New horizons alternative Asian markets – From OPPortUNITY to CONNECtivitY

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RELATIONSHIP BETWEEN EASE OF DOING BUSINESS AND PURCHASING POWER Ease of doing business 200 180 160 140 120 100 80 60 40 20 0 0 10,000 20,000 30,000 40,000 50,000 60,000 Income per capita Source: ANZ, World Bank 2. The ease of conducting trade across borders. This is a component from the ease of doing business index that includes specific measures examining both importing and exporting from a particular country. 3. Level of corruption. This wasn’t included in the above measures, but is nonetheless important for obvious reasons. The measure we used is an index from Transparency International that is based on surveys of the perception of corruption within a country. 4. Number of New Zealand residents born within a country. This identifies the ability to source local expertise in New Zealand for a particular target market. This expertise could include things such as the ability to understand an export market and business customs, key contacts/ relationships, speak local language etc. Key results Singapore took out top spot, followed by South Korea and Hong Kong. The exact position for South Korea and Hong Kong depends on the measure used. Singapore ranked in the top position for ease of doing business and conducting trade across borders. There are only 5,370 New Zealand residents who were born in Singapore (13th), but given its multi-cultural society and the fact English is the main language, finding particular expertise shouldn’t be too difficult. Hong Kong and South Korea have very similar rankings to Singapore for ease of doing business and conducting trade across borders. Where they deviate is in the fact that corruption is higher in South Korea, but more New Zealand residents were born in South Korea than Hong Kong (26,600 versus 7,100). Hong Kong is similar to Singapore with a multi-cultural society and English is also the main language, meaning finding the right expertise shouldn’t be too much of a constraint. On this basis, Hong Kong should be slightly more attractive than South Korea for the ease of conducting business. Ease of doing business Ranking on placings for indicators Ranking on average attractiveness score for indicators Singapore 1 1 South Korea 1= 3 Hong Kong 3 2 Japan 4 4 Malaysia 4 5 Taiwan 6 6 Thailand 7 8 Philippines 8 9 China 9 7 Sri Lanka 9= 11 Vietnam 11 13 India 12 10 Armenia 13 12 Indonesia 14 14 Mongolia 15 17 Bhutan 16 16 Azerbaijan 17 19 Brunei Darussalam 17 15 Pakistan 17 18 Kazakhstan 20 20 Nepal 21 23 Cambodia 22 21 Timor-Leste 23 22 Kyrgyzstan 24 24 Bangladesh 25 27 Laos 25 26 Turkmenistan 27 25 Tajikistan 28 29 Uzbekistan 29 28 Outside the top three, the next top-ranking countries were Japan, Malaysia, Taiwan, Thailand, Philippines, China, Sri Lanka, Vietnam, India and Armenia. There wasn’t too much variation in the rankings according to the measure used. Page 19
1. Japan has low corruption (2nd) and was solid for all the other measures. 2. Malaysia ranked well on the ease of doing business measures (4th for both) and had the 5th highest number of New Zealand residents born there. 3. Taiwan ranked slightly lower than Malaysia on the ease of doing business measures (5th and 6th), but has slightly lower levels of corruption (ranking 5th). 4. Thailand was similar to Malaysia and Taiwan too, but had higher levels of corruption (8th) and less than half the number of New Zealand residents born there compared with Malaysia (7,700 versus 16,400). Taiwan also had a higher number of New Zealand residents born there (9,000). 5. The Philippines has the 3rd highest number of New Zealand residents born from a particular country and English is widely spoken, meaning there should be plenty of available local expertise. However, it doesn’t rank quite so well for ease of doing business (14th). While conducting trade across borders is better (10th), the main weakness seems to be weaker legal rights for investors. 6. China was fairly constant on the ease of doing business and corruption measures (ranking 14th or 13th). But there are 89,100 New Zealand residents who were born in China (1st), implying a lot of local expertise. NUMBER OF NEW ZEALAND RESIDENTS BORN WITHIN A COUNTRY Number of persons 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 China India Philippines Source: ANZ, Statistics NZ South Korea Malaysia Japan 7. Sri Lanka has relatively less corruption compared with peers (9th) and a high number of New Zealand residents born there. However, it doesn’t score so well on the ease of doing business measures. 8. Vietnam’s ease of doing business is solid, but relative corruption was on the high side (16th). Sri Lanka Taiwan Thailand Hong Kong Cambodia Vietnam Singapore Indonesia Pakistan Bangladesh Nepal 9. India was a contrast, with the ease of doing business measures very low (25th on overall index). The significant weakness was broad-based, but particularly so for starting a business and legal contract enforcement. The offset is that there are 67,200 New Zealand residents who were born in India (2nd), implying a lot of local expertise that might help navigate some of these barriers. 10. Armenia ranked well for ease of doing business (8th), but was down the pecking order for the other measures. RANKED ATTRACTIVENESS OF COUNTRIES FOR EASE OF DOING BUSINESS (REGION'S RELATIVE ATTRACTIVENESS SCORE) 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Singapore Hong Kong South Korea Japan Malaysia Taiwan China Thailand Philippines India Sri Lanka Armenia Vietnam Indonesia Brunei Darussalam Bhutan Mongolia Pakistan Azerbaijan Kazakhstan Cambodia Timor-Leste Nepal Kyrgyzstan Turkmenistan Laos Bangladesh Uzbekistan Source: ANZ In the bottom half of the table there aren’t too many unusual results. Some countries like Turkmenistan that scored high on the consumer purchasing and affluence measures had a low ranking. Further investigation would be required to understand the key impediments to conducting business within the country. 6. SUPPLY AND COOL CHAIN DEVELOPMENT/INFRASTRUCTURE The majority of New Zealand’s primary products are highly perishable and require a robust cool chain to ensure high standards of food safety and adequate shelf life when they arrive in market. A robust cool chain is also usually a sign of the presence of a strong food retail and service sector. The robustness and quality of the cool chain can also make a material difference to freight charges, which can influence margins and the competitiveness of products, especially for soft commodities. The indicators we used to assess a country’s supply chain development/infrastructure were: 1. Burden of customs procedures. This is based on a World Bank survey measuring business executives’ perceptions of a country’s efficiency of customs procedures. The rating ranges from 1 to 7, with a higher score indicating greater efficiency. The burden of customs procedures and other documentation requirements can be a material barrier to trade for smaller-sized companies (of which New Zealand has many). Page 20
Page 1 and 2: New horizons: alternative Asian mar
Page 3 and 4: EXECUTIVE SUMMARY The ‘Asian Cent
Page 5 and 6: OPPORTUNITIES ABOUND The economic o
Page 7 and 8: So if opportunity is only a partial
Page 9 and 10: URBANISATION RATIO RELATIONSHIP WIT
Page 11 and 12: 2. CONSUMER PURCHASING POWER AND AF
Page 13 and 14: Looking across all the measures, Tu
Page 15 and 16: RENEWABLE FRESHWATER RESOURCES BY R
Page 17 and 18: RANKED ATTRACTIVENESS OF COUNTRIES
Page 19: arriers as the Indonesian Governmen
Page 23 and 24: 2. Hong Kong was very similar to Si
Page 25 and 26: and Taiwan, the latter are currentl
Page 27 and 28: growth hasn’t been as fast as som
Page 29 and 30: Consumer aff & PP GDP per capita Wo
Page 31: India. This publication is distribu

New horizons alternative Asian markets – From OPPortUNITY to CONNECtivitY

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