Significant growth in the number and wealth of middle-class consumers, combined with an expected acceleration in infrastructure spending, helps builds a compelling, multi-year case for investing in ASEAN equity markets.

This is a view shared by Soo-Hai Lim, Investment Director for Asia Pacific equities at Baring Asset Management and manager of the Barings ASEAN Frontiers Fund, a mutual fund.

He says: “Sustained and superior economic growth is being driven by domestic demand from a growing number of consumers. ASEAN economies have successfully restructured and deleveraged since the 1997 Asian financial crisis and are firmly on the investor radar including, significantly, Foreign Direct Investors who are allocating resources and capital. This in turn is creating jobs, resulting in a re-rating of property prices in both industrial and residential sectors.”

He continues:

“While Indonesia continues to be the ‘poster child’ for ASEAN economies, and has overtaken its pre-Asian-crisis market highs in USD terms, the Philippines has also performed very strongly thanks to growing domestic confidence, and much improved macroeconomic fundamentals – the Philippines is the best performing ASEAN market and the Philippine peso is the best performing Asian currency to date. Thailand is also looking buoyant, with the second highest return on equity in the region.”

via Consumer spending and infrastructure investment to boost ASEAN ETFs such as those tracking the Philippines, Indonesia and Thailand | ETF Strategy.

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Thai property gains foreign popularity

Thailand’s real estate market has recently been characterised by an oversupply of flats. There were over 90 thousand unsold units of condominiums in the Bangkok Metropolitan Region (BMR) in Thailand as of 2020.

A short Guide to Taxation in Thailand

If the land or building is left empty or unused for a period of more than three consecutive years, it will be subject to an additional rate of 0.3% every three years, but the amount will not exceed 3%.