EY Rediscover ASEAN
A growth story of 10 countries
2017 marks the 50th anniversary of ASEAN, a diverse community of 10 countries, home to 630 million people and strategically located in the central nexus of Asia, is rapidly progressing to be a key investment destination.
Despite challenging economic externalities, global and regional investors remain vested in ASEAN. ASEAN’s member countries are expected to post healthy gross domestic product (GDP) growth rates of 3-8% over the next five years, and enjoy a compound annual growth rate (CAGR) of 5.1% from 2017 to 2021 collectively.
The emerging markets – Cambodia, Laos and Myanmar – are expected to grow above 7%, while the developing markets of Indonesia, Malaysia, Philippines and Vietnam are projected to generate a steady CAGR of 5-6%.
In addition, ASEAN has a relatively young and diverse multilingual talent pool, burgeoning middle-class and a strong investment pipeline of infrastructure development projects.
In the longer-term, ASEAN’s growth will continue to be shaped by economic and trade policies, investment incentives and infrastructure capacities and capabilities.
The new story you need to know
ASEAN is attracting:
High investment interest: Over 80% of businesses in Australia, Europe and the US expect trade and investment with ASEAN to increase over next five years. Bilateral trade between Chinese companies and ASEAN is projected to hit US$1t by 2020.
Large infrastructure spend: Infrastructure investments in ASEAN are estimated to reach US$110b per annum until 2025. Areas of investments include enhancing and upgrading regional transport connectivity, energy security and digital connectivity.