AGP Executive Report

Digital Trade: Timor-Leste is preparing to sign ASEAN’s Digital Economy Framework Agreement in November, with work underway to connect customs systems, expand e-payments and complete legal rules. Joining could help local businesses reach regional markets and attract investment. Climate Finance: Dili is calling for greater access to climate funding. Timor-Leste also ranked among the top five countries for including public health in its climate plan, scoring 22 out of 32. Economic Outlook: The IMF forecasts 4% growth for Timor-Leste in 2026, above its projection for the Philippines.

Digital Integration: Timor-Leste is preparing to join ASEAN’s Digital Economy Framework Agreement, while its first turn as co-host of the China-ASEAN Expo put it in the spotlight for regional trade cooperation. Trade and Connectivity: Thailand and Timor-Leste agreed to speed up an air-services deal that could enable Bangkok-Dili flights and to promote trade, especially in rice. Agriculture, food processing, energy, infrastructure and tourism were flagged as potential investment areas; Vietnam also agreed to deepen cooperation in agriculture and fisheries. Growth Outlook: The IMF forecasts Timor-Leste’s economy will grow 4% in 2026. Business Risks: ASEAN Foundation officials say scam activity has spread to Timor-Leste, underscoring a growing threat to consumers and businesses.

Digital Economy: Timor-Leste is preparing to join ASEAN’s digital economy under the DEFA framework, opening a path to deeper regional commerce. Growth Outlook: The IMF forecasts 4% growth in 2026. Haze Disruption: The government will suspend in-person classes for three days as wildfire smoke worsens, a reminder of the costs of regional environmental shocks. Trade and Investment: Timor-Leste joined the China-ASEAN Expo as a co-host for the first time, raising its profile at a major trade event. Thailand is also moving to speed a deal for direct Bangkok-Dili flights and promote rice trade and investment; Vietnam is exploring cooperation in rice, coffee and fisheries.

Trade and Investment: Timor-Leste joined the China-ASEAN Expo as a co-host for the first time. The five-day event drew 3,432 businesses and more than 360,000 visits, opening new avenues for trade and partnerships. Thailand Links: Bangkok and Dili agreed to speed up talks on direct flights and begin negotiations on a rice trade deal. Thailand also identified agriculture, food processing, energy, infrastructure and tourism as areas for potential investment. Farm and Fisheries: Vietnam and Timor-Leste are exploring cooperation in rice, coffee and fisheries, including technology transfer and training to strengthen local production and food security. Economic Risks: Rising energy prices are straining foreign reserves across Southeast Asia; Timor-Leste is among the region’s more vulnerable economies.

China-ASEAN Trade: Timor-Leste co-hosted the China-ASEAN Expo for the first time, joining an event that drew 3,432 businesses from 73 countries and regions. The role gives the young ASEAN member a platform to pursue regional trade and investment links. Thailand Links: Timor-Leste and Thailand agreed to begin rice-trade talks and accelerate an air-services deal for direct Bangkok–Dili flights. They also identified agriculture, food processing, energy, infrastructure and tourism as potential areas for Thai investment. Vietnam Cooperation: Dili and Hanoi are exploring collaboration in rice, coffee and fisheries, including technology transfer and training, as Timor-Leste seeks to expand production and strengthen food security. Regional Risks: ASEAN’s foundation chief said scam activity has spread to Timor-Leste, highlighting a growing concern for consumers and businesses as digital transactions increase.

Trade and Connectivity: Timor-Leste and Thailand agreed to pursue a rice-trade deal and speed up an air-services agreement that could bring direct Bangkok–Dili flights. Thailand also identified agriculture, food processing, energy, infrastructure and tourism as investment opportunities. Agriculture and Exports: Vietnam is exploring cooperation with Timor-Leste in rice, coffee and fisheries, including technology transfer and training. Timor-Leste has also begun exporting Laga salt to New Zealand. Digital Economy: ASEAN is moving toward interoperable digital IDs for cross-border use; Timor-Leste has a national system, but its capabilities remain limited. Financial Risks: An ASEAN Foundation official says scam operations have spread to locations in Timor-Leste, underscoring growing risks for consumers and digital payments.

Trade and Connectivity: Thailand and Timor-Leste agreed to open talks on a rice trade deal and speed up an air-services agreement that could enable direct Bangkok–Dili flights. The countries also identified agriculture, food processing, energy, infrastructure and tourism as potential areas for investment. Agriculture: Timor-Leste and Vietnam are exploring cooperation in rice, coffee and fisheries, including technology transfer and training, as Dili seeks to strengthen local production and food security. Digital Economy: ASEAN is working toward interoperable digital identities for cross-border use; Timor-Leste already has a national system, but its capabilities remain limited. Regional Integration: AFTA’s near-complete tariff removal offers a platform for deeper regional trade, though intra-ASEAN commerce remains a modest share of the bloc’s total trade.

Thailand Trade and Flights: Timor-Leste and Thailand agreed to speed up an air-services deal that could bring direct Bangkok–Dili flights, while opening rice-trade talks and exploring Thai investment in agriculture, food processing, energy, infrastructure and tourism. Agriculture and Fisheries: Vietnam and Timor-Leste are discussing cooperation on rice, coffee and fisheries, including technology transfer and training to boost local production and food security. Export Growth: Timor-Leste has begun exporting Laga salt to New Zealand, a step toward expanding its exports. Financial Security: Authorities detained 16 suspects in Timor-Leste over an alleged Japanese police impersonation scam.

