Asean set to become Asia's next Pearl River Delta
ASEAN is poised to become Asia's next low-cost manufacturing powerhouse as wages in China's Pearl River Delta (PRD) factory belt continue to creep up. As China's wage competitiveness wanes, Asean stands to gain, with its lower costs and abundant supply of labour over the next 20 years.
Asean's high rate of GDP growth, and rising household affluence, means that companies relocating from the PRD could capture a share of a large and growing consumer market.
Our latest survey shows that manufacturers in the PRD - spanning nine cities in Guangdong province and accounting for 27 per cent of Chinese exports - continue to face persistent labour shortages and rising wages.
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Columns
‘Competition for talent’ a poor excuse to keep key executives’ pay under wraps
OCBC should put its properties into a Reit and distribute the trust’s units to shareholders
Why a stronger US dollar is dangerous
An overstimulated US economy is asking for trouble
Too many property agents? Cap commissions on home sales
Time to study broadening of private market access