Si Ying Toh

Sonal Varma Chief Economist, India and Asia ex-Japan Si Ying Toh Economist, Asia ex-Japan In Asia, AI has helped automate routine, entry-level tasks while increasing demand for experienced senior staff. AI-related layoffs in Asia are concentrated in financial services and lower-skilled tech roles, while over 80% of new hiring focuses on AI training and data annotation in tech.

Food inflation is likely contained, but 2027 risks loom as buffers deplete. Philippines and India are the most exposed (high food CPI weightings), followed by Indonesia and Thailand. Fiscal and supply-side policies will serve as the first line of defense, while EM central bank responses may not necessarily be hawkish. Trade protectionism is a major risk in coming months, in our view.

The Middle East conflict has accelerated Asia's energy security drive, focusing on six pillars: diversification of the energy mix and supply sources, strategic reserves, energy efficiency, boosting domestic production and regional cooperation. We introduce Nomura’s Asia Energy Security Index (NAESI), which measures the energy security preparedness of different Asian economies.