Asia Economy

Strengthened by new deals in the transport, energy and agri-business sectors, foreign direct investment (FDI) in Indonesia’s East Java province has shown promising growth in recent years. Although the majority of FDI in Indonesia is sourced from other Asian nations, European investment has grown steadily since 2010, with East Java now poised to benefit from recently strengthened trade ties with the Netherlands.

Australian Prime Minister Tony Abbott flew into Port Moresby in late March accompanied by an A-list of his country’s business leaders, with trade and investment on their minds. And, after a loaded and complicated agenda, he left three days later with an economic treaty and the basis of potentially the most productive relationship Australia and Papua New Guinea have enjoyed in years.

While Thailand is pushing ahead with efforts to expand its network of free trade agreements (FTAs), the lack of a permanent government means that approval and implementation of any deals could be delayed.

New measures announced by the Mongolian government aimed at lowering the tax burden for small and medium-sized enterprises (SMEs) should serve as an incentive for private sector operators to expand, but businesses may still face challenges in obtaining the credit they need to sustain growth.

The government in Mongolia has revealed plans to support domestic export manufacturers, with the aim of reducing a burgeoning import bill and boosting the country's economic foundations.

After hopes of a mining-based boom in Mongolia last year were dented by global commodity price shocks and declining Chinese demand, the government is focusing on improving the investment climate in a bid to generate a turnaround.