KUALA LUMPUR (Sept 8): Taiwanese companies focusing on ASEAN has identified Malaysia as among the top three most promising market for further expansion in the next 12 months.
According to a survey commissioned by Standard Chartered for Borderless Business: Taiwan-ASEAN Corridor, the majority of Taiwanese companies are expecting business growth in the region with 98 per cent of respondents expecting an increase in revenue and 93 per cent anticipate growth in production.
Standard Chartered Malaysia managing director and chief executive officer Abrar A. Anwar said Taiwan is one of Malaysia’s major trading partners and a significant investor in Malaysia, mainly focusing on manufacturing industries such as electrical and electronics (E&E), biotechnology and high-technology related sectors.
“We believe more Taiwanese businesses will find Malaysia to be a highly attractive proposition, particularly for our growing capacity in major industries and segments such as chemical, high-tech medical devices and biopharmaceuticals, and renewable energy.
“This view is coupled with Malaysia’s key location as the manufacturing centre of Southeast Asia,” he said in a statement today.
Abrar also said Standard Chartered is committed to supporting Taiwanese businesses seeking to establish themselves in Malaysia by providing practical on-the-ground advisory and innovative financial solutions that meet local and cross-border needs.
According to the survey, Taiwanese companies believe that Singapore, the Philippines, and Malaysia offer the best expansion opportunities for sales and production.
“Access to the large and growing ASEAN consumer market, the presence of a mature and reliable supplier base, and access to a global market enabled by a network of free trade agreements are regarded as the most important drivers for expansion into the region by the survey respondents,” said Standard Chartered.
In addition, the survey stated that the ratification of the Regional Comprehensive Economic Partnership (RCEP) is also expected to attract more investments into the region, with more than 90 per cent of respondents planning to increase investments by at least 25 per cent over the next three to five years.
Surveyed Taiwanese companies are currently conducting manufacturing and sales activities across all ASEAN-6 markets comprising Malaysia, Indonesia, the Philippines, Singapore, Thailand, and Vietnam.
The bank said that while being optimistic about opportunities in ASEAN, the Taiwanese companies understand that there are risks that will need to be managed.
The top three identified risks are the Covid-19 pandemic or other health crises; geopolitical uncertainty and trade conflicts; and the slow revival of the economy and the drop in consumer spending, it said.
“To support growth, these companies say they are seeking banking partners with extensive trade financing services; strong cash management capabilities; and foreign exchange hedging and comprehensive multi-currency settlement services,” it added.
Standard Chartered has launched the fourth edition of the Borderless Business series for 2021.
The report can be downloaded at www.sc.com/en/borderless. – Bernama