Update US businesses optimistic about business environment in Malaysia

by **Cals** Wed 21 Aug 2013, 13:09

Update US businesses optimistic about business environment in Malaysia
Business & Markets 2013
Written by Jeffrey Tan of theedgemalaysia.com
Wednesday, 21 August 2013 12:24

KUALA LUMPUR (Aug 21): U.S. companies have stayed optimistic about business prospects in Malaysia and ASEAN, according to a survey by American Malaysian Chamber of Commerce (AMCHAM).

In AMCHAM: ASEAN Business Outlook Survey 2013, a total of 475 senior executives polled in the country commended on Malaysia’s highly competitive value chain, availability of raw materials and ease of moving products through customs.

In a press statement to release the survey results, AMCHAM’s Malaysian president Sanjeev Nanavati said the survey reflected that 59% of respondents expect profit to increase in the local economy this year and 78%, next year.

“This reflects the effectiveness of Malaysia’s Government Transformation Program and Economic Transformation Program,” said Sanjeev.

Malaysia recorded the second highest satisfaction in infrastructure in the region, after only Singapore, said the statement.

Moreover, the ease of moving products through customs increased 17% in Malaysia since 2012.

“Despite decreased availability of low-cost labour compared to five years ago, companies in Malaysia have moved up the value chain into more value-added development,” said Sanjeev.

In addition, the survey ranked Malaysia with the second-lowest number of concerns in the ASEAN markets, after Brunei.

The two areas of concern to companies’ growth in Malaysia are degrading personal security since 2012 and higher corruption levels, it said.

Meanwhile, respondents expect the Transpacific Partnership (TPP) to have a greater impact on their companies’ future investments in the region than Regional Comprehensive Economic Partnership (RCEP).

The survey highlighted the importance of ASEAN’s agreements on trade in goods and services, as 54% of respondents replied their companies’ strategy was based on the goals of the ASEAN Economic Community.