Help me prepare for Asia

by Simon Black · 49 comments

Sometimes I wake up and don’t know what continent I’m on.

I’m serious.  It last happened a week ago when I woke up in the very elegant Cosmo 100 hotel in downtown Bogota… I had to look around the room for clues and within 60 seconds finally realized that I was in Colombia.

Most of the time this happens because of my travel frequency… it can be hectic sometimes– 2 days here, 3 days there; I’m always chasing new opportunities around the globe and thrive on the excitement.

There always seems to be a new deal, a new business, a new connection around the corner, so my schedule changes all the time. It’s a lifestyle by choice… and I accept the occasional side effect of late night disorientation.

Recently while at an undisclosed location in Latin America, my schedule changed again.  I received an important email, and poof, I started making plans for an extensive Asia trip… I flew to the United States immediately to make preparations and meet with my attorney.

I’ve been back in the US for a few days now… at least, that’s what I’m trying to believe. I hear people speaking English and see the flags everywhere.  But I’m sitting here wide awake wondering to myself, “where the hell am I?” with the same level of disorientation as I had last week in Colombia.

Intellectually I know that I am within the borders of the United States. I can look at one of my passports and see the stamp– but it just feels different.  Perhaps because I travel so much, I notice the changes much more acutely… like not seeing a growing child for several months at a time, or in this case, a rapidly deteriorating terminal patient.

I’m left wondering how a culture can turn away from its roots, how a political establishment can ignore its foundational guidelines, and how a society can devolve so quickly from greatness.

Is it irreversible?

I’m of the opinion that nothing is permanent… but it’s not looking too good in the short-term. The Obama/Geithner/Bernanke trio is taking the country in an entirely new direction that will be costly for each of us, personally as well as financially.

I’m keeping all of this in mind as I plan my trip to Asia in the coming days– Hong Kong, Singapore, Kuala Lumpur, Shanghai, Beijing, Seoul, Tokyo, Manila, and a few secret places I cannot mention yet. I have a ridiculously ambitious agenda that includes lawyers, bankers, fund managers, greasers, the occasional politician, and maybe even mob boss or two.

The writing has been on the wall in the western world for some time, and I’m convinced that the answer can definitely be found in Asia… so my goal is to put boots on the ground and find actionable information that supports the key themes of this community– making money, protecting wealth, finding opportunity, and living free.

I would appreciate your input as I plan my schedule for the next few weeks– what are your most burning questions and issues about Asia that I can explore while on the ground? What would you like to hear most about? Do you share my view of the western world?

Let me know.

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  • alfonso landa

    Simon

    please poke around Singagpore and find out how much banking asset security has been eroded by the recent OECD blackmail.

  • Chris

    I absolutely share your sentiments. I have been in Beijing for the past two months and have spent my time trying to convince my Chinese friends that Asia is the future while the US drowns in debt, regulation, and the megalomania of our politicians. I have been a reader of yours for some while now and would enjoy getting together. I will be in Beijing for a while longer so if you have time, feel free to look me up. I would greatly enjoy spending time with another like-minded individual.

  • will

    I think what you do is very exciting. I beleive that anyone that follows your lead can only prosper and grow in the coming years. I do have a couple of things I was wondering about #1 lending in Asia. obviousely they do not use fico scores. how do they lend on their stimulus package, do you have to register a company? if I lived in laguna beach or newport beach California what country would I like the most in asia.

    Great job and thanks for asking for our input

    Will

  • Mike

    Hi Simon,
    I have some questions about where are the best places to live in Asia. I would like to live there and spend a fair amount of time working in China. I’ve been looking into Hong Kong but the cost of living is very high. However, it is fairly easy to get a resident visa. I have also considered Thailand, Philippines and Malaysia. I’d love to get your feedback on these.

  • Lars Hansen

    Simon,

    I have heard the same musing over the past few decades. The Asian Tigers: HK, Singapore, Thailand, Taiwan, China, Korea, Vietnam, etc, etc were going to take over the world. Then along comes the currency crisis of 1997 turning thing upside down. Prior to that Japan Inc. imploded in 1989 and still have recovered from a two decades of lost economic growth.

    I know that I am not confirming what you want to hear, but why is it truly different this time with China and India at the forefront vs. those mentioned earlier in the 80′s and 90′s. History has a way of throwing us curves……..I think the Western world might just survive. I live in Europe and Canada and see first hand so things you might be missing. This history and culture is deep. It has seen it all from major world wars to hyper inflation, to deflationary depressions.

