 |
| Source: PwC Growth Markets Centre The Future of ASEAN - Time to Act web page. ASEAN's timeline since inception, by GDP, from the World Economic Outlook database, IMF, October 2017. 2018 figures are available. |
PwC’s Growth Markets Centre has launched its 2018 annual report, The Future of ASEAN – Time to Act, during the official opening of PwC Singapore’s new office premises at Marina One on May 11.
The Future of ASEAN – Time to Act provides a view of the policies that the Association of Southeast Asian Nations (ASEAN) governments ought to consider to ensure the region continues to attract investment and strategies for future growth across seven sectors – automotive, financial services, consumer goods, medical devices, refined fuels, telecommunications and transportation.
2017 marked the 50th anniversary of ASEAN, comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. ASEAN has not only doubled its membership since inception, but has also successfully weathered both the Asian financial crisis of 1997 and the global economic crisis of 2008–2009 to become the sixth-largest economy globally.
However, a number of challenges, including a slowdown in short-term economic growth, weak workforce productivity, an ageing population, an over dependence on external trade and major voids in infrastructure and national institutions raise questions about the sustainability of ASEAN’s growth story.
The Future of ASEAN – Time to Act presents a view as to how ASEAN needs to progress from an era of passive growth, and take more proactive measures to continue to attract investments, develop institutions, and evolve its people and technological capabilities. The private sector will also have a major role to play in strengthening the region’s growth prospects over the coming years, but this will require companies not only to provide new products and services, to meet varying consumer preferences, but also to work more closely with governments to develop the right conditions for businesses to prosper.
Going forward, PwC sees growth opportunities for the private sector across a number of industries in ASEAN. However, given the dynamics and challenges of ASEAN, companies will need to adopt innovative strategies to succeed, the consultancy said. Common themes in the strategies include:
Download the Future of ASEAN – Time to Act report
PwC's new office in Singapore is on levels nine to 13 at Marina One.
The Future of ASEAN – Time to Act provides a view of the policies that the Association of Southeast Asian Nations (ASEAN) governments ought to consider to ensure the region continues to attract investment and strategies for future growth across seven sectors – automotive, financial services, consumer goods, medical devices, refined fuels, telecommunications and transportation.
2017 marked the 50th anniversary of ASEAN, comprising Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. ASEAN has not only doubled its membership since inception, but has also successfully weathered both the Asian financial crisis of 1997 and the global economic crisis of 2008–2009 to become the sixth-largest economy globally.
However, a number of challenges, including a slowdown in short-term economic growth, weak workforce productivity, an ageing population, an over dependence on external trade and major voids in infrastructure and national institutions raise questions about the sustainability of ASEAN’s growth story.
The Future of ASEAN – Time to Act presents a view as to how ASEAN needs to progress from an era of passive growth, and take more proactive measures to continue to attract investments, develop institutions, and evolve its people and technological capabilities. The private sector will also have a major role to play in strengthening the region’s growth prospects over the coming years, but this will require companies not only to provide new products and services, to meet varying consumer preferences, but also to work more closely with governments to develop the right conditions for businesses to prosper.
Going forward, PwC sees growth opportunities for the private sector across a number of industries in ASEAN. However, given the dynamics and challenges of ASEAN, companies will need to adopt innovative strategies to succeed, the consultancy said. Common themes in the strategies include:
Localisation
Transition to more localised sourcing, productions and sales through the development of regional hubs to serve ASEAN consumers. (e.g. automotive and medical devices).
Digitalisation
Adoption of digital capabilities to improve the production and transportation of goods and services, as well as the communication with consumers and businesses (e.g. financial services, consumer goods and telecommunications).
Partnerships and alliances
Partnerships and alliances
Development of partnerships and alliances, particularly cross sector and with industry disruptors (e.g. fintech), as companies try to stay relevant and competitive whilst meeting consumers expectations in a profitable manner (e.g. refined fuels and transportation).
David Wijeratne, Partner and PwC’s Growth Markets Centre Leader says, “ASEAN can be proud of what it has achieved in the past 50 years, but the time of passive growth is over. Global growth needs ASEAN to fulfil its potential and grab hold of its future, now is the time to act.”
PwC’s Growth Markets Centre is a global team which supports companies navigating the ever changing complexities of entering and expanding into and from developing markets.
David Wijeratne, Partner and PwC’s Growth Markets Centre Leader says, “ASEAN can be proud of what it has achieved in the past 50 years, but the time of passive growth is over. Global growth needs ASEAN to fulfil its potential and grab hold of its future, now is the time to act.”
PwC’s Growth Markets Centre is a global team which supports companies navigating the ever changing complexities of entering and expanding into and from developing markets.
Explore:
Download the Future of ASEAN – Time to Act report
PwC's new office in Singapore is on levels nine to 13 at Marina One.
