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agriculture, China, Energy, Forecasts, Indonesia, Malaysia, oil and gas, Papua New Guinea, Philippines, Singapore, Tourism, Vietnam

DBS Bank identifies five growth sectors for Asian economies

A report from DBS Bank has identified five growth sectors for Asian economies: housing, energy, health care, agri-businesses and travel.

  • Population and economic growth, urbanisation and infrastructure development will raise the demand for housing. By 2020 the annual figure Asians spend on housing should rise to US$1.11tril estimates DBS.  It says volume growth will be the main driver in Indonesia and Malaysia, while growth in China and Vietnam will be triggered by urbanization.
  • The growth in oil demand is expected to be led by Indonesia, China, Thailand and India. Each of these countries is expected to consume at least 3% more oil every year up till 2020. Companies are also investing in downstream services, like electricity generation and distribution, in anticipation of rising demand.
  • DBS expects medical expenditure per person in Asia to more than double between now and 2020 to almost equal levels with the United States.  “Aside from the traditional countries like Indonesia, we are seeing more patients from Vietnam, Russia, China, Bangladesh and even places like Papua New Guinea,” the report says.
  • Demand for food from the region is expected to more than double by 2020 to nearly US$3tril per year, said DBS. Companies that can benefit include those in palm oil and rubber, two commodities that rely on Asia to produce the vast majority of global supply.
  • Newly-wealthy people in Asia like to travel, and a lot of them travel domestically, such as within China, using railways and staying in motels or hotels, said DBS. According to the World Tourism Organisation, China is now the third most visited country in the world, behind France and the US. Malaysia is also popular, coming in at No. 9.

More detail at the Sunday Times/Asia News Network


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About Samantha Magick

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