Asia Economy

Growing interest from China in the Asia-Pacific region has driven up investment in Papua New Guinea (PNG), helping to accelerate economic expansion.

The central bank in Malaysia is keeping an eye on macroeconomic stability at a time when a cooling external environment is putting pressure on growth. While international factors are starting to affect overall economic performance, domestic demand remains relatively robust, supported by consumer spending and public investments.

Authorities in Papua New Guinea (PNG) are hoping a new emphasis on developing small and medium-sized enterprises (SMEs) will generate up to 2m jobs in the next decade or so and boost the number of locally owned businesses. However, critics say that the government will first need to improve infrastructure and access to credit.

Concerns that falling demand for coal from China and a decline in commodity prices could weigh on Mongolia’s resource-related boom look to have been realised, at least in part, with figures for the first quarter of 2013 showing growth more than halved over the same period the year before.

Set to enjoy another year of strong growth in 2013, Thailand’s economy is benefitting from the wider region’s rapid expansion and inflows of foreign capital. New investment will concentrate on upgrades to transport infrastructure, which will help further improve trade relations with its neighbours.

After years of slow growth in foreign direct investment (FDI) following the global financial crisis, the Philippines is now showing high potential for a return to 2007 FDI levels. The country still lags behind some of ASEAN neighbours in overall investment per capita levels, although strong economic growth and new anti-corruption measures, combined with a recent credit rating upgrade from Fitch Ratings, have improved the Philippines’ reputation.