Malaysia and Thailand have been hogging the Asian news for the wrong reasons. In Malaysia, a slump in oil prices, lack of confidence by foreign investors and political upheaval has caused the MYR to plummet 29% against the USD from a year ago. In Thailand, the recent tragedy of multiple bombings are shaking the confidence of tourism, which accounts for 10% of GDP, but despite the high volatilities, the THB has stayed relatively at the levels of 35.5 to the USD. Tourists are staying put for now. However, if the terrorist issues are not resolved, will this cause a slump in the economy?
But to the ASEAN tech entrepreneur, both countries are critical large ASEAN markets of smartphone users. But with the weakened currencies and economic issues, does that cause the Malaysian and Thai consumers to cut back on spending? Is it best to avoid these markets for now and focus on other markets like Philippines, Vietnam and Indonesia, which each have a substantial smartphone user base.
On the other hand, is Malaysia and Thailand an opportunity to enter now? It can be said that because of the fear by investors, competition might be lesser, or building a cost center in those countries might lower business costs while you can earn revenues in better currencies.
What is your view? Let’s have a healthy discussion on this.
Note: For the sake of proper discussion, where possible, please help identify yourself, where you are currently based and if you have a start-up, any changes to your market expansion plans. Please also refrain from political sensitivities and focus on the objectiveness as an entrepreneur.
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