ME.A Compass 2016

Understand. Expand. Grow Asia.

fully updated

Asia-Paci�c in Your Pocket

3rd edition

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ME.A Compass 2016

Notice

This is an excerpt only from our ME.A Compass 2016.

You can order your personal electronic copy here:

www.me-a.com/compass

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ME.A Compass 2016

ForewordZurich / Kuala Lumpur, January 2016

Dear Reader

Welcome to the third edition of our ME.A Compass. We have updatedmore than 2’500 indicators for the 19 countries in Asia-Pac covered withthe latest available data for you.2015 has been a stormy year for the region. The Renminbi devaluationfollowed by the meltdown of the Shanghai stock exchange in August sentshock waves around the globe. Chinese turmoil exacerbated thedownward pressure on Asian currencies some of which plummeted morethan 20 per cent against the US dollar.Yet, despite all negative headlines the region remains a global economicpowerhouse. On average the 19 countries are expected to grow 4.9 percent 2016-2020 per year compared to 3.8 per cent projected for the worldeconomy.With our ME.A Compass 2016 we encourage you to chart this fascinatingand challenging territory. Use this comprehensive compendium, discoverAsia and make it the pocket reference of choice for your commercialendeavours in the region.Warm regardsDr. Christoph WalserFounding Director

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The bottom line – key insights

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Asia’s near-term growth outlook has been marked down slightly but it continues to outperform other world regions.

Growth in Asia-Pac will be spurred by regional integration (ASEAN Economic Community) and a burgeoning middle class.

Southeast Asia together with India are the engines of growth creating attractive opportunities for SMEs to tap into.

Yet, significant downside risks to a certain extent qualify the overall positive outlook. Increased volatility calls for robust risk management in place.

Asian markets are not homogeneous and each requires a differentiated entry strategy.

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§ ME.A is a market expansion services firm offering client advice and support to smalland medium-sized enterprises on markets and market entries in Asia.

§ We give our customers access to Asian market insights, showing them in-roads intonew geographies and help them grow their business in Asia successfully.

§ With our offices in Switzerland and in Malaysia we speak your language and aredeeply rooted in Asia able to leverage our expertise to your best advantage.

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Country Profiles

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ME.A Compass 2016

ME.A Compass covers 19 countries across Asia-Pacific

Note: Cut-off date for all data is 01.12.2015. No updates considered after this date.

AustraliaCambodiaChinaHong KongIndiaIndonesiaJapanLaosMacauMalaysiaMyanmarNew ZealandPhilippinesSingaporeSouth KoreaSri LankaTaiwanThailandVietnam

Afghanistan

United Arab Emirates

Australia

Bangladesh

Bahrain

Brunei

Bhutan

China

Coral Sea Is.

Fiji

Micronesia

Guam

Hong Kong

Indonesia

India

Indian Ocean Ter.

Br. Indian Ocean Ter.

Iran

Japan

Baikonur

Siachen Glacier

Kazakhstan

Kyrgyzstan

Cambodia

Korea

Laos

Sri Lanka

Macau

Maldives

Marshall Is.

Myanmar

Mongolia

N. Mariana Is.

Mauritius

Malaysia

New Caledonia

Norfolk Island

Nepal

Nauru

New Zealand

Oman

Pakistan

Spratly Is.

Philippines

Palau

Papua New Guinea

Dem. Rep. Korea

Qatar

Scarborough Reef

Singapore

Solomon Is.

Seychelles

Thailand

TajikistanTurkmenistan

Timor-LesteTuvalu

Taiw

an

Uzbekistan

Vietnam

Vanuatu

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10.4 11.212.8

14.115.4

16.6

2009 2010 2011 2012 2013 2014

Cambodia

Population (2015): 15.7mnPop. Growth1: 1.7%

Currency: RielCurrency Code: KHR

Key cities:§ Phnom Penh (1.2mn)§ Siem Reap (0.2mn)§ Battambang (0.1mn)

Languages: Khmer, French, English

KHMGDP (USD bn)2

Real GDP CAGR 2009-2014: 7.0%Real GDP CAGR 2016-2020: 7.2%

Income

§ Per capita GDP (2014): USD 1'067

§ Per capita GDP PPP (2014)3: ID 3'267

§ Big Mac Index (2015): n.a.

