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It’s not just about China. Asian economies are integrating rapidly, fuelling regional growth
- Asia’s massive economic bloc is growing in a complementary fashion, with more regional investments and collaborations as integration intensifies. But this is no closed shop and opportunities abound for those ready for the ‘Asian Century’
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China’s inexorable economic rise, and Japan’s industrial revolution before it, have long attracted superlatives. But beyond these economic giants, there is much dynamism elsewhere in Asia, too. Consider that, in Bangladesh, manufacturing as a share of its economy has jumped from 16 to 22 per cent in just 10 years.
Or look at Yangon, Myanmar’s largest city, which is well on its way to becoming an innovation hub. From a standing start, the city has attracted US$2.6 billion of foreign direct investment into knowledge-intensive sectors over a decade.
What is most exciting about Asia is not only its combined and still-increasing scale – this is the world’s largest regional economy – but that its diverse economies are integrating rapidly, fuelling each other’s growth.
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Our new research found a distinct trend towards integration in Asia. Today, 60 per cent of goods traded are within the region, as are 71 per cent of investment in Asian start-ups and 59 per cent of Asian foreign direct investment. Even most Asian travellers – 74 per cent – make trips within Asia.
“Asia-for-Asia” networks studded with vigorous cities are spreading across the region: in industry, technology and among people. And these networks are very largely being developed by Asians. For instance, South Korea accounted for 33 per cent of foreign direct investment in Vietnam, while Japan provides 35 per cent of the same in Myanmar, and 17 per cent in the Philippines.
Asia’s diverse economies complement each other and, together, they are a considerable force. For example, as working-age populations in China and Asia’s advanced economies decline, those in Asia’s emerging economies are growing. India’s median age was 27 in 2015 and by 2050, is expected to be only 38, lower than China’s median age by around 10 years.
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