Asia Financial Services

Funds raised through Mongolia’s first national bonds are set to have an impact on the wider economy, with the government announcing in February that fournew major projects will benefit from the so-called“Genghis” bonds. However, critics still fear the issuance could back fire.

Economic growth, sound regulation and high levels of capitalisation should benefit the Thai insurance sector in 2013. Growing public understanding of the importance of insurance and government support for the industry should also aid expansion, though rising risk may impact estimates in the near term.

Legislative reforms opening up the rural banking segment to wider foreign investment could see an injection of funding into at least some of the almost 600 small lenders. However, it is likely that only a few will attract an overseas partner.

The national rollout of the government Direct Cash Transfer (DCT) scheme in early January is the largest and most comprehensive overhaul of India’s subsidies and benefits distribution programmes to date. However, the programme’s quick introduction, as well as a number of other challenges, may prove problematic to its implementation and success.

Buoyed by an improved economic outlook across Malaysia, Sabah’s emerging middle class is expected to spearhead the expansion of the state’s fledgling financial services sector. However, with penetration levels still low, educating Sabah’s population on topics such as investment and financial planning is likely to prove instrumental in supporting the industry going forward.

While a wave of major resource-related projects in Papua New Guinea (PNG) presents significant growth opportunities for private insurers, concern is rising that industry players could be put off entering the market unless the government takes steps to ensure the public insurance segment is better regulated and supervised.