Industry

Unexpected fluctuations in cashmere prices in 2012 have dampened optimism in Mongolia’s textiles sector, despite the introduction of incentives from the government aimed at streamlining the industry. However, industry players say a planned commodities exchange will resolve the issue.

While the automotive segment has been boosted by a solid rise in sales, driven by increased economic growth and consumer spending power, there is rising uncertainty over the long-term viability of domestic production, as regional rivals and a still-narrow market eat away at cost efficiency.

A flurry of new regulations in the mining sector over the past several months has made foreign investors cautious and threatened Indonesia’s status as a darling of emerging-market analysts. Although financial data suggests that macroeconomic risks stemming from the new protectionist stance will be limited, the government has made clear its desire to shift towards more local control of the economy.

As the economy of resource-dependent Brunei Darussalam prepares for a future when its oil and gas reserves are depleted, policy makers are putting more emphasis on innovative areas of industry that aim to capitalise on the Sultanate’s heritage and culture.

The creation of a new multi-billion-dollar industrial city in Bahrain could soon be given the green light as the government steps up its efforts to build on its manufacturing base.

With several major infrastructure projects slated for 2013-14 and a land acquisition reform bill waiting in the wings, Indonesia is clearly working to address one of the most severe restrictions to its competitiveness. The bill will help clear away obstacles for the many public works in the pipeline, but significant legal and financial obstacles remain that will continue to slow growth.