Americas: Chile’s Senate passes President Kast’s comprehensive economic reform package
Sectors: all
Key Risks: economic risks; political stability; political polarisation; regulatory changes
In Chile, on 16 July the Senate approved the core components of far-right President Jose Antonio Kast’s sweeping ‘National Reconstruction, Economic and Social Development’ bill following a 12-hour legislative session. The economic reform programme aims to stimulate investment by reducing corporate income tax rates from 27 per cent to 23 per cent, offering long-term tax stability guarantees and implementing property tax exemptions. However, opposition lawmakers have vowed to contest the legislation before the Constitutional Court, citing structural fiscal sustainability risks. The bill now returns to the Chamber of Deputies for a final vote. Legal challenges and legislative friction are likely to persist in the near term, while potential opposition-led challenges could delay execution despite the government’s push to accelerate private sector investment incentives.
Click here to access Chile’s Global Intake country profile.
Asia Pacific: Malaysia launches review of Australia’s Lynas Rare Earth’s relationship with US
Sectors: mining
Key Risks: contract frustration; trade frictions; supply chain disruption
In Malaysia, on 16 July lawmakers convened to review the deal signed between Australia’s Lynas Rare Earths – which refines its materials in Malaysia’s Kelantan state – and Washington’s Department of War. Kuala Lumpur flagged concerns that Lynas’ minerals were being shipped to the US for military technology and onward sale to Israel. Kuala Lumpur maintains no diplomatic relations with Israel and has historically expressed support for Palestine in its foreign policy agenda. Lynas specifically established operations in Malaysia in 2013 amid Canberra’s desire to shift refining reliance away from China, which currently controls more than 90 per cent of global smelting capability. Should a link between Lynas and Tel Aviv be confirmed in the coming days, Kuala Lumpur is likely to cancel Lynas’ operating licence in the country. Such a cancellation risks rare earth supply chain disruptions to the US and Lynas’ downstream processing capabilities.
Click here to access Malaysia’s Global Intake country profile.
Eurasia: Russia intensifies missile strikes on Kyiv amid Ukrainian drone campaign
Sectors: all; energy; agriculture; shipping
Key Risks: war-on-land; war-at-sea; regional escalation; supply chain disruptions
In Russia, on 20 July at least 10 people – including three Chinese nationals – were injured in a drone strike on Domodedovo near Moscow’s Domodedovo Airport after Kyiv launched a massive 400-drone barrage on the capital and surrounding areas. This came after on 18 July seven warehouse workers of retail giant Wildberries were killed and 25 injured in a Ukrainian strike in Kotovsk, Tambov Oblast. Conversely, on 19 July 10 crew members were killed in a Russian strike on the Turkish-owned Guinea-Bissau-flagged cargo vessel carrying corn near Ukraine’s Odesa, Odesa Oblast. On 19 July one person was killed in Kyiv and four in Kharkiv in one of the largest Russian ballistic missile barrages on the capital to date. Moscow is intensifying missile strikes to exploit Kyiv’s air defence gaps in retaliation for a Ukrainian campaign on refineries that has caused countrywide fuel shortages. Further escalation cannot be ruled out.
Click here to access Russia’s and here to access Ukraine’s Global Intake country profile.
Europe: Andy Burnham becomes UK’s PM; pledges cost of living plans
Sectors: all
Key Risks: political stability
In the UK, on 20 July former Greater Manchester mayor Andy Burnham was appointed prime minister. He replaced former prime minister Keir Starmer, who came to power following Labour’s landslide victory in the 2024 general election. Since then, Starmer’s popularity had declined due to a weak economy and the high cost of living, resulting in his resignation following Burnham’s strong victory in the 18 June Makerfield by-election. Burnham pledged to make sweeping changes, adding that he would start setting out plans to give people more “breathing space” on the cost of living as soon as 21 July and bring forward a new 10-year plan for the country “later this year”. Burnham will face pressure to strengthen Labour’s position ahead of the next general election while confronting the same structural challenges as his predecessor.
Click here to access UK’s Global Intake country profile.
MENA: Yemen’s Huthis announce naval blockade against Saudi Arabia amid US-Iran strikes
Sectors: all
Key risks: war at sea; trade disruptions; targeted attacks; supply chain disruption; regional escalation
In Yemen, on 20 July the Huthis declared a naval blockade against Saudi Arabia effective immediately. This happened after on 13 July the Huthis launched missiles and drones at SA’s International Airport in Abha, ‘Asir province, in response to alleged Saudi airstrikes on Sana’a International Airport to prevent an Iranian aircraft from landing, marking the most significant escalation since the 2022 UN-brokered truce. The announcement is likely to be followed by Huthi attacks on Saudi-linked vessels transiting the Bab al-Mandeb Strait in the coming days. The resumption of Huthi operations in the Red Sea is particularly concerning as it coincides with heightened tensions involving Iran’s strikes in the Strait of Hormuz, which have already disrupted maritime traffic. Simultaneous threats to shipping in these two strategic waterways are likely to significantly disrupt global maritime traffic in the short term.
Click here to access Yemen’s Global Intake country profile and here to access Iran’s Global Intake country profile.
Sub-Saharan Africa: Latest hijacking underscores persisting piracy risk off Somalia’s coast
Sectors: maritime; transportation
Key risks: cargo disruption; business disruption; targeted attacks; kidnapping
In Somalia, on 17 July the chemical tanker Asana was seized by suspected Somali pirates approximately 120 km south of Al Mukalla, Yemen, with up to seven armed assailants boarding the vessel and redirecting it towards Bosaso, Puntland. The hijacking was the latest in a surge of piracy in the Gulf of Aden, with the International Maritime Organisation reporting 24 attacks and attempted attacks since the start of April, and 44 sailors currently held hostage across three other vessels. Piracy groups have benefited from technical support from al-Shabaab and the Huthis, based in Yemen, which has expanded their capabilities. The Huthi announcement of a naval blockade on Saudi Arabia on 20 July, the closing of the Strait of Hormuz and the intensifying Middle East war continue to lead to shipping diversions, suggesting that further hijackings cannot be ruled out.
Click here to access Somalia’s Global Intake country profile.