In Ho Chi Minh City’s District 7, for example, housewife Minh Phuong can find imported products from Thailand, Japan and the US at supermarkets and shopping malls.

“These products are on many shelves at Lotte Mart and Giant near my house. Many smaller stores specialising in products from one country have opened in District 7, especially in Phu My Hung City Centre,” she said.

In the past, imported products were mostly clothes, footwear and cosmetics, but they now range from instant noodles to canned food and home appliances. Fresh fruit imports are also common.

E-mart, a South Korean shopping mall in Go Vap District, which opened late last year, has attracted many customers.

One consumer told Sai Gon Giai Phong (Liberated Sai Gon) newspaper said that her family visits the supermarket and has dinner there five times a week.

“The products are diverse while the price is competitive. The space and decor are clean and beautiful,” she explained.

At Metro An Phu in Ho Chi Minh City, the volume of Thai products increased from the day it was sold to Thailand’s Berli Jucker Public Company Ltd.

A source from Metro told Vietnam News that although Thailand products accounted for only 2 per cent of goods, the total number had increased after Berli Jucker’s acquisition.

A report from Sai Gon Giai Phong (Liberated Saigon) also found that Thai products dominated shelves.

Shopping malls like the Japanese-owned Aeon Mall and Korean-owned Lotte Mart also offer many Japanese and South Korean products.

Imported products are also being offered online, as e-commerce has developed rapidly in Vietnam.

Customers can easily buy fruit and fresh meat from Australia, the US and New Zealand by just picking up a phone and placing an order.

Technician Kieu Oanh said her news feed on Facebook has many daily notifications from sellers of imported fruit.

She said that buying imported fruit was a better alternative as local fruit had become more expensive and the quality varied from shop to shop.

On Ly Thuong Kiet Street in Ho Chi Minh City, the owner of a shop that imports 30 boxes of foreign fruits a day usually sells out by 2pm.

Daiso stores selling Japanese products and small convenience shops selling Thai products have also become more popular.

In Ho Chi Minh City, several shops selling Japanese products on Le Thanh Ton Street have opened to meet increased demand.

This is according to a new report by staffing firm Kelly Services.

Hit by the global slump in commodities and manufacturing demand, three sectors featured in last year’s top five list are out of this year’s ranking: oil, gas and petrochemicals; pharmaceuticals; and semiconductors.

IT tops the 2016 list with technology heads expected to command between S$13,000 and S$24,000 a month, according to the Kelly Singapore 2016 Salary Guide.

Ths firm said the Government’s aggressive infocomm sector development is behind the emergence of IT as one of the highest paying industries.

In terms of specific occupations, some of the hot jobs for 2016 are: compliance manager, fintech developer, big data developer, digital marketing manager and scientific and regulatory affairs specialist

Said Foo See Yang, vice-president and country general manager of Kelly Services Singapore: “Despite the challenges in the global economy, bright spots remain in the financial technology, big data, as well as digital marketing sectors where demand for talent will continue to rise throughout 2016.

“Professionals, managers, executives and technicians (PMETs) who have been hit hardest by the slowdown should look at upskilling and expanding their capabilities into new areas of growth to stay relevant.”

The firm also said that global economic volatility will lead to more employers turning to temporary and contract work arrangements to fulfil manpower needs.

“There is a need for a mindset shift by the Singaporean workforce to look beyond permanent roles, especially in the current economic environment,” said Foo.

According to the Management Board of HCM City Export Processing and Industrial Zone Authority (Hepza), from the beginning of this year, export processing and IZs have received a large volume of FDI capital. Of the total US$128 million poured into export processing and IZs in the first two months, FDIs accounted for $80 million and the remainder came from domestic companies.

Hepza also reported that the huge influx of FDI capital allowed the ratio of filled land in export processing and IZs in the city to reach 80 per cent.

The neighboring Binh Duong and Dong Nai provinces have also seen an increase in FDI. In the first three months of this year, Binh Duong Province granted licences to 28 FDI projects, with a total investment capital of over $680 million. After registering to add more capital, investors have actively expanded plans to build new factories in the Song Than 1, Song Than 2 and Nam Tan Uyen IZs.

By March 18, Dong Nai Province’s registered investment capital and newly added capital for FDI projects reached some $488 million, or a year-on-year increase of 311 per cent. Foreign investors have not only focused on developing industrial parks in Bien Hoa City but have also expanded land lease agreements and have invested in many factories and warehouses in new IZs such as Long Duc, Long Thanh and Bau Xeo.

