Khazanah Research Institute trustee Tan Sri Andrew Sheng says Asian region is set to become a ‘New Economy’.Pix by SURIANIE MOHD HANIF.
Khazanah Research Institute trustee Tan Sri Andrew Sheng says Asian region is set to become a ‘New Economy’.Pix by SURIANIE MOHD HANIF.

KUALA LUMPUR: The Asian region is well-positioned towards a migration to become a ‘New Economy’ due to its nature of being a net lender rather than a net borrower, says Khazanah Research Institute trustee Tan Sri Andrew Sheng.

Speaking at the Emerging Markets Forum today, Sheng said the increasing risks and uncertainties in the 21st century from geopolitics, technology, climate change and social inequities require a higher equity or knowledge-based model, which was radically different from a 21st century debt-driven model.

“Asia is in the midst of a very exciting transformation into the New Economy. Being a net lender to the world and having a good manufacturing base, Asia can shift to an equity-based model and knowledge or services-based economy based on its savings," he said in a ceremony held in conjunction with the launch of 'The World in 2050' book.

The book, published by Oxford University Press and edited by Harinder S. Koli, is jointly-authored by 26 authors, debating on how the world economy looks like in 34 years' time.

The book took a long-term perspective of the economic and social outlook of the world in 2050, focusing on cross-cutting inter-generational issues that often get overshadowed by short-term crises and political preoccupations of the day.

It also argued that for a prosperous economic order, convergence of large developing economies led by East Asia and India with the developed world is crucial given the former's share in the global GDP.