ASEAN remains the key focus for US businesses
AmCham Singapore survey
Nearly eight in 10 American firms in ASEAN expect profits to increase in 2017 even in the face of global economic headwinds and challenges, including good governance issues, according to the annual ASEAN Business Outlook Survey, released yesterday by the US Chamber of Commerce and the American Chamber of Commerce in Singapore (AmCham Singapore).
In a poll of senior executives representing US companies in all 10 ASEAN countries, 78 percent expect their profits to increase in 2017, with more than half (53 percent), reporting that ASEANmarkets have become more important for their companies’ global bottom line.
“The ASEAN region continues to be a dynamic and important market for US businesses, and one that corporate executives cannot ignore,” said Tami Overby, the US Chamber of Commerce’s senior vice president of Asia.
“As our fourth-largest trading partner, growth in ASEAN also means more jobs here in the US as our companies increase exports and sales to the region’s expanding middle class. To continue this robust trading relationship, we must complete the Trans-Pacific Partnership (TPP) to solidify America’s commitment to the region. If we miss this window for TPP, it will have a significant negative impact on the US economy over the long haul.”
The ASEAN Business Outlook Survey, marking its fifteenth year, found that the region’s economic growth was the top reason survey respondents expect ASEAN markets to be more important for their companies’ worldwide operations and revenues over the next two years, garnering 73 percent.
The rise in middle class and consumer class emerged as the second most important indicator, with 46 percent of executives singling out that factor. “America’s private sector has invested more in ASEAN cumulatively than businesses from any other country. Our companies remain committed to the ASEAN region and we are certain that the TPP, if approved, will open the window of opportunity still wider,” said AmCham Singapore Executive Director Judith Fergin.
Economic integration within the 10 countries is underway with the ASEAN Economic Community (AEC) aiming to further increase the competitiveness of the region. A near unanimous 93% of those surveyed believe the AEC is important to their companies’ future investment plans.
The most frequently suggested future priority areas of work to enhance regional integration were combating corruption (62 percent), improving transparency (57 percent), and enhancing good governance (56 percent).
Agreements like the TPP can help address issues like these by laying the foundation for a modern, high-standard free trade area of the Asia-Pacific region that includes four ASEAN countries — Brunei, Malaysia, Singapore, and Vietnam.