The extraordinary growth of Asian markets has only just begun and remains set to continue. By 2030, Asian GDP will exceed G7 GDP - a complete reversal of the assumptions that have dominated the global economy for 50 years. As other economies seek to capitalize on the burgeoning opportunities across this dynamic and disparate region, Britain will need to lift up its game to succeed.

 

The good news is that UK companies have the innovation, expertise and creativity across all sectors to meet Asia's ever-growing demand for goods and services. Prime Minister David Cameron's recent visit to the region, where he was joined by 30 business leaders ranging from the construction to the financial services sector, has helped to promote British business and boost trade links. New trade agreements were signed and deals worth over £220 million in Malaysia, £326 million in Indonesia and over £200 million in Japan were announced - testament to the huge business potential Asia presents.  

 

However, many British companies, particularly small businesses, have yet to look beyond the UK and the Euro-zone for competitive edge and growth, uncertain about how to take advantage of the opportunities in Asia. These are legitimate concerns. Whether selling at home or overseas, there is always an equation of risk versus return and a wrong decision can be the difference between success and failure. But taking the first steps to exploring opportunities or expanding into other Asian markets needn't be daunting. The lesson here is that it's vital to get your research done. That's why UK Trade & Investment's (UKTI) Asia Task Force is running a campaign to boost exports to Asia, equipping UK firms with the practical help they need to break and expand into some of the fastest growing markets in the world.

 

UKTI, which is the government department that helps British businesses set up or expand overseas, can connect UK firms looking to export to any of the 12 Asian markets with UKTI's specialists across the UK, and give companies the local knowledge and opportunities they need to succeed.

So what makes Asia so compelling for business growth and crucial for our economic wellbeing?  You only have to look at the pace of development, the expansion of populations and the burgeoning middle classes throughout the region to realize the potential. 

 

  • There are around 20 million people in Vietnam with a purchasing power equivalent to the average Australian citizen.
  • Thailand's economy is in the top three in SE Asia in terms of size and volume of international trade.
  • By 2030, China's cities will be home to another 350 million people - more than the entire population of the USA.
  • Taiwan has developed one of the most advanced telecommunications networks in Asia and wireless penetration has almost reached saturation levels. The country aims to become the first in the world that is entirely wireless.
  • Indonesia is a growing market for UK companies and has a population of over 240 million, with a growing affluent and aspirational 45 million middle class consumers.
  • South Korea is Asia's 4th largest economy. The economy grew by 6.2% in 2010 - which is the second fastest rate in the OECD.
  • With a population of 98 million, the Philippines is one of the largest English speaking countries in the world.
  • Japan has 20% of the global R&D spend.
  • Hong Kong's per capita Gross Domestic Product ranks 7th highest in the world.
  • India has the youngest working population in the world (60% of India's population are under 24 years, while 81% of the population are population below 45 years).
  • The Malaysian education and training market is worth £240 million a year to the UK.
  • A recent World Bank report says that Hong Kong and Singapore are the easiest places in the world to do business.

 

One of the key things we emphasize to UK companies, however, is that all Asian markets are different - so we need to be wary of stereotyping. There is a huge gamut of size and conditions. 

 

There are also vast differences in infrastructure, education, healthcare and governance, as well as regions within regions. And as critically important as they are, businesses need not only focus on China and India - given the huge potential that less prominent Asian markets offer.

UKTI's new UK Business Success in Asia Showcase gathers together the most exciting British companies already trading in Asia, and shares their advice, insights and experience with firms looking to Asia for growth.

 

Sussex-based company Global Immersion has found success across Asia, winning 22 per cent of its sales from Asian customers in 2011. It designs, builds and integrates high-performance digital planetariums and 3D and 4D theatres, and is finding its products in particular demand in China and Taiwan.  For Global Immersion, a reseller in Taiwan was the company's eyes and ears in the region, where their local knowledge helped overcome cultural, legal and financial issues.  

 

Thailand and Malaysia offer significant opportunities to UK companies too, as Scottish company and showcase member M&C Energy Group found out.  The energy efficiency consultancy has offices in both countries and plenty of experience and insight into doing business in each.  Simon Northrop from M&C Energy encourages other businesses to follow its example not least because colleagues in Malaysia and Thailand are extremely receptive to new skills, products and services from the West. Malaysia in particular enjoys historic, educational and commercial ties with the UK, aided by a familiar legal and business framework.

 

Since 2009, UKTI's Asia Task Force team has run over 25 events across the UK to help companies - 75% of which were SMEs - to take advantage of opportunities in Asia.  With Asian markets forecast to invest hundreds of billions of pounds in their infrastructure over the next decade, UKTI is currently working with companies to help them capitalize on potential new business in these areas. UKTI recently published its report, ‘Smart Cities of the Future in Asia', which highlights over 100 significant business opportunities in cities in 10 markets across the region.

 

These are countries investing in their future - growing confident in their larger role on the international stage. But it doesn't stop there. In the years ahead, Asia will generate an even greater share of global GDP. That's why we need to act now to secure our fair share of the jobs and be part of the growth that massive investment will create - because it is undoubtedly where the future of business lies.