    The only certainty is change. Good, bad or indifferent, it is coming. Some say the good times are behind us, and they could very well be right. I do not see real leadership anywhere in the world. Perhaps I am just cynical. The human spirit had tremendous strength.

    All my best to you. Thank you for being our boots on the ground in many locations. Your comfort zone is far greater than mine.

    L. Hansen

  • Craig

    1. Banks that will accept US clients and have no offices in the US
    2. Bullion depositories in the Far East.
    3. Where can you legally own land?
    4. Immigration requirements for people over 60

  • ED

    Simon,

    Are you going to make to Sri Lanka would seem to be the place to be since the civil war ended.

    Rothchilds quote about blood in the streets comes to mind.

    Ed

  • Jole

    Simon,
    I’m very interested in opening a private bank account and/or safe deposit box in either Singapore, KL or Hong Kong and some suggestions on which bank. Clearly it will not be one that has branches in the US. I’d be curious about what you may know or find out, about the best place for an American to do that, during your next sojourn. Keep safe.
    Jole

  • Kelly

    Simon

    Thanks for increasing your coverage of Asia. My biggest concern as I prepare to invest is the rampant corruption I perceive in that part of the world. I’m not suggesting that the US, or any other country for that matter, is corruption free, but I’m looking to the east right now. What kinds of strategies and techniques can you recommend for dealing with the outstretched hands of bureaucrats?

    And yes, I do share your pessimism in the short and medium term. Who knows what may happen after that? Safe travels.

    v/r
    Kelly

  • David

    Hell yes I share you´re view of the US. I´m on my second trip to Panama and it sure beats the US in many basic ways, i.e. people´s general attitude and demeanor, beauty, climate if you can handle living an hour from the coast in the mountains, cost of living if you want to watch what and where you spend, a commercial real estate market that seems to have nine lives………not to speak of the night life in the city and beautiful women in smaller towns like Santiago and Chitre……….and on and on ……………my only problem is the currency (US$)
    Maybe living here with money in an Asian currency thru the Banc of China located in downtown Panama is the answer. That would be my question, Simon.

  • howard anderson

    I would like your panama black paper I am leaving for panama on sept 9th at least respond
    Thanks

  • Brian

    Simon,

    Enjoy reading your blog. What are the opportunities for someone in the US to directly invest in China/Vietnam? All that I can find are ETFs resulting in a secondary investment at best.

  • mark vancil

    With regard to China: Fresh water, male dominated demographics in a rapidly aging society and food. How does China deal first with its fresh water issue? Are there changes migration changes happening? The country has had incredibly cheap water by international standards, though it is now raising prices quickly. What is the impact near and medium term? How serious is it in the near term, medium and long term? We see auto usage projections, are these holding up? If they are stockpiling commodities, (buying all over the world – in dollars?), where are they putting them and what is the near-term impact of this “buying low” now versus buying by need later? In other words, do prices go down as a portion of future demand is consumed now? The demographic issues are interesting and extreme. Without a social welfare system how does this unfold socially and politically? There is a lot of speculation and bits of data about what is actually happening in China. The piece you presented from your contact there was some of the best information I have seen anywhere. I would think that kind of insight – what is happening NOW – rather than data (which by its nature is old and has never been older) would be critical to understanding the macro economic opportunities ahead.

  • http://comreblog.com rowan wilson

    the usa needs to have the reset button hit. perhaps socialism and mass decline is the best/only/fastest way.

    per asian travels – tell more about the banking system, ability to open accts over there, americans sjuch as myself relocating there w/ lower taxes etc. real estate, overall quality of life growth including more job opportunities for gen x graduate students nearing finish such as myself.

    i also like what you say about parts of south america but like belize best.

    thanks and keep up the good work!

