SOUTHEAST Asia is an interesting mix. Here is where the tiny Brunei sultanate shares the island of Borneo with the world’s fourth largest nation, Indonesia, in one big neighbouring geography.
And Southeast Asia’s influence is emergent. It has been for some time. The world’s eyes are understandably on it.
Our Southeast Asian eyes must be, too. We must know the power that we are. And use it to our benefit. Two areas call for attention.
First, economics. Last year was a good year, with the region recording a 5.1 per cent gross domestic product (GDP) growth.
The Institute of Chartered Accountants in England and Wales sees Southeast Asia’s GDP growth moderating to 4.8 per cent this year before finishing off at 4.7 per cent in 2020. Not a bad show for a region given trade salvos being fired all around it.
In such turbulent times, Southeast Asia must look towards domestic demand for a cushion.
The Southeast Asia 11 — Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Timor-Leste, Thailand and Vietnam — have an impressive home-grown market of 642 million people. About one-third of this — 234 million — is in Indonesia.
In terms of population, Southeast Asia is twice the size of the United States and bigger than Europe. Data presented by venture capital firm Ardent Capital points to 67 per cent of the region’s population being under 35 and growing richer.
The middle-class is on the bulge across Southeast Asia. This the region must exploit.
A good place to start is the Malaysia-Indonesia crossing from Malacca to Dumai, Sumatra.
The bridge may just ignite a socioeconomic revolution across the region. When wealth crosses boundaries, prosperity is shared.
The rest may just be able to gain from the rich. And the 50km crossing may do more than bridge two countries.
Cost-benefit analysis is, perforce, necessary for such a humongous project, but profit and people must be weighed justly. By a happy chance, the bridge may not be too far after all.
If Nikkei Asian Review is right, Southeast Asia “is bucking the global trend of falling direct foreign investment, as the low-cost fast-growing region solidifies its position as an attractive location for multinationals”.
The Review quotes the move by vacuum cleaner manufacturer Dyson to Singapore, Japanese retailer Aeon opening a second large mall in Cambodia in June and Harley Davidson “offshoring” a new factory to Thailand as evidence of Southeast Asia’s rapid economic growth.
Second, technology. Southeast Asia is an epicentre when it comes to Internet usage.
Ardent Capital confirms this shift from the US and Europe to the region. Mobile usage, too, is pointing to the region’s love for technology.
Southeast Asia’s mobile phone usage is now 119 per cent, far above the global average of 98 per cent. As for the Internet penetration rate, Brunei leads with 94.6 per cent, while Singapore and Thailand follow closely with more than 80 per cent.
Malaysia is a close fourth with a decent 78.3 per cent. The rate in Laos, Myanmar and Timor-Leste may be in the terrible 30s, but surge is not too far away.
This and other tech tales tell of Southeast Asia’s potential. Time to seize the day.