Hosting more than half of the world’s population, Asia is globally recognized for its technological innovation and unprecedented economic growth.
According to the 2018 IMF Regional Economic Outlook report, Asia’s total economy is projected to increase by 5.6% in 2019, highlighted by unprecedented growth in developing countries such as India, Malaysia, Indonesia, and the Philippines.
While past logistics may have prevented overseas investments and trade, Asia and many other emerging markets are discovering an influx in business.
This stems from the untapped potential that lies in emerging economies, as well as the limited competition from other foreign investors.
Although China has long been considered Asia’s economic giant — projected to grow by 6.6% in 2019 — Asia is witnessing rapid development from four new emerging economies that are set to take the global stage by storm.
India holds great potential for foreign investors and businesses, featuring extensive outsourcing capabilities and comprehensive supply possibilities at cost-effective prices.
we World Bank, India boasts the world’s fastest-growing emerging economy, and is projected to grow by as much as 7.5% in the next two years.
“India is doing well. Growth is being robust, investment growth remains high, and consumption remains strong. All in all, these numbers are encouraging,” said Ayhan Kose, Director of the Development Prospects Group at the World Bank.
This rapid economic growth stems from a variety of different factors. With diminishing oil prices and less worries of inflation, India, and many other foreign economies, are more welcoming to foreign investment and trade.
They boast a massive young and skilled workforce that remains a consistent global leader, providing ample opportunity for businesses to outsource premium products for cost-effective prices.
Plus, India’s specialization in agriculture — second in the world for farm output — can provide businesses with a competitive advantage over other global suppliers in terms of price as well as stock.
India’s economic growth has quickly driven the country up the global rankings of world’s largest economies. According to the 2018 PWC Global Economy Watch report, India can replace the United Kingdom as the world’s fifth largest economy by as early as the end of 2019.
With an enormous population and a young and skilled workforce, it’s expected that India will continue to climb the list in the decades to come.
A recent Bloomberg report listed Malaysia as the top emerging market of 2018, outperforming four other Asian countries that made the top-ten list.
Strategically situated between Singapore and Thailand, Malaysia provides the perfect investment opportunity for foreign businesses while promoting convenient access to other expanding markets within Asia.
According to the Ministry of Finance, Malaysia is expected to see economic growth rate of 4.9% this year, along with a continued rise in local and overseas demand.
Malaysia’s economic surge is the result of an impressive financial portfolio featuring a 0.6% inflation rate and a currency account surplus. Plus, the Southeast Asian country has greatly benefited from increased foreign investment and interest in their goods, particularly a growing overseas demand in Malaysian information and communications technology and transportation.
This year, Malaysia’s manufacturing sector is projected to expand by 4.7% on the back of export-oriented industries, especially those that produce chemicals, electronics, and rubber and plastic products.
Similar to other Asian emerging economies, young and skilled labor has also helped Malaysia gain foreign interest as well, powering Malaysia’s economic growth as a global leader in outsourcing opportunities.
Through continued technological development and infrastructure growth, Malaysia has developed into an even more attractive country to invest and trade in, featuring reliable Internet connectivity, well-maintained roads and highways and more.
Boasting the largest economy in Southeast Asia, Indonesia is an emerging market that has become a magnet for foreign investment and business.
Since the Asian financial crisis in the late 1990s, Indonesia has seen steady economic growth and consistent political stability, along with a shrinking poverty rate and skyrocketing GDP.
While the country’s economic growth has steadily grown at a strong rate of 5% over the last decade, local infrastructure projects and growing foreign interest have recently powered Indonesia to new heights.
One of the main drivers of Indonesia’s economic growth has been adjustments made to the country’s fiscal policy to ensure sustainable and inclusive growth.
Not only has this significantly aided Indonesia in its economic upswing, but it has also promoted the country’s untapped potential for foreign business.
Around half of the country’s population — 32 million as of 2018 — is under the age of 30, providing ample outsourcing opportunities for overseas investors. Plus, its continued involvement in the ASEA (Association of Southeast Asian Nations) showcases the country’s commitment to international trade and solidifies its place on the global stage.
Indonesia’s strong trade relationship with the United States, the fifth largest importer of Indonesian products, has made overseas trade for Americans even easier.
Over the last decade, the two countries have improved bilateral trade by over 53%, showcasing a growing economic partnership that benefits both parties. This storied history can provide a variety of different benefits to American businesses, including a larger network of potential local suppliers and manufacturers that are familiar with the Western business culture.
The Philippines has slowly emerged as one of the fastest-growing economies in the world, featuring foreign business incentives, political stability and an abundance of natural resources among others.
One of the Philippines main strengths is its macroeconomic resilience to surrounding financial crises; a result of increased spending on domestic infrastructure and other national projects. This results in a safe and reliable investment destination for overseas businesses, particularly during financial crises where other countries are on the decline.
Another contributing factor to The Philippines’ steady economic growth lies in its favorable incentives for foreign business. This is especially the case with businesses originating from the United States, the world’s second largest importer of Filipino goods.
Since 1989, the Philippines and the United States have limited trade barriers and stipulations through their bilateral trade agreement, the Trade and Investment Framework (TIFA).
As a result, American businesses have been able to do business in the Philippines faster and cheaper than ever before.
Gaining a Competitive Edge in Asia’s Emerging Economies
For the past two decades, Asia has been considered an economic success story — and the gold mine of business potential.
The continent is host to plenty of strong economic markets boasting young and skilled workforces, cutting-edge technology and favorable business conditions for foreign investors.
Entering one of Asia’s newest emerging markets is a worthwhile endeavor for any business. However, there is sure to be stiff competition vying for the same untapped economic potential.
To win favor in emerging markets, businesses can rely on domestic payment methods that locals are familiar with.
Emergent Payments delivers local payment solutions in over 70 emerging economies around the world, including India, Malaysia, Indonesia, and the Philippines.
Entering a new market can be a stressful affair. By relying on our vast experience in local taxes, remittance, compliance, and fraud management, you can focus on what matters most: your clients.
Emergent Payments is the only local payment solution in the world that enables merchants to accept payments in a single integration, providing businesses with the flexibility and speed they need to beat out the competition.
Send us a message today to learn how Emergent Payments can power your emerging market expansion.
If you’re interested in learning more about Asia’s booming markets, register for our one-night-only event where we will hold a panel discussion on Expanding to Asia Pacific on Wednesday, February 20, 2019. Click here to register.