Home » Customs & Trade, Press Releases » Green initiatives to spearhead Asia-Pacific’s economic growth—Frost & Sullivan

The economic downturn has prompted many Asian governments to invest or plan in sustainable economic activities. Green technologies, particularly in the environmental and building sector, have been identified as long-term catalysts of economic growth.

New analysis from Frost & Sullivan finds that in 2010, Singapore had the highest green excellence performance score of 0.813 and Indonesia came in last with 0.207.

The issue of sustainable development has gained currency not only throughout Asia Pacific but all over the world. Global trends such as population growth, industrialization, climate change, water scarcity, increasing solid waste output, and other environmental concerns have escalated the demand for green technologies and services.

High-income countries in the region are the most enthusiastic adopters of green initiatives; however, some of them are also among the biggest carbon dioxide emitters in the world. Developed countries such as Singapore are drawing international participants, while other developed countries such as Japan and South Korea are witnessing strong domestic competition.

“Singapore, Australia, and New Zealand are relatively stable and open economies,” said Frost & Sullivan Research Manager Melvin Leong. “These countries, with their substantial domestic expertise and need for niche applications and return on investments in the public sector, attract green technology suppliers with financial and technology strengths.”

Although Japan and South Korea are considered developed markets with significant technology innovation and adoption, they are also among the markets with the most challenging entry barriers. Most participants are hindered by language and cultural barriers in these two countries.

Meanwhile, middle-income countries are battling insufficient funding, transparency issues, focus on low-cost technologies, and bureaucratic inefficiency in the development of environmental markets. Nonetheless, they provide ample scope for long-term growth.

Malaysia and Thailand are emerging markets and have not invested substantially in green technologies but they have considerable potential. Finally, Vietnam, the Philippines, and Indonesia hold great promise as there is ample need for green market investments.

“Companies with turnkey capabilities, local knowledge, and partnerships with local companies are most likely to succeed in countries such as Singapore, Australia, and Japan,” noted Leong. “As complex market entry barriers are the norm in middle-income countries such as Indonesia and Vietnam, companies with the right mix of pricing, technology offerings, and concrete long-term investment plans are best poised for success.”

 

Photo: Uwe Hermann

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