Technology and digitalization will unfold at a speed not yet realized by most, Credit Suisse's APAC chief investment officer, explains in an exclusive interview with finews.asia, saying that they will drive business opportunities and investment performance for many years to come.
Companies are investing in their digital transformation for a variety of reasons such as adapting more quickly to changing customer needs, gaining operational efficiency and boosting profitability. But the unfolding of Covid-19 has given governments and companies the impetus to carry out large-scale upgrades to infrastructure to cater to the flexibility required for new living and working arrangements.
Technology is one of the themes identified in the Credit Suisse's new edition of «Supertrends,» published in May. Launched three years ago, the report focuses on multi-year societal trends believed to lead to fast-growing business opportunities. Each of the investment trends identifies opportunities expected to outperform as a result of these shifts. The updated report also considers the changes brought about by the COVID-19 pandemic.
Impetus for Investment
«The coronavirus pandemic has uncovered many new reasons to further increase investment in digitalization,» John Woods, Credit Suisse chief investment officer, Asia Pacific, (pictured below) said.
«Increased mobility, automated real-time processes (edge computing), and at-home education and entertainment are just a few of them,» Woods added.
John Woods, APAC CIO, Credit Suisse
According to the report, key beneficiaries of these developments will be telecom equipment and semiconductor firms with strong exposure to the rollout of 5G networks and edge computing architecture, tower companies and construction firms that maintain and implement 5G networks, and local data transmission platforms; software, IT services and semiconductor companies that are enablers for AI, VR, AR and industry automation processes; internet platform providers that disrupt traditional businesses; and companies in the healthcare sector that use technology to improve execution in areas such as diagnostics, sequencing, therapeutics, care delivery and the development of medical devices.
Cooperation Needed
However, Woods cautioned against excessively onerous privacy protections, as well as fragmentary geopolitics, as they would likely impede the growth of digitalization and use of big data.
«Firms also need to be transparent about safeguards and data use, and governments need to be transparent about monitoring and enforcement of protection for users,» he said.
- Read more about the Technology supertrend here.
