US companies bullish on ASEAN, see Importance of Economic Integration

25 November 2013, Jakarta - US companies in ASEAN remain positive on their outlook for the region, believing that the ASEAN market will “continue to grow in revenues and worldwide importance in the next two years”. 

This is one of the key findings revealed in the 2014 ASEAN Business Outlook Survey, a survey published by the American Chamber of Commerce in Singapore and the U.S. Chamber of Commerce where 475 senior business executives of American companies operating in the ten Member States of ASEAN participated.

The majority of the respondents (63%) report that ASEAN markets have grown as a portion of their companies’ worldwide revenues, and many believe ASEAN markets will continue to grow in importance for worldwide operations and revenues until 2015. 

Business executives surveyed are upbeat about their companies’ profits.  Sixty-six percent (66%) believe their profits in ASEAN for the rest of 2013 will increase while 84% expect better profits next year.  A great majority of the respondents (79%) also said that their trade and investment activities in ASEAN have expanded in the last two years.  Nine of 10 respondents expect trade and investment in the region to increase over the next 5 years.

Buoyed by the growing opportunities in the region, US companies have expanded business operations and are expected to continue to do so in the coming years. The survey reveals 73% of the companies “will expand within their respective locations”.  Potential for business growth, increasing market share, diversification of customer base, economic recovery and reasonable production costs are named as the key factors for their expansion.  

US companies and the AEC

The ASEAN integration is cited by 77% of the business executives to be important in helping them do business in the region.  Businesses are looking at more investments and more productive operations as the region’s economic integration proceeds with the: (a) creation of a single market and production base; (b) a highly competitive economic region; (c) a region of equitable economic development; and (d) a region fully integrated into the global economy.

For business and investment planning, the business executives cited   four key economic agreements/ instruments of ASEAN as important.  These are the ASEAN Framework Agreement on Services (AFAS), ASEAN Comprehensive Agreement on Investment (ACIA), the ASEAN Trade in Goods Agreements (ATIGA), and the Trade Facilitation Plan and Strategic Plan for Customs Development.    

Data collection for the 2014 ASEAN Business Outlook Survey was done through a web-based, self-administered survey questionnaire from 10 May 2013 to 10 June 2013. This is the 12^th year the AmCham Singapore has conducted this survey and it partners with AmChams across ASEAN in designing and administering the survey.

You may download a copy of the full report here.

Download copy of the ASEAN Business Outlook Survey Press Release here.