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Part 1/4Welcome to the Asian Century

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“If you were smart in 1807 you moved to London,

if you were smart in 1907 you moved to New York City,

and if you are smart in 2007 you move to Asia.”

- Jim Rogers

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AcknowledgementsGo follow the people featured in this 4 part report

to learn more about why #AsiaMatters

@grahamdbrown@michaelwaitze@casey_lau@gloomboomdoom@tonyverb@garrett_geoff@moodyrain@sbabones@ukinburma@pingroma@McKinseyChina@anu_china@airlinequality@david_drvr@sgblank@kaifulee@pomeranian99@StartUp_AB@faldesai@tvmohandaspai@jamesgiancotti@mobikeflo@joshsteimle

@visionthing@yourchinaguy@michaeltegos@JLLResearch@vlauria@chakraberty@jonrussell@startupgenome@mikaalabdulla@benjaminjoffe@ikkai_app@waltersimmx@taispy@ginnyeckblad@williambaobean@AGraylin@gimmeausername@JeromeNSC@gregdomo@tianglim@betabay@noktonlux

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@asiatechpod@harpremd@charlesdhaussy@tspouplin@sartorialsingh@alexduncan@bobgallagheruk@kepios@BrookingsInst@BartBellers@nutonomy@rosieperper@dunneautomotive@OutOnALumb@yueyueyuewang@the_finlab@vuulr_official@mukeshbubna@collectionist@iam_preethi@michellekatics@jonathanwoetzel

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The world is going to wake up one day and ask,

“when did that happen?”

“…how come nobody told me about this?”

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This is that story told in 4 parts…

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Starting here

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What’s in Part 1/4?

Part 1/4: Welcome to The Asian Century

A 4 Part Presentation available for free from >> AsiaTechPodcast.com/AsiaMatters <<

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Megacities, Infrastructure and Vision: the engines of Asia’s miraculous economic growth.

You’re readingthis part

now

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Part 2/4: Evolving Startup Ecosystems

What’s in Part 2/4?A 4 Part Presentation available for free from

>> AsiaTechPodcast.com/AsiaMatters <<

Megacities, Infrastructure and Vision: the engines of Asia’s miraculous economic growth.

Get parts 2,3 & 4 from our website

FREE

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Part 3/4: The New Home of Entrepreneurship

What’s in Part 3/4?A 4 Part Presentation available for free from

>> AsiaTechPodcast.com/AsiaMatters <<

Megacities, Infrastructure and Vision: the engines of Asia’s miraculous economic growth.

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Part 4/4: The Deep Tech & Digital Frontier

What’s in Part 4/4?A 4 Part Presentation available for free from

>> AsiaTechPodcast.com/AsiaMatters <<

Megacities, Infrastructure and Vision: the engines of Asia’s miraculous economic growth.

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The Asian Century

So, let’s get started with

Part 1…

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Asia awakens

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First… some random facts

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… the number US buildings listed in the world’s top 10 tallest by 2020

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you can click me

0

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… the number of economies *outside* Asia that will make up the “Big 5” in 2050

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1

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… Number of years left until China becomes the world’s biggest economy

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2

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… Revenue of ride-hailing apps in South East Asia in $US billions (2017)

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5

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… the number of years younger the average Indonesian is than the average American (28 vs 38)

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10

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… % of females engaged in entrepreneurship in emerging markets (vs US 10%)

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13

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… Number of planned Chinese buildings that will be taller than One World Trade Center

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15

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… the number of years left until the Indonesian economy overtakes the UK

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22

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… the % of Vietnamese company board members who are women

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30

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… Chinese e-commerce as a % of global market

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53

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% of the world’s middle class living in Asia by 2030

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66

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… % of all the world’s consumer electronics that had some component built in Shenzhen China

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80

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… % of Filipinos surveyed who said “Globalization is a force for good”

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85

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… % of the world’s top 10 largest shopping malls located in Asia

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100

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… number hours more American entrepreneurs spend filing taxes every year compared to Singapore

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101

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… % growth in financing for startups in Asia last year

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117

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… Infrastructure spend in BILLIONS $US on China’s One Belt One Road project

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5000

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… Average cost of heart bypass in Thailand in $ (comparison $130,000 US)

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11000

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and finally…

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25,386,927,848 … Alibaba sales (in $US) on one day in 2017

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That was Singles Day (11/11) when transactions

peaked at

325,000 per second

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“This is the Asian Century.

