SE Asia: Brooke Perspectives

Key Demographics AsiaEurope (25 countries) USA 3.8 billion 455 million million 42.35m s.km 3.89m sk.m 9.16m s.km US$4,969 (per capita) US$23,600US$36,300 Labour force 1.72 billion 220 million 142 million

GDP Growth

Japan Singapore Taiwan Hong Kong Malaysia Thailand China Philippines Indonesia Summary of Labour Cost per Hour (US$) * For production workers. Includes pay for time worked, other direct pay (eg. holiday pay), employer expenditures on legally required insurance programmes and other labour taxes.

Consumption Trends in Asia 2003/2004

India: the next China ? Improving economy but FDI only US$3.4 billion in 2003/4 Increased spending on infrastructure planned Opening up of the telecom and real estate markets to foreign investors Outsourcing from US and Europe continues 47 million new homes required

Singapore Over 8% GDP growth in 2004 but expected to slow Retail sales slowing Recovery in property markets mixed but activity increasing and 4 REITS planned Recent sale and leaseback of HSBC Building

Indonesia Recovery at last 2004 GDP growth was 5.1% and set to increase in 2005 Consumer spending up – 50% increase in vehicle sales FDI tripled in 2004 y/y Stock exchange at record high Stability improving

Malaysia Strong trading growth and pressure to revalue currency Vacancies in over- invested property markets declining Strong retail growth with consumer spending up Increased inward investment in the manufacturing sector

Thailand Improving economy and lower unemployment Increased consumer spending and auto industry growing Foreign funds returned to the stock market Jump in foreign invested projects since election Risk of instability in southern provinces

Philippines 6.4% GDP growth in 2004 highest since 1996 Domestic demand up by 6.7% Increased foreign investment in call centres and business services outsourcing Industrial sector strengthening

Regional Trends Growth in consumerism Influx of overseas funds Higher community aspirations Interest in REITS Integration of transportation/real estate development Tourism as an investment driver Sustainability

Regional Challenges Mega cities and urban planning Urban densities and housing provision Integration of city/regional planning Regeneration v new towns Conservation of heritage assets

Investment Difficulties – Regulatory Barriers Indonesia Local partner needed All foreign remittance transactions over US$10,000 or its equivalent must be reported to Central Bank of Indonesia Malaysia Local partner needed The National Land Code restricts the acquisition of land by non-citizens and foreign companies Philippines Local partner needed Foreigners cannot own land in the Philippines except in cases of hereditary succession Foreign interest in a residential project cannot exceed 40% India Repatriation of foreign capital invested in real estate is not allowed for foreign citizens & foreign companies Funds for acquire or hold property in India must be provided by way of inward remittance of foreign currency Thailand Local partner needed Foreigners cannot hold title to land but are allowed to purchase leasehold interests

Regional Office Total Returns Cities Average 5 Year Total Return (%) Total Return (%) Seoul (CBD) 23.4 Bangkok14.5 Jakarta12.2 Beijing11.2 KL (City Centre) 7.4 Shanghai (Pudong) 6.6 Shanghai (Puxi) 3.9 Hong Kong (Central) 1.9 Manila (Makati) 0.6 Singapore (Raffles Place) -2.1 Tokyo-5.4

Chasing the Tourism Dollar National/City approach to creating world class tourist destinations - very strong competition Development of family tourism – Disney and Ocean Park, Universal Studios and Sentosa Emergence of Macau as the Las Vegas of Asia and integration of gambling/entertainment Thailand, Japan and Taipei legalising casinos – Hong Kong and Singapore considering Vietnam, South Korea and the Philippines expanding existing casino operations

Office Market Trends Steady/ Cooling Down Cooling Further Warming Up Hotter Still Hong Kong Tokyo Hong Kong Tokyo Shanghai Manila Shanghai Manila Taipei Jakarta Ho Chi Minh Taipei Jakarta Ho Chi Minh Singapore Bangkok Kuala Lumpur Beijing Seoul Singapore Bangkok Kuala Lumpur Beijing Seoul Sunny Chilly

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