1. Economic and Industry Outlook
1.1 Asia-Pacific Economic Outlook
Asia Pacific region growth in 2005 is comparatively slower than 2004 but still robust. The average real GDP growth for the Asia-Pacific (AP) economies in 2004 was 5.4% (2003: 3.7%). In 2006, it is expected that the GDP growth for the AP region will be around 4.6% , translating into good news for ACCS whose operations spans across the AP region.
There are several considerable regional risks:
i) Surging oil prices can impact oil dependent Asian economies, resulting in inflation, e.g. China and India, or worse, a recession if hike persist .
ii) The political tensions lurking between and within countries, e.g. Beijing & Taiwan standoff and Bangkok's election demonstrations. Such tensions generally dampen the investment climate.
iii) The possibility of another avian influenza outbreak.
1.2 Telecommunication Industry Outlook
The telecommunication industry in both developed and emerging markets is growing as mobile phones have become a fashion statement beyond their basic functions. Despite the phone market approaching saturation in developed markets such as Singapore (See Appendix A) and Australia, consumer demand is still expected to develop strongly over the years boosting.
Furthermore, modernization of developing markets such as China and India and its large population, will contributes to the industry growth. Currently, China is the world leader in the mobile phone users at 340 million users in 2005 and having a market worth of US$72.1 billion .
2. Fundamental Position of the Group
2.1 Business Model
Established in 1999, ACCS's primary line of business centers on being an outsourcing solutions partner for major mobile phone manufacturers and ...