The region is to pay global economic growth, supported by its technology sector.
The Asia Pacific region (APAC) will lead global economic growth over the next fifteen years thanks to several factors, some of which are already clear and some have not yet appeared. APAC growth will stem from four large -scale major trends: urbanization, communication, energy transmission, and “children’s statue” that is looming on the horizon.
This will lead to innovations in work productivity, huge investment in infrastructure with the prosperity of huge, new economic sectors flowing from green energy, and regional hyperactivity.
In general, the regional population composition is favorable, with a population dynamic that is currently characterized by the youth population and the low dependency rate for working youth who support the elderly. The Ministry of Economic and Social Affairs of the United Nations expects in the 2022 paper that APAC will grow from 4.2 billion citizens to 4.6 billion by 2040 and the region will be more than 60 % of global production, according to the World Bank report 2024.
CEDRIC CHEHAB, the chief economist in the BMI, says the multinational research company BMI is the young and old population of the region. “Another structural driver will be a significant investment in energy -generating infrastructure, trade and manufacturing.”
He adds that the increase in the population will improve productivity and increase the preparation rates. “Banking financing will continue to play an important role, but this will double through external financing through bilateral or multilateral efforts.”
At the same time, a new financial system appears based on digital assets ranging from those issued by regional central banks to digital currencies. The transition to the distinctive property in Hong Kong and Singapore has already raised the release of standard bonds and the origins of the real world and gained traction in South Korea.
The high consumption by the growing middle class will reduce the region’s dependence on exports for growth, which is a necessary dynamic with the question of the global free trade model. Regional debt is less than the global average (with noticeable exceptions to China and Japan), and local capital markets are rapidly developing in depth and development, driven by the Distributed Professor Book Technology (DLT).
This is evident, with the average real GDP growth reached 6 % in the contract to 2024, according to the Vietnamese General Statistics Office. However, the low fertility rate of 1.9 children per woman is less than an average of two in Southeast Asia, although Singapore and Thailand rates of one and Malaysia are 1.6, respectively. This provides an imminent bust, according to data from the General Statistical Office.
“The Vietnam economy is still benefiting from strong manufacturing and export activities, increasing foreign direct investment, government support, especially in improving infrastructure. We expect local growth and wealth to continue. “This increased wealth, increased digitization, and the great potential for further penetration of products through real estate loans, bonds, stocks, and insurance means that the Vietnam Banking industry still has huge growth potential.”
In contrast, the inhabitants of China, Japan, South Korea and Singapore are expected to abandon 64 million people over the next fifteen years due to age -related deaths and low fertility of the times, but they are developing new economic models based on health care, consumption, education and entertainment to act with the high dependency rate.
Tony Yang, President of CTBC Bank in Taipei, notes that there are three main negative risks to the growth of the region for the next fifteen years: excessive dependence on one market, which leads to great fluctuations in economic growth; High geopolitical risks, investment activities are likely to decrease and lead to loss of requests; And increase protectionism that does not lead to escaping from the average income trap.
Digital assets open
Hong Kong, Singapore and Japan appear as regional digital asset centers, supported by a rapidly developed regulatory framework. About 70 % of Asian institutional investors have digital assets (compared to the low 40 % in the United States and the 50 % range in Europe) according to the SBI Digital Asset Holdings report. The enlarged family offices industry in the region launches the demand for digital assets, especially in the distinctive symbol of the realistic assets (RWA).
In February 2023, the government of the Hong Kong administrative region issued the first distinctive green bond with a sovereign symbol over $ 800 million Hong Kong (about $ 103 million), offered for one year. This was followed by SAR, after a year with $ 6 billion, Hong Kong, the multiplicity of powers in the dollar in Hong Kong, Renminbe, the dollar, and the euro in the framework of the government green bond program (since the rename of the government sustainable bonds program). The deal was the largest digital bond after its release and attracted a final book for more than 50 international investors.
The merging of DLT into the international primary debt market is in an emerging stage, according to Tim Fang, head of the capital market for the largest China in Agricole CIB in Hong Kong.
“Hong Kong was a prominent leader (along with the European Investment Bank) to use Blockchain for the initial version,” says Fang. “The two transactions that the Hong Kong government brought to the market using DLT can be considered the foundations for its use by other potential exporters in sovereign and financial spaces and companies there – although the market outside the government itself is still trying DLT.”
However, many obstacles should be treated before the initial debt market version is carried out via DLT. Because of the technical and legal complications of such migration, Fang is observed, traditional participation will remain preferred in the short term.
However, APAC leads to the gradual organization of the distinctive symbol, where Julian Kwan, co -founder of RWA IX, co -founder of the RWA IX and Investax, CEO, co -founder of RWA IX and Investax and CEO of the Foundation.
Mas Investax chose the new wild investment vehicle code in Singapore, along with UBS, State Street, PWC and Tezos Corporation.
“The past eighteen months have witnessed a major shift, as an institutionalized exporter focuses on the treasury and other assets circulating to the public. This has brought legitimacy and size and suitable for the market of clear products, which leads to rapid adoption,” he added.
Last November, OCBC became the first financial institution in the country to offer symbolic bonds across its own paper, to a medium -sized manufacturer looking to diversify the treasury holdings.
“A certified or certified investor customer (with assets of $ 10 million Singapore-7.5 million dollars) can subscribe to symbols in sects of $ 1,000 Singapore, and can liquidate investments similarly in those sects to meet the requirements of cash flow, with the work of the market maker in its bonds.” “Exodus prices are determined based on market prices for the basic bonds indicated by symbolic bonds, and transactions can be sold and settled on the same day.”
As a credit proposal, symbols can be handled like the basic paper they refer to. In the event of debt restructuring, he will receive the same treatment.
“We expect an increase in the demand for distinctive securities that meet the needs of institutional investors and HNWIS (high -value individuals),” says Evi Theonis, head of digital assets at the Institutional Banking Group at DBS in Singapore. “Founding investors want the ability to quickly balance cryptocurrencies and assets that are generated in response to changing fast market conditions, without having to maintain ice.”
She adds that DBS “can see the release of more special special assets, such as private stocks, as HNWIS seeks to be exposed to the class of assets that can only be accessed to institutional investors.”
In fact, this trend was emphasized in early March when the Singapore -based Digift, a digital exchange of distinctive assets, was confirmed to provide a license to provide custody services for investment products. The company recently included a symbolic version of a 6.3 billion dollar credit fund managed by the American Asset Manager Investco.
“For investors, the main factor remains the quality of the basic assets. The symbol itself is just a way to transfer value – if the original has no value or low, the investor’s request will not follow.
