Monthly Regional Insights – Asia Pacific October 2011

Most Asian countries continue to exhibit strong growth despite the recent turmoil in global markets. However, if there is a full-blown recession in the developed world, some markets will weather the storm better than others. In particular, domestically-oriented countries like India and Indonesia will be much less affected by a downturn in the West than will export-oriented countries like Thailand and Malaysia

  • Bangladesh: Bangladesh’s deal with India will likely lead to long-term growth of bilateral trade and improvement of domestic infrastructure
  • Cambodia: As Cambodia becomes increasingly integrated into the regional and global economies, it will start drawing significant attention from investors
  • China: Signs of weakening consumer demand have appeared in the luxury goods industry, which has seen stellar growth numbers in H1 2011
  • India: Continuing interest rate hikes along with inflationary pressures will dampen GDP and industrial growth for the remainder of 2011
  • Indonesia: MNCs should ensure that they are effectively taking advantage of Indonesia’s numerous government incentive programs
  • Japan: The economy’s slow path to recovery will further decelerate due to the  global economic slowdown, rising Yen, and continuing energy issues
  • Malaysia: Malaysia is pursuing an unprecedented expansion of its oil infrastructure that may create significant opportunities for multinationals
  • Pakistan: Companies should expect price pressures in Pakistan to remain elevated for the foreseeable future
  • Philippines: A new agreement with China will bolster bilateral trade and boost foreign direct investment in the Philippines
  • South Korea: New anti-graft reform measures should help to improve South Korea’s corruption landscape over the medium term
  • Taiwan: Taiwan’s business environment will continue to improve as the island’s leaders work proactively to attract investment
  • Thailand: Companies should remain cautious of the political landscape until the country’s new government has established a solid base of support
  • Vietnam: The government’s new minimum wage hike will undergird Vietnam’s inflationary spiral, prolonging the pain for multinationals in the country

Featured

Myanmar: To Invest or Not to Invest, That is the Question

When we talk to executives who are thinking about expanding into Myanmar, many of their concerns seem to come down to the same thing: politics.  There is a round of elections coming up in late 2015 that has the potential to radically shift the country’s power structures, and the prospect of dramatic change in Myanmar’s […]

Speak Your Mind

*