Home to roost

THIS WEEK'S TOPIC: What are the prospects for the global economy in the Year of the Rooster? In particular, what bright spots do you see, and what dangers?

Yeoh Oon Jin Executive Chairman PwC Singapore

The Year of Rooster presents new challenges and opportunities for the global economy. Politics will continue to dominate the headlines and have a significant impact on the economic agenda of nations; the increasing threat of protectionist policies will force globalisation to reshape itself. Closer to home, Asia will remain the fastest growing region in the world with Indonesia joining the elite club of 'trillion dollar' economies. Economic reforms in China will continue, and with the One Belt One Road initiative, China is expected to continue to grow at 6.5%+, and the region will benefit from spillover effects. In India, all eyes will be on the government's ability to roll-out the GST system of indirect taxes. Singapore is poised to benefit from Southeast Asia's continued high growth rate with rising wealth and consumption of the middle class. The Fourth Industrial Revolution will also begin to bring great challenges and opportunities to the manufacturing sector and Singapore businesses need to embrace these new technological advances especially in the space of robotics automation to improve productivity and reduce costs. Risks continue to exist due to global uncertainty and the threat of extremism.