…. as economic gravity shifts to ASEAN.

James Cheo, former speaker at RAO APAC and Chief Investment Officer, Southeast Asia, HSBC Global Private Banking and Wealth

For long time watchers of ASEAN, like me, it feels like watching a movie in slow motion.

Economic development is moving in the right direction, but slowly.

However, that slow-motion movie is going to accelerate because several factors that were not as strong decades ago, are now present and stronger than ever.

You can use the acronym of T-I-G-E-R to illustrate the growth factors of the region.

T for technology or the digital economy, I for rising income of the middle class, G for the green transformation, E for energy infrastructure and R for RCEP.

T – Digital Economy
The pandemic has accelerated ASEAN’s internet economy with digital adoption becoming mainstream. The region’s digital economy is expected to accelerate and grow to $330 billion by 2025.

I Rising income of the middle Class
With a population of 680 million, the rise of ASEAN’s middle class is one of the largest economic locomotive in the world and is expected to double to $4 trillion in the next decade.

G - Green Transformation
Southeast Asia’s green transformation can account to more $1 trillion in annual economic opportunities. ASEAN could be important beneficiaries of the decarbonisation mega trend.

E – Energy infrastructure 
Southeast Asia is expecting a population surge of 90 million in the next decade, which will put more stress on existing energy infrastructure. Renewable energy is going to be key.

R – RCEP
The implementation of the Regional Comprehensive Economic Partnerships (RCEP) – the world’s largest free trade agreement will further integrate trade and accelerate investments for the region.

Fascinating to hear the ASEAN TIGER roar in the years ahead!

Glad to share these insights in The Straits Times opinion piece.

Activate to view larger image,