Asia’s economy is undergoing a transformation as services take over from manufacturing as the main engine of economic growth. This change, driven by the rise of new technologies and heightened prosperity, has created a fresh generation of businesses: the emerging giants of Asia’s new economy.
Services now account for 59% of regional gross domestic product, more than double the 25% share from manufacturing, according to World Bank figures. Until recently, the region’s service sector was largely an aggregate of small, relatively inefficient consumer-oriented businesses with limited headroom for growth.
A combination of new opportunities, opened up by the spread of technology and increasing disposable income created by the regional growth of global supply chain manufacturing, is allowing new companies to achieve unprecedented scale and reach.