  • Shirley Coffman

    Hello, As a “Casey” subscriber I am making new decisions to move abroad. I thought about Uruguay, but have a friend in Bangkok (expat) who loves it there & sent me a site for Malaysia where you have a 10 yr
    window for renewing visas and there are a lot of expats there.
    My mantra has been ‘I should have sold at the top of the mrkt’ – but with several residences, rode it to the bottem. Per markets -flow of money, investments and personal freedom is moving from W to E. As a US born citizen, I see a lot coming that w/b very bad for US citizens. I’m 63 yrs old but thin,active – do you have a suggestion whether So America or Thailand Area is best. I do still need to work but am investing and plan to feed those investmnts. My plan is to leave soon, couple of months. Thanks, I loved your W/O Borders and still enjoy your reads vmuch. Shirley

  • http://www.technicalities.blogg.no henrik

    Simon

    See what your felling is w reg to chinas bank loans and speculative activity vs real economic investment. The property market could be one area worth looking into, obviously. The stock market is telling us something about this already in my opinion.

  • Michael Lenker

    This may be off your main trajectory, but you mentioned Manila. I am an American with a Filipina girlfriend, and maybe going to retire to the Philippines. Foreigners can’t hold land there directly. What can you tell me about modest investment properties there? There is a town called Baguio City, relatively cool, which the American’s used as their capital, when they ran the country. I’m wondering if this is a place that might become a hub for retired or refugee American.

  • jayson

    Panama is a bit too close to the US sphere of influence for my taste. Where is East Asia would be the next best thing?

    Modern Lifestyle
    Access to internet and travel
    security of your assets
    baking removed the US influence

    Mainland China seems risky due to corrupt officials and limited freedoms
    HK is expensive but maybe ok?
    What about Taiwan?

  • Annie

    I would like to know the following:

    1. Private banking recommendations in Asia with banks that do not have offices in the US and will accept Panama Foundations for account opening.
    2. Residency and citizenship arrangements in Asia with reasonably good visa-free travel.
    3. Mountain (read dry not humid air) regions in Asia that are safe for expats to settle into.

    Thanks for the regular dispatches. They are a bright spot of light among the dreary news in the US.

  • La Grange

    1. Practical (price and access) but secure safe custody boxes.
    2. Lawyers (with influence) in Cambodia to ensure land title for land purchases goes through and stays there.
    3. Small business partnership opportunities (export or local use) in Vietnam.
    4. Small business partnership opportunities (export or local use) in Cambodia.

    I’d be much obliged.

  • wwbrown

    Simon,

    I agree with you about America. Until we restore gold as money and equal tax rates for 100% of the population, America is screwed. Just those two changes would put an end to big gov’t. Simple, but about as likely as Obama appointing me SecDef.

    Let us know about gold safe depositories in the Far East.

    Thanks.

  • Marat Kurbanov

    Hi, Simon.

    The most I am interested at the moment is the opportunity to move to a place doesnt matter where in our small world where i could chase those very important things:
    1) getting a second citizenship (for add sicurity and ability to travel)
    2) freedom for interpreneurship
    3) great weather (no winter !)
    4) cost of living
    5) small government
    6) high growth potential

    Would be really great to make up list of countries where we could rate them based on those criterias. I can give a hand in researches if You would like.

    And to start with would be great to decide the general direction : Asia or America south to Mexico…

    Cheers,
    Russian citizen. :))

  • Jerry Costello

    Mr. Black, I would be interested in identification of any water oriented companies and whether you can identify a bank or banks which: (i) will accept U.S. depositors; (ii) allow opening of account by mail and e mail [i.e., do not require physical presence in jurisdiction]; (iii) do not have a U.S. presence; and (iv) can communicate in English. Thanks.
    P.S. A bank or banks in any jurisdiction where you travel fulfilling the foregoing criteria would also be of interest. Perhaps a “black paper” on such banks?

  • ralph

    I am definitely interested in Malaysia, specifically the area of Sabah and Kutching. Hopefully you will give a informative report from that area. Thanks always.

    • Daverco

      Ralph,

      I was in Kuching and Kota Kinabalu for four days a few months ago. If you have never been there I would be glad to write up a few comments on my trip.

  • Bruce

    Hi Simon,

    I am interested in Malaysia as a place to have a crib and Burma which could be the deal of the decade.Also more about Mongolia.Cheers Bruce

  • Clement

    Hi Simon,

    thank you for the information. i also learn from the comments by the other people there. I live in papua New guinea (PNG) and it is one of the dynamic country presenting many opportunities and wish to invite you to visit. it is only 4 hourss from manila and 6 hours from singapore and tokyo. Our national airline Air niugini fly to singapore, malaysia, manaila, Hong kong and narita in japan, fiji, solomon islandsn a and australia is only 1.5 hours flight down to Cairns and 3 hours to Brisbane.
    i am working on Biofuel and hydro projects here and definitely want you to source or recommend some investors to facilate/ partner in thees developments.
    we also have islands for sale and or lease for some of your bloggers and interested investors.

