Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
British Pound GBP Trend Forecast 2020 - 16th Feb 20
SAMSUNG AI Mega-trend Tech Stocks Investing 2020 - 16th Feb 20
Ignore the Polls, the Markets Have Already Told You Who Wins in 2020 - 16th Feb 20
UK Coronavirus COVID-19 Pandemic WARNING! Sheffield, Manchester, Birmingham Outbreaks Probable - 16th Feb 20
iShares Nasdaq Biotechnology ETF IBB AI Mega-trend Tech Stocks Investing 2020 - 15th Feb 20
Gold Stocks Still Stalled - 15th Feb 20
Is The Technology Stocks Sector Setting Up For A Crash? - 15th Feb 20
UK Calm Before Corona Virus Storm - Infections Forecast into End March 2020 - 15th Feb 20
The Growing Weaponization of Space - 14th Feb 20
Will the 2020s Be Good or Bad for the Gold Market? - 14th Feb 20
Predictive Modeling Suggests Gold Price Will Break Above $1650 Within 15~30 Days - 14th Feb 20
UK Coronavirus COVID-19 Infections and Deaths Trend Forecast 2020 - 14th Feb 20
Coronavirus, Powell and Gold - 14th Feb 20
How the Corona Virus is Affecting Global Stock Markets - 14th Feb 20
British Pound GBP Trend and Elliott Wave Analysis - 13th Feb 20
Owning and Driving a Land Rover Discovery Sport in 2020 - 2 YEAR Review - 13th Feb 20
Shipping Rates Plunge, Commodities and Stocks May Follow - 13th Feb 20
Powell says Fed will aggressively use QE to fight next recession - 13th Feb 20
PALLADIUM - THIS Is What a Run on the Bank for Precious Metals Looks Like… - 13th Feb 20
Bitcoin: "Is it too late to get in?" Get Answers Now - 13th Feb 20
China Coronavirus Infections Soar by 1/3rd to 60,000, Deaths Jump to 1,367 - 13th Feb 20
Crude Oil Price Action – Like a Coiled Spring Already? - 13th Feb 20
China Under Reporting Coronavirus COVID-19 Infections, Africa and South America Hidden Outbreaks - 12th Feb 20
Will USD X Decline About to Trigger Precious Metals Rally - 12th Feb 20
Copper Market is a Coiled Spring - 12th Feb 20
Dow Theory Stock Market Warning from the Utilities Index - 12th Feb 20
How to Get Virgin Media Engineers to FIX Hub 3.0 Problems and NOT BS Customers - 12th Feb 20
China Under Reporting Coronavirus COVID-19 Infections by 66% Due to Capacity Constraints - 12th Feb 20
Is Coronavirus the Black Swan That Takes Gold To-Da-Moon? - 12th Feb 20
Stock Market 2020 – A Close Look At What To Expect - 12th Feb 20
IBM AI Mega-trend Tech Stocks Investing 2020 - 11th Feb 20
The US Dollar’s Subtle Message for Gold - 11th Feb 20
What All To Do Before Opening A Bank Account For Your Business - 11th Feb 20
How and When to Enter Day Trades & Swing Trade For Maximum Gains - 11th Feb 20
The Great Stock Market Dichotomy - 11th Feb 20
Stock Market Sector Rotation Should Peak Within 60+ Days – Part II - 11th Feb 20
CoronaVirus Pandemic Stocks Bear Market Risk 2020? - Video - 11th Feb 20
Facebook (FB) AI Mega-trend Tech Stocks Investing 2020 - 10th Feb 20
The US Constitution IS the Crisis - 10th Feb 20
Stock Market Correction Continues - 10th Feb 20
Useful Tips for Becoming a Better Man - 10th Feb 20
Will CoronaVirus Pandemic Trigger a Stocks Bear Market 2020? Part1 - 9th Feb 20
Could Silver Break-out like it did in 2011? - 9th Feb 20
The End of the Global Economy - 9th Feb 20
Fed to Stimulate in Any Crisis; Don’t Let Short-Term Events Bother You - 9th Feb 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Singapore and Thailand, Two Asian Economies Flying Under Investor Radar

Economics / Asian Economies Sep 08, 2010 - 05:52 AM GMT

By: Money_Morning

Economics

Best Financial Markets Analysis ArticleJon D. Markman writes: You know about China, India, and maybe even Korea, but there are two other Asian economies making waves in the South China Sea.

