Foreign direct outflows for East, S.E. Asian countries to reach US$400 billion by 2020

KUALA LUMPUR, July 5 (Bernama) -- Foreign direct outflows for the nine rapid growth markets within East and South-East Asia including Malaysia are expected to reach US$400 billion (about RM1.26 trillion) by 2020, said Ernst & Young (E&Y). E&Y said the importance of Asia to global trade would continue to increase steadily over the next decade, it said in its report "Beyond Asia: Strategies to Support the Quest for Growth". "The impact of the foreign direct outflows trend will be momentous, creating new spheres of competition, a new generation of global companies and changing patterns of trade flows both within and outside the region," it said. The report, which surveyed over 600 businesses executives from organisations based in East and South-East Asia, recognises Singapore, Taiwan, South Korea, Thailand, Indonesia, Hong Kong, Vietnam and China as the rapid growth markets along with Malaysia. Its Asia-Pacific area managing partner, Lou Pagnutti, said the global expansion for Asian companies would require major shifts in organisational design, talent management and decision-making processes as well as pose serious execution challenges. "In addition, the rigors of different political, regulatory and cultural environments can challenge many an ambitious growth plan," he said. -- BERNAMA