A number of agencies recently released reports that despite the global economic downturn and trade tensions, strong domestic demand and good development momentum in Southeast Asia have resisted external risks to a certain extent. It is expected that the region's economy will remain in 2019. Stable growth also creates a good environment for foreign investment.

Strong domestic demand and stable economic growth

According to statistics, the booming urbanization of Southeast Asia has made a major contribution to the region's gross domestic product (GDP), which has strongly supported the continued growth of the local consumer class, has huge market potential, and provides sufficient labor for industrial development.

Strong infrastructure spending in the ASEAN region will continue to promote economic growth, especially in Brunei, Indonesia and Thailand. According to a research report from ADB, between 2016 and 2030, Southeast Asia needs to invest about US$210 billion annually in infrastructure construction, equivalent to 5.7% of GDP. Currently, the relevant investment in the region is far below this demand.

Promote reform and diversification

To counter external risks, governments have adopted a series of initiatives to attract foreign investment and market diversification. For example, Vietnam and Malaysia actively participate in international multilateral organizations' consultations to improve regulations on intellectual property rights, labor protection and environmental protection; Myanmar has begun to promote foreign investment in the retail industry to obtain an “open dividend”; the Philippine government is committed to eliminating infrastructure. The bottleneck; the Brunei government is advancing the economic diversification strategy to get rid of the dilemma of over-reliance on oil and gas resources exports; Malaysia, Vietnam and Thailand are actively exploring the Chinese market.

Strengthen regional cooperation

The cooperation of all countries is a good way to maintain economic development in Southeast Asia. ASEAN countries are committed to internal cooperation and external linkage. For example, ASEAN has strengthened regional cooperation with countries such as China, Japan, and South Korea. Moreover, countries have transferred industries to each other in accordance with the characteristics of their own development. For example, economies with lower levels of development should strengthen industrial transfer and promote a virtuous circle of regional economic development.

In terms of China, ASEAN countries have combined their actual economic conditions to link their economic development strategies with China's “One Belt, One Road” initiative, especially in the areas of infrastructure construction, new technology, and e-commerce. With the advancement of the “Belt and Road” construction, the cooperation space between the two sides will be further expanded.

According to the 2019 Asian Development Outlook Report, the economic growth rate of the ASEAN countries this year is expected to be 4.9%, a slight decrease from last year's 5.1%. Despite this, the World Bank’s previous Global Economic Outlook report states that East Asia and the Pacific remains one of the fastest growing regions in the world.

Source:People's daily