be ASEAN

the voice of a new asean multinational generation
The
BIG STORY
#aseanCAP10
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CREATED FOR YOU BY
The
RISE
of the
ASEAN
CONSUMER
DISRUPTIVE
TECH
and the
ASEAN
Opportunity
A new
Asset Class –
The ASEAN
Multinational
CONTENTS
02
Message from the
Prime Minister of Malaysia
04
#beASEAN
Conversations
08
Welcome Message
10 16 18
20 22 24
The Conversationalists
The ASEAN
Economic Community
The AEC Score Card
The Rise of the
Latte Economy
– The Growing ASEAN
Consumer Class
Location Location Location
- The ASEAN Urbanization
Story
Thought for Today
– The great ASEAN
Multinational Opportunity
32
Disruptive Tech,
the Productivity
Game-Changer
36
ASEAN Connected,
Quick Facts
#aseanCAP10 / 1
We are conscious that the formation of the
Community will happen on our watch, and we
will work tirelessly toward that ambition.
We will devote our efforts to developing the
ASEAN Community’s Post-2015 Vision, as a
guide for the Community to further prosper
and grow.
Najib Razak, Prime Minister of Malaysia
#aseanCAP10 / 2
#aseanCAP10 / 3
#beASEAN
#beASEAN is a new mindset for individuals and corporations alike. To #beASEAN
is to become a true ASEAN multinational, who understands the implications of
the ASEAN opportunity and aspires to be a leader of its growth.
#aseanCAP10 / 5
THE CONVERSATIONS
1 #beASEAN
a. 90 million more urban consumers
To #beASEAN
#be
ASEAN
is to become a true
ASEAN multinational who understands the
opportunities of ASEAN and desires to be part
of ASEAN sustainable growth.
AEC 2015 is a catalyst to effect a mindset
shift towards fostering a spirit of competitive
cooperation in ASEAN based on the
understanding that collectively we can
capture a greater share of global flows and
generate sustainable growth.
Capitalise
on the
ASEAN is already experiencing an
unprecedented growth of the urban middle
class. Cities currently account for 65% of
ASEAN’s GDP, yet by 2030 the urban
consumer class will likely double.
ASEAN will require USD7 trillion in
investment for infrastructure, housing and
commercial space.
b. Disruptive Tech will leapfrog
ASEAN
Modernising through disruptive technologies
will drive world-class productivity
improvements that can produce and
estimated USD220b to USD625b in annual
economic impact by 2030.
RISE
of the
ASEAN
ASEAN
3
2 consumer
There are two levels of understanding needed
to benefit from the speed at which the ASEAN
opportunity can accelerate:
90 million more
urban consumers
Multinational
Growth
The emergence of ASEAN, as a recognised
asset class, is bringing more investment
opportunity to more people. Companies that
are able to capture the rise of the ASEAN
consumer and work efficiently across ASEAN
can gain competitive advantages by creating
sustainable growth and gaining greater
access to financing.
Disruptive Tech
will leapfrog
ASEAN
K
SG$
P
RM
BN$
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“
CEO, Bursa Malaysia
The CAP10 Summit will
be fast-paced and rich
with ideas.
“
Tajuddin Atan
The ASEAN CAP10
CEO Summit brings
together the leading
drivers of the regions
10 Capital Markets to
chart paths to prosperity,
as ASEAN moves
towards becoming a
single marketplace
that is home to a
consumer population of
600 million, and growing.
Abdul Farid Alias
Group President & Chief Executive Officer, Maybank
#aseanCAP10 / 9
THE CONVERSATIONALISTS
1
TAJUDDIN ATAN
CEO, Bursa Malaysia
1
2
3
4
Dato’ Tajuddin Atan has been
the Chief Executive Officer of
Bursa Malaysia Bhd since April
1, 2011.
Prior to Bursa Malaysia he
served as Group Managing
Director of RHB Capital Berhad
and RHB Investment Bank Bhd.
He has more than 25 years
working experience in the fields
of finance, treasury and
corporate management. His
repertoire encompasses and
includes corporate planning,
corporate control, treasury, risk
and operations management
and debt re-structuring.
2
ABDUL FARID ALIAS
5
6
7
8
Group President & Chief Executive
Officer, Maybank
Abdul Farid Alias, aged 46, was
appointed as Group President
and Chief Executive of Maybank
Group on 2 August 2013. Prior
to this appointment, he was
Deputy President & Head,
Global Banking where his areas
of responsibility covered
corporate banking, investment
banking, transaction banking,
client coverage, global markets
and international business for
Maybank Group.
THE CONVERSATIONALISTS
Abdul Farid has a Masters in
Business Administration,
Finance from Denver University,
USA. He graduated from
Pennsylvania State University,
University Park, USA, with a
Bachelor of Science in
Accounting. He joined Maybank
as Head of International on 1
January 2009.
9
13
#aseanCAP10 / 10
10
14
11
15
12
16
He is a member of the Board of
Directors of Maybank
Investment Bank Berhad,
Maybank Ageas Holdings
Berhad as well as Cagamas
Holdings Berhad, Malaysia’s
national mortgage corporation.
He is also a member of
Investment Panel of Kumpulan
Wang Persaraan (KWAP). Farid
currently also serves as the
Chairperson for the Permanent
Committee on ASEAN
Inter-Regional Relations as well
as the ASEAN Banking Council
(ABC) and is a member of the
Asian Bankers Association
(ABA) Policy Advocacy
Committee. He is Chairman of
The Association of Banks in
Malaysia and Vice Chairman of
Institute Bank in Malaysia and
Chairman for Malaysian
Electronic Payment System Sdn
Bhd (MEPs). Recently, he was
appointed as a member of the
Emerging Markets Advisory
Council of Institute International
Finance based in London.
Over the course of his career,
he has been attached to
Aseambankers Malaysia
Berhad, Malaysia
International Merchant Bankers
Berhad (MIMB), Schroders Ltd,
and Jardine Fleming, which was
subsequently acquired by Chase
Manhattan Bank and later
merged with JP Morgan in 2000.
He was in the Investment
Banking division of JP Morgan
from 1997 until 2005, serving in
Kuala Lumpur and Singapore.
Farid joined Khazanah Nasional
Bhd in March 2005 and was
responsible for monitoring its
investments in Indonesia. He
was a member of the Board of
Commissioners of PT Bank
Lippo Tbk and PT Excelcomindo
Pratama Tbk, both of which are
listed on the Indonesia Stock
Exchange. He was also a
member of the Board of
Directors of UEM World Berhad,
PLUS Expressways Berhad and
UEM Builders Berhad.
3
OLIVER TONBY
Managing Partner,
McKinsey & Company Southeast Asia
Oliver is the Managing Partner
of McKinsey’s Southeast Asia’s
offices, based in Singapore. He
previously served as the country
office manager for Indonesia
and was the leader of the Oil &
Gas Practice in Asia. Since
joining McKinsey in 1997, Oliver
has worked across multiple
industries including energy and
materials, industrials, private
equity, and technology.
4
WAHID OMAR
Minister in the Prime Minister’s
Department, Malaysia
Wahid Omar, aged 49, was
appointed as a Minister in the
Prime Minister’s Department in
charge of Economic Planning on
5th June 2013. He oversees a
number of government
agencies such as Economic
Planning Unit, Public-Private
Partnership Unit (UKAS),
Department of Statistics, Ekuiti
Nasional Berhad (EKUINAS) and
Talent Corporation
(TALENCORP), TERAJU and
Yayasan Pendidikan Peneraju
Bumiputera. Prior to his cabinet
appointment, Wahid was
formerly the President and CEO
of Maybank, Malaysia’s largest
banking group and the fourth
largest in Southeast Asia, from
May 2008.
He was also the Chairman of
The Association of Banks in
Malaysia. He is a Fellow of the
Association of Chartered
Certified Accountants (UK) and a
Member of the Malaysian
Institute of Accountants.
Maybank is the third largest
organisation that he has led as
CEO. Prior to joining Maybank,
he was Group Chief Executive
Officer of Telekom Malaysia
Berhad from July 2004 until its
demerger with Axiata Group
Berhad in April 2008. He was
formerly Managing
Director/Chief Executive Officer
of UEM Group Berhad as well as
Executive Vice Chairman of
PLUS Expressways.
5
GITA WIRJAWAN
Former Minister of Trade, Indonesia
Gita Irawan Wirjawan is a
former Minister of Trade of
Indonesia. In October 2011, he
was appointed as Minister of
Trade of the Republic of
Indonesia by President Susilo
Bambang Yudhoyono. He
stepped down from that role on
31 January 2014.
In 2008, he founded the
company Ancora Capital
(tempo), a private equity fund
whose primary investments
focus on natural resources and
mining. Prior to founding Ancora
Capital, Gita was an investment
banker at JP Morgan Indonesia
where he headed the investment
bank from 2004 to 2008.
