'Exceptional' growth spreads across Asia

China is not the only country in the Asia region experiencing exceptional growth, says Fidelity Australia portfolio manager David Urquhart.

Urquhart said the Asian region has seen “phenomenal” growth over the last decade, with China expected to be the second biggest economy. But he said other countries like Indonesia and India have also shown surprising growth.

“All countries in the region are benefitting from their proximity to China,” he said, “but also from what is going on in the region itself.”

He said one of the most interesting things is that people have quickly lifted themselves above the poverty line to become active participants in the economy.

Urquhart pointed out that there have been significant structural changes, and there are some interesting and investment opportunities — one of which is in the area of microfinance.

Urquhart said there has been a rise in companies willing to make small business loans of as little as $1000. These microloans are proving to be a low-risk, high-return business model.

He said the lenders are more confident that borrowers are reliable, because the borrowers are extremely motivated to ensure their businesses are successful to ensure the survival of their families.

He added that local brands are also seeing considerable improvement.