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3 Industries with Strong Growth Prospects in The Asia Pacific Region

Amid the uncertainties today, the Asia Pacific region appears to be one of the few regions in the world that offers a clear growth trajectory. That’s due to the region’s growing middle class, which could spark a huge increase in demand for all sorts of products and services.

I recently spent a day thinking about which industries could benefit the most from the Asia Pacific region’s rising middle class. Here are three industries that intrigued me.

Energy

The most direct industry that could see a huge demand-boost would have to be energy. As nations in the Asia Pacific region prosper, one of the very basic things that need to be available is energy. This can come in the form of fuel for transportation and electricity to power industries and the population.

This would mean not just an increase in the demand for whatever commodity is used to create the energy, but also the infrastructure involved. Higher demand for energy could mean more power stations, more oil rigs, and maybe even more pipelines.

Healthcare

Money cannot buy you two things: Happiness and health. But people will still try. That means that as the population of the Asia Pacific region become wealthier, so would the demand for better healthcare. If people can afford better (and more expensive) healthcare, the healthcare industry could become a booming industry.

Food & Beverage

I once heard a story from an uncle about his time when he was young and still struggling financially. He had to work long hours and be extremely careful about how he spent his money.

When he first started working, he ate chicken rice every single day for lunch and dinner as that was the cheapest food he could find. And he did that for three straight years! This story stuck with me for a long time. Fortunately, he eventually made it in life and now lives life quite comfortably. Obviously, he no longer has a budget on his food and can eat whatever he fancies.

The story made me understand how demand for better food and dining experiences can change as people become wealthier. As the Asia Pacific’s middle class grows, the food and beverage industry could see a huge surge in demand.

Foolish Summary

Not every company within a growing industry can do well. A rising tide cannot lift a leaking boat. Knowing which industries have the potential to grow is just a starting point. It is important for investors to look at the fundamentals of a company before considering it as an investment.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim doesn’t own shares in any companies mentioned.