Gita has a bachelor degree in
Accounting from University of
Texas, Master of Business
Administration from Baylor
University, and Master of Public
Administration from the Harvard
University's JFK School of
Government. He is also both a
CPA and CFA charterholder.
6
SUPACHAI PANITCHPAKDI
Former Secretary-General of the
United Nations Conference on Trade
and Development
Supachai Panitchpakdi began
his four-year term as
Secretary-General of UNCTAD
on 1 September 2005, following
his appointment by the UN
General Assembly. He was
appointed for a second term in
September 2009, and stepped
down from his post in August of
2013. Supachai previously
served as Director-General of
the World Trade Organization
(September 2002 to August
2005) and as Thailand's Deputy
Prime Minister (November 1992
to May 1995) and Deputy Prime
Minister and Minister of
Commerce (November 1992 to
February 2001).
Supachai received his Master's
Degree in Econometrics,
Development Planning and his
Ph.D. in Economic Planning and
Development at the Erasmus
University in Rotterdam,
completing his doctoral
dissertation on Human
Resource Planning and
Development under the
supervision of Prof. Jan
Tinbergen, the first Nobel
laureate in economics.
In 1992, Supachai was appointed
Senator, and that same year he
became Deputy Prime Minister,
entrusted with oversight of the
country's economic and trade
policy-making. He was also
active in shaping regional
agreements, including Asia
Pacific Economic Cooperation
(APEC), the Association of
Southeast Asian Nations
(ASEAN) and the Asia Europe
Meeting (ASEM).
7
KISHORE MAHBUBANI
Dean and Professor in the Practice of
Public Policy, Lee Kuan Yew School of
Public Policy at the National University
of Singapore
A student of philosophy and
history, Kishore Mahbubani has
had the good fortune of enjoying
a career in government and, at
the same time, in writing on
public issues. With the
Singapore Foreign Service from
1971 to 2004, he had postings in
Cambodia (where he served
#aseanCAP10 / 11
THE CONVERSATIONALISTS
during the war in 1973-74),
Malaysia, Washington DC and
New York, where he served two
stints as Singapore’s
Ambassador to the UN and as
President of the UN Security
Council in January 2001 and
May 2002. He was Permanent
Secretary at the Foreign
Ministry from 1993 to 1998.
Currently, he is the Dean and
Professor in the Practice of
Public Policy at the Lee Kuan
Yew School of Public Policy
(LKYSPP) of the National
University of Singapore. Prof
Mahbubani was awarded the
President’s Scholarship in 1967.
He graduated with a First Class
honours degree in Philosophy
from the University of Singapore
in 1971. From Dalhousie
University, Canada, he received
a Masters degree in Philosophy
in 1976 and an honorary
doctorate in 1995. He spent a
year as a fellow at the Center
for International Affairs at
Harvard University from 1991 to
1992. He was also given the
2003–2004 Dr Jean Mayer
Global Citizenship Award by the
Institute for Global Leadership
(IGL) at Tufts University.
8
KERRY TAYLOR
Senior Vice President, Youth and
Music for Viacom International
Media Networks and MTV
Kerry Taylor is Senior Vice
President, Youth and Music for
Viacom International Media
Networks, giving her lead
responsibility for the MTV brand
internationally and for
overseeing non-music
programming and content
development for all
MTV-branded channels outside
the US.
Based in London and working in
partnership with MTV’s regional
leadership around the world,
Kerry takes the lead in deciding
how the MTV brand is positioned
and presented, as well as in
developing original
programmes and identifying
acquisitions.
Kerry is also SVP, General
Manager for all MTV channels
managed out of the UK, giving
her management oversight of
the world’s leading youth
entertainment brand in
#aseanCAP10 / 12
territories including the UK and
Ireland, Russia, Australia and
New Zealand, Hungary and
Israel. In this role she manages
commissioning, acquisition,
marketing and communications,
talent and artist relations and
production across MTV’s
portfolio of channels,
encompassing MTV, MTV+1,
MTV Base, MTV Classic, MTV
Dance, MTV Hits, MTV Music,
MTV Live HD, MTV Rocks, Viva
and VH1.
As SVP, General Manager, MTV
for VIMN UK, Kerry has
successfully managed the
evolution of the core MTV
channel to offer a mix of music
and general entertainment
programming, while
simultaneously expanding
MTV’s bouquet of music
channels. As a result of
changing its programming mix,
the core MTV channel has
increased its average audience
amongst 16-34s by more than
80% in the last five years,
culminating in its highest
annual ratings for eight years in
2013.
MTV UK’s growth has been
driven by an increasing number
of original productions
commissioned by Kerry and her
team, including reality series,
Geordie Shore and The Valleys.
Geordie Shore, which will return
for an eighth season later in
2014, is the highest rating show
in the channel’s UK history and
continues to grow in popularity
– Series 1 to Series 7 saw an
increase of 83% for average
audience amongst 16-34s. The
show has become a social
media phenomenon, with the
cast alone amassing more than
12m followers across different
platforms, and has aired around
the world, rating strongly in
countries as diverse as
Australia and Hungary.
Under Kerry’s stewardship,
MTV’s portfolio of music
channels has also expanded – a
new MTV- branded music
service, MTV Music, launched in
the UK and other territories in
2011, followed by MTV Live HD
in 2012. MTV Music is the most
popular music channel amongst
16-34s in the UK year- to-date
in 2014 having grown average
viewing amongst that age group
by a third since launch. Overall,
in 2013 the MTV Music Pack was
the No. 1 music network for
16-34s for its pure music
channels, a position it has now
held for six years.
Kerry first joined MTV’s parent
company, Viacom International
Media Networks (VIMN), as Vice
President, Marketing, Creative
& Consumer Press for MTV UK
& Ireland in September 2007
and successfully spearheaded
the launch of entertainment
channel VIVA on the Freeview
platform, via a high profile
marketing campaign (“Up Your
Viva”). Prior to joining MTV,
Kerry was Director, Marketing &
On-Air for Living TV, Bravo,
Challenge and Trouble at Virgin
Media, where she played a key
role in repositioning Living TV,
which resulted in the channel
being awarded Broadcast
Channel of the Year in 2006.
Kerry has also worked at the
BBC and for Star TV in Hong
Kong.
9
YURI VAN GEEST
Co-author of the bestselling book
“Exponential Organizations”
Yuri van Geest (40; MSc. in
Strategic Management,
Marketing & Innovation) is a
passionate professional, author,
international keynote speaker
and entrepreneur on
exponential emerging
technologies. He has a strong
background in corporates (6
years), agencies (4 years),
central government (2 years)
and startups (2 years) and his
own innovation company Trend8
(7 years).
Yuri is co-author of the
(Amazon) bestselling book
called Exponential
Organizations with Salim Ismail,
Mike Malone and Peter
Diamandis. The book is about
the fundamentally new ways
startups and corporates are
organized internally and
externally to deal with
disruption, exponential
technologies and accelerated
change.
Yuri is the Dutch Ambassador of
Singularity University, Managing
Director of the Singularity
University Summit Europe and a
triple alumnus of the Singularity
University, Exponential Medicine
and Exponential Finance. He
was co-founder/lead organizer
of successful corporate
hackatons and non-profit events
& communities like Quantified
Self Europe and Amsterdam,
Mobile Monday Amsterdam,
Lean Startup NL and
TEDxAmsterdam. Yuri was a key
member of the Topteam
Creative Industry within the
Ministry of Economic Affairs,
Agriculture and Innovation in the
central Dutch government,
which focused on driving
innovation at the ecosystem
level.
10
ROBERTO B. TAN
Treasurer of The Philippines Bureau
of Treasury
Roberto B. Tan is re-appointed
Treasurer of the Philippines in
January 2015. Concurrently, he
is the Officer-in-Charge of the
International Finance Group of
the Department of Finance.
Roberto was first appointed as
Treasurer of the Philippines in
July 2008 and became World
Bank Executive Director in
November 2012. Roberto has an
extensive experience in public
finance having assumed several
key positions in the Department
of Finance, including
Undersecretary from 2005 to
2008, Assistant Secretary from
1999 to 2005, and Director in the
early 1990s for the International
Finance Group. Roberto also
assumed the post of Advisor to
the Executive Director of the
Asian Development Bank Board.
His professional background
includes treasury management,
international finance, consumer
credit, and management
consulting.
Roberto holds a Master’s degree
in Economics from the Fordham
University, New York, where he
also pursued doctoral studies.
He obtained his MBA from the
Ateneo de Manila University
where he likewise received his
Bachelor’s degree in
Economics.
