Singapore expects growth of 13 to 15 percent this year. However, if you look at the bigger picture South East Asia as a whole. Singapore growth rate might look pale in comparison.
Asean impressive recoveries this year mostly contributed to the implementation of free trade agreements and the threat of rising labor costs in China, which make the regional cubs start to look cute again. Furthermore, the latest global crisis has made all of Asia look good. Asia is expected to grow 7.5 percent in 2010, led by China (10.5 percent), India (9.4 percent) and the 10 Southeast Asian economies expected to grow by a collective 6.4 percent, the International Monetary Fund said.
Indonesia, the region's biggest domestic market with a population of 240 million, saw foreign and domestic investment rise 40 percent in the second quarter year-on-year, while Vietnam's FDI inflow in the first half of this year jumped 5.9 percent from the same period in 2009 to $5.4 billion.
Malaysia's FDI inflow in the first quarter reached $1.65 billion, more than the $1.38 billion it attracted in all of 2009.
Thailand saw new applications for foreign investment tax privileges grow 7.4 percent to $5.9 billion worth of projects in the first half of 2010.
Thailand's exports to AFTA countries rose 51 percent in June, although much of this was just feeding in to the global supply chain that ultimately ends in the US and Europe. But some of those exports were also going to ASEAN consumers, such as imports of made-in-Thailand automobiles. Ford Motors in June announced a $450-million expansion in Thailand, At least six Japanese car makers have committed to manufacturing small eco-cars in the kingdom.
Vietnam, Cambodia, Laos and even Myanmar, where minimum wage ranges from 30 to 54 dollars a month, can expect to benefit from a production shift away from China in such labor-intensive sectors such as garment and shoe manufacturing. In Myanmar at least six new garment factories have opened this year, backed by investors from Hong Kong, China, South Korea and Japan.
PHILIPPINE ?
