9 Reasons Why Southeast Asia is an Investor’s Playground

ASEAN collective GDP represents the

8th largest economy in the world

With a population of around 600 million and GDP of US$2.1 trillion, Southeast Asia is simply a

market that cannot be ignored. Their combined economies have grown 170% over the past

decade and have about a 6.5% average growth rate.

Source: http://www.nielsen.com/my/en/insights/reports/2014/asean-2015-prepare-your-business-for-what-lies-ahead.html

There are few financial barriers to

consumption and investment growth

Debt levels generally remain low for governments, households and corporations,

while ASEAN (Association of Southeast Asian Nations) banks are mostly well capitalised with good balance sheets.

A low debt-to-GDP ratio indicates an

economy that produces and sells goods and services sufficient to pay back debts

without incurring further debt.

Source: http://moneyweek.com/why-you-should-pay-attention-to-

southeast-asia-57223/ http://tradingeconomics.com

A thriving middle class with fast-increasing purchasing power

Today's Asian middle class represents 30% of the global middle class, with $2 trillion of new

consumption coming from SEA alone

Source: http://www.nielsen.com/my/en/insights/reports/2014/asean-2015-prepare-your-business-for-what-lies-ahead.html

Asian Middle Class

The Rest of the World

Southeast Asia’s income levels are

catching up with the US

Per capita income, or average income levels in Asia, have been inching closer to US

levels over the years. In 1970, the average income in Singapore and Hong Kong

was a quarter of that in the US. Today, on average, Singaporeans earn as much as they would in the US. And by 2020, their

income is expected to be 25% higher than those of their American counterparts

Source: www.dbs.com

ASIA – PER CAPITA GDP TIMELINE Approximate number of years to reach US GDP per capita (assuming 6% per capita growth rate)

Source: DBS Group Research

0 years

6 years

14 years

26 years

34 years

GDP per capita

A highly-educated and affordable

workforce

Recently, companies began leveraging Southeast Asia’s pool of

low-cost, skilled labor as a cheaper alternative to their home country

suppliers and manufacturers.

Source: http://www.pwc.com/en_US/us/forensic-services/publications/assets/marketmap-southeast-asia.pdf

An attractive destination for

outsourcing

3 out of 5 new offshore outsourcing locations in the Asia-Pacific region come from the southeast,

and this includes the Philippines, Vietnam and Malaysia. Meanwhile, 14 Southeast Asian cities

on the Top Outsourcing Destinations list for Tholons, seven of them in the Philippines.

Source: https://www.gartner.com/doc/2666815/leading-locations-offshore-services-asiapacific

http://www.tholons.com/nl_pdf/Whitepaper_December_2013.pdf

Other big companies are making their

forays into the region

Multinationals now have a keen interest in Southeast Asia due to lower cost of operations, cheaper lease, population, growing middle class

and increasing depth of talent.

Source: www.jpmorgan.com/tss/General/Southeast_Asia_Next_Growth_Frontier/1320514027264l

A strong growth and development in the

Information Technology sector.

According to forecast, the total value of IT services in Singapore, Thailand, Malaysia and Indonesia between now and 2017 will be $74

billion. Big data and cloud computing are driving progress in banking, healthcare, tele-

communications and distribution.

Source: http://www.nielsen.com/my/en/insights/reports/2014/asean-2015-prepare-your-business-for-what-lies-ahead.html

ASEAN offers a wide range of

opportunities

ASEAN spans the spectrum from financial and hi-tech industrial services to offshore manufacturing centres , to Mining and agriculture. The drafting and eventual

implementation of the ASEAN Economic Community (AEC) will also achieve regional

economic integration by creating a single-market economy that allows free movement of

investments, skilled labor, capital, goods and services across all the member countries.

Source: www.jpmorgan.com/tss/General/Southeast_Asia_Next_Growth_Frontier/1320514027264l