Archive for the ‘Indonesia’ category

Toshiba Investing in Asia

October 7th, 2014

toshibaToshiba is making a substantial investment in Southeast Asia. Its sales target in the region is double of its current figure: $7billion. The firm plans to a further $1billion there too over the next five years.

According to Hisao Tanaka, company CEO and President, Southeast Asia is viewed by Toshiba as a “strategic manufacturing hub” for the company’s principal businesses like hard-disk drives and semi-conductors. The region also boasts other benefits that regions like Japan is lacking, such as “high economic growth and a young, highly capable workforce.”

Toshiba also plans on developing a new infrastructure in Indonesia and a medical equipment manufacturing plant in Malaysia, supporting the medical equipment sales company that was recently set up there. As well, Toshiba’s business-to-business product range is set to expand in the region, with an anticipated 50 percent growth in the 2016 fiscal year.

Asia’s Economic Forecast

May 28th, 2014

asia-pacific-regionLast week Asia witnessed a dollar rise against the yen. This is probably connected to potential investors waiting on what lies ahead for the American and Japanese monetary policy. In addition, the Thai baht plummeted after martial law was declared by the army. The dollar has been mixed vis-à-vis other currencies in the Asia-Pacific region.

During the same time period, there was an escalation in the US dollar to 58.59 Indian Rupees, following political advancements in the general election by the India unit. As well, it strengthened to 11,446.30 Indonesian rupiah and 43.69 Philippine pesos.

How is Asia’s economic outlook being impacted today? According to the IMF, one way is China’s sharp slowdown (which was most likely caused by vulnerabilities in the fiscal sector). Yet it is anticipated that Asian growth and development will remain steady at 5.4 percent in 2014 (a slight jump from the previous forecast of 5.3 percent). Thereafter this will increase to 5.5 percent in 2015. America and Europe’s fiscal recovery is likely to be good news for Asian regional markets too.

But at the same time, warned Michael Spencer, Asia Chief Economist at Deutsche Bank, some of S.E Asia’s regional currencies could be subject to “downward pressure,” given that American bond yields increase vis-à-vis the recovering economy.

Those who are concerned about cheaper energy prices bringing back manufacturing to America and the impact that will have on the Asian economy, need not fret. Asia has a well-established supply chain and this thus should not affect its principal tech manufacturing market. Plastics and petrochemicals industry might encounter pressure however.

Is Asia the New Silicon Valley?

May 8th, 2013

Asian markets are developing rapidly. According to the Brookings Institute, Asia will host 64% of the global middle class by 2030. In the meantime, the number of investors is climbing.

Jungle Ventures, an investment company from Singapore, has made 16 investments in the region, ranging from India to New Zealand. Amit Anand, founder, explained that he is interested in businesses that have the potential to grow quickly.

“Everybody thinks that Silicon Valley is where the big markets are,” he said. “But south-east Asia is starting to prove a very attractive market. If willing entrepreneurs commit themselves, there is a lot of opportunity to be unlocked.

“Our hypothesis is that Asia, and particularly south-east Asia, is going to see a lot of $100 million-plus companies being made on various opportunities in internet, mobile and biomedical and so forth.”

Some Asian markets are more developed than others. According to Antonny Liem, Chief Executive Officer at Merah Putih Incubator, explained that Indonesia has great potential, but limited internet services.

“In Indonesia the internet is still very young, and it is hard to look at the exit horizon for return-on-investment, and IPO is definitely not on the horizon,” he said. “So if you talk about Indonesia, it is all about market size, about untapped potential, and it is a question of timing.”

Opportunities Abound in Asia

August 3rd, 2012

Businessmen sometimes need to be reminded that China is not synonymous with Asia. Today the entire continent is growing fast, and opportunities outside of China proper might be a better choice for many investors.

Indonesia and the Philippines are great places to begin looking for that perfect investment outside of China. One company that is taking advantage of the favorable conditions in the archipelago which consists of over 17,000 islands is the British Columbian firm of Ballard Power Systems.

The population of Indonesia exceeds 240 million, making it the world’s fourth most populated country after China, India and the United States. With a growth rate of seven percent annually, Indonesia is a nation that would be foolish for any businessman to ignore.