Asia Adapts To New Economic Realities -- S'pore Minister

SINGAPORE, Jan 12 (Bernama) -- Asia is adapting to the new economic realities, according to Singapore Minister for Finance, Heng Swee Keat, Tuesday. Narrowing to ASEAN, Heng said, there has been a ramping-up of public investment through a rollout of infrastructure projects, "for example, to enhance transport networks." "Our neighbours, Indonesia and Malaysia, have also turned adversity into advantage by slashing energy subsidies when oil prices fell," he said at the UBS Wealth Insights Conference held here. The text of his speech was made available to Bernama. Admittedly, Heng said, structural reform was an arduous task, requiring sustained commitment on the part of government, as well as buy-in from businesses and the population. "Asian economies will have to continue to push ahead to develop physical infrastructure, upgrade education and skills and strengthen market infrastructure. "While there may be a need for policy recalibration from time to time during this transition, the imperative for change is very clear," he said. Citing projections based on Consensus Economics, October and December 2015, Heng said, growth in Asian emerging markets as a whole was projected to average six per cent from 2015 to 2020. "There are demographic and urbanisation dividends to be reaped, and much of Asia is still at a catch-up growth phase. "A growing middle class, who is being encouraged to consume more, will provide the internal impetus for growth," he said. Even though the six per cent growth rate was not high by historical standards, Heng noted that Asia was expected to continue outperforming the rest of the world by a significant margin. Heng said regional governments had embarked on serious efforts to improve their growth potential by pushing ahead with structural reforms and raising productivity. "While this will take time to bear fruit, it signals a clear recognition that change is critical," he said. -- BERNAMA