Sentiment of Japanese firms in Asia gloomy

Sentiment of Japanese firms in Asia gloomy

Agence France-Presse, Tokyo

Business sentiment among Japanese companies operating in Asia remained bleak in December particularly in the Philippines, Indonesia and Singapore, an official survey showed Monday.

The government's Japan External Trade Organization (JETRO) surveyed 1,578 Japanese companies with operations in key member countries of the Association of Southeast Asian Nations (ASEAN), with 68.8 percent of them replying.

According to the poll, business confidence in the Philippines fell 7.5 points to minus 40.9 in December from minus 33.4 in November.

Indonesia hit minus 30.4 from minus 25.6, while Singapore slipped to minus 67.2 from minus 64.3.

The index measures the difference between firms saying economic conditions in a particular country are favorable and those saying they are not.

A negative figure means a majority of firms believe conditions are unfavorable.

In Malaysia, sentiment improved very slightly to minus 72.5 from minus 72.6, the export-import association said, adding that gloom in Thailand lifted to minus 20.6 from minus 21.8.

"Looking ahead to the next two to three months, prospects appear worse than the same period last year in all five economies, but the level of negative sentiment appears to be easing slightly," JETRO said.

Economic prospects looked particularly grim for Thailand, with the index seen dropping 17.4 points to 38 due to problems in the transportation, machinery, construction and real estate industries.

Business confidence would fall to minus 61.8 in Singapore and minus 60.8 in Malaysia. The future indicators gave minus 29.0 and minus 40.9 to Indonesia and the Philippines respectively.