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With its position adjacent to two of the world’s largest economies, Russia and China, Mongolia’s trade potential holds significant appeal for foreign investors. Furthermore, just as it strives to diversify the sources of its foreign direct investment, the country’s policy of cultivating “third neighbours” is set to broaden trade patterns geographically and should gradually improve the terms of trade. Exports to the US increased dramatically between 2010 and 2012, from $12m to $42m, while imports from the US grew from $116m to $665m over the same period. Despite this significant growth, trade with the US still represented a very modest share of Mongolia’s overall trade in 2012, when the country’s imports and exports were valued at $4.84bn and $6.74bn, respectively. FDI inflows are expected to reach $2.5bn in 2013, and then be lower in 2014, reaching approximately $2bn, with the overwhelming majority of these funds going to mining and resource extraction. This chapter contains an interview with Fumio Kishida, Minister of Foreign Affairs for Japan; viewpoints from José Manuel Barroso; President, European Commission; and David Johnston, Governor General of Canada; and an interview with Roger Gifford, Alderman and Former Lord Mayor of London.

Following a decade of growth at an average rate of 6% per year, Indonesia’s economy faced external and internal challenges in 2013. As the world’s 16th-largest economy in 2012, with a GDP of Rp824trn ($824bn) and a population of 247m citizens, Indonesia has strong fundamentals for long-term growth. While the sharp reversal of foreign portfolio investment (FPI) flows from May 2013 emphasised economic imbalances, authorities are seizing on the sense of crisis as an opportunity for enacting needed structural reforms. Despite relatively high inequality and 115m people living on less than $2 a day, the large domestic consumption engine has insulated Indonesia from volatility in world trade. Since 2010 the services sector has become the major employer and accounted for 39% of GDP as of the second quarter of 2013. The manufacturing industry accounts for 23.8% of GDP, construction for 10.3% and mining for 10.4%. Despite disagreements on the pace of the slowdown, growth remains higher than emerging markets’ average of 4.5% in 2013, and points to the resilience of long-term drivers of economic growth. While policy continuity amid the political transition in 2014 will be an important factor in determining the pace of growth, the authorities will continue to balance the need to support domestic consumption growth with ensuring broader macroeconomic stability and the confidence of global investors. This chapter contains interviews with Dipo Alam, Cabinet Secretary; Jokowi, Governor of Jakarta; Suryo Sulisto, Chairman, Indonesian Chamber of Commerce and Industry; Jusuf Wanandi, Co-founder and Vice-Chairman, Centre for Strategic and International Studies; Edward Soeryadjaya, Chairman and Founder, Ortus Holdings; Prijono Sugiarto, President Director, Astra International; and Tri Rismaharini, Mayor of Surabaya.

For many years Thailand has focused on increasing energy generation so that it could power its industrial growth and meet the energy needs of an increasingly prosperous society. Achieving this objective was a requirement in terms of sustaining economic growth and, so far, the country’s energy production has succeeded at keeping pace. Thailand has one of the highest electrification rates in South-east Asia. As a percentage of total generating capacity, the share claimed by hydropower has dropped considerably, from 21.8% in 1986 to 3.1% in 2013. Demand for natural gas has recently outstripped Thailand’s supply of dry gas, forcing the country to increasingly rely on imports of more expensive liquefied natural gas (LNG). Capacity will grow, but renewables, LNG, imports and conservation will play a greater role in helping the country meet its energy needs. Overall, the sector may become more interesting, as new solutions will be required to sustain ongoing economic growth, while at the same time appeasing the environmental demands of the people. This chapter contains interviews with Pailin Chuchottaworn, CEO, PTT Group; Veerasak Kositpaisal, CEO and President, Thai Oil; and Wandee Khunchornyakong, CEO and President, SPCG.

Rising capital values, favourable interest rates and strong demand have created a promising environment for Indonesia’s real estate sector, which posted impressive expansion numbers in 2013. While the US and EU have struggled with the lingering effects of the global financial crisis, South-east Asia has powered on, with Indonesia topping the list of the world’s fastest growing luxury real estate markets in terms of price. A new loan-to-value ratio introduced in 2013 aims to protect against a property bubble, in part by requiring first-time home buyers to make a down payments of 30% of the purchase price, with this rising to 40% and 50%, respectively, for those purchasing a second or third home. Rapid population expansion, growth of the middle class and increasing road congestion in Jakarta mean that demand for properties in the city centre is expected to continue rising. Demand for office rental space, as well as for retail and hotel property, is also expected to continuing rising. Indonesia’s young population and growing consumer class will provide growing demand for property in the years ahead, and, as the country continues to strengthen its appeal as a location for doing business, the real estate market should remain an attractive option for investors over the longer term. This chapter contains interviews with Michael Widjaja, Group CEO, Sinar Mas Land; Santoso Gunara, President Director, Danayasa Arthatama; and Eddy Sindoro, Paramount Enterprise.