FRIDAY, March 29, 2024
nationthailand

INVEST ASEAN China, new tech ‘growth driver in next 

INVEST ASEAN China, new tech ‘growth driver in next 

Maybank Kim Eng, Asean's leading investment bank, said at its Invest Asean conference on Monday that it believes the rise of China and new technology will be the two key forces driving the biggest change in Asean in the next decade.

Between 2006 and 2016, China's outward investment into Asean has risen at a CAGR of 45 per cent, from US$1.8 billion to US$71.6 billion, making it the 3rd largest FDI contributor to Asean. Trade between Asean and China has also increased by 16 per cent from 2016 to 2017. Asean also accounts for the largest share of Chinese M&A investment, making up about 30 per cent of total M&A investment to Belt & Road countries for the period of 2005-2016.
 Last year, China strengthened its commitment to the Belt & Road Initiative (BRI) by pledging an additional US$124 billion. Given China's high savings rate and its push to strengthen regional connectivity via the BRI, the capital flows to Asean will continue increasing and accelerating in the next few years.
 John Chong, CEO of Maybank Kim Eng Group, said he believes the tech environment in Asean is still at an early phase of growth despite the disruption the marketplace is experiencing. 
“ The majority of Asean’s tech deals in recent past are still at the seed-stage and while e-commerce is growing rapidly in Asean, the penetration rate remains relatively low at between 2 per cent-5 per cent as compared to more established markets like China (19 per cent), Korea (20 per cent) and the United States (10 per cent). E-commerce transactions will likely grow exponentially in Asean, driven by innovations in e-payments and tech platforms.

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