Asia Economy

Plans are in place to develop Indonesia’s nuclear power capacity to overcome the country’s shortage of electricity and ease its dependence on hydrocarbons. However, some concerns remain as to the safety of atomic energy in a quake-prone region so soon after the disaster in Japan, with opponents to the scheme pushing alternative energy as the answer to Indonesia’s power needs.

With many sectors of the economy having performed solidly over the past 12 months, Malaysia is hoping for more of the same in 2012. Indeed, foreign direct investment (FDI) is up, inflation well contained, and the financial sector steady. However, at least some impact from the European debt crisis is expected, with demand for exports widely predicted to ease in 2012.

While the floodwaters that submerged much of Thailand’s economic heartlands are receding, the high tide mark of damage to the economy has yet to be reached. A full assessment of losses is still a long way from being completed, but the government is confident of a quick recovery.

The Philippines’ economy appears to be slowing, with most analysts revising the country’s growth predictions as weakening demand in global markets undermines its export trade. However, given the Philippines’ sound fiscal reserves, there are few concerns that economic expansion will actually stall.

Looking to build on its recent good showing in the World Bank’s Ease of Doing Business (EODB) survey, where it made solid gains in a number of categories and improved its overall ranking, Brunei Darussalam is now looking to further enhance its business climate and attract increasing levels of foreign direct investment. Yet, it still has some way to go before it achieves its goal of being included in the upper percentile of the World Bank ratings.

Thailand has expressed interest in joining the US-backed Trans-Pacific Partnership (TPP), the US’s ambitious plan to develop a free-trade zone across the Asia-Pacific region, though Bangkok has made clear it will want to assess any downside to its own economy before bringing down its trade barriers.