About the Report

Over the next decade, Southeast Asia should outpace China in GDP growth and foreign direct investment.

Presented by Angsana Council, Bain & Company and DBS, this report deep dives into the economic outcomes of the top six economies in the region.
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Key Highlights from the Report

  • Southeast Asia will likely outgrow China over the next decade, despite global headwinds.
  • The world has changed in fundamental ways; regional governments need to adjust
    • China manufacturing and innovation is now ultra-competitive and has driven premature de-industrialization of many developing countries
    • Low-cost labor, subsidized land, and tax holidays are no longer the main drivers of FDI
    • Climate change raises investment needs and changes priorities
    • Deep technology innovation is concentrating in the US and China; their rivalry is accelerating the pace of change
  • Five “traditional” priorities stand out to raise Southeast Asia growth
    • Raise workforce skill levels/education (including foreign talent)
    • Increase physical and digital infrastructure spending
    • Attract more domestic and foreign investment
    • Raise competition in domestic markets
    • Strengthen government institutions
  • New growth strategies to accelerate growth that require policy intervention include
    • Investing in future growth sectors
    • Fostering tech-enabled disruptors (TEDs)
    • Expanding capital markets’ breadth and depth
    • Accelerating green transition
    • Committing to growth-friendly multilateral initiatives
  • Cooperation and better integration of the region can then only further augment this growth.
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