Taxes & interest

§ Indirect tax (2015): 10.0%

§ Corporate tax (2015): 20.0%

§ Personal income tax (2015): 20.0%

§ Interest rate (07.2015): 1.42%

Structure of the economy(2013, % of GDP)

ExpenditureHousehol d consumption 79.0General gover nment consumption 5.9Gross capital formation 18.8Expor t of goods and services 61.2Import of goods and services 65.5Roundi ng error 0.5

OutputAgricultur e, hunting, for estry , fishi ng 33.5Industry 25.6Services 40.8

Inflation, unemployment & labour productivity

Year 2010 2011 2012 2013 2014

§ Inflation4 (%) 3.1 4.9 2.5 4.7 1.0

§ Unemployment (%) 0.4 0.2 0.2 0.3 n.a.

§ Labour productivity (2014)5: USD 3'419, AV: USD 26'416 , Max: USD 82'010 SGP,

Min: USD 3'419 KHM6

Currency performance (USD against KHR, base 01.01.2010 = 100)

90

95

100

105

110

01.10 07.10 01.11 07.11 01.12 07.12 01.13 07.13 01.14 07.14 01.15 07.15

USD/KHR (30.11.2015): 3'971.33

Labour force by sector

33%

26%

41%

Agriculture

Industry

Services

Ratings

Economic Freedom (2015)

2012

Minimumfreedom

Maximumfreedom

0 10058

Country risk (2015)7

Maximumrisk

Minimumrisk

0 10041

Corruption Perception Index (2015)

Highlycorrupt

Veryclean

0 10021

B2

Moody's (2015)

Sources: US Census Bureau, citypopulation.de, IMF World Economic Outlook, The Economist, The Conference Board, KPMG, Central Banks, Heritage Foundation, Economist Intelligence Unit, Transparency International, Moody's, Trading Economics, World Bank Databank

Notes: 1. CAGR 2009-2015; 2. GDP at current prices and current exchange rates, growth rates refer to annual percentage change of constant price GDP (source: IMF WEO 10.2015); 3. GDP per capita based on purchasing power parity (PPP). PPP GDP is gross domestic product converted to international dollars using purchasing power parity rates. An international dollar has the same purchasing power over GDP as the U.S. dollar has in the United States. 4. Based on Consumer Price Inflation (CPI); 5. GDP per person employed in 2013 USD at 2005 PPP; 6. Average across all 19 countries reported; 7. EIU country risk indicator adapted

fast

Outlook

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§ Fixed broad band subscriptions10: 0.2%

§ Internet users: 9.0%

§ Mobile telephone subscriptions: 155.1%1.0 0.5 0.0 0.5 1.0

0-4

15-19

30-34

45-49

60-64

75-79

>90

Cambodia

Sources: IFC, World Economic Forum, US Census Bureau, Population Reference Bureau, CIA World Factbook, World Bank, World Bank Global Findex, ITU

Notes: 1. Based on global sample of 189 economies benchmarked; 2. Average rank of all countries covered in this report; 3. Quintiles based on rankings of countries covered in this report; 4. Number of infants dying out of 1'000 new borns; 5. Life expectancy at birth in years; 6. Logistics Performance Index (LPI) provides qualitative evaluations of 160 countries globally; 7. Account at a formal financial institution % age 15+; 8. Credit cards % age 15+; 9. Number of ATMs per 100k adults; 10. Fixed (wired) broad band subscriptions

Ease of doing business (2016)

Overall ranking

2016: 127

2015: 133

01234567

Institutions

Infrastructure

Macroeconomic environment

Health and primary education

Higher education and training

Goods market efficiency

Labor market efficiency

Financial market development

Technological readiness

Market size

Business sophistication

Innovation

KHM Average

Global competitiveness (2015-6)

Overall ranking

Asia-Pac position3 Asia-Pac position3

Socio-demographics

Age pyramid (2015)

Logistics

2014: 83

2012: 101

LPI ranking6

LPI score (2014)

Financial inclusion (2011)

§ Account at a formal financial institution7: 3.7%

§ Credit card8: 0.1%

§ Automated teller machines (ATMs)9: 5.1

Communication access (2014)

