Japanese firms upbeat on ASEAN

Japanese firms upbeat on ASEAN

Deutsche Presse-Agentur, Tokyo

The business sentiment index for Japanese firms operating in five major Association of Southeast Asian Nations (ASEAN) economies showed signs of improvement in April, according to a survey released Tuesday.

The 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 Thailand rose 8.6 points to 4.7, moving into positive territory for the first time since last July.

Japanese businesses in Thailand improved primarily in the fields of oil, chemicals, metals and export-oriented electronic machinery, JETRO said.

The index in Malaysia rose 22.4 points to -17.4, Singapore rose 16.1 points to -14.2, the Philippines gained 11.6 points to -14.2, and Indonesia increased 1.8 points to -0.8.

Japan's transportation machinery industries in Thailand and Malaysia reached double digits, JETRO said.

Negative sentiment eased in the electronic machinery industries in ASEAN countries, including by double-digit figures in Thailand, while entering positive territory in the Philippines.

The business outlook over the next two to three years is positive in all ASEAN countries for the first time in the survey's history, JETRO said.

Japanese manufacturers in all countries showed improvements due to higher expectations for export recovery.

The survey received 1,095 replies, including 131 from Indonesia, 121 from Malaysia, 211 from the Philippines, 400 from Singapore and 232 in Thailand.

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.