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.

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