Topquintile

Bottomquintile

Topquintile

Bottomquintile

Millions

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1Poor

2.7 5Excellent

Topic Rank1 Average2

1. Starting a business 180 89

2. Dealing with construction permits 181 62

3. Getting electricity 145 55

4. Registering property 121 72

5. Getting credit 15 57

6. Protecting investors 111 67

7. Paying taxes 95 87

8. Trading across borders 98 81

9. Enforcing contracts 174 78

10. Resolving insolvency 82 65

2015-6: 90

2014-5: 95

Social development

§ Urbanization (2015): 21%

§ Infant mortality4 (2015): 50.0

§ Life expectancy5 (2015): 64.1

§ Literacy rate (2014): 74%

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Country ComparisonCountry Comparison

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Per Capita Income

Country GDP per capita at PPP, 20141

Cambodia 3'276

Myanmar 4'752

Laos 5'006

Vietnam 5'656

India 5'808

Philippines 6'974

Sri Lanka 10'410

Indonesia 10'651

China 13'224

Thailand 15'579

Malaysia 25'145

New Zealand 35'305

South Korea 35'379

Japan 37'519

Taiwan 46'036

Australia 46'550

Hong Kong 55'097

Singapore 83'066

Macau 139'767

Significant disparities across the region with highest earnings in city states and Australia

1. Gross domestic product at purchasing power parity per capita in International Dollars (ID). Source: IMF WEO

3'276 4'752 5'006 5'656 5'808 6'97410'410 10'651 13'224 15'579

25'145

35'305 35'379 37'519

46'036 46'550

55'097

83'066

139'767

KHM MMR LAO VNM IND PHL LKA IDN CHN THA MYS NZL KOR JPN TWN AUS HKG SGP MAC

x 4.8

x 9

Average: ID 30'800Median: ID 15'579

Per capita income (ID)

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Per Capita Income

Country GDP per capita at PPP, 20141

Australia 46'550

Cambodia 3'276

China 13'224

Hong Kong 55'097

India 5'808

Indonesia 10'651

Japan 37'519

Laos 5'006

Macau 139'767

Malaysia 25'145

Myanmar 4'752

New Zealand 35'305

Philippines 6'974

Singapore 83'066

South Korea 35'379

Sri Lanka 10'410

Taiwan 46'036

Thailand 15'579

Vietnam 5'656

Big disparity in per capita income across the region

1. Gross domestic product at purchasing power parity per capita in International Dollars (ID). Source: IMF WEO

≤ 4'000> 4'000 to 10'000> 10'000 to 20'000

GDP at PPP per capita (ID):

> 20'000 to 40'000> 40'000

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Disclaimer

This document has been prepared in good faith on the basis of information available at the date of publicationwithout any independent verification. ME.A Market Expansion Asia Ltd. (ME.A) does not guarantee or warrantthe accuracy, reliability, completeness or currency of the information in this publication nor its usefulness inachieving any purpose. Readers are responsible for assessing the relevance and accuracy of the content of thispublication. ME.A will not be liable for any loss, damage, cost or expense incurred or arising by reason of anyperson using or relying on information in this publication.

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Terms of Use

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You may redistribute this document freely on a strictly non-commercial basis only, without altering or removingany trademark, copyright, or other notice from such material.

Reproducing and republishing any material contained in this document on a strictly non-commercial basis onlyyou must make due reference to ME.A Market Expansion Asia Ltd. and ME.A Compass respectively ("Source:ME.A Compass, ME.A Market Expansion Asia Ltd.").

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Imprint

ME.A Market Expansion Asia Ltd. is incorporated under the laws of Switzerland with principal office in Zurich.The company is registered under CHE-389.270.749 in the Commercial Register of the Canton of Zurich.

Managing Director: Dr. Christoph Walser

ME.A Market Expansion Asia Ltd.Muehlebachstrasse 28008 ZurichSwitzerland

P +41-41-588 08 88F +41-41-588 08 89E info@me-a.com

The value added tax identification number of ME.A Market Expansion Asia Ltd., Zurich is CHE-389.270.749MWST.

Published by ME.A Market Expansion Asia Ltd., Zurich, Switzerland

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