ASEAN next growth engine for IT in APAC

ASEAN next growth engine for IT in APAC

Summary: Southeast Asia's emerging market, together with China, will be the main growth engines for IT purchases in the Asia-Pacific region in 2013.

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Southeast Asia will present the next growth frontier for IT in Asia-Pacific as the various markets continue to show resilience against a weak global economy to expand.

IT spending growth in Southeast Asian countries is strongly correlated to economic growth.
IT spending growth in Southeast Asia is strongly correlated to economic growth.

In a report published Thursday, Forrester Research said China will continue to be one of the top tech markets in Asia-Pacific in 2013, with IT purchases growing by 10.3 percent, while India will see a slower growth of 7.3 percent.

By comparison, countries in the Association of Southeast Asian Nations (ASEAN) such as Indonesia, Thailand, and the Philippines are expected to see similar growth rates of 10 percent, 10.1 percent, and 10.05 percent, respectively.

The research firm added that IT spending growth in Southeast Asian countries is strongly correlated to economic growth, so most ASEAN countries will continue to be on a solid growth path in 2013.

"Strong domestic demand in countries such as Indonesia and ambitious fiscal and monetary policies in Thailand have made these countries relatively resilient to the faltering economic growth in Western markets," Forrester said.

"With the exception of Singapore, the 10 countries in the Association of Southeast Asian Nations have held up relatively well in terms of economic growth in 2012 as compared with India and China."

Growth in Malaysia and Vietnam will be hampered by political risks, though, it added.

Topics: Tech Industry, Emerging Tech

Liau Yun Qing

About Liau Yun Qing

The only journalist in the team without a Western name, Yun Qing hails from the mountainy Malaysian state, Sabah. She currently covers the hardware and networking beats, as well as everything else that falls into her lap, at ZDNet Asia. Her RSS feed includes tech news sites and most of the Cheezburger network. She is also a cheapskate masquerading as a group-buying addict.

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