Report Highlights Opportunities in Six Sectors Across Asia
In a series of six new reports released Monday, June 2, to a select audience in London, The Economist Intelligence Unit (EIU) revealed dynamic growth across Asian industries, reinforcing the view that the balance of economic power is shifting eastward.
The EIU’s “industry dynamism” barometer, commissioned by InvestKL (Greater Kuala Lumpur’s investment promotion agency), measures the resilience and growth potential of six industry sectors across Asia: engineering services, environmental technology, food processing, health care, oil and gas, and wholesale and retail. Findings indicate that continued corporate investment in Asia will support longer-term opportunities, with Asia standing out as being the most exciting part of the world for growth and development.
Editor of the reports, Charles Ross, note that “overall growth is strong across the region and that is reflected in the positive prospects observed for many industries.” However, Ross cautions that “rising labor costs and talent shortages will continue to challenge some companies.”
Speaking at the launch of the reports, Zainal Amanshah, CEO of InvestKL, says that the findings “reinforce the importance of Asian cities as drivers of the region’s growth.” Amanshah notes that “cities such as Greater Kuala Lumpur, with its ease of access to the rest of the region and business-friendly environment, are perfectly positioned to serve as corporations’ launchpad into Asia, especially when helped by federal initiatives targeted at driving growth in the six sectors.”
Further reinforcing the eastward shift of power is a study by McKinsey & Co. quoted by the EIU in the reports, which notes that 420 cities in emerging markets (more than half of which are in Asia) are expected to contribute 45 percent of global GDP growth between 2010 and 2015. The report further notes that Southeast Asia will have many significant economic engines of its own, with urban population growth and productivity improvements rising faster than in rural areas, driving incomes up at a much faster pace. This combination of faster population growth and faster income growth led the EIU to conclude that it “makes cities the dynamos of the future.”
Click here to learn the summary of the findings in the six sectors.
Illustration by twobee at Free Digital Photos.net