Another sector that Suan expects Asean to attract investment from the Middle East is data centres, as well as tourism, with Malaysia and Thailand seeing more data centre construction, while Southeast Asia as a whole benefits from inbound tourism from holidaymakers who are avoiding conflict-ridden zones. “Some of the stocks related to data centres would potentially do well as well as tourism and our retail sector,” says Suan.
From the perspective of UOB head of research Suan Teck Kin, the Middle East conflict between the US, Israel and Iran highlights Asean as a “stable” and “safe” region for doing business.
Speaking at the Shaping Tomorrow’s Markets: ETF Strategies and Economic Outlook event hosted by The Edge Singapore, Suan says capital would seek safety in Singapore, and that Singapore and its neighbours could benefit from capital fleeing the Middle East war. “Money flows are coming back here, companies are relocating to Singapore, expatriates are moving to the country,” he says. “So that’s actually good for Singapore and the region.”
