Asia, for the first time in modern history, is expected to outperform the US in terms of consumption power this year, becoming a growth engine for the global economy, Koh Boon-hwee (許文輝), chairman of DBS Group (星展集團), said in Taipei yesterday.
For every US$1 US consumers contribute to the global economy this year, consumers in 10 Asian countries will contribute another US$1.02 at the same time, up from US$0.50 some 20 years ago, he said, citing the bank’s research estimates.
The US will remain the top single country in terms of consumption, however.
The Singapore-based banking group hopes to prosper from growing business opportunities in Asia, which, also for the first time, has bounced back from an economic downturn to a V-shaped recovery this year without the US’ help, the chairman of Singapore’s third-largest financial institution said.
Koh said his group would focus on organic growth this year, although he doesn’t rule out the possibility of expanding through acquisitions.
“If it meets our criteria [to acquire a controlling stake], we are not shy about acquisition,” he said, adding that the group has a team studying potential targets.
Meanwhile, the group’s local subsidiary, DBS Taiwan, will likely report NT$600 million (US$18.87 million) in pre-tax earnings for last year, up from NT$474 million as of November, which was better than the parent group had expected, Taipei-based general manager Jerry Chen (陳亮丞) told yesterday’s media briefing.
“Before our goal was just to turn a profit this year, but we’ve met that goal ahead of schedule,” he said, adding that he aimed to double retail clientele this year.
The size of the local subsidiary’s workforce will also grow to some 1,400 from 1,092, Chen said.
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