Malaysia - US firms find Asean market increasingly important

American companies expect Southeast Asia to become increasingly important for their businesses.

Recent findings of the Asean (Association of Southeast Asian Nations) Business Outlook Survey 2011 show that 73 per cent of respondents expect increasing business importance in the region in the next two years.

Also, 85 per cent of them plan to expand their businesses in Asean.

The survey, conducted by The American Chamber of Commerce in Singapore (AmCham Singapore) and related associations, incorporated interviews with 327 senior executives from US companies in Malaysia, Cambodia, Indonesia, Singapore, The Philippines, Thailand, and Vietnam.

The survey also revealed that the Asean Free Trade Area is vital for American businesses, with 80 per cent saying their companies used tariff benefits of the free trade agreements (FTAs) Asean has completed with its trade partners.

“The Asean-China FTA was also highly rated, with 49 per cent of firms using its benefits,” the survey said. The survey, in its tenth year, seeks to chart the business outlook and perception of doing business in Asean.

In a statement released yesterday, AmCham Malaysia vice president Datuk Tim Garland said American firms are satisfied with effective implementation of Malaysia’s Government Transformation Programme (GTP) and Economic Transformation Programme (ETP).

“AmCham Malaysia is excited to be part of Malaysia corporate expansion in Asean. We will continue to work closely with all key stakeholders to reduce regulatory barriers and improve ease of doing business here and in Asean,” he said.

Amcham members are satisfied or neutral towards the government’s guidelines and the fairness of their applications.

This year, 80 per cent of respondents in Malaysia felt that Asean integration was important to their companies’ ability to do business in the region.

This is significant because in 2010, Malaysia only had 58 per cent or the lowest percentage of respondents who found Asean integration important.

Meanwhile, the survey also highlighted that American companies in Malaysia cited lack of trained personnel for some positions and problems with laws and regulations.

It also predicted a an increase in the housing and living cost. In view of global economic outlook, 75 per cent of the survey respondents expect interest rate hikes in the mid-term.

BTimes

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