The region is changing faster than arguably anywhere at any time in history, and innovation is at the heart of this transformation.”

- Casey Lau ATP ATP ATP ATP

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Shift happens…

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Take a fresh look at the world map…

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There are more people living inside this circle than outside it…

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4 of the World’s 5 Biggest Economies in 2050 will be inside

that red circle

JP11

ID15

IN64

US71

CN106

Economy GDP $US Trillions 2050

SOURCE: ASIA TECH PODCAST BASED ON ECONOMISTINTELLIGENCE UNIT DATA 2017

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This is a story of massive growth, not witnessed for generations…

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It’s a sea-change creating unprecedented levels of capital concentration

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Building out a tech future with or without Silicon Valley

…and a new generation of entrepreneurs emboldened with confidence

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…building out a future with or without Silicon Valley

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This is the story of why Asia matters…

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…and the story starts here

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Megacities

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Megacities are the engine of Asia’s economic growth

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“I don’t see why in the future China wouldn’t have 15-20 Silicon Valleys”

- Jonathan Woetzel, Director McKinsey Global

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“15-20 Silicon Valleys…”

…and that’s just China

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Megacity Population Growth 2011-2025

Shan

ghai

New

Del

hi

Dha

ka

Mum

baiK

arac

hi

Kol

kata

Mex

ico

City

New

Yor

k

Man

ila

Sao

Paol

o

LA

B.A

ires

Toky

oATP ATP ATP ATP

Megacity Popn Growth

SOURCE: ASIA TECH PODCAST BASED ON OXFORD ECONOMICS DATA 2016

New Delhi

Shanghai

Dhaka

Mumbai

Beijing

Karachi

Calcutta

Mexico City

New York

Manila

Sao Paulo

Los Angeles

Buenos Aires

Tokyo +2 mn

+2 mn

+3 mn

+3 mn

+4 mn

+4 mn

+5 mn

+5 mn

+6 mn

+7 mn

+7 mn

+8 mn

+8 mn

+10 mn

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The Evolution of Asian Megacities is a Virtuous Cycle

Demog

raph

ic

Advan

tage Com

petitive

Advantage

Wea

lth

Creat

ion

Influx of Talent

Phase 1: large numbers of young rural migrants

move to cities

Phase 1: local business gains significant scale

economies from cheap labor

Phase 1: evolving middle class invest

money in assets

Phase 1: wealth attracts Phase 2 of

skilled migrants from other cities

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New York Harbin Jinan Nanjing Shantou Changzhou Xian Hangzhou Tianjin ChongqingChengdu Wuhan Shenzhen Beijing GuangzhouShanghai

34 mn

25 mn 25 mn 23 mn

18.5 mn 17.5 mn 16.5 mn 15.5 mn 13.5 mn 13 mn 13 mn 12.5 mn 12 mn 11 mn 10.5 mn

8.5 mn

In China, there are 15 cities bigger than New York

SOURCE: ASIA TECH PODCAST BASED ON OECD DATA 2017

population (millions)

… most of them you’ve never heard of

NEW YORK

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Guangzhou? What?

SOURCE: ASIA TECH PODCAST BASED ON GOOGLE DATA 2018

Google Trends search data by regionRed: most people searched “New York”

Blue: most people searched “Guangzhou”

NEW YORK GUANGZHOU

8.5m 25m

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“The political or cultural dominance or authority over others. e.g. The hegemony of the popular kids over

the other students means that they determine what is and is not cool. Hegemony comes from the Greek

hegemon ‘leader.’"

