Laos Roundup: Inflation drops, new foreign policy, cooperation with Russia

Laos' inflation drops further to 8.3% in May

Inflation in Laos fell to 8.3% in May from 11.1% in April, according to the Lao Statistics Bureau. The sharpest increase was in housing, water, electricity, and gas (21.6%), followed by medical care (19.8%), household goods (16.3%), and education (15.5%). In response, the government has tightened monetary policy, with the central bank aiming to reduce inflation to single digits by 2025.

Russia's top prosecutor announces planned anti-terrorism cooperation with Laos

Russian Prosecutor General Igor Krasnov met Laotian President Thongloun Sisoulith to discuss strengthening law enforcement ties. Krasnov emphasised cooperation on issues like cybercrime, terrorism, drug trafficking, and corruption. He expressed confidence in deepening bilateral efforts. Sisoulith welcomed the visit, calling it "remarkable" and highlighting the potential for expanded collaboration.

Laos unveils new foreign policy for 2025

The Laotian government has introduced its 2025 foreign policy, focusing on enhancing ties with regional and global partners. Key priorities include economic cooperation, security, and sustainable development in response to global challenges. The policy was launched at an official event in Vientiane, attended by top officials and international representatives, according to Laotian Times. The move signals Laos’s ambition to play a more active role in Asia’s geopolitical arena.

Prabowo invites Laos PM to step up bilateral trade

Indonesian President Prabowo Subianto invited Laotian Prime Minister Sonexay Siphandone to boost bilateral trade during their meeting at the 46th ASEAN Summit in Kuala Lumpur. He highlighted the need for joint efforts against drug smuggling, human trafficking, and online crimes. Prabowo praised Laos’s 2024 ASEAN chairmanship and proposed cooperation in minerals, agriculture, and fertilisers. He noted the slight trade decline and emphasised strengthening ties. Several Indonesian ministers joined the talks.

Laos, Malaysia form new strategic partnership to boost cross-border trade

Laos and Malaysia have established a strategic partnership to enhance cross-border trade via a new rail-sea route, marked by a Memorandum of Cooperation between Penang Port Sdn Bhd and Thanaleng Dry Port. The agreement was signed during Lao Prime Minister Sonexay Siphandone’s official visit to Malaysia, alongside Malaysian Prime Minister Anwar Ibrahim. According to laopost.com, the initiative aims to strengthen economic ties and regional trade by utilising key logistics hubs—Thanaleng Dry Port in Laos and Penang Port in Malaysia.