Marubeni sees upside to Southeast Asian turmoil<\/p>\n
TOKYO (Reuters): Recent currency and stock turmoil in
\nSoutheast Asian markets has created a good opportunity for firms
\nlooking to invest in infrastructure projects there, a senior
\nofficial with trading firm Marubeni Corp says.<\/p>\n
\"As far as it goes for trading firms, a period like this one
\nis a really good business chance, a time for making more specific
\nchoices about what we want to do,\" Akinori Seki, deputy executive
\nofficer of Marubeni's Corporate Strategies Department, told
\nReuters.<\/p>\n
He said the situation from early July on, when the baht and
\nother Asian currencies underwent an initial de-facto devaluation,
\nhad been in some ways an essential if painful adjustment, and
\nadded: \"This is not necessarily a bad thing.\"<\/p>\n
\"Among other things, it showed that the idea of linking
\ncurrencies to the U.S. dollar was no longer useful or practical,
\nwith local currencies becoming seriously overvalued, particularly
\nagainst the yen, which was a bit strange when you looked at
\nthings from the viewpoint of economic fundamentals.\"<\/p>\n
As a result, export competitiveness and volume both dropped,
\nhitting highly export-dependent economies and setting the stage
\nfor the current turmoil and economic slump.<\/p>\n
But the present situation was likely to make Asian countries
\ntake a harder look at how they manage their markets, including
\nhow fast they move with deregulation, as well as becoming more
\nserious about reducing deficits.<\/p>\n
\"This adjustment is certainly very painful and will take time.
\nWe originally thought it would end within about two years but now
\nthink it may take longer, about two to three years. And for these
\ncountries to return to their pre-July condition may take four or
\nfive years altogether,\" Seki said.<\/p>\n
Although a number of lingering uncertainties, including still-
\nshaky Asian currencies and unclear political situations, may
\nlimit the taking on of new commitments for some time, Marubeni --
\nwhich has committed heavily to Indonesia and Thailand in the past
\n-- has no plans to withdraw from the region, he said.<\/p>\n
\"We are also not contemplating a shift from Thailand and
\nIndonesia to other Asian nations, he added.<\/p>\n
Although there have been some postponements of large
\ninfrastructure projects by governments concerned about ballooning
\ncurrent account deficits, most notably Indonesia and Malaysia,
\nMarubeni was not affected negatively by these because it was not
\ncommitted to any canceled projects, Seki said.<\/p>\n
Malaysia deferred projects worth US$19 billion and Indonesia
\nhas put projects worth $13 billion on hold.<\/p>\n
\"We did have several projects under discussion, and these
\ndiscussions have been continuing,\" Seki said.<\/p>\n
\"Once conditions return to normal, there will be (strong)
\nneeds for infrastructure and energy. Even if the timing's a
\nlittle bit off (now), we have to provide these. After all, the
\nbuying potential of the Asian market is still huge.\"<\/p>\n
Marubeni is one of Japan's five largest general trading
\ncompanies, and strong in machinery, industrial plants and
\nchemicals.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/marubeni-sees-upside-to-southeast-asian-turmoil-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}