11
SURIN PITSUWAN
Former ASEAN Secretary-General
Surin Pitsuwan, 66, is a native of
Nakorn Sri Thammarat,
Southern Thailand. He received
his primary and secondary
education in his home province.
He was awarded the American
Field Service (AFS) exchange
scholarship and was a high
school exchange student in
Minnesota, USA, in 1967-1968.
He returned to Bangkok,
Thailand and attended
Thammasat University for 2
years before winning a
scholarship from Claremont
Men’s College (now Claremont
McKenna College) Claremont,
California, to complete his B.A.
in Political Science (cum laude)
in 1972. He then went on to
Harvard University, Cambridge,
Massachusetts, U.S.A., where
he received his M.A. and Ph.D.
in 1974 and 1982 respectively, in
the field of Political Science and
Middle Eastern Studies.
His entire Harvard career was
supported by the Winston S.
Churchill Association, the
Rockefeller Foundation and the
Ford Foundation Fellowships.
He also spent a year and a half
studying Arabic and conducting
his research at the American
University in Cairo, 1975-1977,
while concurrently a fellow at
the Higher Council for Islamic
Research, Cairo, Egypt. He
worked as a columnist for the
Nation and the Bangkok Post,
the two leading English daily
newspapers in Bangkok, from
1975-1992.
Surin taught at the Faculty of
Political Science at Thammasat
University from 1978-1983 and
1984-1986. He also served as
an assistant to the Deputy Dean
for Academic Affairs during the
same period.
Surin joined the American
Political Science Association’s
Congressional Fellowship
Program in 1983-1984, when he
interned in the Congressional
Office of the late US
Representative Geraldine A.
Ferraro (D-New York), who later
became the Vice Presidential
Candidate for the Democrat
Party in 1984, and worked for
the Senate Republican
Conference in the later half of
1984. He taught Southeast
Asian Affairs at the American
University in Washington, D.C.
during that same year.
He returned to Thailand in 1984
to assume a teaching position at
Thammasat and ran for a
Parliamentary seat from
Nakorn Sri Thammarat, his
home town two years later. He
had been returned to
Parliament 8 times since 1986.
As an MP, he was appointed
Secretary to the Speaker of the
House of Representatives (H.E.
Chuan Leekpai), Secretary to
Deputy Minister of Interior,
Deputy Minister for Foreign
Affairs during 1992-1995, and
Minister of Foreign Affairs from
1997 to 2001. He served as
Chair of the ASEAN Ministerial
Meeting and the Chair of the
ASEAN Regional Forum (ARF) in
1999-2000. In September 1999,
while the ASEAN Chair, he led
the efforts to get Southeast
Asian governments to help
restore law and order, and that
joint undertaking, with the
support of the United Nations
and the international
community, brought about
peace and security in East
Timor.
Upon leaving the foreign affairs
portfolio in mid-2001, Surin was
appointed a member of the
Commission on Human Security
of the United Nations until 2003.
He also served as an advisor to
the International Commission
on Intervention and State
Sovereignty from 1999-2001. In
2002, he concurrently served on
the ILO’s World Commission on
the Social Dimension of
Globalization until 2004. He was
an advisor to the Leaders
Project, Washington, D.C., a
conference arm of the Cohen
Group of former US Secretary of
Defense William S. CohenHe
served on the International
Advisory Board of the Council
on Foreign Relations in New
York. He is currently on the
Advisory Board of the UN
Human Security Trust Fund, the
Advisory Board of the
International Crisis Group (ICG),
an International Academic
Advisor of the Centre for Islamic
Studies, Oxford University, and
an advisor to the Leaders
Project, a conference arm of the
Cohen Group of former US
Secretary of Defense William S.
Cohen.
Between 2002-2004, Surin was
also a member of the “Wise
Men Group” under the auspices
of the Henri Dunant Centre for
Humanitarian Dialogue (HDC) in
Geneva, advising the peace
negotiations between the
Acehnese Independence
Movement (GAM) and the
Government of the Republic of
Indonesia. He served as a
member of the Islamic
Development Bank’s 1440 A.H.
(2020) Vision Commission under
the leadership of Tun
Dr.Muhammad Mahathir,
former Prime Minister of
Malaysia, in June 2005.
Surin was a Deputy Leader of
the Democrat Party, Thailand.
He also served on the National
Reconciliation Commission
(NRC), charged with bringing
peace and security back to
Thailand’s deep South. He was
appointed Member of the
National Legislative Assembly
(NLA) before assuming his post
as the Secretary General of the
Association of Southeast Asian
Nations (ASEAN) from 1 January
2008 until 31 December 2012.
During that period he was
tasked to implement the ASEAN
Charter and prepare the region
to enter into the ASEAN
Community in 2015.
Two of his most recognized
accomplishments were
spearheading the Asian
countries to help restore law
and order in East Timor during
the violent uprising in the
aftermath of the Referendum in
August 1999, and leading the
ASEAN Member States and the
United Nations and other
international institutions such
as the World Bank, ADB and
various other International
NGOs to enter Myanmar to
rescue that country from the
catastrophe of Cyclone Nargis in
May 2008 and remained there
until the mission was
accomplished in December
2010.
Surin has been conferred 13
honorary doctorate degrees,
including one from University of
Bristol (UK), Claremont
McKenna College, the National
University of Malaya (UKM)
University Purta Malaysia (UPM)
and University of Malaya (UM).
After his term as Secretary
General of ASEAN, Surin has
been appointed Professor
Emeritus at Thammasat
University and also an Honorary
Advisor and Distinguished
Visiting Fellow at King
Prajadhipok Institute, an
academic affiliation of the Thai
Parliament.
He is concurrently a Visiting
Professor, an Adjunct Professor
and a Visiting Fellow at the
Graduate Institute for
PolicStudies, Tokyo, University
of Nara, Japan and University of
Malaya.
Surin Pitsuwan is now engaged
in the promotion of regional
integration in East Asia,
educational and political reform
efforts in Thailand and a
frequent speaker at various
international conferences.”
12
ALAN WONG
VJ, MTV Asia
Growing up, Alan loved watching
MTV and he jumped on the
opportunity to be its VJ so that
he could connect with the youths
as their peer and make a
difference in their lives. He is an
optimist who believes in
bringing smiles to those around
him through his
self-deprecating humour.
Born and raised in California,
U.S., Alan knew at a young age
that he wanted to be in the arts
and entertainment industry. He
honed his skills by taking dance
and acting lessons, and Italian
opera and vocal classes. After
graduating with a Bachelor of
Arts in Theatre with a minor in
Politics from Occidental College
in Los Angeles, he worked
tirelessly as a bartender and
high school relief teacher for a
few years while juggling his
acting and hosting assignments.
Alan has appeared in several
film, theatre and TV productions.
He had an acting part in Hannah
Montana and did on-air
promotions for Ugly Betty, both
well-known U.S. TV series. He
was the lead actor in the 2013
production Gruesome
Playground Injuries, which was
produced by Pangdemonium in
Singapore and received raving
reviews. In addition to being
featured in various publications,
he was named as one of CLEO’s
50 Most Eligible Bachelors and
landed the cover story of NYLON
Guys in the same year.
He is an experienced event host,
having hosted large-scale
events such as the
US-Philippines Expo Beauty
Pageant in 2008 and the 2009
and 2010 editions of America's
Celestial Beauties.
#aseanCAP10 / 13
THE CONVERSATIONALISTS
HANLI HOEFER
VJ, MTV Asia
This dark-haired beauty has a
streak of spontaneity and is up
for anything that sounds fun. In
fact, it was her penchant for
trying out new things that landed
her the coveted role as MTV's VJ.
In MTV's search for a new host in
2013, Hanli decided on the spur
of the moment to audition and
quickly caught the attention of
the producers with her winning
smile and easy grace.
Born and raised in Singapore,
Hanli graduated from United
World College and majored in
art and psychology. She first
burst onto the scene as a model
when she was 19 years old.
Less than a year after her
debut, she notched a number of
high profile gigs including the
cover shots on Her World and
Shape magazines. On top of
being featured in a number of
publications, she has also been
in cover stories of titles such as
Seventeen, NYLON, and RØMP.
Besides hosting and modelling
for a number of brands, Hanli
has co-hosted one of the
biggest music nights in Kuala
Lumpur, MTV World Stage
Malaysia since 2013. The
concert is one of MTV’s biggest
music events in Asia, which
sees an attendance of between
10,000 – 15,000 fans.
14
CHERYL LIM
Associate Principal, Mckinsey &
Company
Cheryl Lim is an Associate
Principal with McKinsey &
Company’s Kuala Lumpur
Office. Since joining the Firm,
she has worked extensively on
system and organization
transformation and business
development in the field of
education, youth employment
and youth engagement. She has
also driven research on Asian
Millennial consumer patterns
and workforce behavior. Her
clients include Federal
government entities,
Government-linked companies
and private companies.
