ASIAN ECONOMY IN UK
The top 10% of Asian wealth creators now account for almost as much money as the combined total of the top 200 Asian businesses in 1998. â€œRealâ€? Asian wealth increased by 69% compared to the UKâ€™s overall GDP growth of 22.8%.
Britainâ€™s Asian economyâ€™ is growing at three times the rate of the U.K as a whole, the countryâ€™s third largest bank said â€œa significant shiftâ€? in Asian wealth creation away from being shopkeepers to hi-tech service providers.
Meanwhile, a new row broke out over the reportâ€™s omnibus classification of Indian, Pakistani and Bangladeshi entrepreneurs as â€˜Asianâ€™, with Indian businessmen voicing complaints.
Indian businessmen in U.K strongly feel they must not be classified as people who buy up cash-and-carry stores or corner shops. Our community is in high-value trade now, such as IT, the media and so on, she said.
But sections of Britainâ€™s thriving â€˜new Asian economyâ€™ feel it might have been better for the new Barclays Bank report to have categorically classified the growth as â€œIndianâ€? rather than â€œAsianâ€? because it may be misleading to lump all Asians together.
There is a such a wide difference between Asian groupsâ€”Indian, Pakistani and Bangladeshiâ€”that it would be better to be more specific about who is doing well.
A Corporate director of Barclays Business Banking, which supports businesses with an annual turnover of at least 1 million pounds and who commissioned the report admitted that this report has grouped Asian people together but he insisted as a bank they always treat all customers as individuals.
The new report, titled â€˜Asian entrepreneurs in the UK â€˜, analyzed the wealth of UKâ€™s 200 richest Asians between 1998 and 2005. It concluded that â€œrealâ€? Asian wealth increased by 69% compared to the UKâ€™s overall GDP growth of 22.8%. The report said the Asian growth has raised the bar for joining the ranks of the top 200 Asian wealth creators. The report said in 1998 a successful Asian businessman could expect to join the top league table with a fortune of just 2 million pounds. Today, he would need to have at least 5 million pounds.
Offering an astonishing statistic, the report said the top 10% of Asian wealth creators now accounted for almost as much money as the combined total of the top 200 Asian businesses in 1998.
Asian wealth creation in new economy sectors such as IT, media and the internet had increased by over 690 million in the eight years to 2005, compared to, for example, the textiles sector which showed no real growth over the same period.
The report said the pharmaceutical industry is now the largest source of Asian source of Asian wealth in the UK, up by 1.5 billion pounds during last 6 or 7 years as against a largely static U.K pharmaceutical sector.
The study also found that Asian wealth creation is no longer reliant on the performance of a handful of Asian entrepreneurs because the top 10% of wealth creators have accounted for a diminishing proportion of total wealth generated. In 1998, it said almost two-thirds of Asian wealth was generated by the top 20 performers but by 2005 this had fallen to 30%.
Sections of the Asian economy feel peeved. Say it would have been better to classify growth as â€˜Indianâ€™ rather than lump all Asians together.