9 in 10 SEA firms predict local economies to grow 5%

Regional outlook is getting more positive.

According to Ernst & Young, market sentiments are up in Southeast Asia (SEA) from a round of pessimism in the latter half of 2012, according to the latest Ernst & Young’s bi-annual SEA issue of the Global Capital Confidence Barometer.

The survey of more than 1,500 senior executives in 50 countries around the world, of which 131 were from SEA (Singapore, Malaysia, Indonesia, Thailand, Vietnam and Philippines), was conducted in February and March 2013.

Eighty-six percent of SEA respondents believed that the global economy was stable or improving compared to just 46% six months ago; an even stronger 90% felt likewise about their local economies compared to 78% six months ago. While regional economists have predicted SEA to grow above 5% over the next 12 months, 95% of SEA respondents believed that their local economies will grow 5% or less.

There is reason to be optimistic, with most SEA markets maintaining steady growth and providing good prospects for investments. Respondents cited the increased certainty around growth in China, steady monetary and economic policies in main SEA markets, opening up of frontier markets such as Myanmar, and improved capital markets around the world as reasons for this renewed confidence.