Why Singapore could be the only bright spot in Asia right now

The developed nation continues to benefit from its sound financial strategies and strong accounts, as ASEAN members look into initiatives to further strengthen international trade and investment links.

Here's more:

The increase in Eurozone and US demand for ASEAN exports will help offset lower demand from China and Japan.

While the nascent recovery will not dramatically increase ASEAN export levels, it will help ease the drag on export growth the region has been feeling over the past few years.

The establishment of the ASEAN Economic Community will also encourage free trade and improve competition, and should therefore lead to countries becoming more efficient and productive – meaning another boost to export growth over the coming years.

The report however warns that rising debt levels in South East Asian countries like Malaysia and the Philippines present a concern.

Douglas McWilliams, ICAEW Chief Economist and Executive Chairman of Cebr said: “High debt levels are usually viewed negatively by investors, regardless of the underlying state of the country’s economic health.

If investors’ fears of losing their returns become strong enough to cause large increases in the cost of borrowing, then those expectations will become self-fulfilling.

Read More: sg.finance.yahoo.com/news/why-singapore-could-only-bright-070500068.html