Companies Urged To Change Business Models To Fit Asean Diversity

KUALA LUMPUR, Sept 5 (Bernama) -- Companies looking to leverage on ASEAN's huge market should consider adapting their business models to fit the diversity of the region, says HSBC Malaysia. Chief Executive Officer Mukhtar Hussain said ASEAN was not an easy market to tap into due to its variety of religions, cultures and languages, political systems and economic developments. "A one-size-fits-all business approach is not a recipe for success," he said in a statement Monday. However, Mukhtar said any changes made by a company would be worth its while as the region's 620 million population was becoming an increasingly powerful source of global demand. "The region has gone from being primarily a hub for manufacturing cars, electronics and other goods to being a market for those goods, much like 'Made in ASEAN' is rapidly becoming 'Sold in ASEAN'," he said. He pointed out that the region's economy, totalling US$2.6 trillion currently, is the seventh largest in the world and could be the fourth largest by 2050. The improving infrastructure and increased connectivity including Internet access and digital banking technologies would allow tens of millions to access financial services for the first time, enabling consumption and putting a vast consumer base within the e-commerce reach of companies around the world, said Mukhtar. Malaysia, he said, would have a key role to play in the construction of the 21st Century Maritime Silk Road due to its strategic location in the centre of Southeast Asia and Straits of Malacca. "Like many economies in the world currently, ASEAN's immediate economic outlook is challenged by slowing growth in China, Brexit and the general uncertainty in Europe and volatility in the commodities market. "But ASEAN and their physical and virtual wallers represent a rare bright spot in the global economy - a prize worth going for," Mukhtar added. --BERNAMA