Hegemonyhow do you pronounce this? (click here)

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“What the heck Let’s go to Asia”

“There are real opportunities here in Asia”

“You’re missing out if you’re not in Asia”

Pioneers Opportunists FollowersASIA:

The frontierASIA:

The next big thing

ASIA:The de facto

1980 -1999 2000 - 2019 2020 -

Cultural Acceptance of Asia by “The West”

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…so, back to Guangzhou

Allow me to bring you up to speed…

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Guangzhou ChinaPopulation: 25 million

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The city will grow by another 5 million in 10 years

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Guangzhou’s new eco Parc Central - a “stadium for retail”

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…it even has its own opera house

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…just one of many Megacities in Asia. Here’s a selection…

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Jakarta IndonesiaPopulation: 9.6 million

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In this 4 part report we’ll learn how new Indonesian startups like GoJek are transforming Jakarta’s traffic challenges…

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Shanghai ChinaPopulation: 34 million

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In this 4 part report we’ll learn how new startup accelerators are transforming Shanghai into a world-leading hub for entrepreneurship

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SingaporeRanked #3 GDP Per Capita in World

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In this 4 part report we’ll learn how Singapore is evolving into a world-leading centre of excellence for deep tech

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Ho Chi Minh City, VietnamPopulation: 8.4 million

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In this 4 part report we’ll learn how Ho Chi Minh City is home to a high growth economy of optimistic, world-facing entrepreneurs

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Tokyo, Japan#1 World’s Most Liveable City (Monocle)

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In this 4 part report we’ll learn how Tokyo is bidding to become a world leader in cryptocurrency

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Kuala Lumpur, Malaysia4th Best City, Expat Ranking 2017

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In this 4 part report we’ll learn how Kuala Lumpur is reinventing itself as a hub for entrepreneurs by slashing red tape

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Beijing, ChinaPopulation: 25 million

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In this 4 part report we’ll learn about Beijing’s rise to become of one of the leading startup ecosystems in the world.

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Taipei, TaiwanPopulation: 2.7 million

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In this 4 part report we’ll learn how Taipei aims to reignite its economy by building a leading startup hub in Asia.

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Bangkok,ThailandPopulation: 8.3 million

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In this 4 part report we’ll learn how Bangkok has become the home to a growing industry servicing Asia’s rapidly expanding middle classes.

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Shenzhen, ChinaPopulation: 23 million

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In this 4 part report we’ll learn about Shenzhen’s meteoric rise to become one of the world’s leading business centres.

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Hong Kong#1 Economic Freedom 14 years in a row

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In this 4 part report we’ll learn how Hong Kong continues to lead the world in terms of economic and entrepreneurial freedom.

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Chengdu, ChinaPopulation: 17.5 million

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In this 4 part report we’ll learn how Chinese megacities like Chengdu are investing heavily unbecoming their own “Silicon Valley” of Asia

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Wuhan, ChinaPopulation: 18.5 million

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In this 4 part report we’ll learn how China is establishing itself as a world leader in education, building centres of excellence in cities like Wuhan

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…and we haven’t even talked about…

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Tianjin, ChinaPopulation: 15.5 million

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Chongqing, ChinaPopulation: 16.5 million

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Seoul, South KoreaPopulation: 9.8 million

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…to name just one of the 50 Megacities in Asia >5 million population capable of becoming

world-leading startup ecosystems in their own

right

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…and we haven’t even got to India, Philippines, Myanmar yet

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Megacity GDP Growth

SOURCE: ASIA TECH PODCAST BASED ON OXFORD ECONOMICS DATA 2016

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Megacities Drive Asian Economic Growth

DelhiChennaiMumbai

HyderabadKolkata

BangaloreHCMCTianjinBeijing

GuangzhouShanghai

ShenzhenManilaJakarta

Kuala LumpurSingaporeBangkok

Hong KongTokyo 1 %

2.4 % 3 % 3 %

5 % 5.7 %

6.4 % 6 % 6.2 % 6.2 % 6.3 % 6.4 %

7.9 % 6.5 % 6.6 %

7.1 % 7.3 % 7.5 %

8.1 %

GDP Growth for top Asia Pacific Cities to 2021 (CAGR%)

