ASEAN Outlook Survey 2012/2013

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CONTENTS 02 04 06 10 11 11 14 15

ECONOMIC OUTLOOK ASEAN INTEGRATION AND FTAS BUSINESS EXPANSION IN ASEAN STRENGTHS AND CHALLENGES WORKFORCE EXPANSION EXPATRIATE SATISFACTION CAMBODIA REPORT HIGHLIGHTS INDONESIA REPORT HIGHLIGHTS

16 17 18 19 20 21 21 23

MALAYSIA REPORT HIGHLIGHTS PHILIPPINES REPORT HIGHLIGHTS SINGAPORE REPORT HIGHLIGHTS THAILAND REPORT HIGHLIGHTS VIETNAM REPORT HIGHLIGHTS SURVEY METHODOLOGY PROFILE OF RESPONDENTS ACKNOWLEDGEMENTS

INTRODUCTION The American Chamber of Commerce in Singapore (AmCham Singapore) and the U.S. Chamber of Commerce, in cooperation with other AmChams in the ASEAN region, conducted a study among AmCham members of American businesses in seven Southeast Asian countries: Cambodia, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.

This study, now in its 11th year, builds on previous studies conducted by AmCham Singapore and the U.S. Chamber of Commerce. The purpose of the study was to understand members’ outlook on business growth and perceptions about a series of local factors in the ASEAN region. The members surveyed were senior executives, working with for a companyies held by or with an American majority interests. For the first time in 2012, multiple senior members from each U.S. company were asked to complete the survey.

This regional report presents collective feedback received from senior members of: The American Chamber of Commerce in Singapore, The U.S. Chamber of Commerce, The American Cambodian Business Council, The American Malaysian Chamber of Commerce, The American Chamber of Commerce of The Philippines, The American Chamber of Commerce in Indonesia, The American Chamber of Commerce in Thailand, and The American Chamber of Commerce in Vietnam (Ho Chi Minh City and Hanoi).

EXECUTIVE SUMMARY • The outlook on investment opportunities in ASEAN is good across the region, with 92% of respondents indicating a positive outlook, with 70% of respondents plan to expand their business in ASEAN. • Expansion is expected to continue region-wide. The most popular location for expansion is Vietnam, followed by Thailand.

• Companies view ASEAN economic integration as very important, yet are sceptical that ASEAN will achieve its ASEAN Economic Community (AEC) goals by 2015.

•

Fewer than half of the respondents say they can utilize the provisions of ASEAN’s free trade agreements with major trading partners, including China, India, Japan, Australia & New Zealand, and South Korea. Large majorities indicated that those agreements are important to their future investment plans in the region.

• Corruption continues to be the most significant concern across the region. In addition, housing costs emerged as a new concern this year, most prominent in Singapore.

01

ECONOMIC OUTLOOK INVESTMENT OPPORTUNITY IN ASEAN ASEAN’s economic outlook continues to be positive after the volatility of the past few years.

More than nine in ten business executives (92%) have a positive or very positive outlook on the investment opportunities for their company in the ASEAN region. Respondents in both the services and manufacturing sectors were equally positive, at 90%.

ASEAN Investment Opportunity Outlook

55%

Very positive

6% 1%

37%

Somewhat positive

Neutral

Negative

At least 84% of respondents indicate a positive outlook for the region as a whole.

Respondents in Cambodia and Indonesia have the most optimistic outlooks of all countries surveyed, with 100% reporting a positive or very positive outlook, while those in the Philippines are nearly as optimistic (96% positive or very positive).

ASEAN Investment Opportunity Outlook (By Country)

55%

47%

56%

49%

47% 58%

68% 81%

37%

6% 1% Regional Total

47%

37%

5% 2% Singapore

38% 7% 0% Malaysia

Very Negative

02

38%

41%

9% 0% Vietnam

Negative

32% 19%

13% 3% 0% Philippines Neutral

2% Thailand Positive

0% Indonesia Very Positive

0% Cambodia

Business executives report strong increases in the level of investment by their company in the ASEAN region. 79% of respondents indicate that their company’s level of trade and investment in the ASEAN region has increased in the past two years. One quarter of the respondents say it has increased significantly, while 17% say it has stayed about the same, and 3% say it has decreased.

