Nine in 10 Taiwanese executives expect business growth in Asean: survey

NINE in 10 Taiwanese companies focused on Asean expect business growth in the region over the next 12 months.

According to a survey commissioned by Standard Chartered, these Taiwanese companies consider Singapore (43 per cent), the Philippines (39 per cent), and Malaysia (34 per cent) as the most promising markets for expansion opportunities.

Singapore is considered the most desirable market for businesses to set up their sales and marketing, corporate functions, regional headquarters (74 per cent) and regional R&D/innovation hub (63 per cent).

A whopping 95 per cent of respondents said they expect an increase in revenue, while 93 per cent said they anticipate growth in production.

The survey was commissioned in April this year, targeting senior executives at 44 companies based in Taiwan and focused on the Taiwan-Asean corridor. The surveyed companies are also currently conducting manufacturing and sales activities across all Asean-6 markets.

They ranked access to the large and growing Asean consumer market (66 per cent), presence of a mature and reliable supplier base (55 per cent), and access to a global market enabled by a network of FTAs (52 per cent) as the most important drivers for expansion into the region.

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Ian Anderson, chief executive officer, Standard Chartered Bank Taiwan, said: "The Asean region is a top destination for supply chain diversification and an increasingly important consumer market for Taiwan-based corporates in recent years. Financial institutions play a pivotal role in supporting the Taiwan government's New Southbound Policy, which calls for the development of trading relations and interactions with Asean economies."

In terms of risks identified, companies highlighted the ongoing Covid-19 pandemic or other health crisis (75 per cent), geopolitical uncertainty and trade conflicts (66 per cent), and the slow revival of the economy and the drop in consumer spending (61 per cent).

They also acknowledged that understanding regional regulations, payment methods and infrastructure (70 per cent), building relationships with suppliers and adapting supply chain logistics (59 per cent), and adapting their business model to industry practices and conditions within Asean (50 per cent) are the most significant challenges in the next six to 12 months.

To help mitigate these risks, 70 per cent of survey respondents said driving sustainability and ESG initiatives are key. A further 59 per cent said they are looking to enter new partnerships/joint ventures to raise market presence, while 50 per cent said strengthening cybersecurity and data protection are the most important focus areas for their companies.