AmCham Singapore ASEAN Business Outlook Survey

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AmCham Singapore conducts a regional survey on business sentiment. Here are some highlights of the survey.

Transcript of AmCham Singapore ASEAN Business Outlook Survey

  • 2010ASEAN BuSiNESS OutlOOk SurvEy

    Report compiled by

    The American Chamber of Commerce in Singapore

    In cooperation with

    The American Cambodian Business Council

    The American Chamber of Commerce in Indonesia

    The American Chamber of Commerce of the Philippines

    The American Chamber of Commerce in Thailand

    The American Chamber of Commerce in Vietnam

    The American Malaysian Chamber of Commerce

    Des

    igne

    d an

    d Pr

    inte

    d b

    y S

    C (S

    ang

    Cho

    y) In

    tern

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  • CONTENTS

    2010ASEAN BuSiNESS OutlOOk SurvEy

    02 iNtrODuCtiON & MEtHODOlOGy

    02 BuSiNESS OutlOOk

    04 ASEAN iNtEGrAtiON & iMPOrtANCE

    06 StrENGtHS & CHAllENGES

    07 WOrkFOrCE EXPANSiON

    08 u.S. EXPAt iSSuES

    10 COrPOrAtE SOCiAl rESPONSiBility iNvOlvEMENt

    11 COMMENtS FrOM rESPONDENtS ACrOSS ASEAN

    12 CAMBODiA rEPOrt HiGHliGHtS

    14 iNDONESiA rEPOrt HiGHliGHtS

    16 MAlAySiA rEPOrt HiGHliGHtS

    18 PHilliPiNES rEPOrt HiGHliGHtS

    20 SiNGAPOrE rEPOrt HiGHliGHtS

    22 tHAilAND rEPOrt HiGHliGHtS

    24 viEtNAM rEPOrt HiGHliGHtS

  • ASEAN Business Outlook Survey 2010

    02

    INTrOduCTION & METhOdOlOgyThe American Chamber of Commerce in Singapore (AmCham Singapore), in cooperation with other AmChams in the ASEAN region, conducted a study among u.S. companies in seven Southeast Asian countries: Cambodia, Indonesia, Malaysia, Singapore, The Philippines, Thailand and Vietnam.

    The purpose of the study, now in its ninth year, is to understand members outlook on business growth and their perceptions about a series of local factors. The members surveyed were senior executives, working with a company held by or with an American majority interest. AmCham developed a survey design using a web-based instrument.

    This regional report presents collective feedback received from members of: The American Chamber of Commerce in Singapore, The American Cambodian Business Council, The American Chamber of Commerce in Indonesia, The American Chamber of Commerce of the Philippines, The American Chamber of Commerce in Thailand, The American Chamber of Commerce in Vietnam amd The American Malaysian Chamber of Commerce.

    The 2010 ASEAN Outlook Survey marks the first time that a survey of Cambodia members was included. As a result, there is no comparative data for Cambodia.

    Survey Methodology

    Table 1.1

    Sample Size: A list of AmCham members from u.S. companies with e-mail contacts was provided by each AmCham:

    Cambodia: list of 55 members, response rate was 31% (17)

    Indonesia: list of 125 members, response rate was 14% (18)

    Malaysia: list of 139 members, response rate was 14% (20)

    Philippines: list of 241 members, response rate was 21% (51)

    Singapore: list of 378 members, response rate was 21% (81)

    Thailand: list of 258 members, response rate was 33% (84)

    Vietnam: list of 213 members, response rate was 27% (57)

    Overall: list of 1,409 members, response rate was 23% (328)

    Data Collection Method: Web-based, self-administered survey. No enforcement on participation.

    Data Collection Period: May 12June 1, 2010

  • ASEAN Business Outlook Survey 2010

    03

    Profit outlook

    The majority of respondents expect companies profits to increase in 2010 and 82% expect a profit increase in 2011.

    BuSINESS OuTlOOkWorld econoMic outlook

    As the world shows signs of economic recovery, the ASEAN economic outlook appears much more positive in 2010 than in 2009. 73% of respondents expect the economy to do better or much better in 2010, as opposed to only 25% of respondents who felt the same way in 2009.

    No country shows this turnaround in attitude to a greater extent than Singapore, which shifted from having the most pessimistic outlook in 2009 to having the most optimistic one in the region in 2010. In 2010, a regional high of 73% of respondents expect the world economy to perform better or much better. Vietnam, the Philippines, and Thailand have the next most optimistic outlooks with 76%, 74%, and 70% respectively predicting better or much better world economic conditions in 2010.

    CambodiaindonesiathailandPhilippinesvietnamMalaysiaSingaporeregional

    2010 Decrease 2011 Decrease2010 remain 2011 remain2010 increase 2011 increase

    0%

    20%

    60%

    100%

    40%

    80%

    120%

    4%

    26%

    66%

    1%

    13%

    82%

    3%

    24%

    73%

    14%

    85%

    60%

    20%

    40%

    80%

    62%

    29%

    2%

    11%

    2%

    20%26%

    72%79%

    76%

    10%

    23%

    63%

    10% 11%

    28%

    50%

    22%

    6% 7%

    27%

    61%67%

    100%

    0% 0%0%0%0%0%0%0%

    88%

    Profit Expectations for the Next Two YearsCompared to 2009, do you expect your profits in ASEAN to Increase, Decrease, or

    Remain the Same in 2010 and 2011?