Level of Trade/Investment in ASEAN Past 2 Years

25%

54%

Increase significantly

Increase

17%

3%

Stay at about the same level

Decrease

90% of survey respondents expect their companies’ trade and investment to increase in the ASEAN region over the next five years. 27% expect the level to increase significantly.

Level of Trade/Investment in ASEAN Next 5 Years

27%

63%

Increase significantly

Increase

8%

1%

Stay at about the same level

Decrease

PROFIT OUTLOOK The majority of respondents (70%) expect their companies’ profits to increase in 2012 and 85% expect a profit increase in 2013.

Compared to 2011, do you expect your profits in ASEAN to increase, decrease, or remain the same in 2012 and 2013?

Regional

Singapore 2012 Decrease

Malaysia 2012 Remain

Vietnam 2012 Increase

Philippines 2013 Decrease

Thailand 2013 Remain

Indonesia

Cambodia

2013 Increase

03

FINANCING AND COSTS OF BORROWING The percentage of respondents experiencing significant financing constraints has decreased over the past three years, from 24% in 2009 to 20% in 2011 and 19% in 2012. Regional experiences with costs of borrowing remained similar to those of the past two years, with much variance across the region.

Percentage of respondents facing significant financing constraints

Regional Total

Singapore

Malaysia 2009

Vietnam

Philippines

2010

2011

Thailand

Indonesia

Cambodia

2012

Percentage of respondents facing higher costs of borrowing

Regional Total

Singapore

Malaysia 2009

Vietnam

Philippines

2010

2011

Thailand

Indonesia

Cambodia

2012

ASEAN INTEGRATION AND FTAs IMPORTANCE OF ASEAN INTEGRATION ASEAN economic integration is valuable to majority of respondents, with 65% reporting that this integration is important to helping their companies do business in the region. Of all the countries surveyed, executives in Vietnam had the highest positive response rate (76%).

Is ASEAN integration important to helping your company do business in the region?

Regional

Singapore

Malaysia

Vietnam Yes

04

Philippines No

Thailand

Indonesia

Cambodia

ASEAN REGIONAL AGREEMENTS Business executives in the ASEAN region consider each of the five regional agreements assessed to be important to their company’s investment plans in the region. Importance ratings range from 64% for the Framework Agreement on Services to 55% on the Comprehensive Investment Agreement.

Importance of ASEAN Regional Agreements 64%

36%

61%

39%

60%

40%

58%

42%

55%

45%

Important

Neutral / Not Important / Not Sure

ASEAN FREE TRADE AGREEMENTS Fewer than half of business executives surveyed say their company can utilize the provisions of ASEAN’s free trade agreements with major trading partners. 47% of respondents report that their companies can use the provisions of the ASEAN-China agreement, while 30% can do so under the Korea agreement.

The data below shows the responses for each agreement.

Can your company utilize the provisions of the agreement to export goods or services from ASEAN to the specified country?

Australia & New Zealand

China

India Not Sure

No

Japan

Korea

Yes

05

However, the majority of respondents consider the ASEAN Free Trade Agreements to be either important or extremely important to their investment plans in the region.

Importance of ASEAN FTAs

Australia and New Zealand

China

Not at all Important

Not Important

India Neutral

Japan Important

Korea Extremely Important

BUSINESS EXPANSION IN ASEAN LOCATION OF BUSINESS EXPANSION IN ASEAN Vietnam is by far the most popular location for expansion, receiving 57% of responses.

Thailand is the second most popular location at only 11%. No respondents indicated that their top location for expansion was Brunei.

Location of Expansion in ASEAN

Vietnam

06

Thailand

Singapore

Philippines

Indonesia

Myanmar

Cambodia

Malaysia

Laos

DIVERSIFYING OPERATIONS FROM CHINA TO ASEAN In this year’s survey, significantly more respondents reported that their companies are planning to diversify some investments or business from China into ASEAN over the next two years than when asked in 2011. Vietnam is the only country in which fewer respondents plan to diversify investments away from China in 2012.

Does your company plan to diversify some investments or business from China into ASEAN Over the Next Two Years?

