Top Reasons to Invest in Asia

During the recent global financial crisis, many businesses and investors have shifted their focus from developed Western countries towards Asian nations. Asia was not totally isolated from the financial crisis but it was less affected by the turmoil. The influx of investments into Asian markets has emphasized a fact that businesses could not deny: the continent is truly a good investment region because of the expanding list of opportunities available.

Should investors invest in the region? Without any form of doubt, experts would unanimously nod and respond with a resounding ‘yes.’ Many businesses that have decided to establish and strengthen foothold in the region now book positive income from their Asian operations. More and more business and investment opportunities as well as developments continue to rise, luring more investors, businessmen, and entrepreneurs to get into the bustling Asian business scene.

If stock indices would be checked as one seeks indicators of Asia’s investment potential, foreign investors have no reason not to consider getting into the region. Most Asian stocks have been performing robustly in the past years. In fact, by the onset of the fourth quarter of 2009, Shanghai Composite Index in China, Sensex in India, Straits Times Index in Singapore, and Weighted Index in Taiwan all performed much better to outpace other stock indices. The mentioned stocks jumped an average of 59%, 76%, 52%, and 65%, respectively, as compared to the 21% rise of S&P 500 and 20% to 30% climb in European indices in the same period.

Why should foreign investors concentrate in investing in Asia today? Aside from a logical comparison of stock indices, any businessman or investor should also consider several other factors. Here are some of the top reasons why you should not just consider but also act to invest capital into the growing Asian economy.

• Most Asian countries are creating and growing upper-middle and middle-class people with higher income and much greater willingness to spend. It is estimated that growth in regional or domestic consumption in most Asian countries would rise higher than the growth generated by the United States after the World War II era. By the year 2020, the number of people with projected per-capita GDP income of more than $5,000 annually would increase to 1.2 billion. Specific countries that are seen positively by investment experts include China, Hong Kong, South Korea, Indonesia, the Philippines, Singapore, Malaysia, Thailand, and Taiwan.

• Asia is noted to possess wealth, lots of it. Most Asian nations currently have account surpluses amid a period when most developed nations globally (including the United States and the United Kingdom) are experiencing deficits. If one would look into profiles of consumers, Asians have more savings compared to their counterpart American consumers, who are mostly deeply indebted due to the present credit bubble.

• Asian nations are rapidly urbanizing. More people living in rural centers are moving into urban communities to experience better, sophisticated, and more comfortable lifestyles. Normally, urbanization leads to generation of higher incomes, higher consumer spending, and better educational opportunities.

• China and India are robustly growing economically. It is estimated that within a decade, combined economies of both countries would be equivalent to more or less 60% of the total US economy. It is logical that when this happens, global economic and political power would likely shift towards the Asian region.

• Asians are getting more into hard sciences. Many Asian students are now enrolled in more hard science programs in schools compared to their American counterparts. It is expected that this would further make economic opportunities in the region ideal and robust.

Thus, there is no reason why any foreign investor should not consider investing in Asia. As experts say, the region is obviously ‘the place to be.’

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