The Asia Matters Report by Graham D Brown

The Asia Matters Report by Graham D Brown
A S I A M A T T E R S #asiamatters ASIAMATTERSINSTITUTE.ORG
#asiamatters WHY DOES ASIA MATTER? “Asia is a $27 Trillion economy, 50% bigger than the US and the EU. By 2030, 2/3rds of the world’s Middle Classes will be living in Asia, a combined value of $36 Trillion, or twice the size of the US economy today.” Graham Brown ASIAMATTERSINSTITUTE.ORG
A S I A M A T T E R S WWW.ASIAMATTERSINSTITUTE.ORG #asiamatters ASIAMATTERSINSTITUTE.ORG written by Graham D Brown connecting the World to the Asian Centur y
#asiamatters ASIAMATTERSINSTITUTE.ORG Demographic Advantage Wealth Generation Innovation Advantage Global Hegemony STEP 01 STEP 02 STEP 03 STEP 04 “Markets of billions” enable Asia to produce cheaper and faster Employment and profit create burgeoning Middle Class Entrepreneurialism, Big Data and consumerism give Asia significant innovative advantage Asia becomes the default option dominating culture and media THE EVOLUTION OF THE ASIAN CENTURY IN 4 STEPS We are here ASIAMATTERSINSTITUTE.ORG
#asiamatters ASIAMATTERSINSTITUTE.ORG Demographic Advantage Wealth Generation Innovation Advantage Global Hegemony STEP 01 STEP 02 STEP 03 STEP 04 “Markets of billions” enable Asia to produce cheaper and faster Employment and profit create burgeoning Middle Class Entrepreneurialism, Big Data and consumerism give Asia significant innovative advantage Asia becomes the default option dominating culture and media THE EVOLUTION OF THE ASIAN CENTURY IN 4 STEPS ASIAMATTERSINSTITUTE.ORG
A S I A M A T T E R S because… 1) ASIA IS BIGGER 2) ASIA IS YOUNGER THAN THE WEST 3) ASIA IS MORE OPEN TO GLOBALIZATION, MORE ENTREPRENEURIAL AND MORE OPEN FOR BUSINESS #asiamatters ASIAMATTERSINSTITUTE.ORG
A S I A M A T T E R S because… MARKETS OF BILLIONS #asiamatters ASIAMATTERSINSTITUTE.ORG
There are more people living inside that red circle than outside it #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Asia is a $27 trillion economy, 50% bigger than the EU and the US #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
By 2020, China will become the world’s biggest economy #asiamatters ASIAMATTERSINSTITUTE.ORG 0 12500 25000 37500 50000 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 China USA SOURCE: ASIA TECH RESEARCH BASED ON OECD DATA 2018 $13 trillion differenceThe Tipping Point ASIAMATTERSINSTITUTE.ORG
Asia leads World GDP growth in 2018 (top 4 regions all in Asia) #asiamatters ASIAMATTERSINSTITUTE.ORG South Asia Asia Pacific Southeast Asia East Asia Caribbean North Africa Central America Africa Aus NZ Middle East East Europe Europe North America West Hemisphere West Europe South America 1.6 % 1.8 % 2.2 % 2.2 % 2 % 2.4 % 2.8 % 2.9 % 3.7 % 3.9 % 4.1 % 4.4 % 5.1 % 5.1 % 5.4 % 7.1 % SOURCE: INTERNATIONAL MONETARY FUND 2018 all Asia the “West” ASIAMATTERSINSTITUTE.ORG
Asia is home to the world’s fastest growing economy - Vietnam #asiamatters ASIAMATTERSINSTITUTE.ORG Economy will grow 4.5x in the next 30 years. Growth touted as “China 11 years ago”. Most optimistic country; people most open to globalisation as a force for good. ASIAMATTERSINSTITUTE.ORG
By 2050, 4 of the world’s 5 biggest economies will be inside that red circle #asiamatters ASIAMATTERSINSTITUTE.ORG Alongside the US… China, Japan, India, Indonesia will occupy the “Big 5” in 2050 ASIAMATTERSINSTITUTE.ORG
A S I A M A T T E R S because… ASIA’S DEMOGRAPHIC DIVIDEND #asiamatters ASIAMATTERSINSTITUTE.ORG