Regional

Singapore

Malaysia

Vietnam

Philippines

“Yes” 2011

“Yes” 2012

Thailand

Indonesia

Cambodia

BUSINESS DIRECTION IN MYANMAR The large majority of respondents (72%) either support or strongly support the United States government’s decision to suspend some sanctions currently placed on Myanmar. Only 2% of the respondents are in opposition to suspending sanctions. Respondents based in Cambodia are the strongest supporters, with 81% indicating either support or strong support.

Please indicate how you feel about the United States government suspending sanctions on Myanmar

Regional

Singapore

Malaysia Strongly Oppose

Vietnam Oppose

Philippines Neutral

Support

Thailand

Indonesia

Cambodia

Strongly Support

07

33% of respondents are either currently exporting, planning to export, or considering exporting. Vietnam and Thailand had the largest numbers of respondents considering exporting to Myanmar, at 22% and 21%, respectively.

Which one of the following best describes your export activity with Myanmar?

Regional Not Sure

Singapore

Malaysia

Do not export and no plans to export

Vietnam

Philippines

Considering Exporting

Thailand Planning to Export

Indonesia

Cambodia

Currently Exporting

35% of respondents currently invest in Myanmar or planning or considering doing so in the future. In Cambodia, 31% of respondents are currently investing or planning to invest, making it the country with the highest interest.

Investment activity with Myanmar

Regional Not Sure

08

Singapore

Malaysia

Do not invest and currently no plans to invest

Vietnam

Philippines

Considering investing

Thailand Planning to invest

Indonesia

Cambodia

Currently investing

09

STRENGTHS AND CHALLENGES LOCAL BUSINESS ENVIRONMENT Excluding respondents from Singapore, corruption and laws and regulations continue to be sources of dissatisfaction for respondents, similar to findings in 2011, 2010, and 2009. In fact, corruption was the highest source of dissatisfaction for all countries except Singapore and Malaysia.

Sentiment towards the U.S. remains highly positive across the ASEAN region and is a major strength in every country, with satisfaction above 50%.

Respondents across the region are also satisfied with personal security in all the countries with the exception of Malaysia, in which responses were mixed.

Factors Infrastructure

Regional

Malaysia

Philippines

Singapore

Thailand

Vietnam

Indonesia

Cambodia

57%

90%

40%

94%

51%

57%

74%

44%

73%

40%

55%

71%

69%

78%

61%

44%

60%

48%

56%

58%

77%

51%

55%

Availability of raw materials

52%

Availability of low cost labor

Availability of trained personnel/efficient manpower

50%

Office lease costs Housing cost

72% 44%

Laws and regulations Corruption (or lack of)

46%

50%

55%

43%

86%

56%

59%

61%

44%

48%

73%

88%

64%

77%

87%

81%

Local protectionism (or lack of)

71%

Tax Structure

55%

Personal security

74%

Stable government and political system

64%

62%

83%

47%

58%

96%

69%

72%

52%

56%

53%

94%

60%

62%

52%

75%

New business incentives by government

62%

Ease of moving products through customs

66%

65%

Free movement of goods within the region

66%

62%

Sentiment towards the U.S.

70%

Strength: 50% or greater satisfaction rate

10

56%

76%

83%

75%

Concern: 40% or greater dissatisfaction

52% 56% 56%

68%

58%

75%

WORKFORCE EXPANSION OVERALL WORKFORCE BY COUNTRY The majority of respondents (60%) predict an increase in their companies’ ASEAN overall workforce. Only 4% expect a decrease, while 36% expect it to remain about the same. This data is comparable with 2011 data.

Do you expect your total number of employees in the response location to increase, decrease, or remain about the same in 2012?

Regional

Singapore

Malaysia

Vietnam Decrease

Philippines Same

Thailand

Indonesia

Cambodia

Increase

EXPATRIATE SATISFACTION EXPAT ASSIGNMENT SATISFACTION The majority of respondents (51%) stated that their companies regularly receive requests from employees based in other locations to work in their response location. This is an increase from 39% in 2011 and 2010.

Does your company regularly receive requests from employees based in other locations to work in your response location?

Regional

Singapore

Malaysia

Vietnam “Yes” 2010

Philippines “Yes” 2011

Thailand

Indonesia

Cambodia

“Yes” 2012

11

EXPATRIATE SATISFACTION EXPAT SATISFACTION IN RESPONSE LOCATION Satisfaction rates remain high at 96%, a slight increase from the past two years.