    I will be happy to meet up with you or facilate for your assessment of PNG and the many prospects including gold mining and buying; and many more.

    Bset regards,

    Clement

  • Bob R

    So much to say about your trip. With regard to the West, we are seeing now the plans of the globalists/progressive/socialists coming to fruition. First destroy the manufacturing base (NAFTA), then blow up the economy that’s left with reckless financial risks, over regulation and higher taxes (on the way) then borrow the country into financial oblivion, take over the financial system and any other system that can be forced into government control (healthcare) and finally destroy the dollar. That about covers it, I think. So yes, I think unless the apathetic public wakes up we will be a has been third world country before Obama’s second term is over. God help us! As a young man I thought many times about finding “the cabin in the mountains” where I and mine could await the inevitible demise of the world as we know. Is there such a place?

  • Dr. GM

    Hi Simon. As an Americano with a Colombian wife & 2 Mexican children, I’d like to know more of your thoughts on Latin America, specifically, Colombia. Perhaps, regarding natural resources & emeralds, oil, and Medellin & Cartegena.
    But, to answer your question, Singapore is tangencially on my mind, specifically banking, investment, curency, taxation, cost of lilving, and, of course personal freedom.
    PS: I’d like to know your take on the acquisition of multiple passports.
    Thanks. G

  • J.P.

    First on the long list is how we can reap huge rewards on emerging placements. Surely the Chinese will begin grasping at the US throat to send the dollar spiraling downward. Where are the associates we can team with to benefit as it happens in 2009 ad 2010, then – which banking institutions to place secure overseas accounts with. Next, which asian country will be lead in the aerospace development and glass cockpit spinoffs with access to the leading edge technology? Which country is it, where we need to be which is sure to be the lead in developing the spaceports? Next, which country will be the leader in resource development, specifically silver and gold, but then also water desalination and purification plants. Next, which partners are those whom we can associate with to capitalize on fertilizer and agricultural commodity storage and distribution? Next, which partner will be the one to associate with who will be developing the infrastructure and logistics capability to re-create the airspace and airport structure for Iraq which will reopen as Obama pulls us out militarily?
    Thanks for the news reports

  • Panman

    Simon,

    I would love more info on Asia. What to invest in, where to live, best work & business opportunities, etc.

    Panman

  • Jai

    Ditto on craig’s #1, 2, 3, 4, but specifically commercial banks for e-biz, PayPal inputs without questions or raised eyebrows (as would be with “renowned” havens), small accounts – not private banking or HNWI. Any problems with something on the order of Nevis LLC & SP bank acct, or other combos? Cheapest way to set up biz (2, in different jurisdictions w/ diff banks) (e.g. LLCs) – get it done or DIY on arrival? Biz conditions – SP, KL, HK, etc?

    DIY before but would like to do it better this time. Plus things have changed…

    Cheapest, easiest visa for very small biz (owner? “employee”?) – SP, HK.

    Suggestions on cheapest serviced apartments/flats? Must be safe, decent but certainly not your typical exec accommodations on such a budget.

    It looks like others here also need to work or do a small biz, too… and I’d guess plenty of posters here would rather stock up on gold, etc, than pay spiffy rents & living costs.

  • http://members.virtualtourist.com/m/8abc0/ Peter

    Simon —

    Be careful when you come to Asia — many men find it is a one-way trip: they never go back.
    After five years of expat living in Asia, I am certain that I will not return home (to North America).
    You may find it is addictive, too.

    Many good questions above about banking, living, etc.
    Readers, rest assured that life out here is just as comfortable as life at home, but in very different ways.
    One vivid example to explain:
    Where I live in Thailand there is a small sandwich shop that advertises, “Our sandwiches are islands in a sea of rice!”
    Think about that from both directions:
    Yes, rice is the staple food here, but sandwiches and very good breads ARE available, just limited.
    So you don’t suffer out here, but you do need to adjust.

    It’s like that in other ways, too.
    Clothing and shoes in Western mens’ sizes are available, but selection is limited.
    Books in English are available, but selection there, too, is limited.
    And in the other direction …
    Fresh fruit that is delicious and locally grown is cheap and unlimited.
    Housing rentals are cheap and widely available.
    And, finally …
    Women who are slender, pretty, and eager to please a man, are available, and the selection is UN-limited.

