G R E A T E R B A Y A R E APRESENT, FUTURE AND ASEAN LINKS

In our 10th annual survey of Pearl River Delta manufacturers, we spoke to over 250 manufacturers to find out about their growth expectations, relocation, industrial

upgrading plans, opportunities and challenges arising from the Greater Bay Area (GBA).

TOP 3 CONCERNS FOR 2019

17% 24% 17% Further Renminbi volatility US-China trade war China slowdown

THE CHINA-ASEAN CONNECTION STRENGTHENS

70% are considering to relocate

production out of China due 3%to US-China trade dispute 7% Philippines

Myanmar

24%Vietnam 8% 22%

Thailand Cambodia

5% 4%Malaysia Indonesia

INDUSTRIAL UPGRADING FACES 29% A SHORT-TERM SLOWDOWN cite uncertain economic and

business outlInvestment scaleback in industrial upgrading to industrialbiggest hurdleooks as the

upgrading in 2018

Accelerate

19% 15% 13% 15% 5%11%

Import high-end Artificial Big data and Internet, mobile capital equipment Robotics Intelligence cloud computing internet, IoT Other R&D

30% 31% 32% 34% 36% 36%

Decelerate

LONG-TERM GBA OPTIMISM 64% vs 49% see the GBA Top 3 policy support

buspresenting new in 2018

favoured by businesses iness opportunities

72% 72% 69% More tax cuts More support to SMEs and Fee reduction

private enterprises

Follow #SCGlobalResearch on LinkedIn Source: Standard Chartered Global Research