Prior to joining McKinsey,
Cheryl worked for a
London-based think tank as an
#aseanCAP10 / 14
education policy analyst. Her
research includes fieldwork
experience in Canada, Sweden,
Hong Kong, New Zealand and
England. Cheryl graduated with
distinction from Oxford
University in 2006 with an M. Sc.
in Comparative Social Policy, as
the 2005 Malaysian Rhodes
Scholar. She also has a B.A in
Sociology and Psychology from
Wesleyan University, where she
studied as a Freeman Scholar.
15
NOOR FARIDA ARIFFIN
Former Malaysian Ambassasdor
to the Netherlands
Dato’ Noor Farida Ariffin
served as Director-General at
the Research, Treaties and
International Law Department
of the Ministry of Foreign
Affairs and was the
Ambassador-At-Large for the
High Legal Experts Group on
Follow-up to the ASEAN
Charter (HLEG).
Dato’ Noor Farida is a former
Civil Servant with over 34 years of
experience, 25 of which was with
the Judicial and Legal Service, 5
with the Commonwealth
Secretariat and 11 with the
Foreign Ministry. She was the
Co-Agent of Malaysia for the
Pulau Batu Puteh Case and has
had a long and distinguished
career spanning 36 years in the
Public Service.
Under-Secretary of the newly
formed Territorial and Maritime
Division of the Foreign Ministry.
In August 2000, she was posted
to the Netherlands as the
Malaysian Ambassador to that
country. She was also
concurrently appointed the
Malaysian Co-Agent to the
International Court of Justice for
the Pulau Ligitan and Pulau
Sipadan Case against Indonesia
and the Malaysian Permanent
Representative to the
Organisation for the Prohibition
of Chemical Weapons which is
based in The Hague. Dato’ Noor
Farida Ariffin was elected to the
Chair of the 8th Conference of
States Parties of the Chemical
Weapons Convention in October
2003. Prior to that, at the First
Review Conference of the above
Convention (April/May 2003) she
was elected to chair the Drafting
Group on the Political
Declaration. She was again
appointed the Malaysian
Co-Agent by the Government
when Malaysia and Singapore
agreed to submit the Pulau Batu
dispute to the International
Court of Justice.
She is a qualified Barrister- atLaw (Gray's Inn), United
Kingdom 1970.
16
SOPHIE KAMARUDDIN
Lead Anchor & Editor,
Bloomberg TV Malaysia
She joined the Judicial and Legal
Service in February 1971 where
she served in various capacities
including magistrate, senior
assistant registrar in the High
Courts of Kuala Lumpur and
Penang, legal officer with the
Economic Planning Unit of the
Prime Minister's Department,
Director of the Legal Aid Bureau
and Sessions Court Judge. She
was seconded by the Government
to the Commonwealth
Secretariat in London for 5 years
as Director of the Women and
Development Programme,
Human Resource and
Development Group. In February
1993, upon her return to
Malaysia, she was transferred to
Wisma Putra to head the newly
established Legal Division of the
Ministry.
Sophie Kamaruddin is the lead
anchor and editor for
Bloomberg TV Malaysia. In her
role as local correspondent for
Bloomberg Television, Sophie
has covered MH370 and Budget
2015 as well as reported live on
the breaking MH17 story.
Sophie has interviewed
Malaysian thought leaders and
policymakers such as Dato’ Sri
Idris Jala and Datuk Dr Rebecca
Fatima Sta Maria, and corporate
captains across various
industries including Tan Sri Liew
Kee Sin, Tan Sri Tony Fernandes
and Dato' Sri Nazir Razak. She
has also interviewed globally
renowned figures such as
London Mayor Boris Johnson,
environmentalist David Suzuki
and EY's Maria Pinelli.
In September 1996, she was
absorbed into the
Administrative and Diplomatic
Service and was appointed the
Before returning to Kuala
Lumpur to join Bloomberg TV
Malaysia, Sophie led media
strategy for the CIMB Group in
Singapore. Prior to CIMB, she
gained experience in business
and financial news production
with CNBC Asia at their
Singapore headquarters. During
her time with the channel's
marquee show Squawk Box
Asia, she produced interviews
with prominent regional and
international names such as
investment guru Jim Rogers, US
Trade Representative Ron Kirk
and former Thai Prime Minister
Abhisit Vejjajiva.
Before embarking on a career in
media, Sophie was part of the
founding team at CIMB Asean
Research Institute (CARI), a
think tank dedicated to
supporting the Asean economic
integration agenda.
Sophie graduated from the
Edmund A. Walsh School of
Foreign Service at Georgetown
University in Washington, DC.
Follow Sophie on Twitter
@sophiebtvm
17
Haslinda Amin
News Correspondent and
Anchor for Bloomberg Television
Haslinda Amin is a news
correspondent and anchor for
Bloomberg Television. Based in
Singapore, Amin has been at the
heart of market makers and
stories that have driven the
transformation of Southeast Asia.
Amin has reported on financial
and political developments
including the Asia-Pacific
Economic Cooperation forums,
the bloody anti-government
clashes in Thailand,
developments in Pakistan as well
as President Barack Obama's
first visit to Asia.
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#beASEAN
The Founding Fathers of ASEAN.
The Foreign Ministers who signed the ASEAN Declaration.
Adam Malik of Indonesia, Narciso R. Ramos of the
Philippines, Tun Abdul Razak of Malaysia, S. Rajaratnam
of Singapore, and Thanat Khoman of Thailand
8 AUGUST
1967
7 January
1984
Brunei Darussalam
joins ASEAN
1999
October
2003
Cambodia joins ASEAN as
the 10th Member State.
The 10 member ASEAN
grouping is now completed
Declaration to
establish, an
ASEAN Economic
Community by 2020
To transform ASEAN
into a region with free
movement of goods,
services, investment,
skilled labour, and
freer flow of capital.
2007
28 July
1995
Vietnam joins ASEAN
1997
Lao PDR and
Myanmar
join ASEAN
December
1997
2006
Agreement to develop
the AEC Blueprint
15 December
2008
The ASEAN Charter is signed
ASEAN leaders commit to
accelerate the establishment
of an ASEAN Community by 2015
April
2011
ASEAN Exchanges collaboration is formed
by the 7 stock exchanges of ASEAN
ASEAN
THIS IS WHAT HAS BROUGHT US
TOGETHER FOR THE
SOCIO - CULTURAL
COMMUNITY
ASEAN
POLITICAL - SECURITY
COMMUNITY
ASEAN Vision 2020:
Transform ASEAN into a stable, prosperous,
and highly competitive region with equitable
economic development, and reduced poverty
and socio-economic disparities
The Cebu Declaration
April
ASEAN
ECONOMIC COMMUNITY
The AEC is the realisation of the end
goal of economic integration as
espoused in the Vision 2020, which is
based on a convergence of interests
of ASEAN Member Countries to
deepen and broaden economic
integration through existing and new
initiatives with clear timelines.
August
January
Each pillar has its own Blueprint, and, together
with the Initiative for ASEAN Integration (IAI)
Strategic Framework and IAI Work Plan Phase II
(2009-2015), they form the Roadmap for the
ASEAN Community 2009-2015.
ASEAN IS
ESTABLISHED
23 July
30 April
3 Pillars
of the ASEAN
Community
2009
AEC Blueprint 2015 or AEC 2015
AEC 2015 endorsed by the ASEAN Finance
Ministers and set up Establishment of the
ASEAN Capital Market Forum (ACMF)
ASEAN 6
ASEAN 10
ASEAN+1
refers to the six largest
economies.
refers to the full membership
of 10 ASEAN nations.
refers to the Free Trade Zone
between ASEAN and China,
formed in January 2010.
Indonesia
Thailand
Malaysia
Singapore
Philippines
Vietnam
Indonesia
Thailand
Malaysia
Singapore
Philippines
Vietnam
Brunei
Cambodia
Laos
Myanmar
ASEAN Is our Single Marketplace:
THE AEC
SCORE CARD
2.
Competitive Economic Region
Fostering a culture of
fair competition
Consumer Protection
ASEAN Committee on Consumer Protection (ACCP) established
Intellectual Property Rights
ASEAN IPR Action Plan 2011-2015 was endorsed
Infrastructure Development
Support for physical infrastructure; highways, airports and rail links,
power grids and gas pipelines
• Completed the stocktaking of road inventory of all national
route components of the ASEAN Highway Network (AHN)
• ASEAN ICT Master Plan 2015 adopted
• Regional energy cooperation plan of action underway and being
implemented for seven key areas to enhance energy security,
accessibility and sustainability :
82.1% of the prioritized AEC measures for 2013 and an additional 52 key deliverables
for 2014-2015 have been implemented as of mid-August 2014.