Local experts attributed the increase in investment in IZs since October last year to the official conclusion of trade agreements such as the Trans-Pacific Partnership (TPP). Many investors from England, Japan, South Korea and Thailand have started investing in IZs.

In HCM City alone, investors have an ambitious plan to develop a Silicon Valley-style high-tech zone in District 9, with total investment capital of $1.5 billion.

By the end of 2016, the business results of five listed infrastructure development companies all showed a profit.

Accordingly, Long Hau JSC in the southern Long An province reported its revenue rose VND10.67 billion ($476,339). Of this figure, revenue from land leases accounted for VND6.69 billion. The company’s after-tax profits reached VND20.33 billion, or a 20-fold increase over the same period last year.

Sonadezi Long Thanh in Dong Nai Province reported its total revenue of $46.23 billion in the first half of this year. Of this figure, revenue from land leases in IZs accounted for $18.54 billion.

In the northern provinces, Vinh Phuc Infrastructure Development Company reported revenue of $33 billion in the first quarter of this year, or a 3.7-fold increase over the same timeframe last year.

The Thoi Bao Ngan Hang (Banking Times) reported that all businesses are now involved in infrastructure development in IZs, with four businesses expecting strong growth in profits this year. They are Tan Tao, Long Hau, Kinh Bac and Viinh Phuc.

With these high profit targets for this year, industry insiders have predicted that fierce competition between these companies will prompt them to offer new incentives to attract FDI enterprises.

Instead of concentrating on land leases only, as in previous years, they will take advantage of spending their own money to build warehouses, offices, retail space, serviced apartments and high-rise apartments.

Hepza reports that this tendency will see major growth in the next 1 or 2 years as the TPP officially comes into effect.

The current plan was approved in April 2014, and it is expected that Vietnam garment exports will reach between US$20 billion and $25 billion by 2020. However, in 2015, the garment sector already earned an export turnover of $27.5 billion. All the garment and textile businesses have actively taken advantage of opportunities through trade agreements such as the Trans-Pacific Partnership (TPP), Vietnam-Korea Free Trade Agreement (VKFTA), and Vietnam-EU Free Trade Agreement (EVFTA).

Vu Duc Giang, chairman of the Viet Nam Textile and Apparel Association (VITAS) said the industry was facing numerous challenges as many of its companies had closed down or halted production. Therefore, the industry wanted the Government to revise the plan as it was inappropriate and regressive. The Government should outline another long-term plan until 2040 to help the industry’s progress go in line with the country’s economic development.

According to VITAS, with the current growth, the sector has set export turnover at between $40 billion and $50 billion by 2020, instead of targets set in the current plan.

Vitas estimated that between 1988 and 2012, the sector attracted 1,551 FDI projects. Of this figure, there were 1,193 garment projects and 358 fibre production projects with a total investment of $3.5 billion. Thanks to the FDI influence, such businesses brought $2 billion into Vietnam to the garment sector in 2015.

As a result, the total export turnover of the garment sector reached $24 billion in 2014 and $27.5 billion in 2015, and it is expected to reach $31 billion by late 2016.

Giang said that apart from the five key export products, Vietnam also exported various kinds of fibre with an export turnover of over $3 billion annually and different types of fabric with a turnover of $1 billion per year.

Apart from the rapid production scale and strong export growth, the garment sector has also coped with unresolved shortcomings. These shortcomings needed to be handled soon to make the sector’s development sustainable.

VITAS has also proposed that the Government initiate policies to attract investments in this sector, including high-quality fibre production and dyeing projects.

In doing so, VITAS has also asked the Government to take a relook at industrial parks or key economic zones including those from the garment and textile sector.

Over the years, the garment and textile industry has not had specialised industrial zones to attract investments in textile and dyeing. As a result, the sector still relies on importing high-quality fibre for manufacturing export products, and it cost $15billion in 2015.

In addition, Giang said the Government needed to invest in infrastructure development, and create incentives for investors. Special attention should be paid to the production units and the origin of textile fibre and threads, and dyeing.

To obtain these, VITAS has asked the Government to pay great attention to investment in international quality waste water treatment plants.

She always works closely with her clients before planning their dream house and coming up with the perfect design.

“First, I offer my ideas, then I ask them to tell me everything they have in mind so that I can create a house that they will love,” said the director of SC Design and Construction Vidaly Chanthaphasouk.

