ASEAN KEY DESTINATIONS
Investment in Asean blossoms
By David Swartzentruber
As the recovery of the United States economy is tepid and the Chinese economy slows down so as not to overheat, Asean countries are experiencing large capital inflows.
Here’s a survey:
In Thailand, the Federation of Capital Market organizations warned the bank of Thailand not to curd direct foreign direct investment inflows but to let the capital market’s mechanisms function. The organization also expected the Stock Exchange of Thailand to touch the 1,000 level by the end of the year.
In Cambodia, the Chief Economist of the World Bank Justin Yifu Lin praised Cambodia’s economic development and recommended that the government improve financial systems to ensure medium-sized banks can focus lending on small and medium-sized enterprises. The World Bank estimates that gross domestic product will rise 4.4 percent this year.
In the Philippines, the stock market hit a 34-month high. A leading bank, Metropolitan Bank and Trust Co.,said in a research note that the peso is expected to maintain strength against the dollar as sentiment on global growth has improved from previous weeks.
THE Philippine central bank said an increase in foreign direct investment (FDI) would accompany the faster economic growth forecast by the government. “There’s a lag in getting FDI numbers, so it should not be compared to hot money. But, with the improvement in confidence, generally after the election, the continued global economic recovery and the sustained macroeconomic stability in the Philippines, I think we should see an increase in FDI,” Bangko Sentral ng Pilipinas (BSP) Gov. Amando Tetangco Jr. said.
In Indonesia, as the Idul Fitri holiday nears, the Bank of Indonesia announced the circulation of cash as of last Thursday surged significantly to Rp 302 trillion (US$33 billion). The huge figure means that the circulation of money has increased by Rp 22 trillion within three weeks, the bank spokesman Difi A. Johansyah said Monday as quoted by kompas.com.
In Malaysia, The FTSE Bursa Malaysia KLCI Index is also poised for a breakout after it “drifted net-sideways” below the 1,332 to 1,524 range since 1994, CLSA Asia-Pacific Markets technical analysts wrote in a report.
Hopefully, the lessons of the 1997 Asian fiscal crisis won’t be lost as these economies surge ahead.
Comment on this Article. Send them to firstname.lastname@example.org
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below