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  • Investments In Southeast Asia Are An Unmatched Safe Haven 0 comments
    Aug 17, 2013 2:17 AM

    Singapore has been recovering well from the slow growth and high inflation rates that the nation has been facing since a while now. In fact the economic growth of this country is showing good signs of growth due to the growth in its manufacturing sector.

    Investors finding good potential portfolios to invest in don't see Europe as a good platform of investment in recent times due to the crisis occurring in the euro zone. The low growth of the American economy too does not seem to draw the attention of the potential investors as well. Moving on further to the Far East … the nuclear disasters of Japan have pulled down the markets of the country in terms of foreign investment and sadly the Japanese economy is facing another phase of zero growth. All eyes of the potential investors roll towards the island economy of South Asia. Strangely one of the richest countries in the world is grossly overlooked by the American investors even though it appeals to be the best option for venturing into good investment prospects. The city -state is the hub of business activity and trade and has a GDP (NYSE:PPP) per capita of over $ 59,000, placing itself in the third position.

    Let's face the fact that this robust economy is a fine example for the most developed ones of the globe. Despite the fact that it does not have a good population force or a good reserve of natural resources. It still stands tall and concrete. Singapore does not have competitive neighbors and the trade across the borders is not a very motivational one.

    It has actually banked in on its educated and erudite workforce. The island country serves as a major air and sea port, with its development in the sectors of electronics and oil refineries. The economy has put maximum welfare to a path oriented export driven economy. Its government policies, regulations and strong peoples political trust has been extremely result oriented, reasoning the inflow of investments from foreign investors especially in the ASEAN ETF. The tourism industry has been developing at a speedy rate, as this country happens to be a favorite among the tourist destinations. It has a lot to offer for its tourism packages with safety as the most important criteria.

    Singapore's Ministry of Trade and Industry has submitted a 15.2% growth rate of GDP on a quarterly basis. The last two years have been a boon for the economy. The unemployment percentage is at an all time low of just 1.9% in the first quarter of the year 2013, and an impressive low inflation rate of just 1.6%. Of all the original ASEAN Member countries, the most vital business hub of the region the South East Asia, offers business protection and assures security.

    The five original ASEAN members joined hands to initialize free trade and build a competitive economic co-ordination among themselves, which later expanded in to a South East Asia trade bloc stretching its hands further and included Singapore, Malaysia, Vietnam, Cambodia, Laos, Thailand, Malaysia, Philippines, Burma, East Timor, Brunei and Indonesia in to the group.

    As per the countries percentile ratio of the holdings of this particular ETF, Singapore has the highest stake at 36.67%, followed by Malaysia and Indonesia at 25.24% and 18.43%. The rest of the percentile is completed with Thailand and Philippines which together hold 19.59% of the Fund.

    According to the economists the major emphasis on Domestic private consumption is the driver of the growth rate of this part of the world. The consumer sector and the financial services sector are the strongest holders of the M & A activities.

    Global X ASEAN 40 Index ETF [ASEA] provides an access to forty of the largest companies among the five original ASEAN members (Indonesia, Philippines, Malaysia, Thailand and Singapore) which have the most liquid states and stand tough in the Southeast Asian ETF along with the Thailand ETF. The ASEAN ETF delivers as per the performance of the name sake benchmark and charges at an annual fee of 65% from the fund issuers.

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