confidence in asia at the milken institute asia summit 1332812015

At the Milken Institute’s Asia Summit being held at the Four Seasons hotel at Singapore, thought leaders expressed confidence that Asia would pull through the current period of turmoil triggered by slowing growth in China, and that long term, the region’s prospects are full of promise.

Piyush Gupta, chief of DBS Group Holdings Ltd (SGX:D05) said at the forum that the Asian economies could take in their stride lower growth of between one and 1.5 per cent, chiefly due to the slowdown in China, a factor that could weigh in the short term.

In an interesting viewpoint, Mr. Gupta said China was facing a crisis of credibility even though it was following a well-calibrated plan of action, formulated half a decade ago, to transform to a consumption driven economy.

"China has been doing exactly what people thought they should do. And even more, China has been doing what it said it would do," said Mr. Gupta, as reported by the Business Times . "Problem is, most people didn't take that seriously." He said the transition would not be simple, and markets should therefore expect plenty of choppiness during the rest of the year.

According to Mr. Gupta, the region would continue to be supported by the inherent mega-trends playing through its economies: massive populations, a burgeoning middle class, and growth stemming from huge investments in infrastructure development.

The Milken Summit, a two-day conference that opened Thursday, is being attended by 400 chief executives, business leaders and investors from around the world. The economies of China, India, Indonesia and Japan would be discussed at the Asia-focused forum.

Panel topics include hyper-aging, financial technology, Indian Prime Minister Narendra Modi's second year, Japan's resurgence in the Asia-Pacific region, the AIIB and the evolving multilateral lending landscape, and China's growing movie industry, the Milken Institute said in a statement.

Michael Milken, Chairman of the Milken Institute, also stressed that Asia’s middle class will bolster economic growth across the region, with the background already laid in China for a historic shift from manufacturing to a consumption-driven society, given the country’s significant investment in educating its children.

“So as long as Asian countries continue to focus on education, they will be able to adapt to the volatility,” added Mr. Milken, according to the Straits Times.