SE Asia tops FDI inflow
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Southeast Asia's major economies drew more foreign direct investment (FDI) combined than China for the second straight year, as growth in their giant neighbour slowed.
But by country, inflows into the region in 2014 were uneven, swayed by political change and the varying costs of doing business.
Overall FDI into Singapore, Indonesia, Malaysia, the Philippines, Thailand and Vietnam rose to a record US$128 billion (Bt4.2 trillion) last year, estimates compiled by Thomson Reuters show. That surpassed the $119.56 billion that flowed into China.
FDI into the Philippines grew the fastest, at 66 per cent, while in Thailand, where the military seized power last year, inflows fell.
FDI into Indonesia, the region’s biggest economy, rose by about 10 per cent even though it was an election year.
As China’s troubled manufacturing loses momentum, its businesses will be venturing abroad to cut operating costs and search for new markets, economists say.
Manufacturing powerhouses in Southeast Asia should pay heed.
“Rising wages in China are leading low-end manufacturers to look for other low-cost locations for their factories, with countries like Vietnam and the Philippines looking like attractive alternatives,” said Dan Martin, Asia economist at Capital Economics.
– Reuters
Mega builds Cambodia base
Mega Lifesciences, a Thailand-based pharmaceutical company, has strengthened its Asean presence with a state-of-the-art warehouse at its compound in Phnom Penh.
The new facility is timed at capturing this increasingly health-conscious market on the eve of regional integration, the company says.
The temperature-controlled warehouse of more than 2,300 square metres incorporates cold-storage facilities and is served by a fleet of temperature-controlled delivery vehicles.
Mega’s team of more than 200 Cambodians handles more than 600 stock-keeping units equipped with specialised software for accounting, reporting and information sharing, Vivek Dhawan, CEO and chief coach, said yesterday.
