
“We’re so (rhymes with bucked)” my American-born friend ‘Curtis’ told me just after his family returned from a three-year stint living and working in South East Asia.
The “we” he was referring to was The West and he’d been blown away by the energy and vibrancy of the people he had met during his time there. The second Trump era appears poised to add barriers and complexity to global trade which would bring friction and the risk of new inflationary pressures to economies everywhere.
I’ve just returned from a doing a shallow dive into three economies in the South East Asia; one highly developed: Singapore and two others: Vietnam and Philippines.
A key lesson is how all three demonstrate the power of countries which have consciously unshackled themselves from complex colonial pasts, focussing to improve the future for generations to come.
Their histories were shaped by the US, Britain, European and Asian powers, but they are now focussed on shaping their respective futures on their own terms, inviting capital to take advantage of well educated, young populations eager to live better lives than those endured by previous generations.
Singapore was a British colony from 1819, becoming a key trading hub until independence in 1965 and remains pivotal to global commerce. Its respected governance standards make it a destination of choice for firms wanting to be taken seriously in the rest of the world.
Vietnam was under French control for nearly a century to 1954 under the Indochina Federation, followed by Japanese occupation during World War II. The Philippines experienced Spanish rule for over 300 years from 1565 – 1898) followed by the U.S. until 1946 and a period of Japanese occupation during World War II.
Each country’s colonial experience profoundly influenced its politics, economy, and culture, shaping distinct national identities marked by resistance, adaptation, and eventual independence.
There is plenty to be angry about – and while people honour the liberation movements of the past – they honour those sacrifices with an obsessive focus on growth and development.
Singapore, as the most developed of the three delivered solid 2.5% growth in 2024, while developing economies like Vietnam delivered nearly three times that at more than 7%, and the Philippine economy will show expansion of 5-6%.
The pace is relentless. Vietnam, despite its socialist government, exhibits the hallmarks of a citizen-powered economy of millions of small owner-run businesses and an army of tech empowered white collar workers writing billions of lines of code annually to feed the global demand which in Philippines manifests in 24/7 call centres delivering high quality BPO – business process outsourcing alongside large family enterprises which dominate the business landscape.
Singapore in turn is moulding itself into a fintech hub and trusted destination for
capital and corporate offices for the entire region building on its global reputation as a trusted entry point and regional hub.
The three are at vastly different developmental stages but bound by their future focus.
My friend’s assessment of the fate of western economies is probably right if its superpowers seek to isolate and insulate from this vibrant region.
Surely it makes more sense to engage and learn?