That is one of the key remarks from Prof Bernard Y.Yeung in his sharing on “A Challenging Future in the Global Business Landscape. A recently held SCCCI-BT Business Outlook Forum – “What to Expect in the Year 2010?” attracted entrepreneurs, CEOs, management executives and investors to hear insights from in-depth analysis and insights on global economic developments to prepare for the next business wave.

Faced with an unprecedented global financial crisis, 2009 has been a challenging year for the world and Singapore. There are mixed business sentiments on the outlook for 2010. Some analysts predict that the global and Asian economies will pick up in 2010, while others believe that the global economic recovery is merely a short-term phenomenon and with further market dips possible. The session expounded on economic outlook in 2010, their implications on businesses and how one can chart future strategic plans to take advantage of new growth opportunities.

The Forum kicked off with the Speaker, Prof Bernard Y.Yeung, the Dean and Stephen Riady Distinguished Professor, NUS Business School. Prof Yeung possesses extensive professional, research and academic experience in economics, particularly international corporate finance; corporate strategy; firm behaviour and economic development and the international studies of capital market functionality. He has written more than a hundred research articles which have been widely published in top-rated journals in Economics, Finance, Strategic Management, International Business, and Accounting. Prof Yeung shared candidly on key economic observations, projections and trends, as well as viewpoints of the economic outlook ahead.

Here’s sharing some of the key insights and observations shared during the session.

1.	The economic recovery is here, though not as upbeat as before. Here’s why:
a)	During the economic recession, investments and consumers’ spending were greatly reduced. However, consumers’ spending on durables such as car replacements and repair services can only be postponed to a certain extent. As consumers’ spending hits rock-bottom, there are positive signs as it starts picking up. Though there are real business investments injected, the market shows immediate investment drop as depreciation is being replenished.
b)	In Asia, various governments pumped up aggregate demand by boosting consumers’ spending and investments to offset the sharp decline in exports. In addition, bank lending is encouraged to boost investments.
c)	Although the free-fall situation has ended, there is no strong rebound in the US market, due to the long de-leveraging road ahead. Investments and consumption rates remain weak and conservative due to the policy reforms and market uncertainty.
d)	There will be ‘withdrawal symptoms’ after the removal of the stimulus package initiatives.
2.	As the GDP turns positive, the job market has not improved significantly in tandem.
3.	There will be unwinding problems and implications of inflation and future taxes due to the accumulation of government debt owing to the large fiscal stimulations across the board.
4.	The rise of Asia, in particular the increased spending and consumption in the burgeoning markets of China and India, will prop up the global economy.
5.	While the spending from Asian markets is necessary, there is strong impetus to improve corporate governance and capital markets.
6.	As the market recovers, the economy still faces long-term structural problems of ageing population, environmental duress, growing income disparity and social, as well as lack of developed institutions and market maturity.
7.	The positive outcomes from the economic downturn are the recognition of fundamental flaws in the financial institution and corporate governance, as well as the rising importance of Asia-centric new world economic order.
8.	The crisis has revealed strong implication for the market system to be strengthened and more well-developed institutions.

As part of Prof Yeung's concluding remarks, he encouraged the enterprises, “At the firm-level, it is pertinent to identify key capabilities to leverage upon, as well as develop talents and leadership to capitalise on the application of capabilities globally.”

The session concluded with Speaker, Mr David Cohen, Director of Asian Economic Forecasting, Action Economics LLC whom shared on “Asian Perspectives: Is the Worst Over?” and Speaker, Kelvin Tay, Executive Director, Product & Services Consulting – Southeast Asia UBS Wealth Management’s sharing on “Your Investment Dollar: Seize the Window of Opportunity”.

The Speakers’presentation materials may be downloaded from SCCCI Website here. For more info, visit Singapore Chinese Chamber of Commerce & Industry (SCCCI) Website.