Big firms prefer China, small ones eye RI

Big firms prefer China, small ones eye RI

Deutsche Presse-Agentur, Singapore

Bigger companies in Singapore contend the China market offers the brightest business prospects for the next six months, but smaller firms are more optimistic about Indonesia and Malaysia, a survey showed on Tuesday.

The Business Times-GBI poll revealed 21.2 percent of larger Singapore companies were upbeat on China. India and the United States trailed, each with 12.9 percent.

Smaller companies viewed Indonesia and Malaysia as their most promising markets. Each of those countries drew 23.8 percent in the poll. China garnered 19 percent of the smaller firms queried.

The survey asked companies across a range of industries and sectors about where business opportunities will be best in the second half of the year.

The results, published in the Business Times, showed China was seen as offering the best prospects when all the companies' responses were grouped together with 20.8 percent. Indonesia came next with 14.2 percent, then Malaysia with 13.2 percent.

Smaller firms "have had a relationship with Indonesia and Malaysia for a longer time, and China is relatively new," survey project director Chow Kit Boey was quoted as saying.

"Since many firms are going to China, smaller firms may feel it is more difficult to compete there," she added.

In terms of sectors, China was tops for commerce, transport and communications. The United States was seen as the most promising market for manufacturing.

Malaysia was regarded as having the best business prospects for construction companies. Financial- and business-services firms were most excited about India, the survey showed.