In a forecast projecting significant economic growth, the economies of the Asean-Six – Malaysia, Singapore, Thailand, Indonesia, the Philippines, and Vietnam – are expected to surpass global GDP growth in 2023 with an impressive 4.2%, compared to the predicted global GDP growth of 2.0%.
Datuk Khairussaleh Ramli, the President and CEO of Maybank Group, in his opening address at the hybrid Maybank Invest Asean 2023 conference held on June 20-21, 2023 in Singapore, remarked on the expected growth. He underlined the region’s strength as being in its unique diversity, navigating a myriad of cultural, political, and economic systems while maintaining a unified front.
Post-pandemic resilience is another defining quality of the Asean region, according to Khairussaleh. The region is set to maintain its robust stature despite global economic headwinds, offering attractive investment opportunities.
The Asean region, boasting over 660 million inhabitants and a collective GDP nearing US$3.66 trillion (RM17 trillion) in 2022, is the fifth-largest economy globally. Notably, it ranks third among Asian regional economies, trailing only the US, China, Japan, and Germany.
Foreign direct investment (FDI) into Asean showed a remarkable recovery in 2021 with an inflow of US$174 billion, indicating a 42% surge from the previous year. This serves to underscore the global appeal of the region’s robust economy.
Furthermore, the Asean region’s digital economy, despite currently accounting for merely 7% of its GDP compared to 35% in the US and 16% in China, offers immense growth potential, specifically within the financial services sector.
Khairussaleh cautioned against the backdrop of a slowing global economy and highlighted the ongoing “tech war” between the US and China. He stressed its impact on Asean, particularly as these two countries are the leading export destinations for the region. However, he also noted the potential silver lining – the disruption and geopolitical standoff have catalyzed the ‘China+1’ global procurement approach, benefiting Asean countries.
The future seems promising, with the region positioned to exploit opportunities for bolstering trade and investment flows. This report is based on an article from malaymail.com.
