In fact, many countries in Asean have come a long way in the past few decades, with development and progress giving rise to a huge consumer base with good purchasing power.
Management consulting firm McKinsey & Company estimates that by 2025, some 125 million households in Asean will fall into the “consuming class”, which it defines as households with an annual income of US$7,500 and above.
Already, some 227 of the world’s largest companies are based in Asean, and it’s understandable why more companies would be looking to get a foothold in the region.
“This is exactly what Selangor is aiming to be, the gateway to Asean,” Selangor executive councillor Teng Chang Khim said in a recent interview with FMT.
Teng said Selangor was the ideal location for companies looking to penetrate the Asean market, given the state’s well-developed infrastructure, strategic location and huge talent pool.
“We are home to the Melaka Straits, one of the world’s most important maritime routes, as well as Port Klang, the largest port in the country, and this gives us a unique edge over others in the region.”
Selangor, Teng said, is also an excellent logistics hub due to its good infrastructure and track record in international transportation and logistics.
He added that Selangor’s 3.3 million highly skilled and multilingual workforce and output of 40,000 graduates per annum are testament to the state’s continuous talent development programmes.
“So from a geographical, infrastructure and human capital perspective, we’re a great place to start for any company that is looking to make inroads in this part of the world,” he said.
Teng said state government agency, Invest Selangor, was also a big plus for prospective investors.
“Invest Selangor, as a free-of-charge consultant for new investors, provides them with information, suggestions and services, and links investors to other state and federal government agencies.”
He added that Invest Selangor didn’t just wait for investors to come to the state but also sent out investment missions to search for prospective investors in various industries.
To this end, Teng said that Invest Selangor is spearheading specialised councils in four areas – information technology (IT) and e-commerce, aerospace, bio and halal clusters – to further develop these new industries.
He said the initiatives of these councils include three dedicated aerospace sites in Selangor, where over 62% of aerospace activities, including maintenance, repair and overhaul (MRO) and logistics assembly, take place.
Others include the Selangor Digital Creative Centre which provides mentoring and guidance services besides hosting seminars and networking opportunities.
There is also the massive Selangor Bio Bay, which will be a centre for research institutes, laboratories and biotech-related manufacturing activities, as well as the Halal International Selangor initiative which services the needs of consumers, retailers, traders, distributors and manufacturers.
Teng said the Selangor International Expo had in recent years positioned the state as a global trading hub.
“This year, we’ll be holding a 10-day Selangor International Business Summit (SIBS 2017), which the Selangor International Expo 2017 is a part of.
“Aside from the Selangor International Expo 2017, the summit will also include the Selangor-Asean Business Conference and the Selangor Smart City & Future Commerce Convention 2017,” he said, adding that the summit will be held from Sept 7 to 17 at the Setia City Convention Centre (SCCC), Shah Alam.
Teng said the two-day Selangor-Asean Business Conference would feature international speakers and cover the five core industry clusters that have been identified to steer Selangor’s growth –electrical and electronics, machinery and equipment, transport equipment, food and beverage and life sciences — with focus given to industries such as aerospace, food and beverage, life sciences and biotechnology.
Teng said he was confident that the Selangor-Asean Business Conference would be the perfect way to showcase what Selangor had to offer for investors with an eye on Asean.