Emerging Markets in Asia Pacific Offer Brightest Prospects for Global FDI
April 14, 2016 | IHSEstimated reading time: 5 minutes
IHS Inc., the leading global source of critical information and insight, announced the findings from its study on Asia’s top ten foreign direct investment hotspots at the company’s Global Economic and Country Risk conference in Vienna.
“Over the next decade, the Asia Pacific region will grow at an average annual rate of 4.5 percent per year, boosted by rapid growth in consumer spending in China, India and Southeast Asia,” said Rajiv Biswas Asia Pacific chief economist for IHS. “A key source of strength for Asia Pacific is the rapidly growing size of the economic region, which now accounts for around one-third of world GDP, generating strong intra-regional trade and investment flows.”
Asia’s Top Ten FDI Hotspots:
- Northeast Asia: China;
- Southeast Asia: Indonesia, Vietnam, Philippines, Myanmar, Malaysia; Thailand;
- South Asia: India, Sri Lanka, Bangladesh.
Four ASEAN Countries to Enter Asia’s Trillionaire Club
Southeast Asia is expected to be one of the world’s fastest growing regions, with four ASEAN nations – Indonesia, Malaysia, the Philippines and Thailand – expected to join the ranks of Asia’s group of nations that have a GDP exceeding $1 trillion by 2030. “This will help to increase the geopolitical and economic importance of ASEAN as a political and economic grouping in international diplomacy and the global dialogue on trade, investment and international standards-setting,” Biswas said.
Meanwhile the ASEAN frontier markets of Vietnam, Myanmar, Cambodia and Laos are forecast to continue to grow rapidly. Vietnam will to grow at a pace of around 6.5 percent per year over the medium term, with rapid growth in manufacturing exports of electronics and garments driving industrial development. The new EU-Vietnam Free Trade Agreement and the planned TPP deal will significantly boost Vietnam’s market access to the EU and US for its manufacturing exports by reducing tariff barriers substantially.
Malaysia – Asia’s Next Advanced Economy
The Malaysian economy is forecast to achieve a per capita GDP of USD 20,000 by 2025, with total GDP exceeding $1 trillion by 2030. The structure of the Malaysian economy will continue to shift towards higher value-added manufacturing and services. Strategic growth industries in the services sector will include financial services, healthcare, education, commercial aviation, tourism and the IT-BPO industry, as Malaysia becomes an increasingly important services-exporting economy for Southeast Asia.
Philippines – Trillion-dollar Economy by 2030
The Philippines has also shown rapid GDP growth averaging around 6 percent per year over 2011-2015, with GDP growth of 5.8 percent per year forecast over 2016-2018. “The total size of the Philippines’s economy is projected to grow from $300 billion in 2016 to $700 billion by 2025, and a $1 trillion economy by 2030,” Biswas said. “This will make the Philippines one of the leading emerging markets in Asia”.
Indonesia – Trillion-dollar Economy by 2020
The Indonesian economy is the largest economy in Southeast Asia and is one of the world’s largest emerging markets. Indonesian GDP forecast to grow at 5 percent per year over 2016-2020, supported by strong growth in consumer demand and infrastructure investment. By 2020, Indonesia will have already become a nation with GDP size exceeding $1 trillion, and by 2030, Indonesian GDP is projected to exceed $3.7 trillion. “This will significantly increase Indonesia’s global geopolitical influence as a leading emerging market, shaping international policymaking in global forums such as the G-20 and United Nations,” Biswas said.
“FDI inflows into Indonesia have grown strongly over the last three years, with recent reforms announced by President Jokowi’s administration to liberalise foreign investment into service sectors such as logistics, health care and tourism,” Biswas said. “This is likely to boost FDI inflows even further.”
Indonesia has a large and fast-growing population (250 million), fast-growing household spending by middle class households and rapid growth projected in a wide range of industries. “The Indonesian domestic consumer market is very attractive for multinationals,” Biswas said. “Banking, insurance, health care, construction, retailing, commercial aviation and manufacturing are all industries aiding the Indonesian success story.”
Page 1 of 2
Suggested Items
USPAE to Springboard U.S. Technology Forward
04/30/2024 | Marcy LaRont, PCB007 MagazineThe U.S. Partnership for Assured Electronics (USPAE) was launched as a nonprofit subsidiary of IPC in 2020, specifically to manage the DoD relationship and access to funding, and to develop a cooperative facility to develop UHDI capabilities in the U.S., not only for the defense sector, but for the whole of the U.S. electronics industry. It is a tall order, but industry veteran Joe O'Neil believes it will happen. Having been tasked with making the UHDI Capable Cooperative Production Facility (UCCPF) a reality, he provides an update on this important project for U.S. electronics manufacturing.
Real Time with… IPC APEX EXPO 2024: Insight into Summit Interconnect's Success
04/30/2024 | Real Time with...IPC APEX EXPOShane Whiteside, CEO of Summit Interconnect, discusses the company's recent recognition as one of the best PCB fabricators in the industry by receiving IPC's Peter Sarmanian award. Whiteside touches on the impact of changes in the marketplace, such as the Defense Production Act and presidential determination, on their growth. Whiteside also shares the company's focus on mechanical and data automation to enhance manufacturing processes and anticipates more automation and evolution in the industry.
Latest Test and Inspection Solutions from GOEPEL electronic at SMTconnect 2024
04/29/2024 | GOEPEL electronicGOEPEL electronic will be demonstrating automated test and inspection equipment at SMTconnect, taking place in Nuremberg from June 11 to 13, 2024.
SIA Commends CHIPS Act Incentives for Micron’s Manufacturing Projects in New York and Idaho
04/29/2024 | SIAThe Semiconductor Industry Association (SIA) today released the following statement from SIA President and CEO John Neuffer applauding semiconductor manufacturing incentives announced by the U.S. Department of Commerce and Micron.
Real Time with… IPC APEX EXPO 2024: Tools, Training, and Trends in Manufacturing Engineering
04/25/2024 | Real Time with...IPC APEX EXPOGuest Editor Kelly Dack and Product Specialist Erik Bateham of Polar Instruments discuss Polar's latest technology, including their role in aiding manufacturing engineers. They highlight the advanced capabilities of Polar's tools and the critical role of signal integrity analysis, as well as the importance of accurate modeling in board manufacturing. Polar's unique training approach and demonstration contact details are also explored.