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This analysis examines the political and economic risks in Southeast Asia, focusing on key countries such as the Philippines, Vietnam, Indonesia, Thailand, Malaysia, and Singapore. We explore each country’s political stability, economic growth rates, GDP, corruption levels, and the influence of government on business decisions. The Philippines faces very high political risk with significant economic challenges, while Singapore stands out for its low risk and stable economy. This report provides insights into the complexities of doing business in the region.
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Southeast Asia Brendan, Usama, Gary and Vishal
Southeast Asia • Thailand • Vietnam • Malaysia • Indonesia • Philippines • Singapore • GDP • Population, • Size, • Political & Economic Risk • Corruption • Government influence, Regional Stability
The Philippines Political Risk: Very High Flawed Republic Type, Unitary State (past dictatorship) Low political stability, high government involvement Terrorism, Domestic riots, security issues Economic Risk: HIGH GDP Total: $324.4 Billion Growth Rate decrease from 3.8 % to 0.9% One Third of Population is under working age (15) Potential Corruption 134th out of 178 countries based on corruption
Vietnam Political Risk: Very High Communist State Government is a huge factor when making Business decisions Strong Opposition to Privatization Economic Risk: High Very Weak Currency (Dong, VND) GDP total: $ 256.9 Billion Very Poor Population Potential Corruption 116th out of 178 based on corruption
Indonesia Political Risk: High • Republic with a presidential system • Government is a huge factor when making Business decisions • Major reforms in government Economic Risk: High • No corporate law protecting investors • Economic instability, 7.8% of the population was living below the poverty line • Natural Disasters • Potential Corruption • 110th out of 178 based on corruption
Thailand Political Risk: Moderate • Prime Minister of Thailand is Abhisit Vejjajiva • Political uncertainty is a large issue faced by Thailand as the country remains divided politically Economic Risk: Moderate • GDP Total: 539.871 billion • 24th largest economy in the world • Economy is dependent on agricultural exports • Economic growth is expected fall sharply as the demand for exports decreases Potential Corruption • Thailand ranks 78th out of 178 based on corruption
Malaysia Political Risk: Moderate • Prime Minister of Malaysia is Najib Tun Razak • Government has been implementing plans that allow for more clearness in public contracts, fewer government subsidies, less government involvement in various economic sectors, and increased foreign participation Economic Risk: Moderate • GDP Total: $403.042 billion • 30th largest economy in the world • Main exports of Malaysia are electronics, oil and gas • The Malaysian economy become a regional manufacturing center, services provider and financial center Potential Corruption • Malaysia is ranked 56th out of 178 countries in terms of corruption
Singapore Political Risk: Low • Critical part of the worlds trading system • Very Conservation government system • English common-law judicial system Economic Risk: Low • Fast growing economy • Large flow of financial resources. • Stable currency • Well Diversified economy Potential Corruption • Singapore is ranked 1 out of 178 countries in terms of corruption
Conclusion Spectrum One side the Philippines The other Singapore • Economic Growth • Resilient Economy • Well-Diversified • Politics • High rate of change • Low predictability • High level of corruption • Politically and economically instability