KUALA LUMPUR: Asia offers a wide array of opportunities amidst European economic uncertainties, Maybank Kim Eng said at the investment bank's 'Invest Asia UK' conference in London recently.
In an emailed statement, the investment banking arm of Maybank Group said it expects stronger growth for Asia this year, buoyed by a cyclical recovery in trade and commodity prices.
"The region has seen a robust recovery in exports and trade-related services since end-2016, benefiting many Asian economies, especially those which are trade dependent. “The East Asian economies, namely Taiwan, Korea, Singapore and China are part of the global electronic supply chain and are gaining from the recovery in electronic exports," it said.
Maybank Kim Eng chief executive officer, Datuk John Chong, said that Asia’s valuations remain more attractive compared to developed countries’.
Chong expects 2017 to see the S&P 500 trading at 2.9x 2017 price-to-book (PB), while Asia x Japan at 1.5x 2017 PB.
He explained that Asia is home to two of the world’s largest emerging economies, India and China, with impressive growth rates of 6-7 per cent, and that this will have substantial spill-over benefits to surrounding economies.
"China’s outward direct investment has grown by 28 per cent CAGR from 2010 to 2015, to US$1.1 trillion, and Asia accounts for about 70 per cent of China’s outward investment,” he said.
The Invest Asia UK conference attracted more than 300 delegates from 23 countries.
"A total of 31 corporations from 12 countries in Asia, including China, Korea, Taiwan, India, Malaysia, Thailand, Indonesia, the Philippines and Pakistan, covering North Asia and Asean with total market capitalisation of about US$500 billion and 120 funds across Europe, totalling US$19 trillion in Assets Under Management, participated in the conference," Maybank Kim Eng said