Dear Investor,

ASEAN is the place to be. It is currently enjoying a golden period. Despite the global uncertainties, ASEAN has proven to be a robust and resilient region.

And now is the time to reap the benefits from the high growth and resilient economies. The ambitious ASEAN Economic Community, a plan to integrate the economies into a single market and production base that stitches together the bloc's 10 economies into a coherent whole by the end of 2015 makes the region more attractive to investors.

Opportunities are abound and we hope to be there with you as you tap into the bountiful opportunities.

Happy reading!

Yours truly,
Judy Yap
Director, Brand & Communications

ASEAN: A Force To Be Reckoned With

If there is one region that has survived the doom and gloom of the global uncertainties, it would have to be the Association of Southeast Asian Nations (ASEAN). ASEAN is proving to be a robust animal displaying high growth, resilient economies.

Investment opportunities glow even brighter now that South East Asia is set to become integrated. By the end of 2015, the ASEAN organisation hopes to create an ASEAN Economic Community by the end of 2015 - a single market and production base that stitches together the bloc's 10 economies into a coherent whole.

In its 'Riding the ASEAN elephant: How business is responding to an unusual animal' report, The Economist lists out rapid economic growth and a growing population of "super consumers" combined with deepening integration can only serve to benefit investors.

This rising economic wealth, coupled with a population of 617 million people, creates a powerful consumer spending story. The Economist wrote "huge swathes of ASEAN's population stand on the threshold of middle class status, which we define as a household income of US$5,000 or more. At this point, consumers no longer buy only necessary items such as food, but start to buy discretionary items such as smart phones. We forecast the number of middle class households in ASEAN will rise from 40 million in 2010 to 85 million by the end of 2017."

Commentators believe that the young and growing populations and rising incomes are positive signs. The rural areas are doing as well as the cities given increasing demand for food globally and rising agricultural wages.

It seems the ASEAN integration efforts are starting to have an impact on businesses and strategies in South East Asia. Twenty three percent out of the 147 multinationals interviewed by The Economist believe that integration is "extremely important in driving their strategy", while a further 60% believe it was somewhat important.

In essence, ASEAN remains the favourable region for investments with promises of high returns and bountiful opportunities.



Source:
Securities Commission Malaysia, FAQ
The Economist, Riding the ASEAN elephant: How business is responding to an unusual animal

      

Eastspring's Review & Market Outlook

Fund Commentary August 2013
 
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