US firms keen to continue investing in Asean: Poll

American companies in the Asean region expect that revenue will decline in the near term due to the pandemic, according to a new poll.
But it also found that 75 per cent of those surveyed were eager to continue investing in Asean over the next five years.

The annual poll by the American Chamber of Commerce in Singapore (AmCham) also found that there is greater optimism among companies here about the level of revenue contribution from business activity in the region.

About 50 per cent of respondents in Singapore said they expect their profits in Asean to increase, compared with 26 per cent in Malaysia.

The 2021 Asean Business Outlook Survey polled executives from US companies in the region over two rounds.

The first was from Sept 11 to Oct 7 in 2019, pre-pandemic, while the second was from Nov 30 last year to Jan 5.

AmCham surveyed more than 100 companies, mostly multinational corporations, from across the Asean region.

It noted that despite the pandemic, South-east Asia continues to be a vital market for American businesses, citing the region's robust and growing middle class, the continuing focus on improving infrastructure, growing regional integration, and availability of trade and investment opportunities.

Singapore is the United States' largest trading partner within Asean, accounting for almost 25 per cent, or US$57.6 billion (S$77.6 billion), of total American trade with the region.

More than 4,500 American firms have operations here.

AmCham chief executive officer Lei Hsien-Hsien said on Wednesday: "Despite the economic impact of Covid-19, the region continues to attract high levels of investment from US companies.

"This partnership is crucial to the region's recovery from Covid-19 as we undergo a transformation of our society and businesses."

Dr Lei added: "Overall, there is growing optimism in Asean as leaders and businesses demonstrate resilience along with a spirit of innovation and creativity that will support regional stability, sustainability and growth."

The poll also found that more than 70 per cent of Asean-based executives have plans to expand operations in the Asia-Pacific in the next five years.

And more than 75 per cent of them expressed a positive sentiment towards the US, compared with about 50 per cent last year.

The poll findings "reaffirm that US businesses will continue to invest in the region and to build strong partnerships to realise growth opportunities", said AmCham.

"This partnership with Asean will continue to provide US businesses with a sustainable platform for technology, innovation, enterprise and sustainability."

Source: The Straits Times