Singaporean Business Confidence High Expansion Plans Inspire Confidence

02 Apr, 2024

Macroeconomic uncertainty poses a significant obstacle to business expansion in the ASEAN region, according to a survey by HSBC.
 

 Despite this challenge, Singaporean businesses exhibit remarkable confidence in their growth prospects, with 94% expressing optimism.

 The survey, which included responses from Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, highlights varying levels of confidence across the region, with Thailand following closely behind Singapore at 91%. While 74% of businesses plan to invest more within ASEAN, 61% are eyeing expansion beyond the region. 

However, expansion efforts are hindered by several factors, including macroeconomic uncertainty, cited by 34% of respondents, along with challenges in local technological capabilities, supply chains, competition, and regulatory changes. HSBC's survey underscores a shifting focus among businesses towards digitalization, with 42% prioritizing digital operations and 65% planning to increase digital investment.

 The launch of HSBC's US$1 billion ASEAN Growth Fund reflects the growing importance of digital platforms in the region's economy, which is expected to reach US$600 billion by the end of the decade. Amanda Murphy, Head of Commercial Banking for South and Southeast Asia at HSBC, emphasizes ASEAN's potential for growth, particularly in the burgeoning digital economy.

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