Over the next several weeks, we will be outlining several “Facts” for the “newbie investor/entrepreneur” which you should be aware of when deciding to invest in Asia.

What are the advanced, newly industrialized and developing economies in Asia/Pacific and their future challenges?

1. Countries that can be classified today as “developed/advanced economies”:

Australia, HongKong, Japan, Singapore, South Korea, Taiwan, New Zealand.

2. Countries that can be classified as “newly industrialized countries”:

China, India, Malaysia, Philippines, Thailand.

3. Countries that can be classified as “developing economies”:

Cambodia, Sri Lanka, Indonesia, Laos, Vietnam.

One of the key drivers to the Asian growth (mostly led by China and India) are the capital inflows which have increased to historic highs (at the end of 2009 financial crisis) as well as their “home-grown” export-led economies.

Now, while Asia (as a whole) seems promised to a bright future, John Lipsky from the IMF outlines major challenges that still need to be overcome:

1. A very large number of Asia’s citizens remain poor or vulnerable (i.e: rural China/India…).

2. Most developing countries still need to develop a foundation of macroeconomic stability (policies and frameworks)

3. Structural reforms should take place in order to boost trade in the poorest developing economies.

4. Large investments in infrastructure are needed in rural Asia to reduce poverty and boost the region’s economies.

5. Social safety nets are almost nonexistent in many of Asia’s poorest regions. Protecting the poor and vulnerable by raising access to basic public services (such as health care, access to clean water) is in urgent need.

6. Finally, one of the biggest long term threats to SEAsia is that it is one of the world’s most vulnerable regions to climate change (i.e: coastal lines in SE Asia, agriculture…).

For your “continued interest”:

The richest countries of Asia classified by Nominal GDP (Purchasing Power Parity), excluding Russia, listed below:

1. China - 8.8 trillion US$ (6’100 US$ per capita). Has grown 70 times since 1978 (economic liberalization).

2. Japan - 5 trillion US dollars (32’600 US$ per capita). Has 11 top companies out of Global top 100. Though currently has a debt valued at 200% of GDP.

3. India - 3.548 trillion US dollars (per capita) - Fastest growing economy: 7 % per year.

4. South Korea – 1.343 trillion US$ (27’700 US$ per capita) – Technology giant in the world.

5. Indonesia – 969 billion US$ - (4’000 US$ per capita)

6. Taiwan – 693 billion US$ - Known as one of the “Four Asian Tiger”.

Data from IMF, 2010.