The investment management firm said the region’s growing share of global FDI suggests that member countries are benefiting from the semiconductor supply chain shifts.
“A structural recalibrating of global supply chains away from China and towards other markets is taking place. The beneficiaries of this move are spread across Latin America, Europe, the Middle East and Africa (EMEA), Asean and India.
“These countries possess cheap labour, have decent manufacturing bases and are producers of important commodities,” Eastspring Investments said in its market outlook for 2024 released today.
The report noted that a fast-growing population and rising middle-income consumers add to the Asean’s appeal.
In a recent statement, Investment, Trade and Industry Minister Datuk Seri Tengku Zafrul Abdul Aziz said Malaysia accounts for seven per cent of global semiconductor trade and 13 per cent of global chip testing and packaging.
Eastspring Investments also expects major emerging market economies should continue to see growth in the new year.
Globally, growth is likely to slow going into 2024 with the risk of a recession being higher over the next six to 12 months, as the lagged cumulative effects of policy tightening have started to kick in.
“Any recession is likely to be concentrated in the developed markets,” it noted.
— Bernama
