The region should stimulate global economic growth, powered by its population and its technological sector.
The Asia-Pacific Region (APAC) will conduct global economic growth over the next 15 years thanks to several factors, some of which are already manifest and some have not yet emerged. The growth of APAC will come from four key trends on a large scale: urbanization, connectivity, energy transition and “baby bust”.
These will result in innovations in labor productivity, massive investments in infrastructure while the megapités flourish, the new economic segments from green energy and regional hyperconnectivity.
Overall, regional demography is favorable, with a population dynamic currently marked by young populations and a low relationship of dependence of young workers supporting the elderly. The United Nations Department of Economic and Social Affairs provides in an article in 2022 that APAC will increase from 4.2 billion citizens to 4.6 billion by 2040 and that the region will represent more than 60% of world production, according to a World Bank report in 2024.
The Multinational BMI Research Cabinet considers the young and large population of the region as a growth force: “In particular, Indonesia, which will see its population increase by 12 million people”, explains Cedric Chehab, chief economist of BMI. “Another structural engine will be a significant investment in infrastructure linked to electricity production, trade and manufacturing.”
He adds that the growing population will improve productivity and increase urbanization rates. “Banking funding will continue to play an important role, but this will be aggravated by external funding via bilateral or multilateral efforts.”
At the same time, a new emerging financial system based on digital assets which range from those issued by regional central banks to digital currencies. The passage to Tokenized Holdings in Hong Kong and Singapore has already upset the issue of standard bonds and active world and has gained ground in South Korea.
The arrows updated on an increasing middle class will reduce the regional dependence on growth exports, a necessary dynamic as the global free trade model is in question. Regional debt is lower than the global average (notable exceptions in China and Japan), and local capital markets are quickly developing in depth and sophistication, powered by the technology of the great distributed book (DLT).
This is illustrated by Vietnam, where real GDP growth was on average 6% in the decade to 2024, according to the Vietnamese general statistics office. However, its low fertility rate of 1.9 children per woman is lower than the average of two in Southeast Asia by two, although in advance on the levels of Singapore and Thailand of one and Malaysia of 1.6, respectively. This has an imminent baby bust, according to data from the General Statistics Office.
“Vietnam economy continues to benefit from solid manufacturing and export activities, foreign direct growth and government support, in particular in improving infrastructure. We expect to continue to continue and wealth increase, ”explains Jens Lottner, CEO of Techcombank in Hanoi. “This growing wealth, the increase in digitization and the great potential for penetration more products between mortgages, obligations, actions and average insurance in the banking sector of Vietnam always have enormous growth potential.”
On the other hand, the populations of China, Japan, South Korea and Singapore should lose 64 million people combined in the next 15 years due to age -related mortality and the decline in fertility, but they develop new economic models according to health care, consumption, education and leisure to face higher dependence relationships.
Tony Yang, president of the CTBC bank in Taipei, notes that there are three major risks to the growth of the region over the next 15 years: excessive dependence on a single market, leading to spectacular fluctuations in economic growth; Growing geopolitical risks, probably leading to investment activities and leading to a loss of orders; And increased protectionism which is not conducive to the exhaust of the average income trap.
Digital assets flourish
Hong Kong, Singapore and Japan emerging as regional digital asset poles, stimulated by a rapid development regulatory framework. Some 70% of Asian institutional investors have digital assets (compared to the low range of 40% in the United States and a range of 50% low in Europe) according to a 2024 report of SBI Digital Asset Holdings. The Family Office Industry in balloon in the region triggers the request for digital assets, in particular in the emerging tokenization arena with fixed and real income (RWA).
In February 2023, the government of the Hong Kong Special Administrative Region issued the first sovereign green obligation via a million dollars of $ 800 million (around $ 103 million), a year. The SAR followed a year later with a multi -color obligation of $ 6 billion HK labeled in Hong Kong dollars, Renminbi, dollars and euros as part of the Green Governal bond program (since renamed the government government bond program). The agreement was the largest digital obligation to have been issued and attracted a final book of more than 50 global investors.
The integration of the DLT into the international primary debt market is at an emerging stage, according to Tim Fang, responsible for the debt capital markets for Greater China at Credit Agricole CIB in Hong Kong.
“Hong Kong was the out -of -competition pioneer [along with the European Investment Bank] In the use of the blockchain for the primary program, “explains Fang.” The two transactions that the Hong Kong government has brought to the market using DLT can be considered as imposing the foundations for its use by other potential transmitters in the Sovereign, financial spaces and companies there-although the market beyond the government itself is still experimenting with DLT. »»
However, many obstacles must be sent before the emission of the primary debt market can be executed only via DLT. Due to the technical and legal complexities of such a migration, Fang notes, traditional syndication will remain favored in the short term.
Nevertheless, the APAC has directed progressive regulation for tokenization, with the monetary authority of Singapore (Mas) piloting financial projects based on the DLT for more than a decade, explains Julian Kwan, co-founder of Rwa Platforms Swap and Investax and CEO of Singapore.
The MAS has selected Investax for Tokenize the new Oshore investment vehicle in Singapore, alongside UBS, State Street, PwC and Tezos Foundation.
“The last 18 months have experienced a major change, with the rise of institutional quality issuers focusing on treasury bills and other assets listed on the stock market.
Last November, the OCBC became the first financial institution of the city of the city of the city to offer tokenized obligations via its own paper, to a medium -sized manufacturer which seeks to diversify its Treasury participations.
“A corporate investor or accredited customer [with assets of S$10 million—around $7.5 million] Can subscribe to denominations of $ 1,000 s and can similarly liquidate investments in these names to answer day. “
As a credit proposal, tokens can be processed as the underlying document they refer. If the debt restructuring, they will receive the same treatment.
“We expect an increase in the demand for token titles which meet the needs of institutional investors and HNWI [high net worth individuals]”Explains Evy Theunis, manager of digital assets in the DBS Bank institutional banking group in Singapore.” Institutional investors want the ability to quickly rebalance between cryptocurrencies and active ingredients generating yields in response to rapidly evolving market conditions, without having to maintain the ramp and the output of the performance. »»
She adds that DBS “could see more tokenized private assets, such as private actions, because HNWIS are looking for an exposure to a class of assets which is generally only accessible to institutional investors.”
Indeed, this trend was underlined in early March when Digift, based in Singapore, a digital exchange for tokenized assets, obtained a license to offer childcare services for investment products. The company recently listed a tokenized version of a private credit fund of $ 6.3 billion managed by US Asset Manager Investco.
“For investors, the key factor remains the quality of the underlying assets. The token itself is only a value transfer vehicle – if the asset has no value, the demand for investors will not follow. [net asset value] Transparently, but the tokenization of the private market still does not have this level of visibility, ”explains Kwan d’Investax.