U.S. Businesses Positive About Opportunities in ASEAN

Businesses Applaud U.S. Government’s Decision to Suspend Sanctions on Myanmar

WASHINGTON, D.C.—U.S. companies are optimistic about business prospects in ASEAN, according to a survey conducted by the U.S. Chamber of Commerce and The American Chamber of Commerce in Singapore (AmCham Singapore).  In a poll of 356 senior-level executives from U.S. companies across the region, 90% expect that their company’s trade and investment in the region will increase over the next five years.

Across the region, 21% of U.S. companies are planning to diversify some investments or business from China into ASEAN over the next two years, significantly higher than when asked in 2011.
“ASEAN is not only a vital U.S. trade and investment partner, it is a bright spot in the global economy,” said Tami Overby, vice president of Asia at the U.S. Chamber.  “As the region continues to integrate, U.S. companies need to develop regional strategies to realize ASEAN’s potential.”

For the first time, respondents were asked about Myanmar.  While a majority do not export to Myanmar, 33% are exporting, or are planning to export to the country.  Vietnam and Thailand had the first and second largest number of respondents considering exporting to Myanmar.  A majority of respondents (72%) either support or strongly support the U.S. government’s decision to suspend sanctions on Myanmar.

“AmCham organized a trade mission to Myanmar just two weeks ago, which highlighted its vast opportunities for U.S. companies,” said Simon Kahn, Chairman of AmCham Singapore.  “Myanmar stands to play an important role for U.S. companies in the region.”

While U.S. companies view the business outlook in ASEAN favorably, the survey found substantial concern regarding corruption, which was the top issue for respondents in all countries except Singapore. 

Highlights of Findings From Respondents

Cambodia
Respondents in Cambodia cite the country’s major strengths as a stable government and political system, as well as positive sentiments toward the United States and a high level of personal security. Eighty-one percent of respondents said corruption is a leading concern.

Indonesia
Indonesia’s low labor, housing, and office lease costs were among the strengths cited.  However, there are also major concerns with corruption (cited by 87% of respondents), as well as laws and regulations, local protectionism, and inadequate infrastructure. 

Malaysia
While respondents generally expressed satisfaction with the business environment, concerns were cited with laws and regulations.  Additionally, 48% of respondents cited corruption as a concern.  

Philippines
Availability of low-cost labor and trained personnel were both cited as positive factors by more than 70% of respondents.  However, issues of concern for businesses in the Philippines are corruption, infrastructure, and laws and regulations. 

Singapore
Singapore-based respondents are very satisfied with local factors and government institutions, specifically the stable government and political system (94%) and laws and regulations (86%).  Forty percent of respondents expressed dissatisfaction with labor costs; 48% office lease costs; and 77% housing costs.

Thailand
Respondents report a high degree of personal security, adequate infrastructure, and reasonable housing and office lease costs.  Political stability and corruption continue to be concerns.

Vietnam
Vietnam’s major strengths are its stable political environment, high degree of personal security, and a stable government and political system.  Respondents noted concerns, including infrastructure, corruption, and laws and regulations.  Regionally, Vietnam was the top location for planned investment, with 57% of respondents reporting that their companies plan to expand there.

The full survey can be found by visiting the U.S. Chamber’s website.

AmCham Singapore is the largest foreign business chamber in Singapore, with 4,500 members representing over 750 companies, and more than US$25 billion in investments in Singapore.