Forbes Asia June 2022 cover
Forbes Asia
“It’s the economy, fool,” was a famous catchphrase of former US President Bill Clinton’s 1992 campaign. It referred to the need to focus on economic matters as the world was plagued by recession and rising inflation . In the emerging post-Covid-19 era, the pressing issues of lockdowns, travel restrictions and vaccinations are being replaced by more conventional ones that the US and the global economy faced three decades ago: rising prices, higher interest rates, weaker demand and slowing growth.
As the old becomes new again, the era of Covid exceptionalism is now giving way to a world where fundamental economic principles – combined with geopolitics, technological innovation and other traditional factors – determine what comes next. One example is that rising interest rates and tighter liquidity are causing tech companies to come under pressure, while old-economy companies that produce real products and real profits are back in vogue with investors.
This uptick in business as usual shows its impact in this month’s content. The June issue includes the 30 Under 30 Asia list, two rich lists (for Japan and Malaysia) and the annual Global 2000 list of the world’s largest public companies.
In Japan, the shift is strong. Tech billionaire Masayoshi Son has fallen from his spot at the top of the list to be replaced by Tadashi Yanai, founder of the $23.6 billion global Uniqlo retail chain. The global tech wipeout means Son’s two vision funds have reported a record $27 billion loss for the year ended March and Son’s own net worth has been halved to $21.1 billion. Overall, Japan’s 50 richest saw their collective wealth shrink by a third to $170 billion.
Malaysia’s 50 richest, operating in an economy driven less by technology and more by commodity exports, still took a hit, but a milder one. They experienced a 10% decline in combined net worth to $80.5 billion. The highly diversified holdings of Robert Kuok, No. 1 on the list, cushioned him with the same 10% percentage drop in net worth to $11 billion.
Perhaps the greatest changing of the guard comes in the Global 2000 list. In recent years, the rise of China’s economy has meant a growing presence of the largest companies on the list. This year, as China suffers a slowdown, the new number one is Warren Buffett’s Berkshire Hathaway, a champion of value investing that traditionally shines in times of economic gloom. Meanwhile, the former No. 1 Industrial and Commercial Bank of China fell to second place after nine straight years at the top of the list.
Forbes 30 under 30 Asia
Forbes Asia
Finally, there is the annual 30 Under 30 Asia list, featuring 300 innovators from across the region. As usual, this list is a bit of an outlier. In good times and bad, this emerging cohort inspires hope as they redefine the future of Asia’s economy and society. They also display a talent for adapting quickly and thriving as the world takes a crash course in Economics 101.
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