When it comes to economic growth in Asia, Southeast Asia (SEA) is one of the most potential markets. Its economic bloc could become the fourth-largest economy in the world by 2030 after the United States, China, and the European Union with four countries in the region – Indonesia, Malaysia, the Philippines, and Thailand – are expected to have a GDP exceeding $1 trillion by 2030. With such a healthy growth outlook, our team collected data for selected markets in the region as an executive summary to understand the growth potential on each market.

1. © CANVASSCO 2019
ECONOMIC GROWTH
UPDATES IN
SOUTHEAST ASIA
MARKETS
June 2019
Summary Document

2. © CANVASSCO 2019
SUMMARY
Indonesia: Rebuild the Country
Thailand: Deteriorating Competitiveness
Singapore: Asia’s Tech Capital
Malaysia: Re-Engineering Growth
Philippine: Build, Build, Build
Vietnam: The Rising Star
Cambodia: Robust Economy
Lao P.D.R.: Battery of Asia
Myanmar: Structural Reform

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ASEAN ECONOMIC GROWTH
Indonesia, Philippine and Myanmar economies continue to keep its growth momentum
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2014
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Indonesia Thailand Singapore Malaysia Philippine Vietnam Myanmar Cambodia LAO P.D.R.
GDPGrowthRate(%)
Forecasted Forecasted Forecasted Forecasted Forecasted Forecasted Forecasted Forecasted Forecasted
Source: International Monetary Funds (IMF)

4. INDONESIA: REBUILD THE COUNTRY
The Indonesian economy continues to show strong growth, with predictions that it
could become the world’s fourth-largest by 2050
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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
5.00
4.90
5.00
5.10
5.20
5.24
5.17
5.21
5.29
5.31 5.29
Forecasted (conservative outlook)
Indonesia GDP Growth Rate
Unit: % y-o-y
Source: International Monetary Fund, World Economic Outlook Database, April 2019
Indonesia Economic :
Key Growth Drivers
Stimulus to drive the Indonesia
economy are as follow:
‣ Indonesia put infrastructure
constructions as its flagship
agenda. According to ADB,
Indonesia needs approximately $1.6
trillion in investment if it is to meet its
investment needs by 2030.
Currently, Indonesia is drafting
ambitious plans for more than $400
billion in building projects.
‣ Strong domestic demand is
a main driver of growth. About 50
million new consumer will be
classified as middle-income earners
by 2019 due to rising wages and
attractive demographics
‣ Indonesia continues to reform
the country’s business
environment. The country was
upgraded to the investment grade
by all the major agencies
Indonesia has the slowest growth
pace since 2009 due to low
commodity prices, sluggish global
economic growth, China's economic
slowdown, and capital outflows
triggered by the tighter monetary
policy of the US Federal Reserve
Investment is projected to increase further following the
plan to invest in mega infrastructure projects. Strong
domestic demand, stable inflation and robust investment
are expected to support Indonesia's positive economic
outlook
Indonesia’s GDP growth is projected to still rise with stronger domestic
demand and higher global commodity prices has also spurred stronger
investment, especially in machine, equipment, and vehicles

5. THAILAND: DETERIORATING COMPETITIVENESS
Thailand’s competitiveness deteriorating due to trade tension, political uncertainty and low
labour productivity make it increasingly hard to sustain its growth going forward
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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
1.00
3.10
3.40
4.00 4.10
3.47 3.55 3.50 3.50 3.56 3.65
Forecasted (conservative outlook)
Thailand GDP Growth Rate
Unit: % y-o-y
Source: International Monetary Fund, World Economic Outlook Database, April 2019
Military coup on May 2014
hindered government
operations and undermined the
confidence of households,
businesses and foreign tourists
Thai economy has slowly recovered
but still fragile due to hang over
political situation, high household debt
and, exports face high competition
Global trade tension, ongoing political uncertainty, low
labour productivity (as a result of aging society) and a lack
of investment due to deteriorating competitiveness
continue to undermine Thailand's long-term economic
growth trajectory
Thailand Economic :
Key Growth Drivers
Stimulus to drive the Thai economy
are as follow:
‣ Eastern Economic Corridor
has initiated to facilitate new
investment via incentives since
early 2018 to develop growth
industries including:
(1) Robotics
(2) The intelligence electronics
(3) Next-generation automobile
(4) High wealth & medical tourism
(5) Biofuel and biochemical
(6) Food processing
(7) Comprehensive healthcare
(8) Advance agri and biotech
(9) Aviation and logistics
(10) Digital industry
‣ Infrastructure investment
Mega projects investment timeline
(2016-2024; Bt2.3tn) including
dual-track railways, mass-transit
and motorway routes

