According to the Asian Development Bank (ADB) in its major new April report, South-East Asia’s economic momentum is forecast to continue in 2013 with growth at 5.4%. This figure will slightly increase to 5.7% in 2014 as the outlook improves for the industrial economies.
The Organization for Economic Co-operation and Development’s (OECD) latest forecasts support this, saying South-East Asia’s economic growth will return to a “robust” pre-crisis average of 5.5% over the next five years.
The 10 economies of the Association of South-East Asian Nations (Asean) will show “resilience” to the predicted slowdown of China and India, according to OECD’S South-East Asian Economic Outlook 2013 report.
South-East Asia represents the world’s most dynamic growth region with relatively low political risk, low tax, a proper legal system and common borders. The result is exciting investment opportunities in Asia across a spectrum of industries, in both private and public equity, creating far higher potential returns than in the developed world.
Asia has a very low tax environment with a more positive attitude to wealth than in some more established western economies, making it a good place to retain assets as well as to do business. South-East Asia has significant appetite to invest overseas, while Asian stock markets with their combination of retail and institutional money are a great place to raise money for Eastern European companies.
Investments in South-East Asia – both club investments and private equity opportunities – have a higher IRR than in Europe, and the risk appetite and approach of Asian HNWs match the expectations of “new money” clients from Russia and CIS.
South-East Asia has access to new markets and local partners for entrepreneurial HNWs as well as IPO potential in Hong Kong. The region’s legal environment is favourable to CIS clients with offshore companies from jurisdictions with solid reputations – helpful for fiduciary services – and there are immigration opportunities through corporate setups. Confidentiality preservation is also good, because there is less information exchange compared to Europe.
Oracle Capital Group can facilitate business opportunities for clients through its Asian platform via a network of reliable partners and professional experts, its access to off-market investment opportunities combined with a synergy of local knowledge and international expertise.
The business opportunities in the region for multi-family offices include business flow in both directions, as UK experience with Russian and CIS clients is also perfectly applicable to Asian clients considering a move to Europe. There are also benefits from global cash-flow tendencies, along with legislative advantages, and professional services, such as banks and law firms, are increasingly setting up branches in the South-East Asian region too.
By Svetlana Ryabokon, Oracle Capital Group’s Head of Wealth Structuring and Fiduciary Services, at the Adam Smith Conference in Moscow in April, 2013
Additional sources: ADB’s Asian Development Outlook (ADO) 2013 AND OECD South-East Asian Economic Outlook 2013 report
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Listen to Svetlana Ryabokon’s interview to radio Voice of Russia