    Note: Percentages may not add up to 100% due to respondents selecting Dont know.

    In 2010 what are your expectations for performance of the world economy in comparison with 2009?

    CambodiaindonesiathailandPhilippinesvietnamMalaysiaSingaporeregional

    15% 17% 10% 16% 14% 16% 17% 6%

    60%

    29%

    6%

    44%

    33%

    6%

    54%

    22%

    8%

    60%

    24%

    2%0%

    60%

    19%

    7%

    50%

    40%

    64%

    12%

    5%

    58%

    21%

    6%

    Worse About the Same Better Much Better

  • ASEAN INTEgrATION & IMPOrTANCEASEAN integration is clearly valuable to most respondents with 73% finding it important to helping their companies do business in the region.

    ASeAnS contribution to globAl buSineSS

    Most respondents (70%) expect that ASEANs contribution to global business will continue to increase over the next two years.

    Note: No past data available for Cambodia.

    ASEAN Business Outlook Survey 2010

    04

    yes No

    CambodiaindonesiathailandPhilippinesvietnamMalaysiaSingaporeregional

    40%

    0%

    50%

    10%

    70%

    30%

    90%

    60%

    20%

    80%

    100%

    27%

    73%79%

    21%

    56%

    42%

    70%

    30%

    67%

    33%

    25%

    75%71%

    29%

    14%

    86%

    The Importance of ASEAN IntegrationIs ASEAN integration important to helping your company do business in the region?

    ASEANs Contribution to Global Business Over the Next Two Years(Country Outlook)

    indonesia CambodiathailandPhilippinesvietnamMalaysiaSingaporeregional

    40%

    0%

    50%

    10%

    70%

    30%

    90%

    60%

    20%

    80%

    More important 2007 More important 2008 More important 2009 More important 2010

    62%66%

    65%70% 72%

    64%

    58%

    65%

    51%

    59%

    67%70%

    72%70%

    65%69%

    66%67%

    53%

    67%

    60%

    71% 69%

    83%

    72%77%

    0% 0% 0%0%

    56%55%

  • buSineSS exPAnSion in ASeAn

    80% of respondents companies plan to expand or expand significantly in ASEAN over the next two years. These numbers remain similar to 2009 data, showing a continued trend of ASEAN expansion.

    For every country, more than half of respondents plan to expand in ASEAN.

    ASeAn trAde AgreeMentS

    77% of respondents said their companies use the tariff benefits of the ASEAN FTA. Those using the ASEAN FTAs with other trading partners range from 48% (ASEAN-China) to 21% (ASEAN-Japan).

    ASEAN Business Outlook Survey 2010

    05

    Vietnam and Indonesia are key focuses for expansion in ASEAN

    indonesia

    vietnam

    Myanmarlaos

    Cambodia

    Philippines

    Singapore

    Malaysia

    thailand

    31%

    15%

    13%

    11%

    10%

    7%

    7%4%

    4%

    Contract Significantly Contract remain About the Same Expand Expand Significantly

    Business Expansion in the Next Two Years

    CambodiaindonesiathailandPhilippinesvietnamMalaysiaSingaporeregional

    0%0%2%

    15%

    55%

    25%

    4%

    10%

    31%

    10%

    60%

    30%

    11%

    53%

    28%24%

    2%

    16% 16%

    57%

    24%

    6%

    22%

    17%

    56%

    29%

    47%

    18%

    59%

    1%1%

    53%

    0%0% 0%0% 0% 0% 0%0%

    ASEAN Trade AgreementsDoes your company use the tariff benefits of the following ASEAN Free Trade Agreements?

    ASEANFtA

    ASEAN-China

    ASEAN-Australia-New

    ASEAN-india

    ASEAN-korea

    ASEAN-Japan

    40%

    0%

    50%

    10%

    70%

    30%

    90%

    60%

    20%

    80%

    2010

    77%

    48%

    27%24% 22% 21%

  • STrENgThS ANd ChAllENgESlocAl buSineSS environMent

    Excluding respondents from Singapore, corruption continues to be a top source of dissatisfaction for respondents, similar to findings in 2008 and 2009. Corruption was the highest source of dissatisfaction for all countries except Singapore and Thailand. For Thailand, political stability ranked higher than corruption as a source of dissatisfaction.

    Sentiment towards the u.S. remains highly positive across the ASEAN region. however, sentiment towards the u.S. decreased appreciably in Malaysia (from 66% in 2009 to 53% satisfaction in 2010) and particularly in Indonesia, where it dropped from 50% satisfied in 2009 to 35% satisfied in 2010.

    factors Malaysia Philippines Singapore thailand vietnam indonesia cambodia

    infrastructure 70% 46% 98% 64% 73% 65% 41%

    Availability of raw materials 44%

    Availability of low cost labor