Are your expatriate employees generally satisfied with their assignments in your response location?

Regional

Singapore

Malaysia

Vietnam “Yes” 2010

Philippines “Yes” 2011

Thailand

Indonesia

Cambodia

“Yes” 2012

REQUESTS FOR EXTENSION OF ASSIGNMENTS Results show that, in most countries, increasing numbers of expatriate employees attempt to extend their time in their response location within ASEAN. In 2012, Thailand was the only country in which fewer respondents stated that expatriate employees attempt to extend their time there.

Do your expatriate employees attempt to extend their time in your response location?

Regional

Singapore

Malaysia

Vietnam “Yes” 2010

12

Philippines “Yes” 2011

Thailand

“Yes” 2012

Indonesia

Cambodia

13

CAMBODIA BUSINESS OUTLOOK ASEAN Economic Outlook: • All respondents maintain a positive or very positive outlook for the ASEAN region as an investment opportunity for their companies.

Current Business Climate: • Percentage of respondents facing significant financing constraints decreased from 28% in 2011 to 13% in 2012.

• The majority of respondents (73%) are not facing higher costs of borrowing in 2012.

Importance of ASEAN Markets in Global Business: • 69% of respondents reported that ASEAN markets have increased in importance to their companies in the past two years.

• Most respondents (75%) expect ASEAN importance to continue to increase in the next two years.

Outlook for Investment Opportunities in ASEAN

Profit Outlook 2012

Profit Outlook 2013

Business Direction and Movement in ASEAN: • 75% of respondents plan to expand their companies’ business in ASEAN. Profit Outlook: • 88% expect a profit increase in 2012.

• 88% expect a profit increase in 2013.

Workforce Expansion: • 69% expect a workforce increase in 2012.

• 27% expect an increase of 5 to 10%.

• 27% expect an increase of 15 to 20%.

Target Countries for Business Expansion

Major Strengths (% Satisfied)

Major Concerns (% Dissatisfied)

Stable government and political system (75%)

Corruption (81%)

Sentiment towards the U.S. (75%)

Availability of trained personnel/efficient manpower (50%)

Availability of low cost labor (69%)

Laws and Regulations (44%)

Personal security (56%)

Infrastructure (44%)

Office lease costs (56%) Free movement of goods within the region (56%) Myanmar

14

Cambodia

Vietnam

Laos

INDONESIA BUSINESS OUTLOOK ASEAN Economic Outlook: • All respondents in Indonesia indicated a positive or very positive outlook for the ASEAN region as an investment opportunity for their companies.

Current Business Climate: • Respondents facing significant financing constraints decreased from 22% in 2011 to 13% in 2012.

• The large majority of respondents (74%) are not facing higher costs of borrowing in 2012.

Outlook for Investment Opportunities in ASEAN

Profit Outlook 2012

Importance of ASEAN Markets in Global Business: • 84% of respondents reported that ASEAN markets have increased in importance to their companies in the past two years.

• Most respondents (84%) also expect ASEAN importance to increase in the next two years.

Business Direction and Movement in ASEAN: • 81% of respondents plan to expand their companies in ASEAN.

Profit Outlook 2013

Profit Outlook: • 77% expect a profit increase in 2012.

• 90% expect a profit increase in 2013.

Workforce Expansion: • 58% expect a workforce increase in 2012.

• 28% expect an increase of 20 to 50%.

Target Countries for Business Expansion

Major Strengths (% Satisfied)

Major Concerns (% Dissatisfied)

Availability of low cost labor (71%)

Corruption (87%)

Office lease costs (58%)

Infrastructure (74%)

Sentiment towards U.S. (58%)

Local protectionism (71%)

Housing costs (55%)

Laws and Regulations (61%) Ease of moving products through customs (52%)

Vietnam

Indonesia

Myanmar

Singapore

15

MALAYSIA BUSINESS OUTLOOK ASEAN Economic Outlook: • 94% of respondents maintain a positive or very positive outlook for the ASEAN region as an investment opportunity for their companies.

Current Business Climate: • Respondents facing significant financing constraints decreased from 15% in 2011 to 3% in 2012.

• There has been a decrease in those facing higher costs of borrowing, from 37% in 2011 to 13% in 2012.