    One of the important MIS-conceptions about Asia is that most countries are the same, albeit different languages.
    Not at all.
    Here in Thailand, while there is a veneer of Western civilization with blue jeans, new cars, and mobile phones, most people are poor, or very close to poor, will no chance of any improvement.
    That pervasive poverty and lack of opportunities defines the culture in many ways.
    On the other hand, in Singapore, you also see blue jeans, new cars, and mobile phones, but many people are far above poor.
    And those who are still poor have many chances to better their lot in life.
    That gives an entirely different flavor to Singapore culture, and to the reception that we, as Westerners, receive there.
    In Singapore, we aren’t much needed.
    Tolerated, yes, but they do get on very well without us, so the attitude is polite, but rather cool.
    On the other hand, in Thailand, being fundamentally poor, we’re very much needed — or our money is needed.
    As a result, we get a very warm reception in Thailand.
    And similar attitudes apply to opening a bank account or renting an apartment.

    I’m happy to discuss more of this with any man thinking of retiring in Thailand.
    (I’m retired so I see things from that perspective, with far less to offer younger men who are working.)
    To contact me, click on my name in blue, at the top, left, of this message.
    That will take you to a web page I wrote with information about life as a retired man in Bangkok.
    From that page, you can send me a message on that web site.
    (However, web page is on “travel” site — aimed at short-time tourists … information there is of little use to expats.)

    – Peter
    Thailand
    .

  • TSS

    Let me know when you are in Manila. Would enjoy swapping stories and intelligence.

    Totally agree the US has “lost the plot.” But, Asia is no bed of roses, either. I’ve lived here one third of my life … Korea, Hong Kong, Philippines — and I obviously find it very agreeable. But it’s not for everyone.

    There are some parts of the “West” that will benefit from the long-term ascendancy of Asia — if indeed it continues unabated.

    Australia springs to mind. Though I personally left Australia because I find it a stifling, socialist nanny-state, there is still a lot of money to be made investing in Australia. And the benefit is you get a transparent, blunt, no-nosense western culture with good rule of law. The Australian Stock Exchange and securities industry generally is also world-leading in many respects.

    My own personal strategy can be summarized as trying to ride the Asian boom by investing in the right companies and industries “Down Under” … who are benefiting from it.

    Like you recently did, I am setting off in business for myself, to help others do what I am doing. Maybe we can work together somehow.

    Safe travels!

  • Walt

    I support your concern on the slippery slope down this country is sliding on. I’s insanity!! I wojuld consider Uruguay. I love Panama – particularly Boquete. I cannot get my wife excited about moving there though she has been to Panama City once and I have taken two trips there and one to Boquete. Such great friendly people. Great medical and such a beautiful environment and weather. My concern is how to get my assets out of the country intact. Very little is written about this and it needs to be considered in your writings, no matter which country you are visiting and writing about. Are we to expect fees, tolls, mordida, graft in doing so. Please keep that in mind as you travel and advise.

  • Observer

    I agree with Peter who said the Asian region can be addictive. Never a truer word has been spoken – it can get in your blood and be very hard to shake.

    As others have pointed out though, I think it is imperative people never group Asia as a whole; each country it completely unique with diverse cultures, political systems, business environment and people. Much like Europe in this manner, yet even more categorically independent from each other in terms of the above differences.

    Good luck Simon with your trip, and would be interested to hear your observations.

  • http://www.myrchoice.co.cc/ Raja Hafify Zaed

    Greetings friend,

    I’m from Kuala Lumpur. It’s a nice place to live in.

    If you come visit Malaysia, can you give me your honest opinion on Malaysia as a whole; the locals, the places and the foods.

    I’d always wanted to know how foreigner think about Malaysia.

    With regards,
    Raja Hafify Zaed

  • Victor

    Korea????

    What is your take on Korea?

    1. They don’t have as extensive a network of indigents as we do in the USA? Koreans work, and hard.

    2. Currency and Biz: Not the USD, though Korean banks did invest heaviy in subprime in the USA. And Koreans are the 4th largest holder of US treasuries in the world. BUT they have companies like Daewoo (largest shipbuilder in the world) and LG. As the world becomes less centered around catering to the USA, Korea will have plenty of other trading partners.

