Asia's technological prowess is a key performance indicator, but the region remains heavily dependent on imports for its technology needs. The region's manufacturing strength is significant in the global energy transition, but it faces challenges due to its heavy industrialization and the need for more energy. Asia's demographics are also changing, with parts of the region aging quickly, necessitating a step-change in productivity. The region has mobilized more capital than any other region in the world over the past 20 years, but weak returns on capital and rising debt levels pose challenges. Despite these challenges, the article emphasizes the significant opportunities for continued growth and rising living standards in Asia, provided the region can navigate the geopolitical disruptions.
Key takeaways:
- Asia is emerging as a major player in the global stage, with its business leaders expressing optimism about the region's prospects but acknowledging the need for significant strategic shifts due to changing dynamics.
- Trade tensions and disruptions could hinder Asia's ability to innovate and secure the energy it needs, with the region heavily dependent on imports for technology and energy.
- Asia is starting to innovate in technology, accounting for a significant percentage of world-class patents in clean energy and mobility technologies, and has a large number of STEM graduates each year.
- Despite the challenges of aging populations and rising debt levels, Asia's continued growth and innovation will be crucial for raising living standards for the majority of the world's population.