1.4 Billion people living in Asia are under 25 years old #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Emerging markets in Asia significantly younger #asiamatters ASIAMATTERSINSTITUTE.ORG Japan Germany Canada Australia USA China Thailand Vietnam Malaysia India Myanmar Philippines 23.5 24.3 27 27.7 29.2 36.2 36.7 37.6 38.3 41.7 46.1 46.1 SOURCE: CIA FACTBOOK 2017 Median Age (yrs) ASIAMATTERSINSTITUTE.ORG
Chinese and Indians reach their earning potential 20 years before the US #asiamatters ASIAMATTERSINSTITUTE.ORG 0 10 20 30 40 50 60 70 80 90 100 Age 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+ China India USA SOURCE:ASIA TECH RESEARCH BASED ON UN DATA, EUROMONITOR, MORGAN STANLEY IndextoHighestIncomeAgeCategory  (Highest=100) Youth in China and India are the highest earners. In the US, 50-60 yr olds earn most. US peaks 20 years later ASIAMATTERSINSTITUTE.ORG
Asia is nurturing a new generation of entrepreneurial youth #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
More self made female billionaires in Asia than Rest of World #asiamatters ASIAMATTERSINSTITUTE.ORG %ofFemaleBillionairesSelf-Made  (vsinherited) 0 20 40 60 Asia USA Europe The last few years have been remarkable for Chinese businesswomen, so much so that China is now the de facto capital of the self-made female billionaires’ club. - Forbes 27 Nov 2017 SOURCE:ASIA MATTERS INSTITUTE BASED ON UBS DATA 2016 ASIAMATTERSINSTITUTE.ORG
85% of Filipinos surveyed agreed that “Globalization is a force for good” #asiamatters ASIAMATTERSINSTITUTE.ORG
Asia leads the West in openness to immigration #asiamatters ASIAMATTERSINSTITUTE.ORG India Vietnam Philippines Australia USA UK Singapore Hong Kong Thailand France 14% 21% 23% 30% 32% 37% 42% 45% 48% 52% SOURCE:YOUGOV 2016 There is a direct correlation between openness of the population and their mean age ASIAMATTERSINSTITUTE.ORG
Singapore and Hong Kong lead the world in Economic Freedom #asiamatters ASIAMATTERSINSTITUTE.ORG Hong Kong Singapore New Zealand Switzerland Taiwan UK USA South Korea Malaysia Thailand Philippines 65.6% 66.2% 73.8% 74.3% 75.1% 76.4% 76.5% 81.5% 83.7% 88.6% 89.8% SOURCE:THE HERITAGE FOUNDATION & WALL STREET JOURNAL 2017 ASIAMATTERSINSTITUTE.ORG
A S I A M A T T E R S because… 1) ASIA’S MEGACITIES ARE UNIQUE CONCENTRATIONS OF WEALTH AND TALENT 2) ASIA’S MIDDLE CLASSES ARE SIGNIFICANTLY LARGER THAN THE WEST 3) ASIA-TO-ASIA TRADE (A2A) IS THE BIGGEST GROWTH STORY OF THE 21ST CENTURY #asiamatters ASIAMATTERSINSTITUTE.ORG
A S I A M A T T E R S because… MEGACITIES #asiamatters ASIAMATTERSINSTITUTE.ORG
Kuala LumpurHong Kong Nowhere else will you see skylines transformed with such scale and speed #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Shanghai: (Left) 34 years ago vs 4 years ago (Right) #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Of the world’s 10 Tallest Buildings, 7 are in Asia, 0 are in Europe or America #asiamatters ASIAMATTERSINSTITUTE.ORG ATP ATP ATP ATP world’s top 10 tallest in US ASIAMATTERSINSTITUTE.ORG
With a population bigger than California Tokyo is the world’s biggest city #asiamatters ASIAMATTERSINSTITUTE.ORG 39.6 MILLION PEOPLE
But Tokyo will soon be replaced by a new generation of Megacity… #asiamatters ASIAMATTERSINSTITUTE.ORG
$44,000 $69,000 $31,000 $10,000 $20,000 $7,000 $17,000 $14,400 $8,000 $19,000 $12,000 $57,500 $39,900 $38,900 USA UK JP Comparison of GDP per capita in Greater Bay Cities with leading economies SOURCE:ASIA MATTERS INSTITUTE BASED ON WORLD BANK FIGURES 2016 A Vision to Connect 11 High Growth Megacities China’s Greater Bay Megacity will be worth $2 Trillion (50% bigger than San Francisco) #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
The Greater Bay is one of many 10m+ Megacities in Asia #asiamatters ASIAMATTERSINSTITUTE.ORG Currently 80% of all the world’s Megacities (>10m) are in Asia ASIAMATTERSINSTITUTE.ORG
