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Back to basics - Southeast Asia Capital Confidence Barometer: October 2012 - April 2013 - EY - Singapore

Southeast Asia Capital Confidence Barometer – October 2012 – April 2013

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With a recovery taking longer than expected to arrive, companies are focused on bottom-line improvement.

For the first time in two years, Southeast Asian respondents who had consistently taken a more bullish view of their local economies, expect the global economic pressures to dampen their growth prospects.

But it is not all bad news. Southeast Asian respondents continue to have confidence that their domestic economies will remain stable.

The respondents expect corporate earnings to be impacted by continuing uncertainties. The strong focus that Southeast Asian respondents have had on growth has now shifted to productivity improvements, cost reductions, protecting margins and efficient capital allocations.

Corporate balance sheets continue to be strong with low gearing levels that are expected to prevail for the next 12 months without much change.

Appetite for M&A has reduced despite strong balance sheets, availability of capital and good deal fundamentals. Overall there is a sense of conservatism that dominates boardroom decision making. With growth prospects moderating, one could expect to see leading companies paying a lot more attention to opportunities in their capital structures.

When the focus is on basic and stability, execution becomes key to success. While the economic fundamentals of the Southeast Asia markets have not changed, corporate sentiment has a significant bearing on the growth aspirations of our markets. At this time, corporate should focus on staying nimble and efficient while waiting for the right opportunities.



Pip McCrostie Pip McCrostie

Global Vice Chair,
Transaction Advisory
Services
Harsha Basnayake Harsha Basnayake

Southeast Asia and Singapore Leader,
Transaction Advisory Services


About this survey

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 comprises 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 August and September 2012, of which 118 executives from Southeast Asia
  • Companies from 41 countries
  • Cross-section of respondents from 24 sectors
  • 754 CEO, CFO and other C-level respondents
  • More than 400 companies would qualify for the Fortune 500 based on revenues

Survey demographics



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