The Next Emerging Country in Asia

I always take Singapore, Hong Kong, and Dubai when looking for the next country to invest in. For example, if you told someone 50 years ago what Singapore would be they would of laugh at you. The same with Shenzhen. I know people that worked in Hong Kong that told me about the little fishing village that was famous for seeing bodies in the water in Mao ruled China. I know even more that have been in Shenzhen in the 80s for the south China seas oil boom telling me a little town with no expat or high rises now it’s home to many world-leading companies, and now a city to rival silicon valley and has a GDP bigger than the financial megacity neighbour Hong Kong.

The same could be said about Dubai that people believe money comes from oil. No doubt it was funded by the oil-rich country but, today only 5% of its GDP comes from oil.

Table 1 the list of companies listed in Shenzhen

So, the question comes in to play what made these countries do so well. If we look at them all, they all have one thing in common they have been open and free to economic growth exports, tax, and business-friendly.

These days looking to invest in places like Singapore is hard. Looking for a residency is now at a premium as it has the money it needs so can be selective to whom it excepts and unless you earning higher 6 figures at the very least. Forget, about investing in property and residency here.

So, I see emerging markets as better value, the real estate price can be 5 times less than Singapore or Hong Kong astronomical $15,000++ per SQM, and have a lot better opportunities for residency. As quite frankly they need investment in their country.

Taking this model into days principle, would it be possible to see what the next emerging market could be and why?

Malaysia

Anyone who is a reader of my blog or videos knows that I am a big fan of the country for many reasons.

This being right next to Singapore holds the same geographical advantages for the country and anyone who studied economics or geography knows that this is an important factor in a country GDP take a country like Brazil, who has horrible geography where its largest cities are blocked by the Amazon rainforest making importing and exporting, with in the country like moving across islands. But, Malaysia has good geography in the Asia Pacific region, being a potential shipping route for exports.

Furthermore, the country is becoming very open to investment and outsiders. The MH2 visa is becoming very popular and as of writing, one of the best value places to get a second residency at just $75,000 in MYR in a bank.

Also, look at a city like KL, where it has come from. I go round KLCC and find that the place looks like a glass jungle on top of this it devolvement has been outstanding and people outside don’t know how well it is doing is a shock to see how well the place looks.

On top of this overseas buyers can buy land. One, of the only places in Asia with Japan. And is one of the best places to open a company with solid regulation and a good offshore location like Labuan. Unlike, Thailand where it is hell to open a business and no one really knows the legal framework as its ever-changing, Malaysia has some solid foundation. Don’t get me wrong its no Singapore yet but it’s not bad.

But, it is not without its problems, anyone watching the news for the last few weeks like the most developing countries is with corruption this is the same in Malaysia. Although, would say unlike other places in the region it is actively trying to stamp this out.

On top of this, it has the challenge of breaking the middle-income gap. If you look at the GDP per capita, it is 11,000 (just over). What happens when this that companies can not outsource for cheap labor as it not cost-effective? Look at the GDP of Vietnam at 2500 (4 times less) so loses the competitive edge and needs to develop more into an innovation nation than a manufacturing one. I do see countries challenging with this transition, but don’t see this here as the way the economy is structured and less dependent on manufacturing for its GDP.

For more on the growth of the county look at some of the project cities it has, that would rival any major middle east oil-filled dream project. And would hope to see the high-speed train between KL and Singapore, take off again as believe it could be a key driver for both cities.

Cambodia

I first went to Cambodia and thought this place was hell. In fact, I am still not the biggest fan of the place now. But see the potential for one the largest growths in Asia, in this once war-torn country. Its GDP is outgrowing most other Asian and world countries. And, was speaking to a client yesterday who had been in Cambodia since 1996 that told me then it only has one traffic light that didn’t work in the capital city. Look at the city now, it has high rises and is transforming rapidly. In fact so much so that companies are fighting to get in here.

Cambodia’s growth rate is predicted to exceed 7% during the foreseeable future. This will help make up for lost ground. Furthermore, starting a business and buying a property in Cambodia is easy as a foreigner.

Not only that, but China seems intent on supporting Cambodia’s economic growth. Cambodia and China are extremely close allies. It’s the strongest of all relationships between China and a Southeast Asian country, China’s GDP is roughly 560 times greater than Cambodia’s. As such, Cambodia could become a developed country from its much larger neighbour’s support alone.

I have written a number of articles on what I think about Cambodia, and property investment. But, believe this could due to the openness to be country to look for.

Investing in property is easy compared to the likes of Vietnam. And a tip for anyone living is that you can get 6% in a Cambodian bank for further reading read more on ways to get 5% article.

These are my top two places to keep an eye on in the future, I believe that anyone wanting to look at investing in the country should still take extreme precaution.