    3. North Korea vs South Korea: The specter of NK might keep people from investing and doing biz in the SK and therein lies opportunity.

    Wondering about your take on Korea….

  • http://rogrodny@mac.com Bob Ogrodny

    Wow, Simon! I had that same feeling a long time ago. After a long afternoon sharing its namesake
    in Tequila Sauza, I awoke looking out a window which I was pretty sure was in Mexico City. I could
    tell for pretty sure it was at least Mexico, as there was about a seven foot beam sticking out of the wall supporting the floor above me. As is the seeming custom there, these beams were left uncut
    if they were under eight feet in length protruding through the wall. Don’t ask me why. I don’t
    know and don’t care. They are useful to me, especially after waking thinking that the wild ride
    from Sauza, flying a few feet above the pavement on my redlined dyna wide glide, was a dream!
    It wasn’t! Good thing my biker-girl could hold her hootch, as she was able to get me checked in and off street parking for my HOG. I thought that was part of the dream too.

    Check out my reply to your 7 expat letter. You tell me how close our sympathies lie.

    Ride Free, Og

  • David

    Simon,

    Two suggestions regarding Asia:

    I am interested in knowing more about the water situation in China, and the emerging food crisis in China and India. Two areas that seem particularly important to investigate are water filtration and fertilizers.

    Secondly, please educate us regarding the potential of Singapore as a viable financial center for expats, and its economic vulnerability to the potential chaos in China.

    Thanks. Have a good time!

  • Christine

    Hi Simon,

    Singapore at the moment is the only place that I am interested in moving to, as it’s modern and almost everyone there speaks English. Not to mention I LOVE the weather.

    I am even more interested today since Jim Rogers moved his family there and opened his own company.

    I would like to know:

    -Banking System
    - Living requirements (i.e. sponsorship, citizenship, etc….)
    - Can Expat’s Trade actual stocks NOT ETF’s in the Local Stock Market

    I am also curious to know how an American Citizen can purchase Chinese stocks in Shanghai, Hong Kong, etc… without having to buy ETF’s

  • KEN

    HI
    How bad do you think it will get in the U.S.?
    What will be the time frame?
    What will be the leading indicators?

    Long term China will be O.K.,but having a Chinese wife I think
    they will make a great short. If you agree when?

    KEN

  • joe in Buenos Aires

    Simon -
    I do agree with all the thoughts & feelings you’ve put forth on the development (devolution ?) of our society. Actually, I consider the whole “continuously accelerating pace of our lifestyle” issue to be a normal part (however odd that may sound) of the evolution of any given economy. Keven Phillips’ “Wealth and Democracy” runs through pretty much all the major empires of the past (Spanish, English, Portuguese, et al), showing how they all pretty much ran the same path of build-up and then fall-apart. As any given “empire” (or economy, if you prefer) builds, develops & strengthens, its people tend to move around more both for business as well as personal reasons. They have the money, they have the opportunity, they have the purpose – so they travel, and with that comes the diaspora of that society. The same things will happen with any developed empire/economy of the future – Chinese, Japanese, Martian, whatever. We as human beings will all, for the greatest part, run on that treadmill faster & faster & faster in pursuit of the almighty dollar/yen/yuan/baht/name-your-currency. It’s part of our determination to get ahead of everyone else. Only too late do we realize the things of true value that we’ve left behind during that pursuit.

    • lrm

      yes,but the US demise was purposefully planned by those behind the scenes,and planned over many decades….from educational dumbing down to government control over industries…a very subtle but none the less purposeful manipulation of variables to achieve a particular end goal.

  • erv terry

    Simon, I agree that the U.S has some serious problems. I am not too sure that there is much we can do about it, other than to move some of our assets and life styles to a place where we are more comfortable. I have spent the last 18 years traveling around the world in support of an aviation business that is based in Alaska. From what i have seen, and I have not seen it all (or enough), S.E. Asia has become my favorite part of the world. But, I do have concerns because as an outsider, it is almost impossable to own anything other than a Condo in this part of the world, and i have tried….simply too many strings attached that leaves me feeling out of control regarding the investment in real estate. So, I would be very interested in any info. you can come up with regarding real estate and brokerage accounts in that part of the world. Thanks, Erv

  • Expat in Asia

    Hi Simon,

    Look me up when you’re in Manila. Let me buy you a drink and we can discuss your research project.

