Name: MPW Hong Kong: Why should you invest abroad
Uploaded: 2014-11-13
Duration: 3 min 24 s
Description: MPW Hong Kong: Why should you invest abroad

Why should I invest in India. I hear the infrastructure there is not great. Yeah. And you're right. The infrastructure does need investment. So if you're an infrastructure investor you'd better be in India. [ LAUGH ]. But you Marie's made such a good case for Indonesia and her story sounds very similar but I should just say that you can't ignore India going forward. This is by any reports you study in the next 20 years going to be amongst the 5 largest economies in the world, a growth rate which in the next [ INAUDIBLE ] by most research analysts, suggest going back to eight percent, which is where India was before the rapid dip over the last two to three years. India is also a factory to the rest of the world, if you take a bank like ours, HSBC, two thirds of the people we employ, and we have thirty five thousand. People in India are basically running the back office operations of the bank elsewhere in the world. So the services sector in India, which fortunately does not require the infrastructure Right. Which you and I just alluded to, but relies much more on the broadband and IT and telecom ,. Bandwidth of the nation. Which we have fortunately leap frog can actually be the next wave of growth. So many reasons why you could, cannot ignore a country such as ours. So Elaine, are you worried about these two women? I mean you, you've got rising production costs, rising labor costs. Well the economies forecast that at the end of this forecast that by 2030 by 203 that's 16 years from now. 60 % of China's population will live in cities that, that. That means another three hundred million people will be urbanized. If another three hundred million people could become, could join the middle class in addition to the five hundred million people today, so if you are a multi- national company, you know, you think about the opportunities and if you think about what middle class people want, you know. That's a lifestyle, of course. Cleaner air, cleaner environment Healthcare, you pointed out. Healthcare, yes. [ CROSSTALK ] The consumers would want better food, you know, more. And so, if you are in high tech industry, if you are in, in, if you are in the clean energy sector, if you provide healthcare. China has to be that country that you cannot ignore that you want to go in. In spite of the attractions of low costs of production anywhere else in South East Asia. I think Eden's right. Its no longer about production networks and global value change which was kind of the story ten years ago. It's the final goods, it's the consumer market. It's in the increased demand for lifestyle products, and so on. And just like, India, Indonesia also has infrastructure, challenges. Which, going ahead, the government already has these plans to build ports which are integrated with power plants. And industrial zones. As well as power plants. So infrastructure. Improving investment climate. Consumer demand. lifestyle. These are going to be all increasing products. And, and I would say local brands. And recent news and studies showed that in Indonesia people were showing preference for local brands compared to foreign brands. I'm very sure, yeah, that India would be the same.