Chief Executive Officer of Maybank Kim Eng Group of Malaysia Dato John Chong (Photo: theedgemarkets) Singapore (VNA) – New technology will beamong key forces promoting investment flows into the Association of SoutheastAsian Nations (ASEAN), Chief Executive Officer of Maybank Kim Eng Group ofMalaysia Dato John Chong said at the Invest ASEAN Conference held recently inSingapore.
Chong told participants that new and disruptivetechnology impacts almost every industry, propelling the growth of technologystart-ups in ASEAN. Funds for newly-established start-ups hit about 6.5 billionUSD in 2017, twice the amount of 3.1 billion USD in the previous year, he said.
The general director voiced his belief that thetechnology environment in ASEAN is still at an early phase of growth despitethe disruption in the marketplace. The majority of ASEAN’s technology deals inrecent past are still at the seed-stage, and while e-commerce is growingrapidly in ASEAN, the penetration rate remains relatively low at between 2-5percent compared with more established markets like the Republic of Korea,China and the US.
Vietnam is a key regional market of Maybank Kim Eng inthe field of e-commerce thanks to an attractive population structure andgrowing economy, Chong said, noting that the group will invest additional 10million USD in the country to meet the demand of expanding investment insecurities market and banking sector.
Aside from technology, thehead of Maybank Kim Eng said between 2006 and 2016, China’soutward investments into ASEAN had risen from 1.8 billion USD to 71.6 billionUSD, making it the third-largest foreign direct investment contributor to ASEAN.
In 2017, ASEAN-China trade rose 16percent against the previous year. ASEANaccounts for the largest share of Chinese investments in mergers and acquisitions(M&As), making up about 30 percent of the total M&A investment in Beltand Road countries for 2005 to 2016.
China strengthened itscommitment to the One Belt, One Road Initiative (BRI) by pledging an additional124 billion USD. Given China’s high savings rate and its push to strengthenregional connectivity via the BRI, the capital flows to ASEAN will continueincreasing and accelerating in the next few years.
At the Invest ASEANConference, more than 900 representatives from 132 global investment funds andnearly 60 businesses managing total assets of up to 16 trillion USD discussedinvestment opportunities in the region, based on assessment of geopolitics,business and technology which may drive ASEAN development in the future.-VNA
VNA
