Investment growth in Asia not in tandem with improving profitability


PETALING JAYA: While investments in Asia have grown rapidly, the scale is not in tandem with improving profitability as Asian companies drag global economic profit down, according to McKinsey Global Institute.

In a report on Corporate Asia: A Capital Paradox, it said Asia accounted for half of the global deterioration in economic profit (minus the cost of capital) from US$726bil to an economic loss of US$34bil between 2005-2007 and 2015-2017.

Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!
   

Next In Business News

CPO futures likely to trend lower next week
Oil ends week lower as demand concerns face Russia supply ban
CapBay empowers SMEs, offers investment opportunities
BFood aims higher amid rising competition
Bearish stance on bonds and currency
Steady outlook for luxury condominium segment
No major change in salaries
Short position: Narrowing of valuation discounts, Food for thought
Long way to go for Malaysian carbon market
CEO shares insights into group’s outlook

Others Also Read