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Friday, March 23, 2012

The current global economic uncertainties have made international business and trading more challenging. There are more and more trade protectionism measures imposed which make movement of goods and services more difficult. These measures are aimed at safeguarding the local industries and hopefully to sustain the competitiveness in the global market. Exports are affected hence more focus now is given to domestic market. Big markets like China, India and Indonesia may not need to rely solely on exports for their economic growth but rather increasing private consumption and spending but for some economies which have exports account for more than 100% of its GDP, like Malaysia and Singapore which are smaller markets,, slowing exports may lead to slower economic growth though it is also important to revive the domestic market to offset whatever slow in exports.

Saturday, March 10, 2012

Even China is revising its economic growth downward to 7.5% in 2012, mainly due to Eurozone instability and US slow recovery. The country realizes that they cant rely heavily on exports and foreign direct investment but need to stimulate the domestic consumption to sustain its growth. China however is still hunger for energy and mineral resources due to its huge volume of infrastructure development as well as manufacturing so imports are expected to register more rapid pace as against exports.

The growth sector is in Asia, with not only China leading the way, but markets like ASEAN and india are also growing albeit as slower rate, as againt the developed economies. More investments are coming to Indonesia, Vietnam and Myanmar as well as India. Indonesia with 240 million population is opening its market to foreign investors, likewise Vietnam has been doing the same thing for the past decade.

Saturday, March 3, 2012

China is leading the world's economic growth in 2012 albeit slowdown in its economy. Despite the economic growth is forecast at 7-8 percent in China, it will continue to offer multiple opportunities to foreign business community. The Government realises that they can no longer rely solely on exports and foreign direct investment for its sustainable growth due to global uncertainty especially in Euro Zone and the US, but acknowledge that domestic consumption will fuel the engine of growth for many years to come.

Chinese has been well known as a society that loves to save. In fact, China has one the highest saving rates in the world. That's the reason why Chinese consumers can purchase cars and houses in cash rather than depending on bank loans or mortgages, something that is used to be non-existence compared to today. The Government is putting up efforts how to stimulate domestic consumption through various programmes, including increasing the income level of the poor people and improving the social security. If these reforms successful, China will be able to continue to prosper.