Singapore, 18 June - A survey released today shows American companies in Asia believe economic recovery will occur before the middle of 2003 (86%), with 50 per cent forecasting a recovery this year. The other results of the survey are as follows:
There is optimism about Asian markets and the share they contribute to global business. 63% of members say their companies believe Asia's contribution to worldwide operations will increase in the next 2 years.
Business expansions are anticipated by far more members (73%) than those expecting reductions (18%)
China emerged as the country where business expansion will be most directed to (64% of those intending to expand). Singapore believed this to the greatest extent. China emerged as a potential opportunity for ASEAN rather than a threat.
Profit outlook was also hopeful. According to the report, even in the current year, more than half the members in the region (57%) expect profits to rise, with 80% projecting further growth in 2003. Among all, members from Malaysia were most optimistic about profit outlook.
"The principal findings show a very strong positive outlook for growth in the region," the Managing Director of AmCham Singapore, Mr Nicholas de Boursac, said today.
"But they also highlight a key issue: that there are some serious matters some Governments in south-east Asia will have to address if they want to stem the transfer of foreign investment to China. This is particularly in relation to corruption issues, local protectionism and laws and regulations around the region. With the notable exception of Singapore, this was the very clear message."
The survey by four regional American Chambers of Commerce - in Malaysia, the Philippines, Singapore and Thailand - was conducted through the Gallup Organization in late April.
Other key findings:
A strong majority (70%) of members believe the free flow of goods in ASEAN and other Free Trade agreements will have a positive long term impact on business.
A high proportion (60%) are satisfied with personal security in south-east Asia. This was the case in Singapore, Thailand and Malaysia.
32% of members see their workforce expanding this year. A further 52% do not see any change in workforce this year. Overall, a total of 16% expect staff reductions.
Singapore respondents were most satisfied with local institutions, with 85 per cent approval of customs institutions for example, compared to a regional average of 55 per cent.
Trained personnel were given the highest approval in the Philippines (76%) compared to the regional average (51%).
The four AmChams represent an estimated US$60 billion in investment in the region. The web-based survey sought the views of member companies with an American majority interest. Its purpose was to understand the American outlook on business growth in Asia and perceptions of a number of internal and external factors.