Last year, survey reveals that Asian firms were most affected by inflation and operating costs.

• In 2023, Asian businesses faced the biggest impact from higher costs, despite also dealing with a global economic slowdown and increasing borrowing costs, as stated in a survey by UOB.
• While 27% of respondents reported being affected by an overall economic slowdown, 23% cited a higher interest rate environment as negatively impacting their businesses.
• A survey was conducted on over 4,000 businesses in Southeast Asia and Greater China, including those in China, Hong Kong, Thailand, Vietnam, Malaysia, Singapore, and Indonesia.

In 2023, Asian businesses faced the biggest impact from higher costs, despite also dealing with a global economic slowdown and increasing borrowing costs, as stated in a survey by UOB.

A survey was conducted on over 4,000 businesses in Southeast Asia and Greater China, including those in China, Hong Kong, Thailand, Vietnam, Malaysia, Singapore, and Indonesia.

UOB's 2024 Business Outlook Survey found that 32% of respondents were affected by high inflation, 32% faced increased operating costs, and 24% reported that rising labor costs negatively impacted their business.

A survey conducted from December to January polled 4,050 small- and medium-enterprises and large companies online.

While 27% of respondents cited an overall economic slowdown as a factor affecting their businesses, 23% attributed their struggles to a higher interest rate environment.

In 2023, four out of 10 companies reported feeling "very positive" about the business environment, while 32% said they were "somewhat positive," according to a survey. Indonesia and Vietnam were the most positive markets, with 56% and 47% respectively.

In 2023, 35% of companies reported a decline in the business environment compared to the previous year.

In order to prepare for potential obstacles in the future, 30% of companies stated that reducing their business expenses would be their top priority in the next one to three years. Additionally, 26% of companies prioritized acquiring new clients and 26% focused on digitizing their business.

Overseas expansion

As they aimed to enhance their revenue and profitability, over 80% of respondents expressed interest in expanding overseas.

More than half (56%) of those seeking to expand their business beyond their home country are interested in Southeast Asia, while 30% are targeting the Chinese market. Just 18% are looking to Europe as their top destination for future expansion.

The top picks in Southeast Asia were Malaysia (45%), Singapore (41%) and Thailand (40%).

In Indonesia and Vietnam, firms were most eager to expand, while those in manufacturing, engineering, or tech, media, and telecom showed the greatest interest in expanding overseas.

The biggest challenge for businesses looking to expand overseas was finding suitable local partners, with 40% citing it as the top obstacle. Besides this, a shortage of in-house expertise to manage expansion projects and limited financial resources were also significant concerns.