Survey: 70 per cent of ASEAN firms ready to expand, but worried about protectionism

Businesses in Southeast Asia are showing optimism about expanding their operations in the coming years, even as they face global challenges such as rising protectionism, supply chain disruptions, and the complexities of the green transition. This was revealed in the ASEAN Business Barometer 2026 survey, released by the ASEAN Business Advisory Council (ASEAN-BAC) in collaboration with CSIS Indonesia and JETRO Jakarta. The survey gathered views from 395 private-sector companies across the ASEAN region on economic conditions and regional business prospects. However, they are also preparing for supply-chain disruptions prompted by global protectionism and the underutilisation of free trade agreements (FTAs). Executive Director of ASEAN-BAC, Rifki Weno, said that businesses in the region currently have a strong ambition to grow, but still face a number of structural challenges. ‘This year’s survey sends a very clear message: the business sector in ASEAN is highly ambitious and ready to expand, yet they face real challenges from global protectionism and the complexity of the green transition. The utilisation rate of trade agreements (FTAs) remains below potential, and the lack of readiness among micro, small and medium enterprises (MSMEs) highlights the urgency for ASEAN leaders to streamline regulation, facilitate access, and provide more targeted support so that the region remains resilient,’ Rifki said in a press release on Wednesday (4 March 2026). About 70 per cent of respondents said they would expand their business in one to two years. Additionally, nearly half of respondents, or 48 per cent, expect operating profits in 2025 to rise compared with 2024. The optimism reflects business players’ belief in the region’s growth potential, while also showing that ASEAN is still viewed as a promising market for expansion. The survey shows that a majority of companies are concerned about rising protectionism across countries. Some 75 per cent of firms express concern about the strengthening protectionist policies in global trade, a situation seen to trigger supply-chain disruptions and increase uncertainty for the business sector. The impact of protectionism is felt more acutely in the manufacturing sector. The survey notes that exposure to US tariffs is highly concentrated in this sector. See also: China-ASEAN Conference Held in Jakarta, Alibaba-Huawei to Attend