PACIFIC BASIN ECONOMIC COUNCIL
MAIN PAGE | CLIPS | 1997 | ASIA NOT FINISHED

Asia not finished, observer says Wyng Chow, Asia-Pacific Reporter The Vancouver Sun November 1997 The region will emerge as even more of a strong player on the international stage than before. This is the time to invest there, says council secretary general. Asia will recover from the "flu" currently afflicting the region and rebound stronger than ever, a prominent Asia watcher said Friday. "The last thing you should say is 'Asia's finished', or that the Asian miracle was a mirage. That's short-sighted," said Robert Lees, secretary general of the Pacific Basin Economic Council. "I think it will turn around. Asia is going through a major correction that will make it much more solid in the future. "Asia will emerge as an even more of a strong player on the international stage than before. What a good time it is to (enter into a) joint venture or expand your business in Asia. This is the time to invest in the region." Meanwhile, China expert Victor Sun said in a separate interview that China is holding up well during the current economic turmoil in Asia, with projected economic growth this year of eight percent. "China is looking for a new (foreign) investment and in certain sectors, offering (tariff) exemptions," said sun, China affairs advisor to the U.K-based HSBC Holdings, parent company of the Hong Kong Bank of Canada. "I would urge Canadian businesses to look at China again. There will be lot of multinational companies are already established there." Sun said Canadian entrepreneurs should participate in China's huge infrastructure upgrading program, as well as explore opportunities in oil and gas, power generation, telecommunications, and high-tech products. Sun encouraged Canadians to enter into joint venture projects directly with Chinese partners, or to explore three-way partnerships involving other countries such as Hong Kong, Singapore, or Taiwan. "As a bank, we're bullish on China," said Sun, who holds a master of business administration from the University of Michigan. "We have financed more than 2,000 projects in China and most of them are doing well." The projects are in the sectors of manufacturing, property development, telecommunications, aircraft acquisition, shipping and trading, Sun said. Lees said in an interview that British Columbia would be in for lean times exporting to Asia in the next couple of years. In the meantime, BC should improve the province's own business climate to attract new investment. "You can't depend on unending exports to the Asia region." Lees recently completed what he called an "intelligent gathering" tour of southeast Asia on behalf of the PBEC, an international association of senior business executives representing more than 1,200 corporations in 20 Pacific Rim economies. Association member companies employ about 11 million people and account for more than $4.25 trillion U.S. worldwide sales. Lees said Asian currency devaluation translate into travel bargains galore for Westerners. For example, four-star hotel rooms in the popular Indonesian resort of Bali currently costs about $34 Cdn a night. "There are incredible bargains, but it won't last forever." He said Thailand is now aggressively seeking new foreign investment and offering incentives for Asian companies to relocate their head offices. Malaysia's efforts include slashing public spending by about 18 percent and streamlining its bureaucracy, Lees said, in summarizing findings from his travels. Singapore remains a well-managed economy, he said. However the country's major concern is maintaining stability in Indonesia to prevent Singapore from becoming the "Israel of southeast Asia," in case of an exodus of ethnic Chinese who are being blamed for soaring food prices in Indonesia. Hong Kong continues "to do alright" since last July's hand-over to China, as the country's monetary peg to the U.S. dollar is holding up, Lees said.