Asia Economy

Lawmakers in Mongolia have approved a budget for 2014 that emphasises investment in the economy and seeks to build the infrastructure needed to sustain a commodities boom and maximise growth. While this likely means higher debt levels in the short run, the expectation is that earnings will improve in the medium-to-long term.

From the announcement of an inaugural international telecoms tender to the awarding of lucrative oil blocks, as well as the ongoing challenge for peace in the Kachin and Rakhine states, 2013 was not short of headlines for this once isolated nation.

The recently approved 2014 budget for Papua New Guinea (PNG) provided no major policy changes or surprises and is likely to play well to an international investor audience.

Slower growth in Indonesia may provide an impetus to realise a range of reforms that the government is planning, changes that could open several important and attractive sectors to greater foreign investment.

Although external commodity price shocks and the declining value of the rupiah are the macro-economic trends dominating headlines about the Indonesian economy, some foreign investors still view labour policy and rising wages as greater challenges.

Preparations in Malaysia are well under way for the rolling out of a new goods and services tax (GST) in April 2015, but opinions differ on how effective the levy will be in boosting revenue and critics have voiced concern that the tax could feed inflation.