Future-ready: Why Asean could be the decade’s best growth play
- May 10, 2024
- 1 min read
Amidst the uncertain economic landscape faced with pressing environmental and political stakes, a Singapore banker thinks the Association of Southeast Asian Nations (ASEAN) represents one of the best prospects for robust growth.
Freddy Ong, Standard Chartered’s head of Corporate & Investment Banking client coverage in Singapore, cites three pivotal factors: energy, infrastructure, and diversification. As the world shifts towards renewable energy and electric vehicles, ASEAN's significant reserves of raw materials like nickel and copper position it as a key player in the global energy transition. This abundance has already attracted substantial investment and is expected to draw more in the future.
At the same time, infrastructure development is accelerating across the ASEAN region. Indonesia's ambitious plans, including the construction of a new capital city and the launch of Southeast Asia's first high-speed rail link, signify a commitment to modernization and economic advancement. Discussions around regional projects such as a trans-ASEAN power grid demonstrate a collective effort to bolster connectivity and sustainability.
The increasing diversification of ASEAN's economy, particularly through trade corridors and investment partnerships, further enhances its appeal to investors. Chinese firms, in particular, are tapping into ASEAN's growth opportunities, contributing to the region's economic expansion.
Looking ahead, Ong remains optimistic about ASEAN's trajectory, projecting the region's GDP to reach $4.5 trillion by 2030. This growth outlook positions ASEAN as a significant driver of global economic expansion.
Read his opinion piece here or in the PDF below.
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