Think of investing in India and China, Malaysian firms told

by **hlk** Tue 26 Jul 2011, 08:07

KUALA LUMPUR: Malaysian companies seeking to become globally competitive
should think of investing in India and China, the current two growing
economic powerhouses, said a top investment guru.

Dr Jagdish Sheth, professor of marketing at Emory University’s
Goizueta Business School, said sectors such as education, banking,
infrastructure, retail and resources are currently booming there.

Sheth said while the 20th century was driven by government policy of
advanced nations, the 21st century will be driven by competitive
markets of emerging nations.

Describing the 21st century as the “Asian century”, Sheth said the
old triad of the US, Europe and Japan would be supplanted by the new
triad of ICA (India, China and Americas).

According to new measures of world economies by the International
Monetary Fund supports, the Purchasing Power Parity (PPP), India is
expected to become a US$10 trillion economy by 2015, surpassing Japan
and all European countries.

Ranking number one and two would be the US and China, with PPP of US$18 trillion and US$17 million, respectively.

Sheth, also founder of the India, China and US institute (ICA) said
to penetrate the markets, Malaysian firms could invest in a small
company or form joint ventures with the locals.

"Malaysian companies have the capability to expand abroad. If Indian
and Chinese firms can bring their products here and compete, then
Malaysians could also do it. It is possible," he said at a conference
titled "Chindia Rising - How China and India can benefit your business"
here yesterday.

Sheth said there are nine key points that companies should focus on to become globally competitive.

He said companies should look at divesting their non-core business,
improve productivity via automation, have strong bankers' support and
invest in innovation and design, and human capital.

This is apart from earning quality reputation, creating globally
admired brands, participating in economic reforms and making strategic
acquisitions.