THIS WEEK’S TOPIC: To what extent does the political and social unrest in the region pose risks to business? How does it impact the business imperative to go regional?
In an already fragile business environment due to the ongoing Covid-19 pandemic, business leaders would need to see higher levels of political and social stability before taking any bold moves, especially in countries such as Thailand, Malaysia and Indonesia.
Some of the major concerns in the region that are sparking unrest include dissatisfaction with government, rising food prices and mounting job losses. As these thorny issues are unlikely to go away anytime soon, businesses must pivot and re-invent themselves quickly to maintain a firm footing before even thinking about scaling or expanding regionally.
Last month, the Asian Development Bank revised its forecast for South-east Asia downwards, expecting the region to now record a negative 3.8 per cent gross domestic product growth in 2020 – the first economic contraction in more than 60 years. This gloomy news, coupled with the fact that governments do not have an unlimited war chest to aid businesses, serve as a stark reminder that 2021 could be an even bumpier ride compared to 2020.
Mario Singh
Chief Executive Officer
Fullerton Markets
