Labuan

Asia’s economic growth remains intact, but at slower rate:


By added on 31/10/2016

Asia’s economic growth and progressive economic integration, alongside strengthened cross-border supply chains, remains intact, albeit at a moderate level, said Ahmad Hizzad Baharuddin, director-general of Malaysia’s Labuan Financial Services Authority, reports the Nation

He said in line with regional economic expansion, investors are attracted to higher Asian assets and investment portfolios, while the number of high net-worth individuals is rising. This augurs well with the centre’s positioning to focus on private clients’ wealth and trust business.

“Trade agreements aimed at lowering trade barriers and encouraging economic growth are getting more traction.

“Its potential is now enhanced further by efforts to intensify the integration through the establishment of the Asian Economic Community in 2015, to advance multilateral trade,” he said in his keynote address at the Labuan International Financial Lecture Series.

The Regional Comprehensive Economic Partnership is another mega-regional trade agreement in negotiation.

The 16 participating countries account for almost half of the world’s population and almost 30 per cent of its gross domestic product.

“Not forgetting also the Trans-Pacific Partnership agreement, which brings immense opportunities.

“With increasing globalisation and technology advancement, the world is becoming seamless, resulting in it becoming more connected and interdependent.

“For the industrious, the free movement of goods and services, including capital movements, present opportunities.

“When presented in an era of high information accessibility, the new economy is likely to be characterised by digital technological gains and flow movements of unprecedented scale, scope and speed,” he said.

In the process, however, the future inevitably brings the attendant risks of rising dissatisfaction with claims of unfair competition and practices.

 

“This is especially so when nations and governments are slow in the transition to embrace the change, with limited resources to reign in leakages, and the damaging consequences of the rise of the industrious, including those unscrupulous parties benefiting from a more open world.”