U.S. companies bullish on ASEAN, except Philippines

U.S. companies bullish on ASEAN, except Philippines

Dow Jones, Singapore

U.S. companies in the region are bullish on prospects for
Southeast Asia except for the Philippines, with the majority
planning to expand their Asian operations and increase staffing,
a survey showed.

According to a poll of members of the American Chambers of
Commerce in Singapore, Malaysia, Indonesia, Thailand, the
Philippines and Vietnam, four in five companies expect their
business to expand in Asia in the next two years, with China
continuing to be the biggest beneficiary.

Within Southeast Asia, 53 percent expect to expand their local
work force compared with the one-in-10 that predict a reduction
in staffing, according to the survey which was released by AmCham
Singapore on Tuesday.

Overall, 71 percent of respondents said they expect profits to
grow this year against 5 percent who forecast a fall in earnings.
Going into 2005, U.S. companies in the region are even more
confident with 87 percent projecting a growth in profits.

"The message is optimism, optimism, optimism," AmCham
Singapore Executive Director Nicholas de Boursac said at a
briefing on the survey, referring to member companies' positive
outlook on the global economy, the region and profits.

At the individual country level, U.S. companies based in
Malaysia are the most optimistic, with 89 percent saying they
expect the local economy to perform better or much better this
year.

They are followed by their counterparts in Singapore with 86
percent, Vietnam (78 percent) and Thailand (61 percent).

Not a single respondent in Malaysia and Singapore expects the
economy to worsen, while just 3 percent of the Vietnamese-based
U.S. companies and 10 percent of those in Thailand are bearish
about local business conditions.

In the case of Indonesia, 35 percent of respondents expect the
local economy will be better this year compared with 6 percent
who predict a deterioration in the business climate.

At other end of the scale, 43 percent of U.S. companies in the
Philippines expect the local economy to worsen against the 19
percent that said conditions will get better or much better.

Even so, 38 percent of companies expect to increase their
Philippine work force against 22 percent that indicated they will
likely to reduce current staffing levels.

Concerns cited about the Philippines and Indonesia included
corruption and a lack of infrastructure and stable governments.

The AmChams' Asean Business Outlook Survey 2004 was carried
out in April this year and received responses from 378 U.S.
companies in the region, AmCham Singapore said.