CapitaMalls Asia said its multi-billion dollar investments in China won’t contribute much to its earnings in the near-term.
The property developer played host to some of its tenants at a convention in Singapore on Wednesday.
While Japanese exporters may be hurting from gains in the yen, the currency’s strength has given Daiso – market leader of 100 yen shops – reason to cheer.
Mr Hirotake Yano, president of Daiso Industries said: “This is positive for Japan’s domestic markets because the rising yen can help us buy goods that are of higher quality. Internationally, we source from suppliers that are nearer to our international markets.”
Singapore’s high rents have forced Daiso to take its warehousing to Malaysia, where it also plans 10 new outlets by next year.
Despite the gloomy economic outlook globally, some of the retailers in Asia are bright on their growth prospects and aren’t holding back their expansion plans.
In Singapore, the government hopes a rising Asia can help the country realise annual economic growth of three to five per cent.
Singapore-based CapitaMalls is also boosting its investments in emerging Asia, but projects in India and China will take time to produce returns.
Mr Lim Chee Beng, CEO of CapitaMalls Asia said more time is needed to understand businesses in India, but believed that it is a market that will eventually open up.
“We need to understand the locals there. That is why we are investing a lot of resources,” said Mr Lim.
Mr Lim said he does not expect much contribution from China in the short-term, but in the medium-term.
CapitaMalls is banking on China’s increasing consumption to eventually deliver better returns.
Source : Channel NewsAsia – 12 Oct 2011