China’s proposed Jing-Jin-Ji Megacity will be 7x bigger than New York City #asiamatters ASIAMATTERSINSTITUTE.ORG Built around China’s capital Beijing, Jingjin will comprise 110 million people ASIAMATTERSINSTITUTE.ORG
A S I A M A T T E R S because… THE MIDDLE CLASSES #asiamatters ASIAMATTERSINSTITUTE.ORG
Asia is changing… becoming wealthier, more innovative and hungry for progress #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
What happens when they start shifting from factory workers to consumers? #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
By doubling wages in 1914, Henry Ford turned a generation of factory workers into consumers #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
And we are seeing similar patterns of wealth creation in Asia #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
By 2030, Asia’s Middle Class will be worth $36 trillion (2x the size of the US economy today) #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
The Asian Middle Classes will grow 500% in the next 20 years #asiamatters ASIAMATTERSINSTITUTE.ORG SOURCE: BROOKINGS INSTITUTION © STATISTA 2016 1000 2000 3000 4000 Europe Asia - Pacific North America Central & South America Middle East & South Africa Sub-Saharan Africa 150200250300 3,200 770 100150200 300 1,800 780 50100150 300 700750 2009 2020* 2030* No other region demonstrates as high a growth in Middle Class numbers over next 20 years as AsiaASIAMATTERSINSTITUTE.ORG
By 2030, 2/3rds of the world’s middle classes will live in Asia #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
The Asian Middle Class is driving the success of Asian brands like Alibaba and we’re only just getting started #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Alibaba sold $25 billion in just one day. At peak, they logged 60,000 transactions a second #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
A S I A M A T T E R S because… A2A #asiamatters ASIAMATTERSINSTITUTE.ORG
Asia is now the world’s largest trading bloc #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Asia now does more trade with itself than it does with the rest of the world #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Driven by the new Middle Class, A2A (Asia to Asia) trade will become the biggest growth story of 21C #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Asian Brands like Alibaba are at the forefront of this A2A expansion #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
A key driver in the A2A market is connectivity #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Within a 5 hour flight you can access 3.5 billion people, or half the world’s population #asiamatters ASIAMATTERSINSTITUTE.ORG approx 5 hr flight range The equivalent test from SFO airport is 550 million ASIAMATTERSINSTITUTE.ORG
China’s One Belt One Road project will see an estimated $5,000 Bn spend on infrastructure #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
#asiamatters ASIAMATTERSINSTITUTE.ORG "One Belt One Road is a very ambitious covering about 65 percent of the world’s population, about one-third of the world’s GDP, and about a quarter of all the goods and services the world moves." Kevin Sneader, Chairman McKinsey Asia #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
World’s longest bridge between Hong Kong and Macau opens 2018 #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Why build walls when you can build bridges? #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
A S I A M A T T E R S because… 1) ASIA HAS MODELLED THE SUCCESS OF THE WEST 2) ASIA HAS NOW CAUGHT UP AND IS PASSING THE WEST IN TERMS OF BOTH STARTUPS AND INNOVATION #asiamatters ASIAMATTERSINSTITUTE.ORG
