Key Takeaways 2018: ASEAN And The World
While technology such as the Internet of Things and artificial intelligence has made the world market economy efficient, it threatens to disrupt industries across the board. Automation could replace 40% of global jobs by 2034. In Singapore, the GRAB-Uber-Comfort episode showed that change is inevitable.
Singapore’s developed economy, like other countries worldwide, has faced a growth slowdown. The government responded by launching programs, such as the Adapt and Grow scheme. The initiative has helped displaced workers learn new skills to be more employable and relevant. Adapt and Grow helped more than 24,000 workers find new jobs in 2017.
The world economy is looking toward ASEAN for significant development, with Indonesia and Philippines forecast to grow most. In 2013, the ASEAN-5 cumulatively received FDI $128.4B, compared to China’s $117.6B. Indonesia is poised to continue strong expansion in 2018 with increased foreign direct investment, infrastructure spending and improvements in the manufacturing sector along with a strengthening domestic demand.
The Philippines, traditionally a United States ally, is looking to new partners like China and Russia to explore opportunities to grow its military and in the South-China Sea, potential oil and gas exploration. These actions send a clear signal to Washington, as the United States pursues protectionist domestic policies while taking a step back as the free world’s leader.
China’s economy is facing growth saturation and is moving away from government spending, state-owned enterprises, low-cost exports to private investments, business innovation and domestic consumption. Under Xi Jinping’s “Made in China 2025” plan, technology, big data, aircraft engines, clean cars are a priority.
Some effects of global politics, social stratification, and the changing economic environment threaten to destabilize our planet. However, Roser’s chart shows that we are living through the most peaceful times in over 600 years. With rapid social, scientific and technological advances, there is hope for mankind and our planet.
The rise of nationalism and the anti-globalization wave is clear. Recent developments in the United States, China, Spain (Catalonia) and most recently Malaysia (GE 14), show that citizens strongly wish to change the status quo. For any government, the key is to strike a balance between sustainable development of their human capital, the economic bottom-line and international commerce.
