Many observers, seized by the mood of the moment, are now forecasting the worst for the region. But we should adopt a longer-term, more nuanced perspective. Southeast Asia’s economic fundamentals remain positive – a sizeable market with a collective population of 500 million people, high savings, abundant natural resources, under-developed consumer appetites and a strong work ethic.
The political problems can be overcome, provided governments act swiftly and resolutely to counter terrorism and restore order and confidence. Those countries which do so will regain investor interest, while those investors shrewd enough to discern which countries and projects deserve support will be amply rewarded by the risk premiums.