Investment
The APAC growth era: Spring is here to stay
BY ,  |  

Even though much has already been spoken about the coming Asia Pacific (APAC) growth era, the investment universe is still caught in a tug-of-war between the familiar comforts of growth in the West and the alien new growth in the East.

Possibly the only region where emerging and developed economies interface to good effect, not only will APAC be the main engine of growth in the coming few decades, it also offers diversification and downside protection for investors.

With the synchronised global growth offering ample opportunities across geographies, we believe the savvy investor would be well-advised not to overlook APAC. This may sound like a broken record but it is absolutely necessary to belabour the point.

The APAC region is no longer what it was twenty years ago - capital markets have significantly deepened, reliance on foreign capital inflows have largely been weaned off, and financial systems are now more resilient to shocks.

Notably, most of APAC is well placed to sustain expansionary policies over the next decade, as governments ramp up on infrastructure spending and social programs that will foster longer term inclusive growth, which all feed into the economy and ultimately demand for real estate.

Spring awakening

The 19th century was termed Britain's Imperial Century due to the rapid expansion of the British Empire and the 20th century the American Century due to the emergence of the US as the world's superpower.

The world has been anticipating that Asia would take over the reins of influence and power when the 21st century arrived. Indeed, the world already got a taste of the economic prowess of the region when Japan's economic miracle took place after the Second World War and further ahead, when the "Four Asian Tigers" of Hong Kong, Singapore, Taiwan and South Korea experienced their economic transformation.

But those expecting the Asian century to arrive with pomp and grandiose are likely to be disappointed.

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