Asia Financial Services

The cash-based economy of PNG is currently undergoing a rapid change, with increasing revenues from large liquefied natural gas projects the main driver of the banking sector’s growth. In 2013, the number of active bank accounts in PNG amounted to only 1.5m, compared to a population of 7m. However, with new money flowing into the country, the banked population is expected to continue to grow throughout 2014.

State agencies and the private sector are combining to promote private pension schemes, both as a measure to strengthen provisions for Malaysians in retirement and to boost liquidity in the nation’s capital markets. However, longer-term success will depend on convincing the younger segments of society of the need to prepare for life after work.

The stock market in Indonesia is set for another busy year, with 30 or more companies having already announced plans to undertake an initial public offering (IPO) despite looming elections. The wave of new listings, along with new requirements announced by regulators, is set to sustain improved liquidity and activity on the exchange.

A cooperation agreement between the bourses of Malaysia and Saudi Arabia – the world's two largest Islamic financial services markets – stands to help the industry grow at a greater clip in both countries.

While the final cost of Typhoon Yolanda is still being calculated in the Philippines, the impact that the country’s low insurance take-up could have on the national economy is fast becoming apparent.

Insurers in Brunei Darussalam are aiming to increase penetration rates in a number of key segments of their industry, looking to boost growth in what is already a highly competitive operating environment. However, to do so they will likely need to lift the sector’s profile among their potential client base.