1.
99.29% duties eliminated
between ASEAN-6
170 technical standards
harmonised
• ASEAN Open Skies Policy for cargo and passenger services implemented
• As of 2010, duties eliminated on 99.29% of trade lines of ASEAN-6.
• 0 – 5% duties on 97.52% of tariff lines for remaining Member States
• Technical and legal foundations of ASEAN Single Window Gateway (ASW)
being set up for live implementation by 2015
• Mutual recognition, harmonisation of standards and regulatory regime in
place to reduce technical barriers to trade. 170 technical standards now
harmonised in ASEAN
Free Flow of Services
• ASEAN Framework Agreement of Services (AFAS) eased restrictions to
cross-border trade in at least 80 sub sectors, with majority of these
subsectors allowing for major foreign ownership
Free Flow of Investment
• ASEAN Comprehensive Investment Agreement (ACIA), which contains
commitments to liberalise and protect cross-border investment activities
Free Flow of Capital
• ASEAN Exchanges collaboration formed by the seven stock exchanges
of ASEAN
• ASEAN Trading Link (ATL), implemented by ASEAN Exchanges, to allow
securities brokers easier access to participating exchanges (currently
Bursa Malaysia, Singapore Exchange and Stock Exchange of Thailand
are connected via the ATL)
• Liberalisation of other financial services in ASEAN continues
Liberalisation ongoing
Free Flow of Skilled Labour
#aseanCAP10 / 18
(i) ASEAN Power Grid; (ii) Trans- ASEAN Gas Pipeline; (iii) Coal and Clean Technology;
(iv) Renewable Energy; (v) Energy Efficiency and Conservation;
(vi) Regional Energy Policy and Planning; and (vii) Civilian Nuclear Energy.
Single Market & Production Base
Free Flow of Goods
Competition Policy
The ASEAN Regional Guidelines on Competition Policy and the Handbook
on Competition Policy and Laws in ASEAN for Business were launched
• ASEAN Agreement on the Movement of Natural Persons (MNP).
Mutual Recognition Arrangements (MRAs) concluded to faciliatate
movement of professionals in Engineering, Architecture, Nursing,
Medical, Dental, Accountancy and Surveying.
3.
Equitable Economic Development
Expanding SMEs
in ASEAN with
66.7% of targeted
measures completed
Small and Medium Enterprises (SME) Development
Strategic Action Plan for ASEAN SME Development (2010-2015)
implemented
ASEAN SME Advisory Board established
Thirty business incubator and innovation centres make up the ASEAN
Business Incubator Network (ABINet) to promote business matching
and development
Initiative for ASEAN Integration (IAI)
• The ASEAN Framework for Equitable Economic Development (AFEED) was
introduced to enable regional economic integration based on the principles
of inclusive and sustainable growth, poverty alleviation and narrowing the
development gap within and between all ASEAN Member States.
4.
Integration into the Global Economy
85.7% of identified
measures to integrate
with global economy
complete
• ASEAN+1 Free Trade Agreements (FTA) signed with the People’s
Republic of China, Japan, the Republic of Korea, Australia, New Zealand
and India
• Negotiations for Regional Comprehensive Economic Partnership (RCEP)
–ASEAN with six FTA partners - launched
#aseanCAP10 / 19
The rise of the
latte economy
6 out of 10 top retail expansion
markets are in ASEAN
Japan
64%
Singapore
Malaysia
33% 33% 31%
Source: Comtrade: McKinsey Global Institute Cityscope database;
national statistics offices: McKinsey Global Institute analysis
22%
Indonesia
Philippines
Thailand
31% 22% 22%
Australia
20%
Source: cbre.com.cn
Colliers International Philippines Research
‘
‘
More international retailers will
establish their own operations
instead of seeking local partnerships.
Online Retail disrupting the marketplace
Disruptive tech is changing the way shoppers buy.
8%
Source: Euromonitor - 2014
#aseanCAP10 / 20
Singapore
and Malaysia
combined
account for 8% of
the population
of southeast
Asia...
50%
...Yet together
account for half of
total online sales
in the region.
THE BEST PLACE TO BUY
YOUR LATTE IS ASEAN
The 5th largest single marketplace
for vehicle sales in the world is ASEAN.
Thailand
Malaysia
Canada
Mexico
New Zealand
Taiwan
Australia
China
Singapore
Turkey
South Korea
Japan
Hong Kong
Britain
Euro area
Switzerland
Source: The Economist - 2014
Starbucks
tall-latte index
-31
-25
-16
-15
-12
-5
-4
-1
+2
+6
+6
+13
+15
+17
+33
+62
42
Emerging consumers
(7,500-20,000)
30
Basic consumer needs
(0-7,500)
51
2010
20253
67 million
125 million
Consuming households with income >$7,500
1
2
3
Association of Southeast Asian Nations; excludes Brunei.
Purchasing power parity adjusts for price differences in identical goods
across countries to reflect diferences in purchasing power in each country.
Forecast; figures may not sum, because of rounding.
48
56
45
55
This would add
-93 million people
to cities
49
38
33 37
26 33
21
13
Singapore Malaysia
1
15
Indonesia
Thailand Philippines Vietnam
128
2030
2013
31
34
15
Laos
36
15 19
9
43
11 13
Myanmar Cambodia
1
1
ASEAN
235
Brunei not included as the country as the country has no cities with population >200,000. NOTE: Numbers may not sum due to rounding.
Urbanisation cities will rank among ASEAN’s
top 15 markets for certain consumer goods
ASEAN cities by comsuption
Large/megacities
Economist Intelligence Unit 2014
Small/midsized cities
Estimated car market growth 2012-2020 (%)
THAILAND
22%
2030
rank
PHILLIPINES
VIETNAM
55%
61%
The Economist ‘Starbucks tall-latte
Index’ measures the purchasing
power of a currency based on the
price of a Starbucks tall latte
Local currency under (-)/over (+) valuation
against the dollar, %, using:
Consuming middle class
(20,000-70,000)
100 100
1
THE CONSUMER CLASS
WILL DRIVE MORE CARS
Taiwan
23
Share of country population living in cities of more than 200,000 inhabitants,
2013-301 (in %)
Cities with >200,000
inhabitantsin 2013
Hong Kong
33%
Globals (>70,000)
Source: Comtrade: IHS, World Trade Organization: Telegeography:
World Bank: McKinsey Global Institute analysis
More than
90 million people
are expected to move
to Southeast Asia’s
cities by 2030
China
4
33
Economist Intelligence Unit 2014
Comparative population size
TOP 10 COUNTRIES WHERE INTERNATIONAL
RETAILERS INTEND TO OPEN STORES IN 2014
2
of US$10,000 or more
in 2018
608, 405M
with a rapidly growing
consumer class
EU
$ PPP2 2005
178 million
14
3with household
LARGEST
income
ASEAN
USA
Household
Income Going Up.
ASEAN as a region
will be the world’s
100% =
137 million
rd
China
India
$
ASEAN has a very
large supply of rising
middle-class consumers,
from now into the future.
The ubiquitous coffee place is just the beginning
of the Millennial workforce’s ever expanding
consumption trends.
Vietnam
Annual household-income
brackets
Share of ASEAN households
in each income bracket
MALAYSIA
39%
INDONESIA
90%
Sources: IHS Automotive; companies
...AND NEED MORE HOUSES
ASEAN needs an estimated $7 trillion in
infrastructure, housing, and real estate
0.5
investment to support growth
Required infrastructure and real estate
investment, 2014-301
$ trillion
7.0
0.7
0.7
0.7
0.8
0.9
2.7
Residential 3.1
real estate
Commercial
real estate 0.5
Telecom 0.6
Water 0.6
Power 1.0
Transport 1.2
Indonesia Philippines Thailand Malaysia Singapore Vietnam Others
2
Total
Source: McKinsey Report: Understanding ASEAN: Seven things you need to know
2013
rank
BABY DIAPERS
2013
rank
1
Manila
1
Bangkok
2
Ho Chi Minh City
2
2
Bangkok
2
Manila
5
Manila
3
3
Ho Chi Minh City
4
Singapore
1
Bandung
9
4
Cebu
7
Jakarta
3
Hanoi
7
5
Jakarta
3
Kuala Lumpur
4
Tangerang
15
6
Bien Hoa
14
Khon Kaen
10
Bekasi
11
7
Kuala Lumpur
6
Ho Chi Minh City
6
Jakarta
1
8
Singapore
5
Bien Hoa
24
Cebu
19
9
Hanoi
10
George Town
7
Bangkok
4
10
Davao
9
Bandung
14
Cagayan de Oro
35
11
Bandung
19
Chiang Mai
13
Bogor
18
12
Vung Tau
12
Nakhon Ratchasima
11
Kuala Lumpur
5
13
Cagayan de Oro
22
Johor Bahru
9
Singapore
6
14
Khon Kaen
11
Surabaya
12
Hai Phong
16
15
Chiang Mai
15
Chiang Rai
19
Malang
40
DETERGENT
2013
rank
FACIAL MOISTURIZER
Sources: AC Nielsen; national statistics offices; McKinsey Global Institute Cityscope database; McKinsey Global Growth Compass; McKinsey Global Institute analysis
Sources: McKinsey Report: Understanding ASEAN: Seven things you need to know
The ASEAN opportunity: ASEAN Urbanisation
NEARLY 40%
of ASEAN’s GDP growth through 2025 is expected to come from
142 cities with populations between 200,000 and 5 million.
