Stimulus measures to give fillip to SE Asia

China's stimulus measures will have a positive effect on Southeast Asia, with the region's tourism and export sectors likely to benefit from increased Chinese spending, analysts say.

- PRIME SARMIENTO

"The pledge of swift and forceful fiscal stimulus by Beijing is welcome news to ASEAN economies," said Erica Tay, an economist at Maybank Investment Banking Group of Malaysia.

On September 24 China's central bank announced measures aimed at boosting the country's economy and spurring consumer spending. The steps included a cut in the reserve requirement ratio of commercial banks, and reducing a key interest rate and mortgage rates on existing home loans. The measures led to a rise in global commodity prices and triggered a rally in share markets.

Josua Pardede, chief economist at Permata Bank in Jakarta, said the substantial stimulus from Beijing targets not only domestic supply but also demand, which can produce higher multiplier effects on the overall economy.