(AmericanProsperity.com) – Inflation and higher costs have had the biggest impact on Asia as of last year even though they continue to suffer an economic slowdown with rising borrowing costs. More than four thousand businesses in Asia and China were surveyed and over thirty percent of them said that they were impacted by high inflation.
Over thirty percent of them also said that they were affected by higher operating costs, while over twenty percent said that the rising labor costs were what hurt them. With this said, four out of the ten companies said that they still felt “very positive” about the business environment. Indonesia and Vietnam were said to have been the most positive markets.
Businesses also spoke about the ways that they would look into combatting future issues like reducing business costs, establishing new clientele, and digitizing their business. More than eighty percent of them said that they would be interested in overseas expansion to help them with expanding profitability and increasing revenue.
With this, over half of them said that expanding into Southeast Asia was part of their plan, while about thirty percent said that they are looking to expand into the Chinese market. The countries at the top of the list for expansion in Southeast Asia were Malaysia, Singapore, and Thailand.
Firms that are located in Vietnam and Indonesia were most willing to expand, and they found that firms focused on technology, engineering, or media were showing the most interest in expanding their market.
Businesses have found that it’s difficult to expand to other markets as they have issues with finding local partners, lack of in-house talent, and also insufficient funds.
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