By 2030 in ASEAN
The “consuming class” will expand to 163 million households
McKinsey
#aseanCAP10 / 21
LOCATION
LOCATION
LOCATION
Movement of skilled Labour will be a necessity for development. An opportunity for businesses and industry.
And an opportunity for personal growth of individuals.
ASEAN
NAFTA
European
Union
ASEAN cities will experience
enriching urban migration.
Population of USA’s 50 biggest cities
48,456,425
61,150,848
ASEAN
Population of ASEAN’s 50 biggest cities
87,829,832
600million people in 10 countries.
THAT MAKES US BIGGER THAN
EU
NAFTA
#aseanCAP10 / 22
507.4million people in 28 countries.
474million people in 3 countries.
Cities between
2 million – 5 million
people expected to grow at
Cities with
more than 5 million
people expected to grow at
There will be 160 cities with a population
of 200,000 to 750,000 And 11 cities with a
population of 5 million or more.
(currently there are only 4)
Cities between
200,000 – 750,000
people expected to grow at
Cities between
750,000 – 2 million
people expected to grow at
5.1% 5.4% 6.1% 6.5%
The Travelling
Consumer
As a combined region,
World’s Top 20 Airport Growth 2003 to 2013
Total passengers enplaned and deplaned, passengers in transit counted
once ACI Traffic Data: World airports ranking by total passengers
2003
2013
60%
60%
ASEAN is the world’s
3 LARGEST
rd
in number of flights, domestically
and internationally.
50%
40%
32%
30%
30%
17%
20%
20%
16%
10%
And 50% of arrivals in ASEAN countries
are from other ASEAN countries.
10%
Economist Intelligence Unit 2014
3%
0%
0%
7%
6%
0%
ASEAN CHINA/HKG
Connecting is easy:
EU
D&T
JAPAN
USA
When an Indonesian is opening his office in
Jakarta, it’s still only 10am for a Philippino.
an Indonesian
Maximum time difference
between capital cities is
only 1.5 hours.
a Philippino
9:00am
10:00am
McKinsey
ASEAN cities will house 45% of the total
population and generate 76% of the
region’s GDP.
McKinsey
Four of the world’s Top 20
bussiest airports are in ASEAN
RANK
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
AIRPORT
ATLANTA (ATL)
BEIJING (PEK)
LONDON (LHR)
TOKYO (HND)
CHICAGO
LOS ANGELES (LAX)
DUBAI (DXB)
PARIS (CDG)
DALLAS/FT WORTH AIRPORT (DEW)
JAKARTA, ID (CGK)
HONG KONG (HKG)
FRANKFURT/MAIN (FR)
SINGAPORE (SIN)
AMSTERDAM (AMS)
DENVER (DEN)
GUANGHOU, CN (CAN)
BANGKOK (BKK)
ISTANBUL, TR (IST)
NEW YORK (JFK)
KUALA LUMPUR, MY (KUL)
vs.
2013
94,431,224
83,712,355
72,368,061
68,906,509
66,777,161
66,667,619
66,431,533
62,052,917
60,470,507
60,137,347
59,588,081
58,036,948
53,726,087
52,569,200
52,556,359
52,420,262
51,363,451
51,304,654
50,423,765
47,498,127
When a Californian is opening his office
a New Yorker is about to go to lunch.
a Californian
9:00am
a New Yorker
12:00pm
We share the same weather
You can depend on the weather being much the same wherever you go.
Average temperatures across ASEAN differ by only 2%.
Ave Ann Temp
Annual Rainfall
2016
1755
1498
Population of EU’s 50 biggest cities
By 2030 in ASEAN
2366
2150
2909
2681
1806
28
28
28
27
27
Bangkok
Manila
Jakarta
Singapore Kuala
Lumpur
28
27
Brunei
Darusalam
Yangon
28
Ho Chi Minh
1649
26
Vientiane
1407
28
Phnom Pen
You never have to carry an overcoat.
But you should always take an umbrella.
We like getting to know each other:
45%* of tourists in ASEAN countries
come from other ASEAN countries.
*In 2012, 45 percent or 39 million out of 89 million tourists in ASEAN member-states were from other ASEAN countries
THOUGHT
FOR TODAY
Are you a
multi-nation
ASEAN company?
DEFINITION: A mindset that thinks of
ASEAN as multiple markets with
multiple business operations.
Either is ok.
Just #beASEAN.
Or an ASEAN
multinational
company?
DEFINITION: A mindset that thinks
of ASEAN as a single marketplace
with multiple opportunities.
ASEAN Exchanges, a collaboration of the seven ASEAN
exchanges from Indonesia, Malaysia, the Philippines,
Singapore, Thailand and Vietnam, was formalised in 2011
to promote the growth of the ASEAN capital market by
driving cross-border collaboration, streamlining access to
ASEAN, creating ASEAN centric products and implementing targeted promotional initiatives.
25
companies
21
companies
20
companies
17
The goal of the collaboration is to bring more ASEAN
investment opportunities to more people as well as
enhance liquidity amongst members of the collaboration.
17
companies
companies
Indonesia
Philippines
ASEAN Exchanges have a combined market capitalisation
of approximately USD2,900 billion and more than 3,600
companies listed on their exchanges.
ASEAN Grown Investment
Banks Strong Competitors
Against the Large Global
Players in ASEAN
Equity Capital Markets (USD'Mil)
Maybank
7.5%
1,862
CIMB
7.5%
1,855
Credit Suisse
6.8%
1,693
JPMorgan
6.6%
1,654
UBS
6.4%
BoA Merrill Lynch
6.1%
RHB Capital
4.6%
1,596
1,508
1,146
976
DBS
3.9%
HSBC
3.6%
905
Bangkok Bank
3.5%
879
Debt Capital Markets2 (USD'Mil)
HSBC
10.3%
CIMB
8.3%
Standard Chartered
7.0%
Maybank
6.3%
DBS
5.4%
Deutsche
4.3%
11,213
9,093
7,619
6,821
5,915
4,698
Citi
3.9%
4,236
BoA Merrill Lynch
3.9%
4,224
Goldman Sachs
3.4%
3,705
RHB Capital
3.3%
3,632
Note: Figures are for ASEAN FY2014, sourced from Dealogic on 20 Jan 2015 & ranked according to
completed deal value, 2DCM ranking excludes syndicated loans
#aseanCAP10 / 24
Where will you find
the ASEAN top 100
companies?
Malaysia
Thailand
Singapore
Source: Bloomberg 6 February 2015
And Where will you find the
Global Top 100 companies?
COUNTRY
NO.
United States
United Kingdom
China
Switzerland
Germany
France
Australia
Japan
South Korea
Brazil
Spain
Hong Kong
Canada
Belgium
Netherlands
Denmark
Ireland
Taiwan
Russia
Saudi Arabia
Italy
Norway
Colombia
47
8
7
3
6
5
4
2
1
2
2
1
2
1
1
1
1
1
1
1
1
1
1
Source: PWC - Global Top 100 companies by market capitalisation - March 2014 update.
#aseanCAP10 / 25
ASEAN IS FAST
BECOMING A
SINGLE MARKET
Share of companies that have a strategy oriented around the
ASEAN region (% of respondents)
90
80
70
Free flow
of goods
60
55
05.
30
20
10
0
All
companies
Non-ASEAN
companies
ASEAN
companies
Source: Economist Corporate Network
‘
‘
#aseanCAP10 / 26
2,500
1,500
1,000
500
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
02.
ASEAN Single Market
and Production Base
Free flow of
services
Within the single market and production
base are five core elements:
03.
Free flow
of skilled
labour
Companies should not wait until ASEAN governments finish fulfilling
their 2015 goals. Southeast Asia has become a region that few global
companies can afford to ignore.
Boston Consulting Group
2,000
Beginning of AFTA
(ASEAN Free Trade Agreement)
01.