{{{The 6 fastest

growing Megacity economies

are all in India

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New

Yor

k $5

73bn

Shan

ghai

$48

1bn

Tia

njin

$41

0bn

Beiji

ng $

390b

n

Los A

ngel

es $

342b

n

Gua

ngzh

ou $

335b

n

Shen

zhen

$33

3bn

Lond

on $

312b

n

Cho

ngqi

ng $

283bSu

zhou

$25

9 bn

Toky

o $2

44bn

Jaka

rta

$232

b

SOURCE: OXFORD ECONOMICS 2016

Megacity GDP 2030

Wealth concentration

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“Asia's three billion-strong population will have a profound effect on the world.

Today's richest cities and clusters of wealth are unlikely to retain their exalted positions in the future.”

- Marc Faber

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Here’s one “wealth cluster” that will change

the hegemony…

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The Greater Bay

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Imagine connecting London, NY, Chicago, LA, Toronto and San Francisco…

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$1.3 trillion Greater Bay area, twice as valuable as San Francisco

…that would still be only half the population of the proposed Greater Bay megacity in China

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“The Greater Bay is 66 million people and US$1.3 trillion GDP. It’s not happening anywhere else in the world, and it won’t happen anywhere else. It’s a once-in-a-lifetime process.”

~ Tony Verb

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$44,000

$69,000

$31,000

$10,000$20,000

$7,000

$17,000$14,400

$8,000$19,000

$12,000

$57,500$39,900

$38,900

USAUK

JP

Comparison of GDP per capita in Greater Bay Cities with leading economies

SOURCE: ASIA TECH PODCAST BASED ONWORLD BANK FIGURES 2016

A Vision to Connect 11 High Growth Megacities

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…that bridge. We’ll come back to that later

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“With the successful implementation of the Belt and Road Initiative and the further integration of Bay area, Hong Kong has the potential to become a top global city on par with New York and London”

- Colliers Report: Greater Bay Area in New Development Context 2017ATP ATP ATP ATP

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Bay Area City Comparisons

SOURCE: ASIA TECH PODCAST BASED ON OECD DATA 2017

GD

P ($

bill

ions

)

0

500

1000

1500

2000

Popu

latio

n (m

illio

ns)

0

20

40

60

80

Greater Bay Tokyo San Francisco

PopulationGDP

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“The notion of a Greater Bay Area is no coincidence; it signifies

the Chinese government’s ambitions to create an innovation

economy that is “greater” than that around San Francisco Bay.”

- Geoffrey Garrett, Wharton Dean

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If The Chinese Greater Bay GDP Caught up with SF Bay…

SOURCE: ASIA TECH PODCAST BASED ON OECD DATA 2017

GD

P (T

rilli

on D

olla

rs)

0

2

4

6

8

Greater Bay Japan Germany UK France

…it would be bigger than 4 of the world’s 6 largest economies today

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…and we’re only just getting started

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GDP Growth

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What was once a game of Asia’s economic “catch-up” has now become one of leaving “the West” behind

ASIATECHPODCAST#asiamatters

0

20,000

40,000

60,000

80,000

100,000

2010 2017 2024

18,799bn

19,450bn

22,368bn

17,506bn

21,727bn

25,855bn

10,574bn

28,446bn

40,109bn

Asia USA Europe

Asia Is the World’s Largest Economic Region

SOURCE: ASIA TECH PODCAST BASED ON OECD DATA 2018

Total GDP in ($US Billions) 2010-2024 & Asia’s % of the “Big 3” Economic Regions (Asia, USA, Europe)

Asia leads the “Big 3”

