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Conservative sense of optimism - Southeast Asia Capital Confidence Barometer: April 2012 - October 2012 - EY - Singapore

Southeast Asia Capital Confidence Barometer, April 2012 - October 2012

Conservative sense of optimism

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Intra-Asia-Pacific cross border activity as well as inter Asia-Pacific cross border activity is increasingly perceived as a barometer for the global community’s economic health.

In the 6th global survey, we found economic outlook, optimism, business health and willingness to divest or engage in M&A activity varied by market cross Asia-Pacific.

Are markets pursuing growth or maintaining stability?

Singapore Indonesia Malaysia Mainland China South Korea Australasia
58% - pursuing growth 61% - pursuing growth 46% - pursuing growth 64% - maintaining stability 65% - pursuing growth 49% - maintaining stability



Intra-Asia-Pacific cross border activity as well as inter Asia-Pacific cross border activity is increasingly perceived as a barometer for the global community’s economic health.

In the 6th global survey, we found economic outlook, optimism, business health and willingness to divest or engage in M&A activity varied by market cross Asia-Pacific.

Companies are managing their capital differently from six months ago. What are most markets focusing on today?

  Southeast Asia Mainland China South Korea Australasia
October 2011 40% - investing capital 35% - preserving capital
35% – investing capital
52% - optimizing capital 30% - preserving capital
April 2012 36% - investing capital 44% - optimizing capital 68% - investing capital 31% - optimizing capital



(note: We define markets in Southeast Asia to include: Singapore, Malaysia, Indonesia, Vietnam, Thailand, Cambodia/Laos, Phillipines)



If the message from the last barometer was one of confidently focused on growth, we can safely conclude that Southeast Asia markets are presenting some of the more stable opportunities for businesses that are in pursuit of growth.

While conservatism has reduced M&A appetite by 5%, compared with our last Southeast Asian barometer, 48% of Southeast Asian respondents continue to engage in M&A activities - which is significantly higher than the sentiments expressed by Global respondents.

Southeast Asian respondents continue to express confidence in their domestic markets for 18 consecutive months, which is consistent with the developments we currently experience across our own regional markets.

This third Southeast Asia issue of the Capital Confidence Barometer expressed seven core messages from our Southeast Asian respondents:

These are clear messages that successful companies are convinced of based on their experience in the respective markets.



Pip McCrostie Pip McCrostie

Global Vice Chair,
Transaction Advisory
Services
Harsha Basnayake

Southeast Asia and Singapore Leader,
Transaction Advisory Services


About this barometer

The Global Capital Confidence Barometer is a regular barometer of senior executives from large companies around the world, conducted by the Economist Intelligence Unit (EIU). Our panel is comprised of select EY clients and contacts, and regular EIU contributors.

This Southeast Asia subset of our findings gauges corporate confidence in the economic outlook, and it identifies boardroom trends and practices in the way companies manage their capital agenda.

Profile of respondents
  • Panel of over 1,500 executives surveyed in February and March 2012.
  • 118 executives from Southeast Asia
  • Companies from 57 countries
  • Cross-section of respondents from 40 sectors
  • 770 CEO, CFO and other C-level respondents
  • More than 400 companies would qualify for the Fortune 500 based on revenues


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