75.9
40
Beginning of AFTA (ASEAN Free Trade Agreement)
Total Trade 430
Extra-ASEAN 348
Intra-ASEAN 82
Beginning of ATIGA
(ASEAN Trade in Goods Agreement)
Source: ASEAN Trade Statistics Database, as of 24 July 2014
80.9
50
in billion US$
3,000
Beginning of ATIGA (ASEAN Trade in Goods Agreement)
Total Trade 2,512
Extra-ASEAN 1,932
Intra-ASEAN 609
FOR DOING BUSINESS.
ASEAN companies are not yet taking
ASEAN as seriously as the rest of
the world.
AEC is further bringing
down barriers to
intra-regional trade
04.
Freer flow of capital
Free flow of
investment
FOR ASEAN MULTINATIONALS
THE OPPORTUNITY IS NOW
WORKFORCE GROWTH (2015-2020)
The ASEAN
Demographic
A Key Global
Advantage
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
-2.0%
-4.0%
-6.0%
Thanks to the Asian
baby boom, ASEAN
countries have some
of the highest workforce
growth in the world.
ASEAN is the 7th largest economy in the world
• Projected to grow to the world 4th largest economy by 2030.
• ASEAN remains resilient to global economic shocks and experienced
much lower volatility in economic growth since 2000 than the Euporean Union
• Saving levels have also remained fairly steady since 2005, at about a third of GDP
ASEAN has experienced rapid growth and relative stability since 2000
GDP 2013,
current prices
$ trillion
Real GDP growth,
2000-13
%
United States 16.8
China
9.3
Japan
4.9
Germany
3.6
France
2.7
United Kingdom 2.5
ASEAN
2.4
Brazil
2.2
Russia
2.1
Italy
2.1
India
1.9
Canada
1.8
China
India
ASEAN
Russia
Brazil
Canada
United States
United Kingdom
Germany
France
Japan
Italy
GDP growth,
volatility 2000-131
%
10.0
7.0
5.1
4.4
3.2
1.9
1.8
1.5
1.1
1.0
0.8
0.0
Russia
India
United Kingdom
Italy
Germany
Japan
Brazil
China
United States
Canada
France
ASEAN
PH
MY
IN
ID
Asia CN
AU
NOTE: PH - Philippines
MY - Malaysia
IN - Indonesia
ID - India
CN - China
AU - Australia
UK
US
UK - United Kingdom
US - United States
HK - Hong Kong
HK
TH
SG
KR
EU
JP
TH - Thailand
SG - Singapore
KR - Korea
EU - Europe
JP - Japan
120, 000
ASEAN
overtakes China
80, 000
60, 000
40, 000
0
7
ASEAN account for
13.95% of country weight
MSCI Asia Pacific ex-Japan - Country weight 2015
6.46
Australia
China
Hong Kong
India
Indonesia
Malaysia
New Zealand
Philippines
Singapore
South Korea
Taiwan
Thailand
6.76
4
3
1
0
1.4
Russia
1.76
2.2
Japan European Brazil
Union
2.58
USA
ASEAN
7.0
6.5
6.5
2.8
2.3
2.1
1.7
1.5
1.5
1.4
1.1
0.6
20, 000
Source: Credit Suisse, Statistics Dept Malaysia
COUNTRY
1.64
India
Russia
Brazil
ASEAN
Germany
United Kingdom
China
United States
Canada
Italy
France
Japan
100, 000
(real GDP) 2013 to 2018 (%)
2
243.2
132.5
104.5
93.9
90.1
89.1
78.1
66.7
66.3
46.7
22.4
13.4
ASEAN is a magnet for Foreign Direct Investment
Trend rate of annual
economic growth
5.64
Japan
Italy
United States
France
United Kingdom
Canada
Germany
India
Brazil
ASEAN
China
Russia
140, 000
2003
2004
2005
2006
2007
India
China
Source: Economist Intelligence Unit
Source: MSCI
WEIGHT
22.23%
20.66%
9.92%
7.11%
2.52%
3.24%
0.47%
1.26%
4.62%
13.90%
11.76%
2.31%
2008
2009
China
Source: UNCTAD
5
4.2
2.4
2.3
2.3
2.3
2.2
2.2
1.8
1.7
1.7
1.6
1.5
Inflationrate, 2013
GDP deflator,
%
1
Standard deviation of GDP growth rate.
Source: IHS; World economic outlook, international Monatary Fund, April 2014; McKinsey Global Institute analysis
MGI ASEAN Report, November 2014
-20, 000
6
Share of debt
to GDP, 2013
%
2010
ASEAN
2011
2012
2013
India
Japan
ASEAN, as a single market,
is a major world economy
The combined economies
of ASEAN make it a major
economic power
T: Nominal GDP in
Trillion USD
India
$ 1,842 T
Japan
ASEAN
$ 5,960 T
China
USA
EU
$ 16,245 T
$ 16,584 T
$ 8,227 T
$ 2,323 T
Source: 2012 World Bank data and indexmundi for Myanmar data
Highly rated for
Ease of Doing Business
COUNTRY
SINGAPORE
MALAYSIA
THAILAND
VIETNAM
PHILIPPINES
BRUNEI
INDONESIA
CAMBODIA
LAO PDR
MYANMAR
RANK
1
18
26
78
95
101
114
135
148
177
SCORE
88.27
78.83
75.27
64.42
62.08
61.26
59.15
55.33
51.45
43.55
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
-
NAFTA
EU
ASEAN
CHINA
INDIA
Source: World Banking Group. Doing Business 2014
#aseanCAP10 / 28
#aseanCAP10 / 29
When you think of ASEAN
‘
Is ASEAN integration
important to helping
your company do
business in the region?
One of the main reasons for
having a pan-ASEAN focus is
to attract management talent.
Individually, one country in
ASEAN might only be worth
USS50m to USS100m, and
it’s hard to attract top talent
for a business of that size.
But if you put all the
economies together then
the region becomes
much more interesting.
‘
Yes
94%
82%
82%
77%
86%
78%
65%
23%
18%
Brunei
36%
22%
18%
Cambodia Indonesia
Are your customers across
ASEAN becoming more similar
or more differentiated?
(% of respondents)
70
Loas
30%
17%
14%
Malaysia
Myanmar Philippines Singapore
Thailand
64.4%
60
50
40
40
62.3%
30
30
27.4%
20
20
10
8.2%
More
differentiated
No
change
More
similar
Vietnam
Are your products and services
across ASEAN becoming more
similar or more differentiated?
(% of respondents)
50
0
22%
70
60
10
70%
64%
6%
ASEAN
83%
78%
35%
Satish Shankar, managing partner,
South-east Asia,at Bain & Co,
a strategy consultancy
ASEAN is
becoming
a more
homogeneous
marketplace
No
0
18.5%
19.2%
More
differentiated
No
change
More
similar
ASEAN
MARKET CAP,
AS A SINGLE
ENTITY, IS
THE WORLD’S
7TH LARGEST.
Number of
Companies1
2010
Company
revenue
$ billion
Average
revenue
per company
$ billion
15,221
2,123
1 United States
7,347
1,028
2 Japan
6,208
674
3 China
463
4 Germany
3,729
358
5 United Kingdom
2,818
236
6 Japan
227
ASEAN²
3,075
1,068
7.2
7.1
9.2
8.1
7.9
13.0
4.7
7 Australia
203
960
4,7
8 Canada
194
1,071
5.5
9 Italy
179
1,149
6.4
10 Russia
165
924
5.6
11 India
158
898
5.7
12 South Korea
151
1,398
9.3
13 Switzerland
140
1,308
9.3
23 Singapore
64
343
5.4
28 Thailand
51
259
5.1
31 Malaysia
40
193
4.8
36 Indonesia
33
136
4.1
43 Vietnam
20
90
4.5
44 Phillipines
19
47
2.5
¹ Data only for headquaters of companies with more than $1 billion revenue in 2010.
² Association of the Southeast Asian Nations.
Source: McKinsey Global Institute Cityscope database; McKinsey Global Institute analysis
Corporate
Governance Watch
Market Rankings 2014
RANK
MARKET
1
Hong Kong
1
Singapore
3
4
Japan
Malaysia
4
Thailand
6
Taiwan
7
India
8
9
Korea
10
Philippines
10
Indonesia
China
Source: ASIAN CORPORATE GOVERNANCE ASSOCIATION
Source: Economist Corporate Network
#aseanCAP10 / 30
#aseanCAP10 / 31
DISRUPTIVE TECH
THE PRODUCTIVITY
GAME-CHANGER
Mobile Internet
Big data
Internet of Things
Five related technologies that can
•
Modernise sectors
across the economy
•
Large value is at stake for many
companies that move quickly to digitize.