A S I A M A T T E R S because… ASIA LEADS GLOBAL INNOVATION #asiamatters ASIAMATTERSINSTITUTE.ORG
Asia still has this, but there is now much more to Asia #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
It also has this… Some of the most advanced automation in the world #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Top 3 countries ranking AI as important are in Asia #asiamatters ASIAMATTERSINSTITUTE.ORG (Source Deloitte) India, China and Japan placed highest importance on AI & robotics ASIAMATTERSINSTITUTE.ORG
Chinese R&D Spending Outstrips Rest of World by 2020 #asiamatters ASIAMATTERSINSTITUTE.ORG ResearchSpending$Billion 0 100 200 300 400 500 600 2000 2005 2010 2015 2020 China San Francisco Bay EU USA SOURCE: GERD, OECD 2016 “If the current rates of investment and growth are any indicator, China is likely to surpass Europe in total research spending by the end of the decade and the US by the early 2020s.” - Dr Dan Steinbock, South China Morning Post 10 Feb 2014 ASIAMATTERSINSTITUTE.ORG
Compare how the two worlds approach one of the greatest challenges of our times… #asiamatters ASIAMATTERSINSTITUTE.ORG US China ASIAMATTERSINSTITUTE.ORG
Asia is more open to autonomous vehicles than the rest of the world #asiamatters ASIAMATTERSINSTITUTE.ORG India China Brazil US UK 30% 40% 68% 78% 84% Can you see yourself owning an Autonomous Car? % of respondents who saidYES SOURCE:ASIA MATTERS INSTITUTE BASED ON FORD RESEARCH DATA 2016 Markets without incumbent vehicle industries and lowest ownership may “leapfrog” leaders ASIAMATTERSINSTITUTE.ORG
Asia filed more patents than any other region in 2017 #asiamatters ASIAMATTERSINSTITUTE.ORG
Total VR Revenue (US$ Billions) in world’s 3 largest markets #asiamatters ASIAMATTERSINSTITUTE.ORG SOURCE: GLOBAL ENTERTAINMENT AND MEDIA OUTLOOK 2017-2021, PWC 0 3 6 9 12 2016 2017 2018 2019 2020 2021 U.S. China Japan China+ Japan >US US currently largestVR market in the world but Japan and China will overtake by 2021 ASIAMATTERSINSTITUTE.ORG
Asia is more than half of the mobile world #asiamatters ASIAMATTERSINSTITUTE.ORG 13% 21% 3% 3% 3% 56% SOURCE:ASIA MATTERS INSTITUTE BASED ON CISCO DATA 2016 2015 13% 13% 7% 7% 8% 52% APAC CEE LATAM MENA North America West Europe 2020 4G MOBILE CONNECTIONS ASIAMATTERSINSTITUTE.ORG
Asia leads Mobile Social Media with the heaviest users in Southeast Asia #asiamatters ASIAMATTERSINSTITUTE.ORG SouthEast Asia China USA UK Japan 1 hrs 1.8 hrs 2 hrs 3 hrs 3.6 hrs SOURCE: GOOGLE TEMASEK DATA 2017 Average hours mobile social media per day Many markets went straight to mobile e.g.Thailand, and leapfrogged fixed line internet ASIAMATTERSINSTITUTE.ORG
Asia is leading the world in producing the first cashless societies #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
>50% of the world’s e-commerce takes place in China #asiamatters ASIAMATTERSINSTITUTE.ORG 0 10 20 30 40 50 60 0 500 1000 1500 2000 2500 3000 2016 2017 2018 2019 2020 2021 China ecommerce sales % of worldwide SOURCE:ASIA MATTERS INSTITUTE BASED ON EMARKETER DATA 2017 ASIAMATTERSINSTITUTE.ORG
A S I A M A T T E R S because… STARTUPS #asiamatters ASIAMATTERSINSTITUTE.ORG
Asia is producing a new generation of billion dollar startups ready for prime time on the global stage #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
#asiamatters ASIAMATTERSINSTITUTE.ORG “I don’t see why in the future China wouldn’t have 15-20 Silicon Valleys” - Jonathan Woetzel, Director McKinsey Global ASIAMATTERSINSTITUTE.ORG