Thailand Trade: Timor-Leste and Thailand agreed to start talks on a rice trade deal and push for direct flights, aiming to strengthen food security, tourism and business links. Agriculture and Fisheries: Vietnam and Timor-Leste are exploring cooperation in rice, coffee and fisheries, including technology transfer and training to help expand local production. Regional Business: A Bali–Timor-Leste forum identified opportunities in tourism, agriculture, livestock and trade, building on existing travel flows between the markets. Export Growth: Timor-Leste has begun exporting Laga salt to New Zealand, opening a new route for local products. Investment Links: Timor-Leste’s ambassador to Brazil urged deeper trade and investment cooperation among Portuguese-speaking countries, positioning the country as a bridge between the CPLP and Southeast Asia.

Thailand Trade Links: Thailand and Timor-Leste agreed to start talks on a rice trade deal and move toward direct flights, with food security, tourism and stronger business ties on the agenda. Agriculture and Fisheries: Vietnam offered cooperation in rice, coffee and fisheries, including technology transfer and training, as Timor-Leste seeks to expand production and improve food security. Indonesia Partnership: A Bali business forum identified opportunities in tourism, agriculture, livestock and trade, building on existing travel links between the markets. Export Growth: Timor-Leste has begun exporting Laga salt to New Zealand, adding a new product to its overseas trade. CPLP Investment: Timor-Leste’s ambassador to Brazil urged deeper trade and investment cooperation with Portuguese-speaking nations, presenting the country as a bridge between the CPLP and Southeast Asia.

Thailand Trade: Timor-Leste and Thailand will negotiate a rice trade deal and push to launch direct flights, aiming to strengthen food security, tourism and wider economic ties. Media Rights: BeIN Sports has secured exclusive Wimbledon broadcast rights in Timor-Leste and nine other Asian markets from 2027 through 2031. Investment Links: Timor-Leste’s ambassador to Brazil urged deeper trade and investment cooperation through the Portuguese-speaking countries community, which she described as a bridge to international partnerships. Indonesia Cooperation: Timor-Leste and Bali are exploring joint opportunities in tourism, agriculture, livestock and trade, building on existing travel links. Exports: Timor-Leste has begun exporting Laga salt to New Zealand, opening a new overseas market for a local product.

Thailand Trade: Timor-Leste and Thailand will negotiate a rice-trade agreement to support food security and push to launch direct flights between Bangkok and Dili, while expanding cooperation on agriculture, investment and tourism. A new bilateral consultation mechanism will help advance the agenda. Regional Business Links: At a Bali business forum, Indonesia and Timor-Leste identified opportunities in tourism, agriculture, livestock and trade. Existing travel flows offer a base for growth: about 30,000 Timorese visited Bali this year. Exports and Investment: Timor-Leste’s Laga salt has begun exports to New Zealand, while its ambassador to Brazil urged deeper trade and investment cooperation among Portuguese-speaking nations, positioning the country as a link between ASEAN and the CPLP.

Regional Trade: Timor-Leste and Indonesia are exploring deeper business ties in tourism, agriculture, livestock and trade, with Bali pointing to established travel links and room to grow joint tourism products. Export Growth: Timor-Leste has shipped its first 300 tonnes of Laga salt to New Zealand, a step toward diversifying exports, building local production and creating jobs. Transport Links: Dili is Darwin’s second-largest international market by scheduled capacity, with nearly 32,500 departure seats in the northern summer 2026 season, strengthening a key connection between Timor-Leste and northern Australia. Mining Investment: Estrella Resources is selling its Western Australian nickel rights for $3 million in shares, allowing it to focus more on its Timor-Leste portfolio of manganese, copper, gold and limestone projects.

Export Growth: Timor-Leste has begun exporting Laga salt to New Zealand, shipping 300 tonnes in the first consignment. The government says the venture aims to grow local production, create jobs and reduce reliance on imports. Regional Trade: Timor-Leste and Indonesia are exploring cooperation in tourism, agriculture, livestock and trade, with Bali pointing to established visitor flows as a base for new business links. Mining Investment: Estrella Resources is selling its Western Australian nickel rights for $3 million in shares and shifting its focus to Timor-Leste projects in manganese, limestone, copper and gold. Bilateral Opportunities: Thailand and Timor-Leste are set to discuss trade, investment, agriculture, food security, energy and tourism, with plans for a regular consultation framework.

Export Growth: Timor-Leste has launched its first export of Laga salt to New Zealand, sending 300 tonnes from Baucau in a move aimed at growing local production, creating jobs and reducing reliance on imports. Regional Trade: A Bali–Timor-Leste business forum identified opportunities in agriculture, livestock, tourism and trade, building on existing travel links and Timor-Leste’s ASEAN membership. Bilateral Investment: Thailand’s prime minister is expected to visit on October 9, with talks set to cover trade, investment, agriculture and tourism and establish a permanent consultation mechanism. Mining: Estrella Resources will sell its Western Australian nickel rights for A$3 million in shares, sharpening its focus on Timor-Leste projects in manganese, limestone, copper and gold. Connectivity: Darwin airport data places Dili among its top international routes, with nearly 32,500 scheduled departure seats for the 2026 summer season.

Climate Finance: President José Ramos-Horta urged COP31 to turn climate pledges into funding that Pacific countries can access, including more support for adaptation and least-developed nations. Regional Trade: Timor-Leste and Bali are exploring closer cooperation in tourism, agriculture, livestock and trade. Bali has already welcomed about 30,000 visitors from Timor-Leste this year. Mining: Estrella Resources agreed to sell its Western Australian nickel rights for $3 million in shares, freeing it to focus on Timor-Leste projects in manganese, limestone, copper and gold. New Export: Timor-Leste has shipped its first 300 tonnes of Laga salt to New Zealand. A government-industry agreement aims to grow production, create jobs and reduce reliance on imports. Connectivity: Dili is Darwin Airport’s second-largest international market by scheduled seats, with nearly 32,500 departures on offer during the 2026 northern summer.