Survey of Japanese-Affiliated Firms in Asia and Oceaniain ......Malaysia (n=268) 54.5 20.2 25.4 (n...

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Survey of Japanese-Affiliated Firms in Asia and Oceaniain Asia and Oceania

(FY 2009 Survey)

December 2009Overseas Research Department

Japan External Trade Organization (JETRO)p g ( )

Copyright © 2009 JETRO. All rights reserved. Printing without permission is prohibited. 1

Survey Summary

P f S

(Companies, %)

N b fN b f No of companiesNo of companiesN b f No of companies V lidCategory

The purpose of this survey was to understand thecurrent business activities of Japanese-affiliatedfirms operating in Asia and Oceania and todisseminate findings widely.

Purpose of Survey Number of companies surveyed

Number of companies surveyed

No. of companies submitting valid replies


TotalTotalManufacturing

industriesManufacturing

industries

Non-Manufacturing industries


Number of companies surveyed


TotalManufacturing

industries


Total 7,021 2,990 100.0 1,613 1,377 42.6

Northeast Asia 1 788 833 27 8 504 329 46 6

ValidResponses

(%)Share

Category

d sse ate d gs w de y.

Firms were e-mailed a URL that directed them tothe survey form, which they were asked to

Survey Methods ChinaTaiwan

KoreaH K

Northeast Asia1,367 579 19.4 388 191 42.4

223 106 3.6 61 45 47.5

103 81 2.7 44 37 78.6

95 67 2 2 11 56 70 5

1,788 833 27.8 504 329 46.6

the survey form, which they were asked tocomplete online. In certain countries, firms weresent paper-based survey forms and asked to sendback completed forms to JETRO.

Hong Kong 95 67 2.2 11 56 70.5

Thailand

Malaysia

1,572 704 23.6 417 287 44.8

903 270 9.0 166 104 29.9

ASEAN 4,279 1,614 54.0 915 699 37.7

September 1st - October 15th, 2009 *until October 31st for firms in Northeast Asia

Survey Period Vietnam

Singapore290 143 4.8 92 51 49.3

742 221 7.4 58 163 29.8

PhilippinesIndonesia

298 130 4.4 89 41 43.6

455 129 4.3 87 42 28.4

A total of 7,021 Japanese-affiliated firms in 17 countries/regions in Asia and Oceania (listed to the right by region) were sent questionnaires, with 2 990 ff i lid 42 6%

Response Rate Myanmar 19 17 0.6 6 11 89.5

India

S i L k

347 177 5.9 79 98 51.0

64 27 0 9 19 8 42 2

Southwest Asia 489 254 8.5 128 126 51.9

2,990 offering valid responses, a 42.6% response rate.

Bangladesh

Sri LankaPakistan

45 24 0.8 17 7 53.3

64 27 0.9 19 8 42.2

33 26 0.9 13 13 78.8

Oceania 465 289 9.7 66 223 62.2Note: Figures in the diagrams have been rounded off, so Note: Figures in the diagrams have been rounded off, so

Copyright © 2009 JETRO. All rights reserved. Reproduction without permission is prohibited. 2

New ZealandAustralia 353 218 7.3 50 168 61.8

112 71 2.4 16 55 63.4

g g ffpercentages may not necessarily add up to 100.

g g ffpercentages may not necessarily add up to 100.

1. Estimated Operating Profit (1)Estimated operating profit for 2009

by country/region

Surplus Balance Deficit 56.4% of firms (of 2,969 valid replies) expected to post a profit. This is

a fall of 8.9 points from the 65.3% figure (of 2,524 valid replies) recorded in the 2008 survey

No significant difference seen between manufacturing industries (surplus: 57.0%; deficit: 24.5%) and non-manufacturing industries

Total (n=2,969) 56.456.4 19.919.9 23.723.7

T i ( 106) 74 5 8 5 17 0

Compared to the 2008 survey, the percentage of firms expecting a positive result increased for such countries and regions as Hong Kong (68.1%⇒68.7%), Taiwan (72.4%⇒74.5%), Indonesia (69.5%⇒71.3%) etc

(surplus: 55.7%; deficit: 22.8%)Taiwan (n=106) 74.5 8.5 17.0

Korea (n=81) 67.967.9 16.116.1 16.116.1

Hong Kong (n=67) 68.768.7 22.422.4 9.09.0

Indonesia (n=129) 71.371.3 18.618.6 10.110.1

etc. For Hong Kong and Taiwan, this may be due to the fact that many of the

firms operating in these economies are well established and more stable operating performances. For Indonesia, all respondent firms in motor vehicle & motorcycle parts/accessories, sales and transport/warehousing industries expect to post a profit for two consecutive years.

