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.