JEC COMPOSITES MAGAZINE - Issue #70 - January/February 2012 - 71

by attracting investments in Islamic finance, high technology industries, biotechnology and services. The Najib administration is also continuing efforts to boost domestic demand and reduce the economy’s dependence on exports. Nevertheless, exports – particularly of electronics, oil and gas, palm oil and rubber – remain a significant driver of the economy. As an oil and gas exporter, Malaysia has profited from higher world energy prices, although the rising cost of domestic gasoline and diesel fuel, combined with strained government finances, has forced Kuala Lumpur to start reducing government subsidies. The government is also trying to lessen its dependence on state oil producer Petronas, which supplies more than 40% of government revenue. The central bank maintains healthy foreign exchange reserves and its well-developed regulatory regime has limited Malaysia’s exposure to riskier financial instruments and the global financial crisis. However, decreasing worldwide demand for consumer goods hurt Malaysia’s exports and economic growth in 2009, although both showed signs of recovery in 2010. Philippine GDP grew 7.3% in 2010, spurred by consumer demand, a rebound in exports and investments and election-related spending. The economy weathered the 200809 global recession better than its regional peers due to minimal exposure to troubled international securities, lower dependence on exports, relatively resilient domestic

consumption, large remittances from four to five million overseas Filipino workers, and a growing business process outsourcing industry. Economic growth in the Philippines averaged 4.5% during the Macapagal-Arroyo administration. The Aquino administration is working to reduce the government deficit from 3.9% of GDP, when it took office, to 2% of GDP by 2013. The government has had little difficulty issuing debt both locally and internationally to finance the deficits. Aquino’s first budget emphasizes education, health, conditional cash transfers for the poor and other social spending programmes, relying on the private sector to finance important infrastructure projects. The Aquino administration has vowed to focus on improving tax collection efficiency – rather than imposing new taxes – as a part of its good governance platform. Singapore has a highly developed and successful free-market economy. It enjoys a remarkably open environment, stable prices and a per capita GDP higher than that of most developed countries. The economy depends heavily on exports, particularly in consumer electronics, information technology products, pharmaceuticals, and on a growing financial services sector. Real GDP growth averaged 7.1% between 2004 and 2007. The economy contracted 1.3% in 2009 as a result of the global financial crisis, but rebounded nearly 14.7% in 2010, on the strength of renewed exports. Over the longer term, the government hopes to establish

Singapore, at the forefront of architectural innovation

a new growth path that focuses on raising productivity, which has sunk to 1% growth per year in the last decade. Singapore has attracted major investments in pharmaceuticals and medical technology production and will continue efforts to establish itself as Southeast Asia’s financial and high-tech hub. Thailand: With a well-developed infrastructure, a freeenterprise economy, generally pro-investment policies and strong export industries, Thailand enjoyed solid growth from 2000 to 2007 – averaging more than 4% per year – as it recovered from the Asian financial crisis of 1997-98. Thai exports – mostly machinery and electronic components, agricultural commodities, and jewellery – continue to drive the economy, accounting for more than half of GDP. The global financial crisis of 200809 severely cut Thailand’s exports, with most sectors experiencing double-digit

drops. In 2009, the economy contracted 2.2%. In 2010, Thailand’s economy expanded 7.6%, its fastest pace since 1995, as exports rebounded from their depressed 2009 level. Anti-government protests during March-May 2010 and the country’s polarized political situation had – at most – a temporary impact on business and consumer confidence. Although tourism was hit hard during the protests, its quick recovery helped boost consumer confidence to new highs. Moreover, business and investor sentiment remained buoyant as Thailand’s stock market grew almost 5% during the three-month period. Vietnam is a densely-populated developing country that in the last 30 years has had to recover from the ravages of war. While Vietnam’s economy remains dominated by state-owned enterprises (SOEs), which still produce about 40% of GDP, Vietnamese authorities have

No70 January - February 2012 /

jec composites magazine 71

JEC COMPOSITES MAGAZINE - Issue #70 - January/February 2012

Table of Contents for the Digital Edition of JEC COMPOSITES MAGAZINE - Issue #70 - January/February 2012