The collapse of south-east Asian currencies and the expected slow-down in the growth rate of Thailand, Malaysia, Indonesia and the Philippines, will have an effect on Irish trade with the region, but it will not be very significant, forecasts Mr Paddy Delaney, director-Asia of the Irish Trade Board. "Our experience in Ireland is that when large economies like the UK or the US slow down substantially, it does affect the overall export figure," Mr Delaney said in his Singapore office. "Events in south-east Asia will have an effect, particularly in exports by multinationals based in Ireland exporting computer chips and hardware and pharmaceuticals.
"Our market is into the foreign-owned manufacturing centre here, including computer software and building materials. But since it is on a microlevel I don't think changes of 1 or 2 per cent in the growth rate will make that much difference. The market isn't really all that price sensitive. People look for price, quality and service, and in many cases quality and service are more important. On the other hand, with the devaluation of currencies the cost of operating here will be cheaper."
Ireland has a balance of trade heavily in its favour in the region. Malaysia is the most significant market, followed by Singapore and the Philippines.
The bulk of the £762 million Irish exports to the ASEAN countries are from the multinational sector.
Just over £59 million comes from the indigenous sector, according to 1996 figures, of which some £20.5 million goes to the Malaysia market.
According to the Trade Board, the main markets for Irish companies in this region are in telecommunications, engineering services, aviation, environment technologies and electronics. The Trade Board is encouraging companies to develop marketing joint ventures in the region as a way of entering the market.