6. SINGAPORE: ASIA’S TECH CAPITAL
Singapore aims to push its next stage of growth by riding the digital wave and upgrading the
country’s transport infrastructure.
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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
4.10
2.50
2.80
3.90
3.20
2.31 2.36 2.50 2.64 2.58 2.57
Forecasted (conservative outlook)
Singapore GDP Growth Rate
Unit: % y-o-y
Source: International Monetary Fund, World Economic Outlook Database, April 2019
Singapore Economic :
Key Growth Drivers
Stimulus to drive the Singapore
economy are as follow:
‣ Singapore is aiming to loose
regulations make its investment
climate even more attractive
and transparent for international
firms looking to set up trading
hubs
‣ Singapore will allocate a $222
million to spur research in
digital innovation as the
government transforms the
economy through technology with
the aim to roll out artificial-
intelligence and cloud-based
solutions to every business sector
by 2020
‣ Singapore will continue to
upgrade infrastructure into
Smart buildings and smart
infrastructure
Slowdown in China, as well as
companies in the United States
and China increasingly sourcing
domestically instead of
importing from Asia
Slowdown economic outlook as Singapore economic
growth heavily relied on global trade. With trade tensions
between the United States and China, slower-than-
expected growth in the Chinese economy and Brexit,
Singapore’s economy could be as low as 1.5% in 2019
(according to The Ministry of Trade and Industry (MTI),
Singapore and recession is possible in 2020.
Recovered due to an
upswing in global growth

7. MALAYSIA: RE-ENGINEERING GROWTH
The Malaysia Government have to speed up the introduction of more growth-friendly
policies to drive economic growth
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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
6.00
5.10
4.20
5.90
4.70 4.66 4.80 4.84 4.84 4.84 4.84
Forecasted (conservative outlook)
Malaysia GDP Growth Rate
Unit: % y-o-y
Source: International Monetary Fund, World Economic Outlook Database, April 2019
Malaysia Economic :
Key Growth Drivers
Stimulus to drive the Malaysia
economy are as follow:
‣ Malaysia holds strong FDI and
trade prospects owing to its
mega infrastructure plans such as
the high-speed rail, East Coast
Rail Link, and China’s One Belt
One Road Initiative. However, The
moderation in manufacturing
sector’s production and possibly a
drop within the construction
sector due to the cancellation or
postponement of mega projects
will keep GDP growth subdued
‣ Multi-regional economic links
such as the Regional
Comprehensive Economic
Partnership and the
Comprehensive and Progressive
Agreement for the Trans-Pacific
Partnership are further expected
to boost foreign investments in
the country
Falling revenue from a weaker
commodities market due to sustained
low oil and gas prices and concerns
over political uncertainty
Recovered due to resilient
consumer spending,
private investments and
strong exports
Malaysia economic growth is expected to be largely
driven by domestic demand following the removal of GST,
supported by stable labor market conditions and
continued income growth. However, the country more
vulnerable to a potential reversal in monetary conditions
due to high public debt

8. PHILIPPINE: BUILD, BUILD, BUILD
Philippine is in transitioning to a new economic infrastructure
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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
6.10 6.10
6.90
6.70
6.20
6.48
6.61
6.74 6.72
6.77 6.79
Forecasted (conservative outlook)
Philippine GDP Growth Rate
Unit: % y-o-y
Source: International Monetary Fund, World Economic Outlook Database, April 2019
Philippine Economic :
Key Growth Drivers
Stimulus to drive the Philippine
economy are as follow:
‣ Build, Build, Build program The
Philippine government is set to
embark on an ambitious $180
billion infrastructure spending
bonanza, set to transform the
Philippines’ economy which
include 75 flagship projects, (six
airports, nine railways, three bus
rapid transits, 32 roads and
bridges, and four seaports) that
will help bring down the costs of
production
‣ Promote FDI. The government is
also looking to immediate
approval of the 11th Regular
Foreign Investment Negative List,
or FINL to reduce foreign
investment restrictions
A dramatic drop in exports due to weaker global
economy and the vulnerability of the agriculture
sector to El Niño and typhoons are seen to
impact Philippine economy
Recovered as
the country is
transitioning
to a new
economic
policy
framework
Philippine’s economy will continue to be driven by
manufacturing, trade, and construction under the
implementation of the Build, Build, Build program to
improve the country’s infrastructure

9. VIETNAM: THE RISING STAR
Vietnam's economic growth momentum remains robust due to its strong economic
fundamentals and supporting policies to ensure long-term prospects for the economy
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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
6.00
6.70
6.20
6.80
7.10
6.50 6.50 6.50 6.50 6.50 6.50
Forecasted (conservative outlook)
Vietnam GDP Growth Rate
Unit: % y-o-y
Source: International Monetary Fund, World Economic Outlook Database, April 2019
Vietnam Economic :
Key Growth Drivers
Stimulus to drive the Vietnam
economy are as follow:
‣ Global demand for
smartphone - spare part and
computer electronics are the
key driver of Vietnam's stellar
economic performance
‣ Vietnam has established
relations with many economic
strategic partners, the country
has recently concluded a FTA with
the EU in early 2018, which
eliminates nearly all tariffs
‣ Foreign-operated factories
make goods mainly for export
from South Korea, Singapore,
Japan and Taiwan will continue to
drive economic growth. Vietnam is
one of the top recipients of FDI in
the region.
Vietnam economy continues to grow robustly as
driven by vigorous manufacturing and export
expansion, rising domestic consumption, and
strong investment fuel by Foreign Direct
Investment (FDI up by 9.2% from 2017 —
January to August) and domestic enterprises
Vietnam’s GDP is expected to continue to robust and its
economy could be bigger than Singapore’s by 2029,
considering the domestic fundamentals and the dynamics
in the external environment. FDI will continue to play a
significant role to the economy

