Emerging Markets: Cambodia, Malaysia, Laos are they still growing?
Emerging markets have been key players for companies to penetrate and expand their markets. Recently, Cambodia, Malaysia, and Laos have been growing exponentially over the past decade. At the moment, we are finally seeing a decrease in expansion in these areas. Are these markets slowing down? Is there a need for concern?
The short answer is no, and here is why. (From a speculative point of view)
Typically, an emerging market shows an exponential increase of projects, companies, and investors moving into an area. At the prime of the emerging market, money will be moving to every corner of the most profitable area. This is where is gets tough. As soon as investors find the return they are looking for, they will start to recede one by one. Eventually, the emerging market will be left with nothing left but not when the following occurs.
The following reasons are why these emerging markets will shine.
1) Infrastructure and new policies will have been created and set in place.
For many companies, the lack of infrastructure scares them away due to the cost to reach its consumers. During a boom, once infrastructure is created it will allow many companies to funnel into the economy. For many, this is an exciting time because it will lead into a second economic boom. You can expect new major construction projects to take place.
2) The Second Boom
The second boom is an interesting topic. Some economies obtain it while most will suffer. Typically, the second boom is reliant on foreign company involvement with the local population. These companies will develop the marketing in the area by hiring the locals to be their representatives. By using the locals, you will not only just connect the company to the locals, you will connect the locals to the rest of the world leading for more economic development in the area.
3) After the Second Boom, the stabilizing economy will create more local competition which will result in more construction projects.
For a country to grow, you need competition to propel both the local and international market forth. With the end of a second boom, construction projects will occur in order to reach the new demand of consumer and investors.
Therefore if you are investing in these areas, the time to grab a foothold should be more enticing now than ever before.