I'm talking about Singapore and Thailand.


While the U.S. economy would be really lucky to poke along at a 3% annualized rate this year and next, the fast-growing countries on the other side of the globe are ripping higher.

Regional analysts surveyed by Bloomberg News survey said they see Singapore expanding at a record pace this year of 14.9% due to improving demand for the city-state's exports. That's up from an estimate of 9% published three months ago. Singapore's economy relies on trade, finance and tourism. Its central bank said the surge would be led by a 29% expansion of manufacturing.

The two new casino complexes that were opened earlier in the year also have given the economy a boost. They were built at a cost of $10 billion in an effort to expand the Singapore's stature as a destination rather than just a waypoint for global travelers.

The M Hotel in Singapore's business district once struggled to fill its rooms on weekends as visiting executives tended to leave by Friday, according to The China Post. Now it enjoys 90%-plus occupancy rate.

"I'm looking out of my window at the new skyline. What has developed over the last five years has been amazing," Hanspeter Brummer, chief executive for Asia at Swiss private bank BSI, told the newspaper from his office, which overlooks the new Marina Bay financial district.

The new business district was built on reclaimed land around the mouth of the Singapore River, and comprises not just office skyscrapers but also shops, condos, theaters and the Marina Bay Sands, which was built by Las Vegas Sands Corp. (NYSE: LVS). The district sports the world's biggest Ferris wheel, restaurants that feature celebrity chefs, and the world's first Formula One circuit where races can run at night.

Singapore felt it had to develop into a regional hub because it was losing its low-wage factory jobs to China, Malaysia and Vietnam. But it also went upscale with manufacturing, and a retooled factory base now accounts for a quarter of the economy.

The bottom line is that this is where some of the most exciting growth is occurring in the world. It's not an over-hyped sideshow - it's real, and I hope you are participating.

At least check out the iShares MSCI Singapore Index Fund (NYSE: EWS), if you haven't already.

The South Asian Steel Giant

Singapore obviously isn't the only South Asian economy worth a look.

Over the weekend I ran across a very interesting article in the British newspaper The Sunday Sun that said a mothballed blast furnace in the English seaside town of Redcar could be up and running by Christmas because it has been purchased by a Thai steel company that has big plans for its production.

The blast furnace, which had been the biggest employer in the city, went quiet in February and 1,600 workers lost their jobs. The Teesside Steelworks had been launched in 1917, and its steel was used to build bridges, warships and skyscrapers throughout the Commonwealth. The company was purchased by Dutch-British conglomerate Corus Group Ltd. in 1999, and then sold to India-based Tata Steel Ltd. in 2007.

Tata decided to close the plant as part of a global consolidation, but it was rescued when Sahaviriya Steel Industries PLC (SSI) of Bangkok bought it for $490 million (320 million pounds). A union leader told the Sunday Sun that SSI planned to make a long-term commitment to the plant, and would help train a new generation of workers to begin careers in the industry.

SSI - the largest steel producer in Thailand - is expected to take over the Redcar and South Bank coke ovens, power generation facilities, the Redcar blast furnace and the nearby Lackenby steel-making facilities, as well as a bulk terminal at the Redcar wharf.

"We've known Teesside Cast Products for some time and we're very satisfied with the quality of the product and have a high regard for the skilled workforce," said SSI President Win Viriyaprapaikit.

This kind of deal epitomizes the reality of the growth that is occurring in Thailand. It's not just a paper-trading, stock-market phenomenon, but real managers building real global businesses brick by brick. SSI makes up just about 1% of the holdings of iShares MSCI Thailand Index Fund (NYSE: THD), but it's emblematic of the country's potential as an industrial leader.

THD is still a good buy on dips.

Source : http://moneymorning.com/2010/09/08/asian-economies-2/

Money Morning/The Money Map Report

©2010 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules