As of last year, inflation and higher prices had the most severe effect on Asia, even though their economy is still slowing down and the cost of getting money is going up. Over 3,000 companies in Asia and China were polled, and more than 30% said that high inflation had an effect on their operations.
Three hundred and thirty percent of them also said that higher running costs hurt them, and two hundred and twenty percent said that rising labor costs hurt them. Four of the ten businesses said they were still “very positive” about the business situation, even with this. It was said that the best markets were in Indonesia and Vietnam.
Businesses also talked about what they would do to deal with problems in the future, such as cutting costs, getting new customers, and going digital. More than 80% of them said they would be interested in expanding their business abroad to make it more profitable and bring in more money.
This meant that more than half of them said they wanted to grow into Southeast Asia, and about 30% said they wanted to grow into the Chinese market. Malaysia, Singapore, and Thailand were at the top of the list for growth in Southeast Asia.
Most of the companies that wanted to grow were in Vietnam and Indonesia. Companies that work in technology, engineering, or media also wanted to grow their markets the most.
Businesses have trouble expanding to new markets because they can’t find local partners and don’t have enough money or skilled employees.