22%

41%45%

$7 Trilliondifference

$14 Trilliondifference

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South AsiaAsia Pacific

Southeast AsiaEast Asia

CaribbeanNorth Africa

Central AmericaAfrica

Aus NZMiddle EastEast Europe

EuropeNorth America

West HemisphereWest Europe

South America 1.6 %

1.8 %

2.2 %

2.2 %

2 %

2.4 %

2.8 %

2.9 %

3.7 %

3.9 %

4.1 %

4.4 %

5.1 %

5.1 %

5.4 %

7.1 %

SOURCE: INTERNATIONAL MONETARY FUND 2018

Asia Leads World GDP Growth in 2018

all Asia

the “West”

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China will Become the World’s Biggest Economy in 2020

0

12500

25000

37500

50000

2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

ChinaUSA

SOURCE: ASIA TECH PODCAST BASED ON OECD DATA 2018

The “Tipping Point”? $13 Trilliondifference

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Shift happens…

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0%

5%

10%

15%

20%

25%

30%

2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

China USA

China GDP as a % ofworld GDP

SOURCE: ASIA TECH PODCAST BASED ON OECD DATA 2018

USA

ChinaUSA

China

2000 2050

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If there’s one lesson to learn from history it’s this: change is a constant

Chinese dominance American dominance

2025

?

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But it seems the general public needs to learn a little geography before we get onto history lessons

are you serious?

ASIATECHPODCAST#asiamatters

The New Tigers

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As China Slows, 8 High Growth Frontier Markets Pick Up Speed

ASIATECHPODCAST#asiamatters

Myanmar Laos Cambodia Philippines Vietnam Indonesia Malaysia Thailand Singapore USA Japan

0.7%

2.3% 2.6%

3.5%

4.8% 5.3%

6.3% 6.7% 6.6%

6.9% 7.6%

SOURCE: INTERNATIONAL MONETARY FUND 2018

Asian Emerging Markets Driving Economic Growth

Asian emerging market group

Growth in GDP (CAGR %) 2017

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Spotlight: MyanmarFastest growing economy in the world (7.6% CAGR). Growth rates last seen in the US in the “Boom” 1984 (7.3%)

Population of 52.9 million, larger than Spain, described in economic terms as the “Next Thailand”

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“Myanmar is a country where 52 million consumers are coming online overnight…

…and no one knows anything about them”

- Rita Nguyen, Jzoo Myanmar ATP ATP ATP ATP

ASIATECHPODCAST#asiamatters

ASIATECHPODCAST#asiamatters

SOURCE: INTERNATIONAL MONETARY FUND 2018

Asian Markets Catching UpFast on “The West”

Vietnam India China PhilippinesThailand Indonesia UK USA

1.6 x 1.7 x

2.6 x 2.6 x 2.9 x 2.9 x

4 x

4.5 x Asian emerging

markets inc China

Total growth of economy (GDP $US) from 2017-2050

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Spotlight: VietnamEconomy will grow 4.5x in the next 30 years. Growth touted as “China 11 years ago”.

Most optimistic country; people most open to globalisation as a force for good.

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“As China's growth is inevitably slowing as it reaches the top of the world's middle-income bracket,

Vietnam's growth seems to be accelerating as it breaks into the lower ranks of middle-income countries.”

- Forbes 9 Nov 2017

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Spotlight: Indonesia

250 million people, 4th most populous country in the world. Will be world’s 4th biggest economy in 2050.

Home to one of the world’s youngest populations, with highest Twitter user base by city (Jakarta)

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Indonesia Will Eclipse the UK in the next 20 years

0

1000

2000

3000

4000

5000

6000

7000

2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

IndonesiaUK

SOURCE: ASIA TECH PODCAST BASED ON OECD DATA 2018

Now

In 20 yrs

Indonesia vs The UK: GDP $US Trillion 2000-2050

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Vision

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Why build walls when you can build roads?

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“Hailed by Xi as a ‘project of the century,’ the plan fits into his bigger narrative that China is setting an example of globalization, filling the void left by the US under Donald Trump’s ‘America First’ policy.”

- Zheping Huang, Quartz 15 May 2017

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$5 Trillion of Infrastructure will be built… (PWC Report 2017)

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“One Belt One Road is a very ambitious covering about 65 percent of the world’s population, about one-third of the world’s GDP, and about a quarter of all the goods and services the world moves.”

