A survey of 860 executives from businesses in ASEAN countries in March 2015. Respondents from Indonesia, Malaysia, Singapore, Thailand, The Philippines and Vietnam. The study shows how CEOs and their line managers view the business environment for 2015 and the differences in outlook between them and their counterparts in other ASEAN countries. It also shows how they feel the ASEAN Economic Community (AEC), due to be implemented at the end of this year, will impact their businesses and their country.

1. 2015
ASEAN Outlook

2. 22
Source: ASEAN Economic Community (AEC) Symposium, Permanent mission of Thailand to ASEAN

3. 33
ASEANOutlook2015
866 Respondents from 6 core ASEAN countries
Which country are you based in?
Malaysia, 23%
(196)
Indonesia, 20%
(177)
Singapore, 20%
(176)
Thailand, 20%
(170)
Vietnam, 11%
(96)
The Philippines,
6% (51)
ASEANOutlook2015

4. 44
…from a wide range of industries
Which of the following best describes your industry?
Consumer Goods
13%
Automotive
11%
Healthcare
8%
Banking, Finance
and Insurance
8%
Information and
Technology
5%
Industrial
5%
Agriculture
5%
Media and
Entertainment
5%
Energy
4%
Construction
4%
Retail and Real
Estate
3%
Corporate
Services
3%
Travel and
Logistics
2%
Other (please
specify)
24%
ASEANOutlook2015

5. 55
…with a large proportion of senior executives
Which of the following best describes your job title?
Manager, 26%
(225)
Regional/Senior
Manager, 16%
(141)
Vice
President/Genera
l Manager/Head,
16% (138)
Director, 14%
(120)
Other, 13% (115)CEO/CIO/CFO/President
/Managing
Director/Country
Manager, 15% (127)
ASEANOutlook2015

6. 6
ASEANOutlook2015
AEC is perceived to be beneficial to most companies
7%
25%
4%
0%
Very Positive
Positive
No difference
Negative
Very Negative
Answered: 668
What impact do you think the implementation of AEC will have on your company?
“A Free (trade) Zone in Asean
(with) no visas and no tax would
give us a lot of opportunities to
do business with Indonesia,
Singapore, Philippines... It (will)
change our company a lot.”
Agricultural sector CEO, Vietnam
56%
Even though we believe that AEC is a move in the right direction, we
don't believe that there will be significant positive developments
before 2020. “ Automotive sector Vice President, Singapore

7. 7
Answered: 668
Especially for sectors such as Infrastructure, retail and telecom
5%
14%
17%
18%
19%
21%
27%
31%
32%
Other (please specify)
Energy
Construction
Healthcare
Automotive
Agriculture
Telecommunication
Retail
Infrastructure
Which sectors do you think will benefit most from the implementation of AEC?
“ASEAN has 3 paths to prosperity:
urbanization, greater FDI flows ;
infrastructure spending growth”
Finance sector Vice President,
Malaysia

8. 8
Answered: 668
“Singapore can become the "New York of Asean",
(according to Foreign Minister K. Shanmugam) …
to clarify misperceptions that the AEC will result in jobs
being lost, and put small and medium-sized firms at a
disadvantage. “
Straits Times, 6 March 2015
Singapore to benefit most from AEC
2%
4%
10%
10%
17%
18%
24%
30%
31%
36%
Brunei
Laos
The Philippines
Cambodia
Myanmar
Malaysia
Vietnam
Indonesia
Thailand
Singapore
“Our largest most recent investment is a new and bigger regional
headquarters in Singapore with production & logistic improvements”
Construction sector Director, The Philippines
Which countries do you think will benefit most from AEC?

9. 9
ASEANOutlook2015
Indonesia, Vietnam and Thailand are expected to be the biggest markets for growth, but line
managers also think Myanmar will be important
Manager’s Perspective CEO’s Perspective
2%
5%
14%
20%
21%
22%
24%
26%
37%
Brunei
Laos
Cambodia
The Philippines
Malaysia
Singapore
Myanmar
Vietnam
Thailand
Indonesia
1%
8%
10%
13%
15%
16%
21%
32%
49%
Brunei
Laos
Malaysia
Cambodia
Singapore
Myanmar
The Philippines
Thailand
Vietnam
Indonesia
Answered: 215 Answered: 87
Which ASEAN countries are likely to be a significant growth market for your organisation in 2015?

10. 1010
c
Managers vs. CEOs
Perspectives

11. 11
ASEANOutlook2015
The rise of the ASEAN corporation?
Manager’s Perspective CEO’s Perspective
12%
13%
20%
26%
28%
All of the above
None of the above
Small and Medium-sized
Enterprises (SMEs)
Large domestic companies
Global multinationals
Large pan-ASEAN companies
5%
13%
15%
24%
44%
All of the above
None of the above
Large domestic companies
Small and Medium-sized
Enterprises (SMEs)
Global multinationals
Large pan-ASEAN companies
Answered: 238 Answered: 96
Which companies do you think will benefit the most from the implementation of AEC?
Our biggest challenge is the restriction by ASEAN country governments
hampering growth of multinationals”
Retail sector manager, Malaysia
1%

