Asia Economy

The Philippines capital markets enjoyed a flurry of activity in the closing months of the year, with a number of firms aiming to hold an initial public offering (IPO) to take advantage of the high levels of liquidity in the marketplace and the increasing momentum in the country’s economy.

As the year comes to a close, Indonesia can look back on 2010 with no small degree of satisfaction. The economy is performing well, foreign investment is on the rise and there is continued political stability. However, concerns linger over rising inflation and the sustainability of the current growth cycle.

Indonesia’s economy is continuing to power ahead, with strong domestic growth and rising demand for export products. However, concerns remain over a potential inflation breakout due to overheated consumer spending fuelled by low interest rates.

The first successes of the recently established free trade agreement (FTA) between Brunei and India have become evident, with Indian experts identifying the Sultanate’s construction sector as a promising area for trade expansion. The sector offers Indian firms a chance to tap into one of the Bruneian economy’s major growth drivers, with a swathe of major construction projects either under way or on the drawing board.

The 17th ASEAN summit in Hanoi in October saw Brunei Darussalam taking steps to improve economic ties with several of its partners in the 10-member organisation, as well as with non-member states. The summit, the second held under Vietnam’s chairmanship, came at a crucial time for ASEAN as it seeks to build more internal economic integration while also strengthening its geostrategic role.

Brunei’s economy appears set for a period of consolidation and moderate if steady growth as the government combines careful management of energy resources with timely investments aimed at spurring expansion in the coming years.