Disruptive technologies could produce
$220 billion to $625 billion
Automation of
knowledge work
DISRUPTIVE TECH AT
WORK IN AN URBAN
TRANSIT NETWORK
The Automation of
Knowledge Work
can take the
required action,
without any
human
intervention
McKinsey & Company
McKinsey’s experience in Asia
suggests that individual banks could
boost profits by up to 48% by utilizing
technology to improve frontline
productivity, reduce operating and
credit costs, and target customer
segments more accurately.
Disruptive technologies have significant
potential across key sectors in ASEAN economies
220-625
Potential annual economic impact in ASEAN1
15-33
$ billion, 2030
20-53
in 2030
2the to
5 times
current GDP of ASEAN’s IT
and IT-enabled services sector
1 These estimates do not represent GDP or market size (revenue), but rather economic potential,
including consumer surplus.
See the technical appendix for further explanation.
#aseanCAP10 / 32
25-45
36-53
47-74
28-74
InfraFinancial
structure services2
Education
Manufac- Agriculturing
ture
Health
care
Govern- Consumer
ment
and retail
services
In the next 10 years
40% of all S&P 500
companies will disappear
from this list.
EXPONENTIAL
ORGANIZATIONS
The average lifespan
of an S&P 500 company
has decreased from:
67 years (1920’s)
to 15 years (today).
7-39
24-48
The potential economic impact for
ASEAN in 2030 is equivalent to
4-12%
of ASEAN GDP
Big Data analytics to synthesis
information so that
The Cloud, where it is
aggregated for use by
‘
in annual economic impact for
Southeast Asia by 2030.
The Mobile
Internet
transmitting
data to
Cloud
Drive major productivity
improments
‘
The Internet of Things
tracks train movements
in real time, made possible by
Other
Total
sectors3
The average half life of a
business competency has
dropped from 30 year in
1984 to 5 years in 2014.
89% of the Fortune 500
companies from 1955 are
not on the list in 2014.
Source: (2014) EXPONENTIAL ORGANIZATION by SALIM ISMAIL with YURI VAN GEEST and MICHAEL S. MALONE
2 Includes $17 billion - $52 billion of sector-related impact from sector-related effects such as greater financial inclusion.
3 Additional sectors represent 25-30 percent of ASEAN’s total GDP. Impact estimate based on top-down estimate of disruptive technologies.
Source: McKinsey Global Institute analysis
#aseanCAP10 / 33
The rapid connection of
600 million people.
· The mobile internet
is rapidly expanding
THE NEW DIGITAL
ENTERPRISE
· Workforce mobility
drives connectedness
Create an
aggregator
for
finding
online
outlets
People (2010)
Country
Goods
Services
Financial
Germany
3
5
7
5
2
2
Hong Kong, China
1
4
3
14
n/a
3
United States
8
9
5
1
7
4
Singapore
2
3
4
18
5
5
United Kingdom
13
6
9
7
3
6
Netherlands
6
7
15
29
1
7
France
9
10
36
15
4
8
Canada
16
22
13
9
18
Rank of participation by flow as
measured by flow intensity and
share of world total
=9
Russia
19
30
16
2
21
=9
ITALY
11
20
31
16
10
4
Singapore
2
3
4
18
5
Connectivity index rank
18
Malaysia
10
23
34
26
32
36
Thailand
12
19
27
94
56
45
Philippines
53
45
47
52
54
26 - 50
48
Vietnam
25
56
41
90
58
56
Indonesia
31
49
39
113
65
51+
91
Cambodia
81
82
59
109
104
1
2
Techonology adoption in ASEAN is increasing rapidly
Million users, 2013
Internet
users
1,216
623
267
888
189
162
110
103
ASEAN Japan
Brazil
715
China
274
Internet users
16
compound annual
growth rate, 2008-13%
China
Mobile users
15
compound annual
growth rate, 2008-13%
India
22
ASEAN United
States
14
5
United
States
India
3
30
16
3
61
40
10
88
69
66
58
Russia Germany Nigeria United
Kingdom
18
1
22
4
32
25
25
23
248
141
Brazil
Russia
12
6
132
125
113
Japan Pakistan Nigeria Bangladesh
6
8
gains of
the fashion
attention brands
1
A fashionista creates
a fresh blogging idea
2
6
And pay for visibility
7
Which create a following
The blogger creates an
aggregator for finding online
outlets for featured fashion
3
Which turns the fashionista
into a fashion influencer
4
Which gains the
attention of fashion brands
8
Which
create a following
proliferate:
The revenue streams
9
The blogger now needs
a larger space than
her bedroom
· Advertising revenue
· Sales commissions
· Public appearance fees
· Payment for brand mentions
· etc, etc.
5
10
That supply free products
And she’s only 16
RACH PARCELL
SAMMI GRIGSBY
CHIARA FERRAGNI
SHINI PARK
Parcell, 24, lives in Salt Lake
City, where she has a million
dollar income from her blogging
business. She uses
rewardStyle, an invite-only web
tool bloggers integrate on to
their sites. Every time a sale is
made through her blog, Parcell
receives up to 20 per cent
commission. Last year, this
accounted for $960,000 of her
income, putting her at the top
end of international blogging
earners, alongside the likes of
Song of Style’s Aimee Song,
who charges $50,000 for a TV
appearance.
With almost 1.5 million YouTube
channel subscribers and more
than 400,000 Instagram
followers, London-based
Grigsby’s blog has caught the
eye of brands such as DKNY and
Clinique, who supply her with
products to endorse in posts.
According to Runar Reistrup,
the 25 year-old is also a high
earner on his site – the items
she uploads tend to sell out
within 24 hours. YouTube
statistics website Social Blade
puts her earnings from YouTube
alone at about £5,000 a month.
Italian blogger Ferragni, 27,
uses her blog to pay for travel by
documenting the clothes she
wears and the hotels she stays
in. She sells the clothes she
features, such as Celine and
Balenciaga, through direct links,
rewardStyle and Depop. On
Depop her account has more
than a million followers, so she
has formed a partnership with
the business, which now
distributes the goods she sells
through the app. However, about
70 per cent of her €6 million
revenue comes from her Chiara
Ferragni footwear line, as well
as high-end brand
collaborations.
Her blog attracts 6,000 hits per
day, but Park, 27, is also a
photographer, runs a website
design company and has
published a book, Adorn: 25 DIY
Stylish Fashion Projects. “It is a
mass public-facing creative
agency,” says London-based
Park. “In most cases brands get
in touch with an idea.” She
charges a scale of fees: a bundle
including blogposts and
appearances costs £20,000,
whereas a social-media plug is
£450. Her monthly income is
between £6,000 and £10,000,
and is highest during peak
seasons such as Christmas.
PINKPEONIES.COM
351
!
PAY
Index calculations use migrants data for people flows and cross-border internet traffic for data and communication flows.
Brunei, Laos, and Mynmar are not included due to data limitations.
SOURCE: Comtrade: IHS, World Trade Organization: Telegeography: World Bank: McKinsey Global Institute analysis
Mobile
users
Turns the
FASHIONISTA into a
FASHION INFLUENCER
for visibility
ASEAN2
11 - 25
FREE
Data and
Communication
(2013)
1
1 - 10
following
for
featured
fashion
NEED
MORE SPACE
Rank
MGI Connectedness Index and
overall flows data, 20121
· Advertising revenue
· Sales commissions
· Public appearance fees
· Payment for brand
mentions, etc, etc.
BLOG
· Smartphones are
· Social networking
becoming more affordable eliminates distance
Five ASEAN countries
rank among the world’s
50 most connected nations
The revenue
streams proliferate:
15
20
SOURCE: Comtrade: IHS, World Trade Organization: Telegeography: World Bank: McKinsey Global Institute analysis
Facebook
users
163
China
Facebook users
4
compound annual
growth rate, 2012-13%
125
67
United
States
India
20
39
ASEAN Japan
33
19
32
Brazil
6
Russia Germany Nigeria United
Kingdom
3
4
6
BEAUTYCRUSH.CO.UK
THEBLONDESALAD.COM
PARKANDCUBE.COM
6
Re-published from WIRED 02/15
#aseanCAP10 / 35
QUICK
ASEAN
CONNECTED FACTS
110% 25%
ASEAN mobile penetration
ASEAN internet penetration
16% 4 HIGHEST
Internet users increasing at
Singapore has world’s
TH
ANNUALLY
SMARTPHONE PENETRATION
282
100
MILLION
MILLION INTERNET USERS BY 2016
Indonesia has
...and is expected to have
mobile subscriptions
ASEAN is the
WORLD’S SECOND-LARGEST
FACEBOOK USERS
community of
Source: McKinsey & Company, Understanding ASEAN: Seven things you need to know
, behind only United States.
#beASEAN
Connect with us via Social Media and
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Mobile penetration
rates in Vietnam,
Laos, and Cambodia
went from less than
5% to
MORE THAN
70%
in less than a decade.
#aseanCAP10 / 37