June 3, 2025
BANGKOK – The Association of Southeast Asian Nations (ASEAN) continues to command global attention, widely recognised as an “emerging star” region with several economies experiencing robust and sustained expansion over recent years.
Over the past five years (2020–2024), the economies of ASEAN member states collectively registered an impressive average annual growth rate of approximately 4.2%.
This represents a strong performance, particularly when contrasted with other global regions, especially given the backdrop of global economic uncertainty and slowdowns precipitated by the COVID-19 pandemic.
Data from the International Monetary Fund (IMF) indicates that the ASEAN-5 group – comprising Indonesia, Malaysia, the Philippines, Singapore, and Thailand – achieved an average growth rate of around 4.0% per annum during this period.
Notably, countries such as Indonesia (4.7%) and the Philippines (5.6%) recorded higher growth rates, whilst Thailand‘s average growth lagged behind the regional average at approximately 1.8% per year.
Post-Pandemic Fiscal Pressures
However, in the aftermath of the COVID-19 outbreak, ASEAN nations across the board have grappled with mounting fiscal pressures.
This escalation stems from extensive economic relief measures, substantial investments in public health infrastructure, and the implementation of expansive stimulus policies.
Consequently, many countries have been compelled to significantly increase their borrowing to cover these burgeoning expenditures.
This trend is starkly reflected in the rising public debt-to-GDP ratios observed across nearly every ASEAN member state.
A report by the Parliamentary Budget Office (PBO), drawing on IMF figures, reveals that several countries experienced a significant surge in their public debt levels between 2020 and 2024. Below is a detailed breakdown of public debt figures for ASEAN nations, ordered from highest to lowest debt-to-GDP ratio:
Singapore
Singapore records the highest public debt-to-GDP ratio in the region, escalating from 148.1% in 2020 to 175.2% in 2024, marking an average annual growth of 4.3%. Despite this high level, Singapore’s debt strategy primarily involves borrowing for investment in collateralised assets, which are expected to yield long-term returns.
Laos
Laos’s debt ratio soared from 76.0% in 2020 to 108.3% in 2024, reflecting an average annual growth rate of 9.3%. This indicates a persistent and rapid expansion of its debt burden, exacerbated by high foreign debt and a pronounced domestic economic slowdown.
Malaysia
Malaysia’s debt level exhibited only a marginal change, increasing from 67.7% to 68.4% between 2020 and 2024. With an average annual growth rate of just 0.3%, this points towards commendable fiscal stability and effective public debt control.
Thailand
Thailand’s public debt climbed from 49.3% in 2020 to 63.3% in 2024, an average annual rise of 6.4%. This increase reflects the government’s essential borrowing to bolster economic recovery in the wake of the COVID-19 crisis. Thailand’s public debt level is projected to rise further this year.
Philippines
The Philippines saw its debt ratio increase from 51.6% in 2020 to 57.6% in 2024, demonstrating a moderate average annual growth rate of 2.8%.
Myanmar
Despite commencing from a lower debt base than many peers, Myanmar recorded the highest public debt growth rate in ASEAN, surging from 40.6% in 2020 to 60.8% in 2024, an average annual growth of 10.6%. This highlights a swift intensification of its debt burden.
Indonesia
Indonesia’s debt ratio registered a slight uptick from 39.7% to 40.5% in 2024, with an average annual growth rate of just 0.5%. This signifies stability and a well-controlled debt situation.
Vietnam
Vietnam stands out as the nation that most significantly reduced its debt ratio, declining from 41.3% in 2020 to 33.8% in 2024. This represents an impressive average annual reduction of -4.9%, attributable to sustained GDP growth that has effectively lowered its public debt-to-GDP ratio.
Cambodia
Cambodia’s debt level experienced a minor increase from 25.2% to 26.5% over the period, translating to an average annual growth rate of 1.3%. This suggests a comparatively low borrowing trajectory.
Brunei
Brunei possesses the lowest public debt ratio in ASEAN and has successfully reduced its debt from 2.9% in 2020 to just 2.3% in 2024, an average annual reduction of -5.6%. This underscores its robust fiscal stability.
In summary, this comprehensive overview illustrates that whilst many ASEAN nations have contended with elevated debt burdens in the post-COVID-19 era, some have successfully maintained or even reduced their debt levels.
The critical factors influencing these divergent outcomes largely depend on each country’s unique economic structure and prevailing fiscal policies.