12. 12
ASEANOutlook2015
Manager’s Perspective CEO’s Perspective
3%
8%
15%
15%
20%
32%
Freer flow of capital
Freer flow of services
Freer flow of skilled labour
Stronger regulatory and
oversight framework
Freer flow of investment
Freer flow of goods
Potential to enhance customer
base from cross-border sales
4%
8%
10%
10%
13%
26%
28%
Freer flow of capital
Freer flow of services
Freer flow of skilled labour
Freer flow of investment
Stronger regulatory and
oversight framework
Freer flow of goods
Potential to enhance customer
base from cross-border sales
Answered: 238 Answered: 96
“Availability of local talent and regulatory factors are some of the challenges to growth.
Will this be partly addressed by AEC? Likely..“ Construction industry director, Singapore
Increased sales and the free flow of goods are expected from AEC
What do you see as the biggest benefit for your company from the implementation of AEC?
7%

13. 13
ASEANOutlook2015
Most executives think they have a good understanding of what AEC entails
6%
14%
29%
43%
9%
Very unfamiliar
Somewhat unfamiliar
Neither familiar nor unfamiliar
Somewhat Familiar
Very familiar
Answered: 615
How familiar do you think your regional senior staff are about the benefits of the AEC?
“A survey by the Institute of Southeast
Asian Studies found that 55 per cent of
some 380 firms polled across the
region were not aware of the AEC. And
Singapore companies had the highest
level of ignorance - at 86 per cent.”
Edmund Sim, AEC Blog, June 4 2014

14. 1414
Managers vs. CEOs
Moving forward

15. 15
ASEANOutlook2015
How do you feel about the economy over the next 12 months?

16. 16
10%
62%
27%
1%
8%
49%
38%
4%
Very optimistic
Quite optimistic
Not very optimistic
Not at all optimistic
4%
38%
49%
8%
How do you feel about your country’s economy over the next 12 months?
Answered: 225 managers Answered: 90 CEOs
49%
CEOs (90)
Managers (225)
“We expect Asean countries will achieve the same business size as China in the
near future”
Automotive sector Regional Manager, Thailand

17. 17
1%
2%
0%
6%
12%
47%
32%
1%
1%
5%
9%
30%
35%
18%
Shrink by more than 10%
Shrink by 5-10%
Shrink by 1-4%
No change
Grow by 1-4%
Grow by 5-10%
Grow by more than 10%
18%
35%
30%
1%
9%
5%
1%
Thinking about 2015, what are your expectations for your local office’s revenue results
compared with 2014?
Answered: 225 managers Answered: 90 CEOs
1%
CEOs (90)
Managers (225)
“We have made several significant investments in
ASEAN during past 3 years, and expect to continue
to do so”
Chemical sector Vice President, Singapore

18. 18
ASEANOutlook2015
Is anything holding you back from growth?

19. 19
ASEANOutlook2015
Managers feel their local economy will restrict their growth. CEOs think the
poor skills of their staff are holding them back
Manager’s Perspective CEO’s Perspective
8%
14%
18%
20%
36%
36%
52%
Nothing
Restrictions being enforced by
parent company
Lack of suitably qualified staff
Lack of investment from the
head office
World economy
Government restrictions
Local economy
9%
14%
26%
29%
36%
39%
Restrictions being enforced by
parent company
Nothing
Lack of investment from the
head office
World economy
Government restrictions
Lack of suitably qualified staff
Local economy
Answered: 225 Answered: 90
Is anything holding you back from growth?
The lack of skilled workforce is one of the biggest problems
for investing companies. Automotive sector Vice President,
Singapore

20. 20
ASEANOutlook2015
Which of the following regional trends do you think will have the biggest
impact on your country in 2015?

21. 21
ASEANOutlook2015
The rise of the US$ and cheap oil are expected to have a big impact on the region
Manager’s Perspective CEO’s Perspective
13%
38%
45%
51%
Geostrategic tensions in the
South China Sea
E-Commerce
Deepening income inequality
Rise of the US dollar
Cheap oil
16%
29%
39%
54%
Deepening income inequality
Geostrategic tensions in the
South China Sea
E-Commerce
Cheap oil
Rise of the US dollar
Answered: 215 Answered: 87
Which of the following regional trends do you think will have the biggest impact on your country
in 2015? (please check all that apply)
35% 17%

22. 22
ASEANOutlook2015
Which of the following digital trends do you think will become more prevalent
in your country and company in 2015?

23. 23
CEO’s Perspective
12%
31%
41%
48%
49%
Wearable internet devices
Bring your own device (BYOD)
The internet of things
Big data analytics
Digital payments
Big data analytics, digital payments and the internet of things are big for this year
Answered: 87
4. Which of the following digital trends do you think will
become more prevalent in your country in 2015?
10%
35%
39%
40%
49%
Wearable internet devices
Digital payments
Bring your own device (BYOD)
The internet of things
Big data analytics
5. Which of the following digital trends do you think will
become more prevalent in your company in 2015?
Answered: 90

24. 24
2015 trends
24
The trends The catalysts The beneficiariesThe institutions

25. May your 2015
be profitable