Prospects Here Brighter Than Overseas: Poll

Source : The Business Times, November 26, 2007

Vietnamese market also seen as highly attractive in latest BT-UniSIM survey

Despite weaker business sentiments, firms are generally more optimistic about prospects in Singapore than overseas, a survey has shown.

Also, business prospects in Vietnam appeared bright, particularly in the construction sector, according to the latest BT-UniSIM Business Climate Survey.

The survey polled 137 local and foreign firms, 72 per cent of which had some form of overseas business.

It found that the overall business prospects net balance - the difference between the percentage of companies that expect better times and those that expect things to turn for the worse in the coming six months - was 39 per cent, higher than the 34 per cent figure for overseas business prospects.

This means that 'firms are slightly more optimistic over business prospects in Singapore than abroad in the next six months,' said survey director Chow Kit Boey.

This is particularly true for foreign firms which reported 35 per cent in overall business prospect net balance - higher than its 26 per cent for business prospects overseas.

In contrast, local firms view overseas business climate more favourably with a 45 per cent net balance, compared with 42 per cent overall.

The most recent survey also asked respondents to name a country with the best business prospects in their businesses over the next six months.

While China took the top position overall - cited by 25.8 per cent of the firms, the report found the Vietnamese market to be highly attractive overall as it is among the top three countries with the best prospects across all types of firms.

For example, the country captured the second most mentions overall, among large, local and foreign firms, and also in the commerce, transport & communications and financial & business services sectors.

For small firms and firms in the manufacturing sector, Vietnam is the third most cited for best business prospects.

In contrast, China is not among the top three in the financial & business services sector.

Malaysia is the second most cited country for business prospects among small firms and firms in the manufacturing and financial & business services sectors.

It ranks third overall, among large and local firms, and among firms in construction and transport & communications.

In fourth position is Indonesia, which is seen as offering the best business prospects in the commerce sector.

Together with Malaysia, it is the second most popular country of best business prospects for financial & business services firms.

The United States came in fifth overall, but is ranked third among small, foreign and manufacturing firms.