Within the manufacturing sector, given the significant gap in labor costs between home and abroad, it is necessary to promote a division of labor, with production and assembly sites for mass production expanded overseas and domestic operations focusing on more profitable businesses as well as cutting-edge technologies and business ideas.
On the contrary, Hong Kong, Singapore and Taiwan (economies most hit by the global slowdown) saw consumer spending falling during the same period due to their reluctance in cutting interest rates. The Asian Development Bank, however, expects economic activity to recover in the second half of this year, following the revival of exports in the United States and a stabilisation of domestic sentiment.