China Prime Minister said 2008 may be the most difficult year for the economy because of global uncertainty and troubles at home. This is a alarming situation for other countries.

Please comment...........

ID int786

 

Crisis creates opportunity

Memom,


Peter Drucker, a Management Guru said this in his lessons on Crisis Management.


Look at the bright side of the whole matter, companies getting cheap, trim to its lean structure and selling out for a penny or dime.


India is the second biggest investor in UK, and not surprising, China is also top of the list. China is buying up companies in the US, and strategically building up their networks.


This is the new cycle, the Marco Polo cycle, where economical power is going back to the ancient culture. Along with economical power comes political and cultural influence. People want to mimic the culture of a higher echelon.



Street Smart

Very interesting and useful article......Thanks a lot

Best Regards

ID int786

Replying to [int786]:

Yes, I totally agree with streetsmart. Now is indeed the opportunity to invest. There are mainly 2 big differences between this incoming economic slow down and the other recessions. Mainly:

1) The oil prices is at all time high, and this factor will definitely increase operating costs.

2) The extend of global trading has increased tremandously, mitigating the country risk that one is exposed to.

With the highly priced oil, many think that should the incoming slowdown escalate into a full fledged recession, it is going to be much worse than ten years back. However, we must also take note that ten years ago, many economies were only dependent on a few economy. Now, economies are diversifying their trading focus, and greating controlling the risk as a result.

We are now not only dependent on USA itself, but China, Middle East and India. Yes, the operating cost in China and India are rising. That is why savvy business men are shifting their operations to Thailand, Myanmar and Vietnam while relocating their headquarter to Singapore.

I personally do not think 2008 is a difficult year for business opportunities because opportunities are abundant. Rather it will be a difficult year in deciding where will you focus your business.

Zeng Han Jun
Executive Director
Chan & Partners Consulting Group

Quoting from [Zeng Han Jun]:


We are now not only dependent on USA itself, but China, Middle East and India. Yes, the operating cost in China and India are rising. That is why savvy business men are shifting their operations to Thailand, Myanmar and Vietnam while relocating their headquarter to Singapore.


I personally do not think 2008 is a difficult year for business opportunities because opportunities are abundant. Rather it will be a difficult year in deciding where will you focus your business.

Dear Sir,


As consultant, we assume that you have the expertise and the knowledge of information about the business and money-making ventures in the global scene as the regional and local environment.


Given to the fact that the cost of operating in China and India is rising due to the

factors such as:

• higher wages for manpower resources
  
• removal of tax incentives
• higher value of the currency
• increased demand of facilities and rising factory leases
• hidden costs

But why Singapore? Why not Malaysia, Indonesia or Hong Kong?


Business people always weigh the pros and cons and compare them to the other available alternatives to decide. This has a lot to do with the type of business and the profile of the company.


Street

Replying to [Street Smart]: I completely agrees with your point, but the so called recession in US will also affect the growth of China & India and other countries who are currently exporting to US. As we have seen that when US sneezes the whole world caught cold. But this is also the fact that in the middle of difficulties Opportunity arises