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Economy February 12, 2014 00:00

By The Nation

Asian investors hang on to high cash proportion

Asian investors keep a massive 41 per cent of their total assets (excluding their homes) in cash, or about 21 months of personal income – 33 months in Singapore and 35 months in China. Cash held by investors in Japan rose to 20 months from 16 in the previous quarter, possibly because of switching out of equities.

“Investors tell us the main reasons they are holding on to cash is because they want safety and liquidity. But our survey shows that only a fifth of their cash is held for everyday and emergency needs, leaving nearly four-fifths of the cash sitting idle,” said Robert Cook, president and CEO of Manulife Financial in Asia.

“Asia does a great job saving cash compared to, say, the US, but by not putting some of that money to work, they can miss out on opportunities to get meaningful returns.”


Asean CIS approved

Vorapol Socatiyanurak, secretary-general of the Securities and Exchange Commission, said its board had approved draft regulations on the offering of Asean Collective Investment Schemes (Asean CIS) to retail investors in Thailand, expected to become effective by next quarter.

The Asean CIS allowed for retail investors in Thailand must be approved by capital-market regulators and have been offered to retail investors in other home jurisdictions of Asean members. Also, the scheme must conform to the common standards in terms of the qualifications of CIS operators and fund supervisors as well as investment requirements.

Asean CIS will be offered through securities companies in Thailand and in compliance with disclosure rules comparable to the offering of investment units issued by general mutual funds in Thailand, such as the requirements on prospectuses, fact sheets and annual reports.

The cross-border offering of Asean CIS is developed under the “Implementation Plan to Promote the Development of an Integrated Capital Market to Achieve the Objectives of the AEC Blueprint 2015”. The Implementation Plan aims to create linkage among Asean capital markets and facilitate cross-border securities offerings, which will boost the Thai and Asean capital markets’ competitive edge in the international arena, the SEC believes.


region to lead

Airlines in the Asia-Pacific region will lead global demand for larger and more eco-efficient aircraft over the next 20 years, according to Airbus’ latest “Global Market Forecast”. Airlines in the region will take delivery of some 10,940 new passenger and cargo aircraft between 2013 and 2032, valued at US$1.8 trillion (Bt59 trillion). This represents 37 per cent of all new aircraft deliveries worldwide over the next 20 years, ahead of Europe, North America and the Middle East.

In value terms, the Asia-Pacific region will account for 42 per cent of the global market for new airliners, reflecting the higher proportion of wide-body aircraft required in here.

In the passenger market, the fleet of aircraft operated by Asia-Pacific carriers is expected to more than double in the next 20 years, from 4,960 aircraft now to more than 12,130 jets, based on higher-than-average annual traffic growth of 5.8 per cent and replacement of nearly 3,770 aircraft in service today.