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05-09-12, 17:00
http://www.straitstimes.com/archive/friday/premium/money/story/high-cost-living-issue-us-firms-20120831
High cost of living 'issue for US firms'
Published on Aug 31, 2012
By Anita Gabriel, Senior Correspondent
THE rising cost of living, particularly housing, is the biggest source of dissatisfaction among employees of American firms in Singapore, according to a new survey.
Pricey office leases and scarcity of cheap labour also pose challenges but other aspects of business life here were seen as positive.
Mr Simon Kahn, the chairman of the American Chamber of Commerce (AmCham) in Singapore, said at a briefing on the survey findings yesterday: "My sense is that housing cost and the availability of high quality international schools could start to impact firms' business decisions to set up regional head offices here or elsewhere in the region."
The survey, which polled 356 top executives of US firms in seven Asean countries, was commissioned by AmCham and the US Chamber of Commerce.
Singapore had the largest representation in the survey, with 36 per cent of total respondents.
It also had the highest appeal among the seven nations in terms of infrastructure, security, stable government, tax structure and business incentives.
Corruption was the biggest source of dissatisfaction for US firms in Asean. However, Singapore scored the highest satisfaction ratings - 88 per cent - in this area compared with regional satisfaction of 36 per cent.
US companies were upbeat on their prospects here, with 70 per cent expecting profits this year to be better than last year's, and 85 per cent feel earnings next year will trump those of 2012.
About 60 per cent of the firms expect an increase in overall work force this year which is comparable with last year's survey results.
Overall, firms are "overwhelmingly optimistic" about the prospects in Asean. About 21 per cent plan to diversify their investments or business from China into Asean over the next two years.
Asean markets have also become more important to these firms in terms of worldwide revenue in the past two years.
Vietnam is the brightest spot for US firms, with 57 per cent citing it as the top location for expansion. Thailand, cited by 11 per cent, is a distant second.
"US businesses in Vietnam see it as a long-term play with strong opportunities in the near future," said Mr Kahn.
Myanmar is another promising sweet spot following Washington's decision to suspend sanctions on the country.
US firms cite Myanmar's infrastructure and commodity sectors as holding the most opportunity.
"The mood among US firms in terms of Myanmar's huge growth prospects is of cautious optimism," added Mr Kahn.
[email protected]
High cost of living 'issue for US firms'
Published on Aug 31, 2012
By Anita Gabriel, Senior Correspondent
THE rising cost of living, particularly housing, is the biggest source of dissatisfaction among employees of American firms in Singapore, according to a new survey.
Pricey office leases and scarcity of cheap labour also pose challenges but other aspects of business life here were seen as positive.
Mr Simon Kahn, the chairman of the American Chamber of Commerce (AmCham) in Singapore, said at a briefing on the survey findings yesterday: "My sense is that housing cost and the availability of high quality international schools could start to impact firms' business decisions to set up regional head offices here or elsewhere in the region."
The survey, which polled 356 top executives of US firms in seven Asean countries, was commissioned by AmCham and the US Chamber of Commerce.
Singapore had the largest representation in the survey, with 36 per cent of total respondents.
It also had the highest appeal among the seven nations in terms of infrastructure, security, stable government, tax structure and business incentives.
Corruption was the biggest source of dissatisfaction for US firms in Asean. However, Singapore scored the highest satisfaction ratings - 88 per cent - in this area compared with regional satisfaction of 36 per cent.
US companies were upbeat on their prospects here, with 70 per cent expecting profits this year to be better than last year's, and 85 per cent feel earnings next year will trump those of 2012.
About 60 per cent of the firms expect an increase in overall work force this year which is comparable with last year's survey results.
Overall, firms are "overwhelmingly optimistic" about the prospects in Asean. About 21 per cent plan to diversify their investments or business from China into Asean over the next two years.
Asean markets have also become more important to these firms in terms of worldwide revenue in the past two years.
Vietnam is the brightest spot for US firms, with 57 per cent citing it as the top location for expansion. Thailand, cited by 11 per cent, is a distant second.
"US businesses in Vietnam see it as a long-term play with strong opportunities in the near future," said Mr Kahn.
Myanmar is another promising sweet spot following Washington's decision to suspend sanctions on the country.
US firms cite Myanmar's infrastructure and commodity sectors as holding the most opportunity.
"The mood among US firms in terms of Myanmar's huge growth prospects is of cautious optimism," added Mr Kahn.
[email protected]