Multinationals keen on SE Asia but cite lack of skilled labor

Multinationals keen on SE Asia but cite lack of skilled labor

SINGAPORE (DPA): Most multinational corporations regard
Southeast Asia as significant for their future investment plans
but retain misgivings about individual countries and an
inadequate supply of skilled labor, results of a poll released
Tuesday showed.

Eighty-four percent of the multinationals surveyed by the
Institute of Southeast Asian Studies said they had a "strong" or
"very strong" investment commitment to the region as a whole.

Expected growth of the regional market, as a result of such
initiatives as the ASEAN Free Trade Area and the ASEAN Investment
Area, was also viewed as "important" or "very important" in
influencing foreign direct investment decisions by 74 percent and
78 percent of the multinational corporations respectively.

The Association of Southeast Asian Nations (ASEAN) groups
Singapore, Thailand, the Philippines, Malaysia, Brunei,
Indonesia, Vietnam, Laos, Myanmar, and Cambodia.

Pulling out of the region is not an option for 60 percent of
those queried. However, about half said a lack of skilled labor
is an obstacle to their direct investment plans, followed by the
increasing costs of production.

"The long-term effects of Asia's lack of higher order skill
levels is emerging as a potentially serious concern," the survey
report said.

While one-third of the giant corporations polled said the
Asian crisis had a "positive" or "very positive" effect on
Singapore's investment climate, 45 percent said the downturn had
a "negative" or "very negative" effect on Malaysia's investment
potential.

The negative perception of Indonesia was 74 percent.
Singapore may be "benefiting from a perceived upgrade in
attractiveness, simply relative to the other countries in
Southeast Asia," said the report.