Structural shifts to benefit Asian companies: Fitch Ratings

The changes to industry dynamics and competitive landscapes resulting from the global recession will likely after the profiles of key industry sectors to the benefit of Asian companies by 2012 and there would be more cross-border mergers and acquisitions over the next few years, says Fitch Ratings.

The credit rating agency in a report released today said certain industry sectors — notably automotive and technology — were already experiencing significant structural changes, and expected that this trend would become more pronounced by 2012.

Both the automotive and technology sectors have suffered demand-side weakness and would need to adapt to a new dynamic over the medium-term, Ficht Ratings said.

"Asian companies can be the net beneficiaries of these changes," reflecting the ability of established and emerging players to compete agressively across world markets, it added.

Besides, the agency expects an increasing level of cross-border merger and acquisition activity by Asia-Pacific corporations over the next few years, notably in the energy and commodities sector, as "China — in particular — seeks to secure natural resources necessary to support its continuing strong growth".

"Securing sufficient supplies of energy and raw materials is one of the biggest challenges facing high-growth economies and their leading industrial companies," it said.