Fewer than half of companies polled have implemented sustainability practices
The vast majority—almost 80%—of companies in South-East Asia and Greater China are positive about the current business environment, with a quarter of them expecting their business performance to “vastly improve” in 2024. This is one of the key findings from UOB’s latest Business Outlook Study, which surveyed 4,000 small and medium-sized enterprises (SMEs) and larger companies in seven markets across ASEAN and Greater China.
The survey, conducted from December to January, found that businesses are closely monitoring the impact of rising inflation and higher operating costs, with many still recovering from the overall economic slowdown. Respondents highlighted their intentions to focus on reducing costs, finding new customer bases, and utilizing digital solutions to boost productivity.
When it comes to overseas expansion, 83% of businesses expressed interest in expanding internationally, with Southeast Asia being the preferred region for most, particularly markets such as Malaysia, Singapore, Thailand, and Indonesia. Around a third of respondents are also considering entering mainland China.
However, challenges such as finding the right partners, lacking in-house talent for overseas expansion, and customer shortages in target markets were common hurdles faced by businesses. To help mitigate these challenges, companies expressed a desire for better access to funding or grants for entering new markets and connections with large corporate businesses that could serve as anchor clients.
Sustainability practices remain a concern, with nearly 90% of businesses acknowledging its importance, though fewer than half have implemented sustainability practices.
