The lure of big Asia markets remains strong while direct investors are increasingly looking at places such as Myanmar in the hunt for untapped potential, a global consultancy says.

The lure of markets like China, India and Indonesia remains strong while direct investors are increasingly drawn to markets such as Myanmar in the search for untapped potential, according to Control Risks, the global business consultancy.

The firm’s annual Risk Map report, released yesterday, highlighted the most significant underlying trends in global risk for businesses and investors, and offered insights from the markets that will matter most in 2013.

As western economies struggle to shake off the threat of crisis and recession, money continues to head eastwards in the hunt for yield. However, Asia has its own uncertainties, resulting from regional economic slowdown and important leadership transitions, as well as consumer- and asset-price inflation, the report said.

Sentiment on China will rebound as new leaders settle in and growth picks up, said the report. However, it is doubtful that the world’s second largest economy will bounce back to double-digit growth, despite signs of recovery, including the 10.1 per cent industrial growth rate released on Sunday, it said.

Key elections taking place in Indonesia and India in 2014, and related uncertainties are increasing investment risks in these fragmented and decentralised systems, said the report. Despite Indonesia's strengths, complexities in exploiting raw materials discourage investment, while infrastructure and regulatory progress is not up to scratch.

Meanwhile, stealing the limelight is Myanmar, which after a year of political and economic progress is attracting droves of foreign investors scouting for deals.  However, its business environment is at a very early development stage, and highly sensitive to the simultaneous political and economic reform. Success will depend on developing institutions to navigate this fraught process, not just on leaders to lead it, said the report.

Richard Fenning, chief executive of Control Risks  said companies and investors need to improve how they react to changes in the current environment, where certainties are in shorter supply and leadership ways are unpredictable.

“Managing companies or countries has become as much about reacting swiftly and decisively to changing circumstances as it has to do with the implementation of a strategy or policy," he said.