- Kevin Sneader, Chairman McKinsey Asia

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“One Belt One Road is a serious long-term geo-economic strategy that will potentially shift the global economic centre of gravity”

- Jane Golley, Australian National University

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…and while they’re busy connecting that road, Asia keeps on building

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A Guide to the World’s Tallest Buildings 2020

The US doesn’t even make the top 10

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Suzhou Zhongnan Financial Center, China729 metres

One World Trade Centre, New York USA

541 metres

The Zhongnan Financial Center in China will open 2020

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The Shanghai Tower632 metres

One World Trade Centre, New York USA

541 metres

The Shanghai Tower in China opened in 2014

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Nowhere else in the world is the scale and velocity of change so tangible as in Asia…

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Left: Hong Kong Harbour (then & now)Right: Kuala Lumpur (then & now)

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Shanghai:(L) 34 years ago vs (R) 4 years ago

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Shenzhen Skyline 2020

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World Class Infrastructure

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Airports, trains and internet…This is where Asia kicks ass

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World’s Top 5 Airports#1 Singapore Changi SIN#2 Tokyo Haneda HND#3 Seoul Incheon ICN#4 Munich MUC#5 Hong Kong HKGSource: Skytrax 2017

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Internet,AirportsTrains…

This is how it should be. We entrepreneurs just want to get stuff done

South Korea

Hong Kong

Singapore

Japan

USA 18.7 Mbps

20.2 Mbps

20.3 Mbps

21.9 Mbps

28.6 Mbps

SOURCE: AKAMAI 2017

ASIATECHPODCAST

Comparable Internet SpeedsDownload Speeds: MBps per second

#asiamatters

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Where else in the world can you buy a Prepaid 4G SIM with 100Gig Data for $11 US?

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“Thailand has first world infrastructure – the internet speeds are much higher than Australia for instance – public transport and accommodation is of a good standard.”

- David Henderson, Drvr ATP ATP ATP ATP

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…and then there’s the trains

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Average travel time from Fukuoka city centre to airport: 12 minutes!

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Guangzhou Shanghai Beijing

19

16

10

4 5 5

SOURCE: FORBES 2017

Number of Lines 2006-2016

The Growth of Mass Transit Subway Lines in China

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+100%

+220%

+475%

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Contrary to popular belief, the Great Wall of China is not visible from space.

…the only traces of mankind visible from space are airports, harbours and train lines.

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What kind of future do you want to be part of: one that spends billions building walls between us ?…

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…or one that spends billions connecting us?

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Picture: Hong Kong to Macau bridge,

the world’s longest bridge (due to open 2018)

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Part 2/4: Evolving Startup Ecosystems

NOW GET PART 2…A 4 Part Presentation available for free from

>> AsiaTechPodcast.com/AsiaMatters <<

Megacities, Infrastructure and Vision: the engines of Asia’s miraculous economic growth.

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Graham D BrownReport Author

Thanks for reading part 1 of this 4 part report. To learn more about what we do, check out Asia Tech Podcast on the next slide and why #AsiaMatters

Tweet me feedback, insights, thoughts, ideas, quotes, love, flames

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The Entrepreneur The Venture Capitalist

Graham D Brown is an entrepreneur, published author with 15 years experience in mobile telecommunications and investor based in Tokyo. After exiting his telecoms business, he retired at 40, and has spent the last 5 years traveling world with family. As a former financial advisor and startup CEO, Graham now advises founders on their growth strategy. Graham is also an endurance athlete & Ironman triathlon finisher.

Michael I Waitze is one of South East Asia's best known private equity investors and advisors. Michael is a limited partner at Ardent Capital, based in Bangkok. He is a former senior trader with 25 years experience at Goldman Sachs, Morgan Stanley, Deutsche Bank, Macquarie, Citigroup and UBS Securities. Michael is now an active startup mentor, angel investor and advisor to VC funds across South East Asia.

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