She was recently honoured for her work in the industry and named an excellent entrepreneur at the 2nd AseanWomen Entrepreneurs Forum held in Hanoi, Vietnam, on March 4.

Vidaly studied engineering in Vientiane for five years before 2001, when she created a construction company.

“I loved painting houses when I was young, and I have a good idea of what people want in a house, but of course the end product must reflect the customer’s wishes,” she says, explaining that this is the focus of her work.

“Everyone, including me, wants a beautiful, modern house, but wants to save money, she added.

At present, she is working as a consultant for people who want to build their dream house while helping them to save money in the purchase of materials.”I try to understand and share ideas with customers so I can give them a worthwhile and good value design, even though there is strong competition in engineering and architecture right now.”

Of course, there are both Lao and foreign construction companies operating in Laos, but her company doesn’t focus too much on competition.”I’m more interested in giving customers satisfaction than on securing new projects,” she says with a smile.

But Vidaly said the growing competition will impact on her company and other construction companies, especially with the onset of the Asean Economic Community.

Most foreign companies who set up business in Laos use engineers from their home country for design and construction. Unfortunately this does not benefit Lao engineers, even though they are constantly improving their standard of work.

She hopes the government will issue strict regulations to encourage foreign investors to comply with Lao laws to ensure Lao engineers have a fair chance of being employed in their projects.

Vidaly said several design and construction companies are looking to partner with construction companies overseas to expand their opportunities.

Lao construction companies can also help their partners with consultation services to help them through the investment process in Laos, thus furthering their contribution to design and construction.

However, Lao engineers need to improve their knowledge of technology, English, and overseas investment laws as this will help them to compete with engineers in other countries.

The construction business will undoubtedly continue to grow over the next five years as Laos develops further, attracting even more foreign companies to Laos.

This should help to drive investment in the construction industry, with foreign companies spurring the growth process.

Vidaly has attended meetings with other Asean construction companies, and believes her company has the potential to grow through stronger connections with Asean members.

Recently, construction companies from Malaysia, Cambodia, and Singapore expressed interest in partnering with her company.

Lao companies have provided consultancy services to their partners to help them through the investment process in Laos, which will further drive cooperation.

One issue is that foreign construction companies can invest in Laos, but local companies are unable to invest overseas, partly because they lack basic knowledge of investment procedures.

Vidaly believes the Asean Economic Community will create new chances for companies to invest in other countries but says Lao firms must improve in all aspects of quality if they hope to expand overseas.

The Asean bloc has created joint investment regulations which will make it easier for companies to seek cooperation and investment opportunities.

Vidaly has been learning about investment overseas and this is a strong sign that she will be able to raise her company’s profile outside of Laos.

“If my company can be accepted in other countries, it will not only benefit me but also help other Lao engineers to improve their efficiency, which will result in more foreigners wanting to employ Lao companies,” she said.

The catalyst? The rise of crowdfunding, or peer-to-peer lending – an increasingly popular way for companies to tap the cash assets of thousands of individual investors looking for ways to earn interest on their savings.

While it has taken off overseas in countries like the United States, the wave is just starting to build here, with big institutional players finally acknowledging that this could be another way for companies to seek funding outside traditional bank lending.

Just last month, DBS Bank inked cross-referral agreements with two home-grown peer-to-peer (P2P) lending platforms to expand funding available to small businesses. The move was a landmark one, making DBS the first local bank to collaborate with such platforms in Singapore.

All of this, it seems, indicates a vote of confidence from big-name corporates in crowdfunding platforms – that they are much more than just a fleeting trend.

But are investors clearly aware of the risks involved?

BEAUTY IN SIMPLICITY

Most companies have a few options when it comes to funding their projects.

The traditional and still the most popular route is for firms to take loans from banks to finance their business. Another approach is for companies, especially those listed on stock markets, to borrow directly from the public. They typically issue bonds and pay a fixed interest rate, with a view to repaying the principal after a fixed period.

Crowdfunding takes the form of the latter, but with a small twist.

When companies issue bonds, they tend to borrow a huge sum of money, easily in the millions of dollars. Each bond in Singapore usually comes in tranches of S$250,000 (US$184,685) if it is targeted at institutional borrowers, and in much smaller tranches of S$1,000 if it is targeted at individual investors.

But crowdfunding allows firms to take very small loans, as little as tens of thousands of dollars. Likewise, investors can also lend very small amounts, as little as S$100 a pop.