China continues to produce elusive startup Unicorns (>$1 billion valuation) #asiamatters ASIAMATTERSINSTITUTE.ORG Where the rest of the world is slowing down, China continues to grow domestic Unicorns ASIAMATTERSINSTITUTE.ORG
Zhuhai, the Top Startup City in China has 10x More Startups per Head than same in US #asiamatters ASIAMATTERSINSTITUTE.ORG Free trade zone Zhuhai next to Macau will soon be connected to Hong Kong via a bridge ASIAMATTERSINSTITUTE.ORG
Asia has an increasing number of World Class Startup Ecosystems #asiamatters ASIAMATTERSINSTITUTE.ORG Data based on ranking top startup ecosystems in Asia 2018 ASIAMATTERSINSTITUTE.ORG
Asia is Catching Up Fast. 2017 Startup Funding was only 7% behind the US. #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Asian Startups are now going global (map shows Mobike expansion) #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
A S I A M A T T E R S because… THIS IS THE ASIAN CENTURY #asiamatters ASIAMATTERSINSTITUTE.ORG
History teaches us that change is a constant… #asiamatters ASIAMATTERSINSTITUTE.ORG We already had an “Asian Century” more than 3 centuries ago ASIAMATTERSINSTITUTE.ORG
History follows consistent cycles of approx 100 years #asiamatters ASIAMATTERSINSTITUTE.ORG The British Century The American Century The Asian Century 1815 1918 2020 approx 100 yrs approx 100 yrs British defeat French at Waterloo Europe bankrupted by WWI. US becomes richest nation China becomes biggest economy, Asia the largest trading bloc ASIAMATTERSINSTITUTE.ORG
Will The West and its partners be fearful of or embrace Chinese “soft power”? #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Will America’s future lie in embracing The Asian Century? #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Now Xiaomi chose HK not Wall Street, will Asia produce its own NASDAQ? #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Will the world’s first Trillion Dollar company come from the San Francisco Bay or the Chinese Greater Bay? #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Will the next generation of Entrepreneurs seek out Shenzhen and Singapore rather than Silicon Valley? #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Will the The Asian Century be an era of “Copycat America”? #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Will the next generation of artists see Asia not the US as the market they need to crack? #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
How will Asian money shape the future of global entertainment? #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Will China go from “stealing our jobs” to being America’s biggest employer? #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
This is dawn of The Asian Century… #asiamatters ASIAMATTERSINSTITUTE.ORG ASIAMATTERSINSTITUTE.ORG
Get more insights @ Asia Tech Podcast www.ATP.show #asiamatters ASIAMATTERSINSTITUTE.ORG
A S I A M A T T E R S WWW.ASIAMATTERSINSTITUTE.ORG #asiamatters ASIAMATTERSINSTITUTE.ORG The Asia Matters Institute connects: - media - governments - companies and - event organisers with leading exper ts in Asia. connecting the World to the Asian Centur y
A S I A M A T T E R S WWW.ASIAMATTERSINSTITUTE.ORG #asiamatters ASIAMATTERSINSTITUTE.ORG If you are looking for : - an exper t on Asia to speak at your conference - to add comment to your article / podcast or - to advise on your Asian strategy Contact the Asia Matters Institute to find out how we can connect you. connecting the World to the Asian Centur y
A S I A M A T T E R S #asiamatters ASIAMATTERSINSTITUTE.ORG written by Graham D Brown WWW.LINKEDIN.COM/IN/GRAHAMDBROWN connect on Linkedin here:

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