Outlook for Investment Opportunities in ASEAN

Profit Outlook 2012

Importance of ASEAN Markets in Global Business: • 53% of respondents report that ASEAN markets have increased in importance to their companies in the past two years.

• The majority of respondents (60%) expect ASEAN importance to increase in the next two years.

Business Direction and Movement in ASEAN: • 70% of respondents’ companies plan to expand in ASEAN, and none expect to contract.

Profit Outlook 2013

Profit Outlook: • 70% expect a profit increase in 2012.

• 80% expect a profit increase in 2013.

Workforce Expansion: • 50% expect a workforce increase in 2012.

• 40% expect an increase of 5-10%.

Target Countries for Business Expansion

Major Strengths (% Satisfied)

Major Concerns (% Dissatisfied)

Infrastructure (90%)

Corruption (48%)

Sentiment towards U.S. (76%)

Personal security (38%)

Office Lease Costs (72%)

Housing costs (31%)

Free movement of goods within the region (66%) Ease of moving your products through customs (66%) Vietnam

16

Thailand

Indonesia

Malaysia

Philippines

Stable government and political system (62%)

PHILIPPINES BUSINESS OUTLOOK ASEAN Economic Outlook: • 92% of respondents maintain a positive or very positive outlook for the ASEAN region as an investment opportunity for their companies.

Current Business Climate: • Respondents facing significant financing constraints decreased from 24% in 2011 to 18% in 2012.

• Most respondents (80%) are not facing higher costs of borrowing in 2012.

Outlook for Investment Opportunities in ASEAN

Profit Outlook 2012

Importance of ASEAN Markets in Global Business: • 63% of respondents reported that ASEAN markets have increased in importance to their companies in the past two years.

• The majority of respondents (58%) expect ASEAN importance to increase in the next two years.

Business Direction and Movement in ASEAN: • 83% of respondents’ companies plan to expand in ASEAN.

Profit Outlook 2013

Profit Outlook: • 73% expect a profit increase in 2012.

• 88% expect a profit increase in 2013.

Workforce Expansion: • 75% expect a workforce increase in 2012.

• 30% expect an increase of 20 to 50%.

Target Countries for Business Expansion

Philippines

Vietnam

Singapore Thailand

Major Strengths (% Satisfied)

Major Concerns (% Dissatisfied)

Sentiment towards the U.S. (83%)

Corruption (73%)

Availability of trained personnel/efficient manpower (78%)

Laws and Regulations (43%)

Availability of low cost labor (73%)

Ease of moving products through customs (43%)

Office lease costs (60%)

Infrastructure (40%)

Myanmar Indonesia

17

SINGAPORE BUSINESS OUTLOOK ASEAN Economic Outlook: • 93% of respondents maintain a positive or very positive outlook for the ASEAN region as an investment opportunity for their companies.

Current Business Climate: • Respondents facing significant financing constraints rose slightly from 14% in 2011 to 17% in 2012.

• Most of respondents (75%) are not facing higher costs of borrowing.

Outlook for Investment Opportunities in ASEAN

Profit Outlook 2012

Importance of ASEAN Markets in Global Business: • 65% of respondents report that ASEAN markets have increased in importance to their companies in the past two years.

• Most respondents (69%) expect ASEAN importance to increase in the next two years.

Business Direction and Movement in ASEAN: • 81% of respondents’ companies expect to expand in ASEAN.

Profit Outlook 2013

Profit Outlook: • 70% expect a profit increase in 2012.

• 85% expect a profit increase in 2013.

Workforce Expansion: • 58% expect a workforce increase in 2012.

• 33% expect an increase of 5 to 10%.

• 22% expect an increase of 10 to 15%.

Target Countries for Business Expansion

Major Strengths (% Satisfied)

Major Concerns (% Dissatisfied)

Personal Security (96%)

Housing Costs (77%)

Infrastructure (94%)

Office Lease Costs (48%)

Stable Government & Political System (94%)

Availability of Low Cost Labor (40%)

Corruption (88%) Laws and Regulations (86%) Tax Structure (83%) Sentiment Towards the U.S. (75%) Ease of Moving Products through Customs (65%) Vietnam

18

Singapore

Thailand

Indonesia

Myanmar Philippines Malaysia

New Business Incentives Offered

by Government (62%) Free Movement of Goods within the Region (62%)

THAILAND BUSINESS OUTLOOK ASEAN Economic Outlook: • 85% of respondents indicated a positive or very positive outlook for the ASEAN region as an investment opportunity for their companies.

