Connect with us

Asean

We’ve entered the Asian Century and there is no turning back

In the nineteenth century, the world was Europeanized. In the twentieth century, it was Americanized. Now, it is being Asianized – and much faster than you may think.

Avatar

Published

on

Asia’s rise has been swift. Home to more than half of the world’s population, the region has climbed from low- to middle-income status within a single generation. By 2040, it is likely to generate more than 50% of world GDP, and could account for nearly 40% of global consumption.

Loading...

New McKinsey Global Institute research shows the extent to which the global center of gravity is shifting toward Asia.

Today, the region has an increasing global share of trade, capital, people, knowledge, transport, culture, and resources.

Of the eight types of global cross-border flows, only waste is flowing in the opposite direction, reflecting the decision by China and other Asian countries to reduce imports of garbage from developed countries.

Asia now accounts for around one-third of global trade in goods, up from about a quarter ten years ago. Over roughly the same period, its share of global airline travelers has risen from 33% to 40%, and its share of capital flows has increased from 13% to 23%.

Those flows have fueled growth in Asia’s cities. The region is home to 21 of the world’s 30 largest, and four of the ten most visited.

Image: McKinsey & Company

And some of Asia’s lesser-known cities are now also on investors’ radar. In Yangon, Myanmar’s commercial capital, greenfield foreign direct investment (FDI) in knowledge-intensive sectors totaled $2.6 billion in 2017, up from virtually zero in 2007.

Similarly, Bekasi, a smaller city near Jakarta, has emerged as the Detroit of Indonesia – the center of Indonesia’s automotive and motorcycle industry. Over the last decade, FDI in the city’s manufacturing industry has grown at an average rate of 29% per year. And Hyderabad – which generated over 1,400 patents in 2017 – is quickly catching up with India’s Silicon Valley, Bangalore.

But it’s not only external flows being channeled into Asia. Dynamic intraregional networks are also driving progress.

Around 60% of Asian countries’ total trade in goods occurs within the region, facilitated by increasingly integrated Asian supply chains. Intraregional funding and investment flows are also increasing, with more than 70% of Asian startup funding coming from within the region. Flows of people – 74% of travel within Asia is undertaken by Asians – help to integrate the region as well.

What makes these flows work is Asia’s diversity. In fact, there are at least four “Asias,” each at a different stage of economic development, playing a unique role in the region’s global rise.

The first Asia comprises China, the region’s anchor economy, which provides a connectivity and innovation platform to its neighbors. In 2013-17, the country accounted for 35% of Asia’s total outward FDI, with about one-quarter of that investment going to other Asian economies. Reflecting its rapidly growing innovation capacity, China accounted for 44% of the world’s patent applications in 2017.

The second grouping – “Advanced Asia” – also provides technology and capital. With total outward FDI of $1 trillion, these countries accounted for 54% of total regional FDI outflows in 2013-17. South Korea alone provided 33% of all FDI flows to Vietnam. Japan accounted for 35% of Myanmar’s FDI inflows, and 17% of the Philippines’.

Then there is “Emerging Asia,” which comprises a relatively diverse group of small emerging economies that provide not only labor, but also growth potential, owing to rising productivity and consumption. These economies are deeply integrated with their regional neighbors: their average share of intraregional flows of goods, capital, and people is 79%, the highest of the four Asias.

By contrast, the fourth grouping – “Frontier Asia and India” – has the lowest average share of intraregional flows, amounting to just 31%. But this figure –…

Source link

Comments

Asean

Thailand’s Stock Exchange (SET) market report for January 2021

Avatar

Published

on

BANGKOK – The Stock Exchange of Thailand (SET) Index rose in
January, though a new wave of COVID-19 pandemic in domestic market prompted the
government to impose a partial lockdown and the inter-provincial travel
restriction in some areas.

Loading...
(more…)

Continue Reading

Vietnam

Vietnam’s Binh Dinh Industrial Zone: Opportunities for Foreign Investors

The project will be based in Qui Nhon city, with a total capital of more than US$143 million (3,333 trillion VND) with around US$21 million (500 billion VND) contributed capital from investors.

Avatar

Published

on

Vietnam’s Binh Dinh Industrial Zone: Opportunities for Foreign Investors

The local government in Vietnam’s Bin Dinh province approved the construction of an industrial zone (IZ) in 2020. The industrial zone will be known as the Becamex Binh Dinh Industrial Zone Project.

Loading...
(more…)

Continue Reading

Asean

Supporting disadvantaged women key to achieving SDGs in ASEAN

The study, which holds a gender lens up to each of the SDGs of the 2030 Agenda, confirms that when two or more forms of discrimination overlap, barriers increase

Asean News

Published

on

Supporting disadvantaged women key to achieving SDGs in ASEAN, new data shows

JAKARTA, 1 March 2021 – Women and girls across South-East Asia who are members of an ethnic minority, live in a rural location, or suffer from poverty are at greatest risk of being left behind despite the region’s recent progress in gender equality, according to a new report by ASEAN and UN Women.

Loading...
(more…)

Continue Reading

Latest

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,634 other subscribers

Trending