Typically, a company puts out a sum that it needs to borrow and the platform, after carrying out its own screening process to accept the project, lists the request as a campaign. The company also states how much it is willing to pay in interest.

When the campaign kicks off, investors start to sign up and state how much they are willing to loan and what they expect to be paid for their money. The campaign ends when enough investors have pledged their cash, which gets transferred to the company. The firm then repays the investors through fixed monthly payouts.

For investors, this is a great way of generating yield on small amounts. Interest rates typically hit the double-digit range, anywhere between 10 per cent and 15 per cent, and the tenure of the loan also tends to be short, as little as six months.

For firms, they do not necessarily pay cheaper interest rates but it may mean easier access to funding which could take a long time to get approval from banks, especially in a slowing economy like today.

Another form of crowdfunding involves equity or securities, where accredited or institutional investors buy into or offer loans to a business and obtain shares in return. This process is regulated by the Monetary Authority of Singapore (MAS).

TAKING INVESTORS BY STORM

Over the past year or so, crowdfunding platforms of various sorts have mushroomed in Singapore.

There are at least 13 companies with a presence here – from more recognised names such as MoolahSense, CapitalMatch and CoAssets, to newcomers like EziFund, a real estate crowdfunding platform which made its debut on April 18.

Investors, for their part, have been lapping it up, taking the opportunity to look for yields on these crowdfunding platforms – and at breakneck speed.

A S$150,000 campaign for a lift installation and maintenance company on MoolahSense last month was fully funded in the span of just two minutes. Firms on Funding Societies have also managed to raise smaller sums in the likes of S$20,000 within just 30 seconds.

This is not surprising, given how some crowdfunding campaigns here come with interest rates as high as 25 per cent.

But the amount of money being poured into such campaigns and the speed at which this is happening may be cause for worry.

As Funding Societies co-founder and director Kelvin Teo himself puts it: “It’s an unhealthy herd mentality.”

He told The Straits Times that this trend means investors are taking less time to evaluate each loan before committing to it, which is why Funding Societies sends out a detailed borrower report to investors hours in advance for them to deliberate over, before opening up the loan for investment.

If anything, the slowing economy has not killed appetite for investments but whetted it, as investors rush into alternative asset classes that are accompanied by the promise of beefier financial returns.

This could explain why crowdfunding is such an easy idea to sell today, given the lacklustre performances of traditional investment assets such as bonds and equities.

HIGHER RETURNS, HIGHER RISKS

But when the rush for yield turns into a stampede, as it seems to be doing now, perhaps it is time to take a step back.

For one thing, there is no guarantee that firms which borrow through crowdfunding sites will repay the loans they took out from the public, as history has shown.

In May 2013, local start-up Pirate3D raised US$1.43 million through US crowdfunding platform Kickstarter when it promised its financial supporters low-cost Buccaneer 3D printers in return. The campaign was wildly successful, hitting the initial US$100,000 target in just 10 minutes.

The firm planned to ship the first 500 units of Buccaneer by December that year, but only managed to ship just 200 units as of last August, due to delays in the project, before ceasing operations.

Many of the firms which use crowdfunding sites tend to be small, which may be why it is hard for them to secure funding from the banks in the first place.

Even some of the bigger names, which are using peer-to-peer lending, are not in the best of financial health.

EpiCentre, for instance, rolled out three campaigns on MoolahSense for a combined S$1.5 million, offering investors repayments at an annual interest rate of 13.5 per cent. All three campaigns have been fully funded.

But take a closer look at EpiCentre’s parent company, EpiCentre.

The group fell into the red for the six months to December 31 last year with a net loss of S$753,000, down sharply from the net profit of S$232,000 in the same period a year ago, dragged down by smaller profit margins and higher borrowing costs.

Its net cashflow from operating activities stood at S$1.4 million, a far cry from the S$6.6 million previously.

The high yield it is offering is attractive but with high rewards come higher risks.

There are other smaller companies offering much higher yields for loans. The question is whether investors are truly and fully aware of the risks accompanying such endeavours.

To be fair, crowdfunding platforms have come up with their own systems of internal checks and proprietary measures to assess each deal thoroughly.

But they are not party to the transaction that takes place between firm and lender, which means they are ultimately not liable for the failure of a company or a project.

There are other risks as well.

The notes or securities in crowdfunding are illiquid, which means there is no secondary market for investors to sell their “assets” if they decide, at some point, that they want to opt out.

