Deutsche Press Agentur

Deutsche Press Agentur
Tokyo

The business sentiment index for Japanese firms operating in five
major Association of Southeast Asian Nations (ASEAN) economies
has increased sharply in May, according to a survey released
Thursday.

The government-backed Japan External Trade Organization's
(JETRO) monthly survey measures year-on-year changes for the
upcoming months' business outlook.

The index for Japan firms operating in the Philippines rose
16.1 points to 1.9, moving into positive territory for the first
time since last June.

Japanese businesses in the Philippines improved primarily in
the fields of electric and electronic machinery, where the index
rose by double-digit figures, JETRO said.

The index in Indonesia rose 3.4 points to 2.6, also moving
into positive territory for the first time since last August.
Improvements were seen primarily in transportation machinery.

Thailand rose 5.7 points to 10.4, continuing to improve after
entering the positive side of the index last month.

Indices in Singapore and Malaysia, although still negative,
jumped by 13.5 points to -0.7 and by 15.8 points to -1.6,
respectively.

The business outlook over the next two to three months
remained positive in all ASEAN countries - Indonesia, Malaysia,
Myanmar (Burma), the Philippines, Thailand, Brunei, Cambodia,
Laos, Singapore and Vietnam - for a second straight month,
suggesting that continued improvement in business sentiment is on
the way, JETRO said.

Both Japanese manufacturers and non-manufacturers in all
countries showed improvements due to higher expectations for an
export recovery.

JETRO has conducted the survey in the first week of every
month since June 2001. Firms are asked to compare earnings
prospects, supply and demand, inventory, sales prices and
accounts receivable with the same period the year previous.

Replies are limited to better, same or worse than a year
earlier. The index totals the difference between positive and
negative responses.