by President Prabowo Subianto's policy to cut official travel budgets, dealing a blow to the hotel industry, which has long relied on government events to sustain demand. 'This has hit us hard. With occupancy rates dropping, hotels have been forced to slash prices just to stay afloat,' Marcus said, adding that the association has urged local governments to implement stricter regulations to ensure fair competition in the hospitality sector. Booming space Jensen Tan, senior vice-president of strategy and corporate finance at RedDoorz, observed that the rise of digital nomads has significantly reshaped popular tourist destinations such as Bali, driving strong demand for boutique villas. To tap the growing digital nomad market, the company adapted its strategy by launching The Lavana brand in 2023, specifically targeting the villa segment. 'The market remains highly fragmented on the supply side, and reaching customers isn't as simple as relying on traditional online travel agency channels,' he said. 'But if approached strategically, there's significant growth potential in this segment. It's a very different game compared to large-scale four or five-star hotels with established infrastructure and amenities.' As Bali grapples with the pressures of over-tourism, including growing social and environmental concerns, Dr Elhajjar from the NUS Business School argues that Indonesia's real challenge lies in managing the digital nomad market sustainably. 'The key will be finding a balance between economic benefits and the preservation of local culture, natural resources and infrastructure,' he said. 'If approached thoughtfully, digital nomads could evolve into a resilient, long-term segment for the tourism industry.'