Such investment schemes are also not regulated by the authorities, which means that the investor will have few avenues for recourse should something go wrong.

BUYER BEWARE

Nobody can deny that the excitement surrounding crowdfunding today is compelling.

Corporate lawyer Robson Lee, a partner at Gibson Dunn, noted such platforms will create a good ecosystem that engenders new entrepreneurs while educating new investors on the dynamics, risks and rewards of investing in promising start-up enterprises.

“This will no doubt enhance the vibrancy of the Singapore securities market when the new enterprises eventually seek a listing on the Singapore Exchange,” he said.

But Lee also likened the crowdfunding process to an initial public offering, where a company raises capital by going public, except there would not be any prospectus regulation to protect public investors.

This puts many retail or mom-and-pop investors, who may not have the financial literacy and experience to make investments in illiquid assets, in a vulnerable position.

For now, the MAS regulates only securities-based crowdfunding platforms, which have to obtain a Capital Markets Services licence in order to operate here and service mostly accredited investors.

Crowdfunding platforms such as MoolahSense and Funding Societies do not come under regulation, and are open to the wider public.

The key here is that crowd-funding investors must know how to protect themselves. Most platforms advertise only the high rates of return for such lending activities. No one talks about the risks.

The authorities should insist that crowdfunding firms clearly warn of the risks of such investments, stating clearly that there is no guarantee that the money loaned will be returned to the lender.

After all, when things go wrong, it would be too late. It could take just one default for a lot of public money and trust to be lost and leave everybody poorer despite the higher interest.

Indonesia has a total workforce of 122 million people, of which 7.5 million are unemployed. Forty-two per cent of the workforce are elementary school graduates, 26 per cent are junior high school graduates and 22 per cent are senior high school graduates. This leaves only 10 per cent that have graduated from university.

The majority of elementary to high school graduates did not have many options as they were unable to consider higher education for financial reasons. Their options are jobs in the informal sector, such as becoming an ojek driver or a street vendor, or jumping directly into the labour market with a risk of getting stuck in a low-paid job. Or, becoming unemployed.

According to Manpower Minister Hanif Dhakiri, the problem with those entering the labour market with only elementary and high school backgrounds is a mismatch between jobs and skills.

“An elementary and high school education is not enough. It must be complimented with [training at a] vocational training center [BLK],” he said in Jakarta on Thursday, adding that the government would revitalize the BLKs to meet with industry demands. Currently 30 per cent of BLK participants are SMK graduates that have been accepted by a company but then sent to BLKs to update their skills.

For the unemployed, or those working in informal sectors, BLKs enable them to fit into the industry. For those stuck in low-paid jobs, they can gain additional skills by joining a BLK and try for a promotion, or leave their job and start their own business.

There are currently 279 BLKs in the country, which managed by the central government and regional administrations. However, based on the latest Manpower Ministry survey, there were only 52 well-operated BLKs, including 19 managed by the central government.

“These BLKs play pivotal roles in helping the work force win against ongoing competition. President Joko ‘Jokowi’ Widodo has implied two main points about BLKs; they should be focused and grow bigger,” Hanif said.

Five plans

Therefore, the ministry will update BLKs with five plans in an attempt to give Indonesia’s workforce a major upgrade in a short timeframe. First, the programs will be made bigger. Those who are at school age should be in the school, and those who are at productive age must join in vocational training.

In the past, it was not easy for the workforce to find vocational training. Polytechnic schools only accepted senior high school graduates, while vocational high schools ( SMK ) only accepted junior high school graduates.

“Previously, BLKs required SMK graduation certificates. Thus, they failed to absorb the swelling number of elementary and junior high school graduates. Therefore, we have recently abolished the requirement of an SMK certificate,” Hanif said.

Second, BLKs will be reoriented with priority being placed on sectors such as manufacturing and tourism. The training syllabus at BLKs will be based on the needs of prioritized, thriving industries.

Third, BLKs will be revitalized, not only by renewing equipment and buildings, but also by aligning programs with the latest educational theory.

“Fourth, BLKs will be rebranded. BLKs in fact have a generally good image, but if you ask people further about what BLK are like, they will think about monochrome TV sets, old motorcycles and outdated equipment and curriculums,” Hanif explained.

To reshape this image, BLKs will be transformed into BLK-Pros, which do not only focus on creating experts such as mobile phone repairers, but also on smartphone production skills. The technology has been transferred here from Switzerland and Norway.

