Firms eye ASEAN expansion but leave PHL out

Most Southeast Asian firms want to expand to the rest of the region, but not to countries like the Philippines, according to a survey by the Association of Southeast Asian Nations (ASEAN)-Business Advisory Council that was launched this month. In the 2010 ASEAN-Business Advisory Council Survey on ASEAN Competitiveness, 85 percent of the respondents expressed interest in investing in or expanding to at least one of the 10 ASEAN member-countries over a three-year period from 2010 to 2012. In the survey, the Philippines turned out as the second least attractive investment destination in the region, with only 12 percent indicating an interest to invest in the country. Brunei with 5 percent occupies the bottom. The most favored investment destination is Vietnam with 41 percent of the respondents showing interest. Singapore trails it with 36 percent, followed by Thailand (34 percent), Indonesia (33 percent) Malaysia (30 percent). Combined, ASEAN countries outdid economic giant China in offering Southeast Asian firms “the best prospects" for offshore direct investments. China looked attractive as an investment site to 29 percent of the respondents. “The predominant reason for businesses’ planned investments in ASEAN countries is to access a new or growing market, which is selected by 67 percent of respondents. The other two more frequently cited reasons are to supply main or leading customers and access low-cost production facilities," according to a report explaining the survey. Attractive markets, production bases In terms of attractiveness as markets and production bases, 48 percent of the respondents cited Vietnam, Singapore, Indonesia, Malaysia, Laos, Myanmar and Thailand. In this category, no respondent saw the Philippines as attractive. Conducted during the second half of 2010, the survey polled the opinions of 335 companies across the ASEAN region, with almost half being small firms that employ less than 50 people. One percent of the respondents came from the Philippines. Administering the survey was Dr. Marn-Heong Wong, assistant professor at the Lee Kuan Yew School of Public Policy of the National University of Singapore. ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam. — With Paterno Esmaquel II/VS, GMA News