US firms doubtful of single ASEAN market

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asean2015A survey conducted by the American Chamber of Commerce in Singapore and the US Chamber of Commerce and presented on August 20 in the city state brought to light that a majority of American companies does not believe that the ten-member bloc of ASEAN can meet an end-2015 deadline to establish a single market, the ASEAN Economic Community, or AEC.

In a survey of 475 senior US business executives from the region, 52 per cent said they “do not think that the AEC’s goals will be realised by 2015”. Of those who doubt ASEAN will reach its deadline, nearly 60% per cent said they “think that ASEAN will not reach AEC’s goals until 2020 or later”.

Only 23 per cent of all executives questioned believe that ASEAN will meet its 2015 goal, the poll showed.

Despite their scepticism, the survey showed that US companies are optimistic about overall business prospects in the region. US firms said their level of trade and investment in ASEAN rose over the past 2 years and expect this figure to climb over the next 5 years.

Interestingly, Indonesia was named the most attractive country for new business expansion, followed by Vietnam, Thailand and Myanmar. The Philippines showed the biggest improvement in its business environment between 2008 and 2013, the survey said.

The survey’s concerns over the AEC formation is shared by a number of economists and politicians as well as by analyses of banking institutions such as CIMB Research.

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Reading Time: 1 minute

A survey conducted by the American Chamber of Commerce in Singapore and the US Chamber of Commerce and presented on August 20 in the city state brought to light that a majority of American companies does not believe that the ten-member bloc of ASEAN can meet an end-2015 deadline to establish a single market, the ASEAN Economic Community, or AEC.

Reading Time: 1 minute

asean2015A survey conducted by the American Chamber of Commerce in Singapore and the US Chamber of Commerce and presented on August 20 in the city state brought to light that a majority of American companies does not believe that the ten-member bloc of ASEAN can meet an end-2015 deadline to establish a single market, the ASEAN Economic Community, or AEC.

In a survey of 475 senior US business executives from the region, 52 per cent said they “do not think that the AEC’s goals will be realised by 2015”. Of those who doubt ASEAN will reach its deadline, nearly 60% per cent said they “think that ASEAN will not reach AEC’s goals until 2020 or later”.

Only 23 per cent of all executives questioned believe that ASEAN will meet its 2015 goal, the poll showed.

Despite their scepticism, the survey showed that US companies are optimistic about overall business prospects in the region. US firms said their level of trade and investment in ASEAN rose over the past 2 years and expect this figure to climb over the next 5 years.

Interestingly, Indonesia was named the most attractive country for new business expansion, followed by Vietnam, Thailand and Myanmar. The Philippines showed the biggest improvement in its business environment between 2008 and 2013, the survey said.

The survey’s concerns over the AEC formation is shared by a number of economists and politicians as well as by analyses of banking institutions such as CIMB Research.

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