Fifth, the private sector parties will be asked to invest in the training centers and to jointly manage them, revitalizing the underperformed ones.

“There are some BLKs that have been revitalized, such as the one in Kupang, NTT [East Nusa Tenggara]. It was almost abandoned and really in bad shape, but then it started to be co-managed by Toyota Motors. They provides the equipment as well as the instructors,” he said.

Sudamala Group, meanwhile, co-manages a BLK in Labuan Bajo, Komodo Island, to support their hotel there. Rather than bringing workers from Bali, which is costly and not sustainable, they chose to invest in the training center and develop the local workforce.

Several foreign investors have joined the program, such as a Dutch investor that co-manages BLKs in the maritime industry. Several of those, including in Serang, have been run in cooperation with a Swiss investor, and a BLK in Bekasi is managed by a Japanese investor.

Another form of cooperation with the private sector is in internships and apprenticeships, Hanif said, in cooperation with the Indonesian Chamber of Commerce and Industry ( Kadin ). In the initial stage, there will be 200,000 interns and apprentices sent to 2,000 companies.

Limited budget

Hanif underlined the importance of public-private partnerships to support his program, saying the state budget allocation for the BLK program nationwide was still small. “It is true that the government allocated 20 per cent of the budget for education, but that is a raw number,” he said.

In total, the allocation equals Rp 414 trillion ( US$31.4 billion ), of which Rp 250 trillion goes toward teacher salaries. The remaining Rp 150 trillion, Rp 140 trillion is divided between three ministries: the Culture and Education Ministry, the Religious Affairs Ministry and the Research, Technology and Higher Education Ministry.

Only Rp 10 trillion is allocated to equipment, facilities, program development, etc. However, Rp 9 trillion of that goes to 16 institutions for state-owned schools such as STAN and STSN. Only the remaining Rp 1 trillion is allocated to vocational training, or less than 0.1 per cent of GDP.

“Developed countries on average allocate 0.5 to 0.6 per cent of GDP to vocational training. OECD [Organization for Economic Cooperation and Development] members on average allocate 0.6 per cent of GDP,” Hanif said.

Therefore, public-private partnership is needed, he said. It is common practice internationally, such as in Scandinavian countries where the government provides 30 per cent of total vocational training costs while the remaining 70 per cent comes from private companies.

“Currently, the partnership between private and government is being discussed in Cabinet. We are waiting for technical reports,” Hanif explained.

As for the professional certificates, in a bid to guarantee the quality of BLK graduates, the government will employ the National Profession Certification Body ( BNSP ) to issue the certificates along with Profession Certification Bodies ( LSPs ).

The LSP will establish a competence testing center ( TUK ) to test the skills BLK trainees before they receive their certificates.

With these five strategies, Hanif is optimistic that Indonesia will be able to catch up with other Aseancountries in terms of workforce quality.

Private consumption, weighing in at more than 58 per cent of the gross domestic product ( GDP ) value in the period, expanded 4.94 per cent, another below-5-per cent growth. Investment expanded 4.24 per cent while government spending grew by only 2.93 per cent yoy versus 7.31 per cent recorded in the previous quarter.

However, this year’s start was better than that of the same period last year when the economy grew by 4.73 per cent yoy, said Central Statistic Agency ( BPS ) head Suryamin when announcing the GDP growth at his office in Central Jakarta on Wednesday.

Suryamin quickly brushed-off concerns about the economy, saying that this quarter’s situation was not an apple-to-apple comparison to the previous one when businesses and government spending had picked up pace.

“Economic activities have just started in the first quarter,” he said, adding that the economy started moving faster in the second and third quarter thanks to holiday celebrations and government spending.

The first quarter figure is well below analysts and the government’s projection. Bank Indonesia ( BI ) expects to see the economy expand 5.1 per cent this quarter, while analysts and the market project growth of between 5.01 per cent and 5.2 per cent.

The headline number came in below market expectations, DBS Bank economist Gundy Cahyadi admitted.

“Investment growth is the key downside risk to our GDP growth forecast this year, especially since private sector investment is not expected to recover by much until we are in the second half of this year,” he wrote in a research note.

He penciled in 5.2 per cent full-year growth, slightly below the government’s target of 5.3 per cent.

Indonesia’s economy, the largest in the Southeast Asia, expanded by only 4.8 per cent last year, the slowest since the 2009 financial crisis.