  • Me

    Asia is a difficult place to do business for westerners. Difficult in terms of the time taken to acquaint oneself with the systems, bureaucracy, and culture. It is still shut of legislatively from foreigners in many ways. Cultures are vastly different and westerners are always viewed differently. Changing this will take a long time.

    From my perspective the benefits lie in a vastly cheaper, and better standard of living. The “easy” way/s to take advantage of this in my humble opinion is to live here and design a life whereby one is not reliant on income from within the borders of the country that you choose to reside in. The benefits to this are obvious. There is absolutely no reason that you cannot live in one country while having absolutely no assets in that same country, in fact it makes a lot of sense to me. This is something I think that people have a hard time coming to grips with.

    The other way is to provide “services” to westerners (if you are a westerner). There is, and I believe will be an increasing shift of people physically from the west to the east. Studying history it is clear that capital moves first (already well in swing) and ultimately people. Brokering the array of services that facilitate ones move both physically and financially to the east offers a lot of opportunity with minimal capital costs. The downside is time spent sorting the wheat from the Chaff. Really just due diligence like you would do anywhere else except with an added layer of difficulty coming with a white face and all the preconseptions that come with it. I’ve been working on it for a little while now personally.

    Someone mentioned it above but it is obviously true that “Asia” cannot be lumped together. The differences across the region are extreme in all respects.

    The lowest cost of living without giving up too many western conveniences for me are in Bali although there are many opportunities depending on what you are after. PPP is something I pay a lot of attention to. http://en.wikipedia.org/wiki/File:PPP2003.svg provides a basis to start with.

    Decent Bangkok apartments still can be bought on a 8% yield. You need to get on the ground and do your DD as location, quality of build etc are all not alike. Basically use your common sense.

  • Daverco

    Simon,
    Assuming that you will be in Singapore on your trip an interesting side excursion would be to the nearby Indonesian island of Batam (45 min. ferry ride). If you are not familiar with how it has grown from 5,000 fisherman to well over 300,000 residents in the past 30 years I would be glad to elaborate. There are many expats on the island working for large oil service companies, however the bulk of the people there are Indonesian women recruited from all over the country to do electronics assembly. It is essentially a cheap labor manufacturing arm of Singapore. The built-up areas are second world – not scary, but not quite all the way civilized. Batam has measurably grown and improved in the five years I have been going there. One anecdote is that you never saw a nice car back then. Even the rich drove beaters. Now the roads and economy have improved to the point where nicer cars can be seen and not be routinely dinged up.
    Batam used to be a major weekend getaway destination for the Singapore hard-partying set, however gambling was outlawed a few years back (partly due to Indonesian religious/political concerns, partly Singapore wanting to promote there own gaming). There is, though, still an active night life scene in the Nagoya area mainly featuring expat bars.
    If you wish to take a look at some of the investment opportunities on the island, drop me an email. I can set you up with expat friends there (they have vested interests) who would be more than glad to show you their projects and buy you the first round. They have been on the ground a long while which is an absolute necessity to navigating the low-level politics in Indonesia. Having Indo wives helps too.

  • Spencer Brod

    Dear Simon,
    Do not be so quick to write off the US. I have spent four years in the Middle East and travel expensively to Asia. Prior to that was five years in Europe.

    Is China making great strides? Absolutely, but remember China was a great power in the ancient world with an estimated 25% of world GDP in the fist millennium AD.* Some of the current growth is catch up.

    China does have the advantage of a huge working population, a great work ethic and an entrepreneurial culture. Its head winds include over population, ecological degradation, and a communist government with its share of skeleton’s in the closet.

    One trend you will continue to see is an exodus of wealthy and educated Chinese moving away from China. It is not that there is lack of economic opportunity in China, it is that the society is closed compared to western standards. Given the opportunity to have US citizenship the majority of people in Asia would gladly immigrate to the US.

    It is not to say that the US is not facing challenges, and I would personally recommend that if you have never lived outside that huge island called the US then you are missing a huge opportunity. From the more than sixty countries I have visited, I can say that the US is still the most competitive economy as far as starting a business, hiring and firing employees, growing a business and even in bankruptcy. IMF rankings bear this out.

    My point is not to judge “staying at home” versus participating in some of the high growth economies of Asia or the Middle East, it is more to paint a realistic expectation of venturing into foreign economies. Do be prepared to play at disadvantaged rules to the local movers and shakers no matter which country you are in.

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