Asia an investment ‘bright spot’, Bangkok forum hears

Beh Swan Gin, chairman of the Singapore Economic Development Board (EDB), said that the investment boom in Asia has resulted in rising consumption and an expanding middle class.
“Despite the news of global uncertainties, Asia is still a bright spot for investment with very steady economic growth,” he said, adding that many analysts stated that Asia would enjoy average annual gross domestic product of at least 5 per cent over the next five years. Such economic growth is quite stable and predictable, he said.
Speaking at the Horasis Asia Meeting in Bangkok yesterday, Beh said that the growth of Asia’s economy had been driven by three growth engines – China, India and Southeast Asia.
“Global investors are familiar with Thailand, Singapore, Malaysia and Brunei, which have benefited since the 90s. They have now a strong intention to invest in what we call the VIP countries, which are Vietnam, Indonesia and Philippines, as well as Myanmar, Laos and Cambodia, thanks to the large populations and the governments’ commitment to economic growth,” he said.
Nix Nolledo, chairman of Xurpas from the Philippines, said that many emerging markets in Asia have empty space for attracting investment capitals and the leveraging of technology to build new business models. He said they need a lot more investment and technological advancement, thanks to the emergence of smartphones and Internet connectivity.
“Asian firms have built infrastructure on top of the Internet. They however need investment capital as a driver of economic growth. Young entrepreneurs have understood how to use technology. They need investment capital to run the business models,” he added.
Nolledo said that the Philippines, for instance, had exported skilled labour to work outside the country and send money back home.
“We [the Philippines] have not relied on the sales of skilled labourers anymore, but to use those skilled workers to produce and sell products and services to potential markets around the world,” he added. 
Yoshito Hori, founder and chairman of Globis from Japan, said that Japan has quite a strong social bond with the rule of law and no military aggregation. The country brings good prosperity to the neighbouring nations in Asia. 
“For Asian countries, they need to increase dialogues, and understand the differences between countries. They however should focus on the same ideas and build better relationship together,” he said.
Hori said that companies in Asia need to focus on creativity and innovation with a good harmony within the society amid changing demographics. They have shifted from labour- intensive measures to artificial intelligence and robotics.
Kolapo Lawson, chairman of Nigeria-based Lowsons Group Holdings, said that there is a lot of room for Africa-Asia cooperation. 
“We look for Asian companies investing in Africa, especially in Nigeria, which is the largest economy in Africa. They can provide technology transfers and education,” he said.
Lawson said that Nigeria enjoyed GDP growth of 7.5 per cent three years ago. However, the country posted 2 per cent negative GDP growth last year due to the fall in the oil price.
“Nigeria has to look for non-oil revenues such as in mining, agriculture, services and infrastructure that Asia companies can provide know-how and capital. It is not via aid, but investment in partnership with Nigeria investors,” he said.