US firms: M’sia creates more competitive environment

by **hlk** Thu 15 Sep 2011, 18:34

PETALING JAYA: US corporations in Malaysia have expressed their satisfaction that the country is creating more competitive business environment, according to the American Malaysian Chamber of Commerce's (Amcham) Asean Business Outlook Survey 2011.

The country's highly competitive labour cost, availability of raw materials and ease of moving products across borders scored top marks among senior executives polled from US companies operating here.

Accordingly, some 70% of the respondents expected a profit increase this year and 80% forecast an even more bullish outlook next year.

A total 20 US companies in Malaysia, which reflected more than 10% Amcham members, were respondents of the survey. The survey was conducted in May and June this year.

Amcham president Sanjeev Nanavati said the US companies positive sentiments were also reflected in that 55% of those polled anticipated that the local economy would expand this year.

“Malaysia also remains as the primary destination for other US companies in Asean to expand their businesses. About 40% out of a total 327 US companies senior executives in Asean have expressed that they plan to expand here.

“The sentiments and expansion plans by the US companies to Malaysia are in part a testament to the effectiveness of the Government Transformation Programme (GTP) and Economic Transformation Programme (ETP),” he told reporters at the briefing on the survey yesterday.

Nanavati said the survey was done in May to June and the economic condition had somewhat changed in the past few months.

“But, I don't think it (the current economic condition) would change the sentiments on Asean, investment into Malaysia and the areas of satisfaction.

“The only area that may have a slight moderation could be the global economic outlook,” he said.

On areas of concern, Nanavati said the respondents of the survey, had again expressed dissatisfaction with corruption; however, the magnitude of dissatisfaction had reduced significantly this year.