Preparing Asean for crisis and growth

“SO FAR not bad” might sum up the first half of 2024 for major economies in Asean. Growth has not been strong and effects from the pandemic linger, but the region outperforms global norms. Some sectors even benefit as investors seek alternatives to China; and Asean enjoys a silver lining in the global storm while Europe and the Middle East suffer wars.

Indonesia and Vietnam in particular generate foreign investor interest and there is new buzz about the Philippines. Numbers are weaker in Malaysia and Thailand but they can gain from links to global supply chains.

However, emerging factors portend negative impacts that could lie ahead. Some are global-level challenges that Asean governments cannot directly manage and must leave to the major powers. Others, however, are regional and national-level issues and Asean would be well-advised to prepare against crisis.