Thailand (n=702) 58.658.6 17.717.7 23.823.8

Singapore (n=216) 60.260.2 22.222.2 17.617.6

Philippines (n=128) 57.0 19.5 23.4

Australia (n=214) 65.065.0 16.416.4 18.718.7

Compared to the last survey, the percentage of firms expecting a surplus in operating profits in major ASEAN nations such as Thailand, Singapore and Malaysia fell considerably: Thailand (74.7%⇒58.6%); Singapore (74.9%⇒60.2%) and Malaysia (65.0%⇒54.5%)

Poor results among trading firms in Singapore, electric and electronicChina (n=577) 51.851.8 22.422.4 25.825.8

Malaysia (n=268) 54.554.5 20.220.2 25.425.4

Philippines (n 128) 57.0 19.5 23.4

New Zealand (n=71) 52.152.1 21.121.1 26.826.8

Poor results among trading firms in Singapore, electric and electronic parts and component makers in Malaysia and sales companies in Thailand contributed to this decline.

The percentage of firms in India expecting a profit fell below 50% for the first time since the survey began.

Thi d i l t h f ll i t th t t f hi h

Vietnam (n=143) 40.640.6 24.524.5 35.035.0

India (n=174) 43.743.7 22.422.4 33.933.9

Pakistan (n=26) 50.0 15.4 34.6

Bangladesh (n=24) 37.537.5 12.512.5 50.050.0

Industries with high percentage of companies expecting profit Industries with high percentage of companies expecting deficit

*Only industries for which 30 or more valid replies were received are included here.20 40 60 80 1000

This was due mainly to sharp falls in sectors that account for a high percentage, such as motor vehicles and motorcycle parts & accessories, trading firms and sales companies.

(%)Myanmar (n=16) 25.025.0 43.843.8 31.331.3

Sri Lanka (n=27) 25.925.9 44.444.4 29.629.6

3

Manufacturing industry

Non-manufacturing industryp p ( )

-Motor vehicles and motorcycles (79.0%)-Petroleum and plastic products (70.9%)-Banks (90.0%) -Sales companies (60.5%)

Manufacturing industry

Non-manufacturing industry

-General machinery (43.7%) -Iron and steel (36.5%)

( )-Hotels, travel, restaurants (30.8%)-Communications/software (29.0%)

Copyright © 2009 JETRO. All rights reserved. Reproduction without permission is prohibited.

1. Estimated Operating Profit (2)Estimated operating profit by year of foundingEstimated operating profit by year of founding

Surplus Balance Deficit

(n=159) (n=126) (n=101) (n=117) (n=405) (n=511) (n=549) (n=570) (n=358)17.012.6

15.1

16.7

6.96.915.8

13.717.1

22.2 20.7

19 8

19.7

20 4

26.042.2

100

80

As the data reveals, the Surplusratio is generally higher among firms founded earlier: in Hong

(n=2,896)(%)

70.4 68.3 77.2 69.2

18.3

59.5

19.8

59.5

20.4

59.9

22.3

51.8

23.2

34.6

60

40

20

Kong, Taiwan and Singapore, this ratio is over 60%.

Conversely, the Surpluspercentage is lower among

Distribution of No of Years Since Establishment by Country/Region

～1970 1971～1975

1976～1980

1981～1985

1986～1990

1991～1995

1996～2000

2001～2005

2006～2009

0percentage is lower among firms founded in the past five years or so, as performance for these new entrants is generally more unstable.

20 9

Singapore

19 8 21 519 6

Thailand

27.326.6

Indonesia

Distribution of No. of Years Since Establishment by Country/Region

22.930.0

37.9Vietnam

5.7

15.610.9

20.916.1

10.94.7 7.1

～70

～80

～85

～90

～95

～00

～05

～09

8.1

～75Taiwan Hong Kong

7.00.7 2.8

19.815.2

21.519.6

9.83.6

～70

～80

～85

～90

～95

～00

～05

～09

～75

2.3 3.13.1 2.3

10.9 14.1

1.63.93.9

～70

～80

～85

～90

～95

～00

～05

～09

～75

India

0.78.6

22.9

～70

～80

～85

～90

～95

～00

～05

～09

～75

40 7China

16.0

7 5

28.3

12.311.36 6

10.4

Taiwan

10.5 11.910.513.420.9

10.514.9

Hong Kong

5 8

24.420.9

40.7India

21.316.0

40.7

17.0

China

4.7 7.5 6.62.8

～70

～80

～85

～90

～95

～00

～05

～09

～75

3.0 4.5

～70

～80

～85

～90

～95

～00

～05

～09

～75

1.2 0.6 2.9 2.35.8

～95

～00

～05

～09

1.2～70

～80

～85

～90

～75

4

0.5 0.4 0.4 4.0

～70

～75

～80

～85

～90

～95

～00

～05

～09


1. Estimated Operating Profit (3)Estimated operating profit for 2009, 2010

(based on DI* values)2009 2010

0－20－40－60 20 40 60 80 In 15 of the 17 economies surveyed (India and

Myanmar were the lone exceptions), the percentage of firms expecting profits to “worsen” in 2009 was higher than that for firms expecting performance to “improve”

