Credit Suisse research states that the top 10 richest countries in Asia have contributed investments to the world. There are at least around USD 15 trillion in international investment assets accumulated by the top 10 countries in Asia. When converted to the latest exchange rate, the amount of USD 15 trillion is around IDR 232 quadrillion (exchange rate of IDR 15,500). Indonesia itself is included in the 10 countries with the largest economies in Asia. Indonesia is included in the list consisting of China, India, Japan, Philippines, Vietnam, Thailand, South Korea, Malaysia, and Taiwan whose economic activities have contributed 50% of global GDP. "Actually a lot of consumption in the United States, Australia and parts of Western Europe is actually financed by Asian savings. This has accumulated to USD 15 trillion in net international assets," said Co-Head of Asia Pacific Strategy and India Equity Strategist, Securities Research Credit Suisse. Neelkanth Mishra in a webinar, Friday (4/11/2022). Neelkanth said it could happen because of the large savings of people in Asia, especially savings in financial assets. Currently, there is a transition from public investment in developing countries in Asia to financial assets. From the start, most of the wealth was in the form of physical assets. "The transition to financial assets means that exportable savings will continue to increase," said Neelkanth.
Credit Suisse also highlighted the lack of retirement assets in most Asian countries, including Indonesia. According to him, most of the income during the working period of the elderly in Asia is used up to make ends meet. Not to mention the stigma of parents who support their children in their old age is still great. This is also what makes retirement savings very little. "There are some intergenerational burden transfers, for example I am financed by my parents then I fund my children while working. Well I hope they fund me too in my old age," said Neelkanth. Even so, retirement savings are starting to increase in some Asian countries. "Worries about the future encourage people to start saving for their old age," he said.