Current Business Climate: • Respondents facing significant financing constraints decreased from 21% in 2011 to 16% in 2012.

• The percentage of those facing higher costs of borrowing decreased significantly from 34% in 2012 to 11% in 2012.

Outlook for Investment Opportunities in ASEAN

Profit Outlook 2012

Importance of ASEAN Markets in Global Business: • 67% of respondents report that ASEAN markets have increased in importance to their companies in the past two years.

• A majority of respondents (64%) expect ASEAN importance to increase in the next two years.

Business Direction and Movement in ASEAN: • 65% of respondents’ companies expect to expand in ASEAN.

Profit Outlook 2013

Profit Outlook: • 73% expect a profit increase in 2012.

• 84% expect a profit increase in 2013.

Workforce Expansion: • 60% expect a workforce increase in 2012.

• 33% expect an increase of 5 to 10%.

Target Countries for Business Expansion

Major Strengths (% Satisfied)

Major Concerns (% Dissatisfied)

Personal security (69%)

Corruption (64%)

Office lease costs (56%)

Stable government and political system (60%)

Sentiment towards the U.S. (56%)

Laws and regulations (56%)

Housing costs (55%)

Tax structure (47%)

Infrastructure (51%)

Vietnam

Thailand

Myanmar

Indonesia

Singapore

19

VIETNAM BUSINESS OUTLOOK ASEAN Economic Outlook: • 90% of respondents maintain a positive or very positive outlook for the ASEAN region as an investment opportunity for their companies.

Outlook for Investment Opportunities in ASEAN

Current Business Climate: • Respondents facing significant financing constraints doubled from 19% in 2011 to 39% in 2012.

• A majority of respondents (62%) do not face higher costs of borrowing.

Importance of ASEAN Markets in Global Business: • 72% of respondents report that ASEAN markets have increased in importance to their companies in the past two years.

• Most respondents (76%) expect ASEAN importance to increase in the next two years.

Business Direction and Movement in ASEAN: • 73% of respondents’ companies plan to expand in ASEAN.

Profit Outlook 2012

Profit Outlook 2013

Profit Outlook: • 57% expect a profit increase in 2012.

• 82% expect a profit increase in 2013.

Workforce Expansion: • 58% expect a workforce increase in 2012.

• 52% expect an increase of 5 to 15%.

Target Countries for Business Expansion

75%

5%

5%

Vietnam Myanmar Thailand

20

3% Laos

3%

3%

2%

2%

2%

Malaysia Singapore Brunei Cambodia Philippines

Major Strengths (% Satisfied)

Major Concerns (% Dissatisfied)

Personal security (78%)

Corruption (77%)

Sentiment towards the U.S. (68%)

Laws and Regulations (59%)

Stable government and political system (62%)

Infrastructure (57%)

Availability of low cost labor (55%)

Ease of moving products through customs (43%)

SURVEY METHODOLOGY Sample Size

A list of AmCham members from U.S. companies with e-mail contacts was provided by each AmCham: • Cambodia: List of 66 members, response rate was 24% (16) • Indonesia: List of 130 members, response rate was 24% (31) • Malaysia: List of 224 members, response rate was 13% (30) • Philippines: List of 238 members, response rate was 17% (40) • Singapore: List of 1,103 members, response rate was 12% (127) • Thailand: List of 238 members, response rate was 19% (45) • Vietnam: List of 367 members, response rate was 18% (67) Overall: List of 2,366 members, response rate was 15% (356)

Data Collection Method

Web-based, self-administered survey. No enforcement on participation.

Data Collection Period

June 15, 2012 to July 3, 2012

*Throughout the report, percentages on graphs may not add to 100% due to respondents selecting multiple answers, respondents selecting “not sure,” or incomplete entries in the data set.

Note 1: For the first time in 2012, multiple senior members of each U.S. company were asked to complete the survey.

Note 2: There is only 2010-2012 data available for Cambodia.

