Thursday, April 2, 2015
Electronics and ICT investment outlook in ASEAN states.
South-east Asia is removing foreign investment barriers in most electronics industries, attempting to capitalise on closer economic ties with China and digitalisation of services. Changes in supply chains are drawing investment to cheaper production bases, including Vietnam and the Philippines, forcing established manufacturers Singapore, Malaysia and Thailand to compete with China for high-end markets. This trend will intensify ahead of the ASEAN Economic Community (AEC) free trade area, which will be implemented in late 2015.
- Investment markets will be liberalised under the ASEAN Economic Community.
- Trade liberalisation will require expanded South-east Asian supply chains, and boost electronics industry links with China.
- ASEAN governments will address skills gaps to provide electronics workers as the industry grows.