China, Japan no longer hot: Deloitte boss

Written by fe Bureau | New Delhi | Updated: Nov 8 2012, 09:00am hrs
Multinational corporations are moving away from China and Japan to smaller economies in the Asia Pacific region such as Indonesia, Cambodia, Vietnam, Philippines and Thailand for setting up manufacturing units as rising labour costs and stronger currencies have adversely impacted the competitiveness of established production centres of the world, Deloitte chief executive for Asia Pacific Chaly Mah Chee Kheong said on Wednesday.

For India to attract more investments into manufacturing, licences and approvals need to come faster, Kheong said.

Indias manufacturing sector, accounting for only 16% of the economy, is not strong enough in the global scenario but unlike China, Indias advantage is that its economy is driven by domestic consumption, said Kheong, adding that New Delhi has to remove controls on capital to attract investments in the financial services sector.