Risk and Reward
Better communication between governments and investors is the best way to ensure that costly projects don’t get sidelined by risk factors.
- Published: 28 Jan 2013 at 10.15
- Newspaper section: Asia focus
The developing Southeast Asian region has never been so attractive to investors. From the opening of Myanmar, to hydropower in Laos or the rise of Indonesia, compelling cases exist for pouring money into the region.
Protesters who fear the Xayaburi dam on the Mekong River in Laos will ruin the fishery demonstrate in Bangkok.
But where there are opportunities, there are also risks and uncertainties, particularly in developing countries. Billions of dollars can go for naught at the end of the day because of changes in government, changes in regulations or arbitrary decisions. Opaque legal systems and corruption are also major headaches for foreign investors.
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