PROFILE OF RESPONDENTS • In the 2012 ASEAN Business Outlook Survey, the largest represented country is Singapore, whose respondents consist of 36% of the total, followed by Vietnam, whose respondents make up 19% of the total sample. Cambodia is the least represented, making up 5% of the total population of respondents.

• 59% of respondents are responsible for more than one country in the region and the largest portion of respondents’ primary activity is in the services sector (53%). 29% of respondents work in the manufacturing sector.

• The largest portion of respondents represent companies that have 50 to less than 500 employees in the region.

Refer to the next page for more information.

21

PROFILE OF RESPONDENTS Country

Region

Thailand

Singapore

Malaysia

Vietnam

Philippines

Indonesia

Cambodia

COUNTRY OF RESPONSIBILITY Only ONE country

41%

40%

12%

37%

73%

63%

58%

81%

Multiple countries

41%

41%

41%

41%

41%

41%

41%

41%

PRIMARY ACTIVITIES Service

53%

45%

68%

28%

14%

69%

39%

56%

Manufacturing

29%

34%

21%

55%

46%

12%

30%

19%

Other

19%

18%

17%

17%

16%

23%

26%

25%

SIZE OF WORKFORCE (NUMBER OF EMPLOYEES) Below 50

26%

36%

32%

17%

20%

25%

16%

19%

50 to < 500

45%

36%

40%

47%

54%

45%

58%

56%

500 to <1,000

8%

9%

6%

7%

12%

13%

10%

6%

1000 to <1,500

5%

2%

4%

7%

3%

5%

7%

13%

1500 to <2,000

1%

2%

1%

3%

2%

3%

0%

0%

2000 or above

13%

16%

15%

20%

9%

10%

7%

6%

2012 TURNOVER IN RESPONSE COUNTRY (US$) Below $1 million

10%

11%

9%

7%

15%

10%

3%

19%

$1 - <$49 million

49%

55%

44%

33%

52%

68%

45%

50%

$50 - <$99 million

10%

5%

10%

20%

9%

5%

10%

19%

$100 - <$499 million

14%

18%

13%

17%

12%

10%

19%

13%

$500 - <$999 million

5%

2%

5%

13%

3%

0%

7%

0%

$1 billion or above

5%

7%

6%

3%

2%

0%

10%

0%

PERCENTAGE OF GLOBAL TURNOVER REPRESENTED IN RESPONSE LOCATION Less than 5%

66%

75%

68%

70%

65%

62%

68%

38%

5% - <25%

19%

11%

22%

10%

25%

13%

19%

13%

25% - <50%

5%

0%

2%

17%

5%

10%

3%

6%

50% - <75%

1%

5%

0%

0%

2%

3%

0%

0%

75% - <100%

3%

2%

2%

3%

3%

5%

3%

6%

100%

6%

7%

6%

0%

2%

8%

7%

38%

22

ACKNOWLEDGMENTS This report was compiled and published by The American Chamber of Commerce in Singapore and the U.S. Chamber of Commerce.

• Editor-In-Chief: Liyana Othman, Head of Communications & Corporate Relations, AmCham Singapore •

Editors: Anne Marie Brooks, Head of Regional and Public Affairs, AmCham Singapore John Goyer, Senior Director, Southeast Asia, U.S. Chamber of Commerce Brandt Williams, Government Relations Executive, AmCham Singapore Alex Stuart, Communications Executive, AmCham Singapore

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Research and Analysis: Bill Dalbec, Senior Director, APCO Insight Hannah Fornero, Government Relations Intern, AmCham Singapore Georgiy Lomsadze, Government Relations Intern, AmCham Singapore

We would like to thank the following Executive Directors of the following AmChams in the region for their expertise and support: • Jim Swander, The American Cambodian Business Council •

Sarah Howe, The American Chamber of Commerce in Indonesia

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Tim Garland, The American Malaysian Chamber of Commerce

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Rob Sears, The American Chamber of Commerce of the Philippines

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Judy Benn, The American Chamber of Commerce in Thailand

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Adam Sitkoff, The American Chamber of Commerce in Vietnam (Hanoi)

• Herb Cochran, The American Chamber of Commerce in Vietnam (Ho Chi Minh City)

We would also like to thank James Waller of Nathan Associates for his advice and guidance.

For more information on the survey, visit www.amcham.org.sg/aseanoutlook.

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