Why Southeast Asia Matters with Gullnaz Baig
Analyse Asia with Bernard Leong
Deep Dive
What are Vietnam's comparative advantages according to Gullnaz Baig?
Vietnam's comparative advantages include its proximity to China, a strong STEM workforce, high female labor participation, and the ability to navigate geopolitical tensions between the U.S. and China delicately. Additionally, Vietnam benefits from rapid infrastructure development and a diverse pool of foreign direct investment (FDI) inflows, including significant investments from Japan and South Korea.
Why is Southeast Asia considered a resilient region economically?
Southeast Asia has demonstrated economic resilience through stable governance, improving skill sets, and the ability to attract FDI, particularly in manufacturing. The region has also benefited from its strategic position in balancing geopolitical tensions between major powers like the U.S. and China. Despite challenges like COVID-19, countries like Vietnam have shown strong recovery, while overall wealth and living standards have risen across the region.
What are the structural challenges faced by Southeast Asian countries in achieving higher growth?
Key structural challenges include demographic issues like low fertility rates in Singapore and Thailand, rising costs of construction and energy, and resource constraints. Additionally, some countries face barriers to investment due to protectionist policies, such as Indonesia's downstreaming measures. Despite these challenges, trust in governance, infrastructure, and rule of law continues to attract investment in the region.
How does the Philippines leverage its comparative advantages in the services sector?
The Philippines leverages its large English-speaking population, particularly in American English, to excel in business process outsourcing and customer service. This has made the country a hub for services catering to U.S.-based companies, allowing it to move up the value-added layer of services and maintain a competitive edge in the global market.
What is the significance of China's influence in Southeast Asia according to Gullnaz Baig?
China's influence in Southeast Asia is significant due to its role as a major investor in the region, contributing to infrastructure development and domestic capital formation. Southeast Asia views China as a neighbor and a reality, balancing its relationship with China alongside its ties with the West. The region benefits from China's overcapacity in areas like green technology, using it to diversify energy sources and reduce dependency on traditional suppliers.
What does Gullnaz Baig envision as 'great' for Southeast Asia?
Gullnaz Baig envisions a Southeast Asia where more people enjoy wealth, have access to quality education and healthcare, and no child goes to bed hungry. She believes this is achievable through leveraging technology, sustainable growth, and regional collaboration, emphasizing the region's potential to overcome challenges like climate change and economic instability.
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