Archive for the ‘South East Asia’ category

Property Investments

October 21st, 2016

asia-homesForeign investors are looking into Asia for property developments. With these emerging markets come tremendous opportunities. This is especially the case in Southeast Asia, although growth was encountered throughout the ASEAN region, of 4.7% in 2015. It is anticipated that this elevation will continue in the next few years.

Thus property – again, most notably in Southeast Asia – is becoming an increasingly attractive option for FDIs. According to ecommerce consultant Lisa Froelings, the cities that are particularly good for real estate investment in the region include: Thailand’s Chiang Mai, Malyasia’s Kota Kinabalu and the Philippines’ Davao City.

Part of Singapore is also being seen as a top destination for foreign real estate investments. Experts in Singapore are pointing to the Indian diaspora region as the country’s “largest listed real estate developer.” A global representative office was recently set up in Singapore by Godrej Properties (GPL) that has its headquarters in Mumbai. According to the firm’s Executive Director, Mohit Malhotra: “Indian nationals living abroad and people of Indian origin in the region have a high disposable income. They also actively invest in India, so we would like to tap the opportunities in Singapore where there is a large Indian community with strong cultural linkages with India.”

GHL is targeting Singapore for its 350,000 ethnic Indians, and 350,000 Indian nationals working in the following sectors: IT, fiscal services, construction and marine. Malhotra believes that being physically present in the region will help widen their market share.

SE Asia: Investing In or Out?

April 18th, 2016

asiaSouth East Asia has lately been the recipient of some quite attractive investments. For example, according to stats from Tech in Asia, startups in the region – in the first quarter of 2016 – received $478.4 million, 100% more than for the same frame, year-on-year.

These figures are interesting and inspirational given that since 2013, economic prosperity around the world has not even managed to completely negate its way past the 2008 fiscal crisis. Yes it’s true the fiscal situation in China has been encountering a stagnation with markets there enduring increased volatility.  But still, compared with the monetary situation around the rest of the world, investors are choosing Southeast Asia due to its solid fundamentals such as a 600million plus population and a $2.3 trillion GDP – the seventh largest in the world with a projected growth spurt of rising to number four.

Google wants to be in Asia too, as part of its wider vision of renewable energy. But the multi-million dollar corporation is having a hard time as purchasing energy there is fraught with difficulties.  Ascertaining the right credentials is next to impossible. Trouble is, it’s hard to buy green energy there. The system for getting proper credentials for renewable energy sources is virtually nonexistent on the continent.

In addition, vis-à-vis emerging market funds, Asia is not looking so great right now. Substantial amounts have been pulled from these funds, and most of them, from the Asia region.  Indeed, according to a recent article by Teresa Rivas in Barrons, based on findings from analyst Markus Rosgen, “Most of the outflow from EM funds came from Asia, which saw investors withdraw $970 million.”

So there are different ways to look at what is going on in Asia.  It’s definitely not a black and white situation.  The hope is though that the good will outweigh the bad.