10. CAMBODIA: ROBUST ECONOMY
Cambodia, a top garment-making hub, has been one of the fastest-growing
economy
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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
7.10 7.00 6.90 7.00
7.30
6.83 6.73 6.60
6.42 6.22 6.04
Forecasted (conservative outlook)
Cambodia GDP Growth Rate
Unit: % y-o-y
Source: International Monetary Fund, World Economic Outlook Database, April 2019
Cambodia Economic :
Key Growth Drivers
Stimulus to drive the Cambodia
economy are as follow:
‣ China-proposed Belt and Road
Initiative as a key development
strategy for the country's trade and
investment expansion
‣ Cambodia needs to diversify and
upgrade its economy. Beyond
traditional industries like garment
manufacturing and footwear, the
government has put in place policies
and economic reforms to attract more
foreign direct investment (FDI) in the
manufacturing sector, especially in its
Special Economic Zones
‣ Robust construction and tourism
activity. The government has
achieved a tremendous result by
acquiring more than 2 million inbound
Chinese visitors and investment from
China in real estate sectors especially
in property development, hotels and
casinos
Cambodia economy has been driven
by a recovery in textile exports,
tourism and agricultural sectors
Looking further ahead, Cambodia’s economic growth
continues to robust at a slower pace due to deceleration
of global demand and the risk to lose access to the EBA
scheme, which currently provides the Kingdom duty free
and quota free access to the EU market.

11. LAO P.D.R.: BATTERY OF ASIA
Lao PDR’s development has been significantly shaped by the power sector. Electricity has
become one of the top export earnings
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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
7.60
7.30
7.00
6.90
6.50
6.72
6.82
6.78 6.78 6.75 6.76
Forecasted (conservative outlook)
LAO P.D.R. GDP Growth Rate
Unit: % y-o-y
Source: International Monetary Fund, World Economic Outlook Database, April 2019
Lao P.D.R. Economic :
Key Growth Drivers
Stimulus to drive the Lao
economy are as follow:
‣ Chinese Investment: China is
the largest foreign investor, the
second largest trade partner, and
the largest aid provider of Laos,
and Laos is the third largest
destination of China's investment
in ASEAN countries. Key
investment projects include
China-Laos Railway, Nam Ou
River Hydropower Station,
Saysettha Development Zone and
Mohan-Boten Economic Zone
‣ Battery of Asia: According to
Laos’s national strategy to
become a Battery of Asia, the
government plans to build more
than 90 hydropower plants by
2020 and export most of the
generated electricity
Some hydropower projects now under construction will
come online in 2019, notably the 1300 MW Xayaboury
dam, industry sector will reverse its declining trend
Opportunities in the medium-term will open up from
greater regional integration in agriculture, tourism, trade
and manufacturing, if supported by an improved business
environment, these sectors have the potential to create
more jobs and contribute to poverty reduction.
Expansion in power
generation, manufacturing
and agriculture are weighed
down by flat mining,
moderating construction and
a decline in tourist arrivals

12. MYANMAR: STRUCTURAL REFORM
Myanmar’s economy is amid structural reform
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2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
8.00
7.00
5.90
6.80
6.20 6.45 6.59 6.73 6.87 6.93 6.96
Forecasted (conservative outlook)
Myanmar GDP Growth Rate
Unit: % y-o-y
Source: International Monetary Fund, World Economic Outlook Database, April 2019
Myanmar Economic :
Key Growth Drivers
Stimulus to drive the Myanmar
economy are as follow:
‣ Myanmar will target broad-based
economic development, fueled
primarily by the private sector
with the state playing a facilitating
and support role that makes efficient
and sustainable use of the country’s
resources
‣ Myanmar has continued to
reform since April 2016,
announcing a number of strategic
planning initiatives such as the
Myanmar Sustainable Development
Plan 2018–2030; National Education
Strategic Plan 2016–2021; Myanmar
National Health Plan 2017–2021;
and the Myanmar National Social
Protection Strategic Plan – NSPSP
(2014).
Myanmar economy slowed down
due to the country’s fiscal and
current account deficits due to
lagging exports compared to
imports, as well as the
depreciation of the kyat
Public and private
investments in priority
infrastructure services such
as power and transportation
are picked up
Myanmar's economy is projected to stay on a steady
growth path, supported by economic reforms, strong
global growth, and higher foreign direct investment flows

13. © CANVASSCO 2019
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