(%)

Total (n=2,968)(n=2,928)

－20.646.2

Bangladesh (n=24) －8.32 firms expecting performance to improve

(i.e., registered a negative DI). Indonesia (n=129)

(n=128)－8.5

58.6

Bangladesh ( )(n=22) 72.7

New Zealand (n=71)(n=71)

－21.156.3

China (n=577)(n=569) 54.0

－5.4 Industries with higher percentage of firms expecting profits to “worsen”

製造業

非製造業

鉄鋼(71.2%)輸送用機器部品(64.8%)非鉄金属(63.2%)ホテル･旅行･外食(63.2%)運輸倉庫(60 3%)

製造業

非製造業

鉄鋼(71.2%)輸送用機器部品(64.8%)非鉄金属(63.2%)ホテル･旅行･外食(63.2%)運輸倉庫(60 3%)

Myanmar (n=17)(n=17)

41.253.0

( 701) 41 9

Vietnam (n=142)(n=139)

－9.254.0

India (n=174)(n=171)

12.653.2

(n 569) 54.0Manufacturing industries

Iron and steel (71.2%) Motor vehicle and motorcycle parts and accessories (64.8%) Nonferrous metals and products(63.2%)

Non-f t i

Hotel/travel/restaurant (63.2%) T t/ h i (60 3%)

p g p

In all surveyed economies, DIs for 2010 (estimate) were considerably higher than those for 2009. The change between 2009 and

非製造業運輸･倉庫(60.3%)商社(58.8%)

非製造業運輸･倉庫(60.3%)商社(58.8%)

Malaysia (n=268)(n=264)

－27.240..9

Thailand (n=701)(n=693)

－41.949.9

Australia (n=214)(n=209)

－22.944.5

Korea (n=80) －12.5

manufacturing Transport/warehousing (60.3%) Trading companies (58.8%)

2010 DIs was especially notable in Thailand (91.8 points) and Bangladesh (81.0 points)

Industries with higher percentage of firms expecting

Philippines (n=129)(n=127)

－16.334.6

Singapore (n=216)(n=214)

－35.235.5

Taiwan (n=106)(n=104)

－10.421 2

Korea ( )(n=81)

12.539.5

g p g p gprofits to “Improve”

製造業

非製造業

鉄鋼(73.1%)輸送用機器(67.3%)金属製品(66.4%)商社(61.6%)運輸倉庫(60 8%)

製造業

非製造業

鉄鋼(73.1%)輸送用機器(67.3%)金属製品(66.4%)商社(61.6%)運輸倉庫(60 8%)

Pakistan (n=26)(n=26)

－30.819.2

(n=104) 21.2Hong Kong (n=67)

(n=67)－26.9

20.9

Sri Lanka (n=27)(n=26)

－25.90

Manufacturing industries

Iron and steel (73.1%) Motor vehicles and motorcycles (67.3%) Fabricated metal products (66.4%)

Non- Trading companies (61.6%)

5

*Note: DI or “diffusion Index” refers to the difference obtained by subtracting the percentage of companies replying profits would “Worsen” from the percentage replying profits would “Improve.”

非製造業運輸･倉庫(60.8%)通信･ソフトウエア(59.5%)

非製造業運輸･倉庫(60.8%)通信･ソフトウエア(59.5%)

manufacturing industries

Transport/ warehousing (60.8%) Communications/ software (59.5)

Copyright © 2009 JETRO. All rights reserved. Reproduction without permission is prohibited.*Only industries for which 30 or more valid survey responses were received are included here.

1. Estimated Operating Profit (4)Reasons for improvement or declineReasons for improvement or decline

Response percentage by country/region and industryReasons for decline in operating profit in 2009

( 1 431)0 20 40 60 80

(n=1,431)

Taiwan (81.3％) General machinery (80.8%)Ch i l d l d

Sales companies (75.9%)di i ( %)

By country/regionIndustry

Manufacturing Non-manufacturingDecrease in local

market sales

Decrease in sales due to sluggish exports

61.6

47.2

(%)

Thailand (78.2％)Singapore (68.6％)

Philippines (61.8％)Hong Kong (61.8％)Malaysia (47.8％)

Chemical and petroleum products (79.5%)Fabricated metal products(74.2%)

Electric and electronic parts and components (81.1%)Electric machinery and electronic

Trading companies (70.7%)

Transport/warehousing (62.0%)Trading companies (47.6%)

due to sluggish exports

Increase in personnel expenses

Reduction in sales due to exchange rate fluctuations

15.2

15.0

Reasons for improvement in operating profit in 2010

Malaysia (47.8％)equipment (68.3%)Plastic products (64.6%)Other 14.6

39.3

0 20 40 60 80(n=1,626)

India (84.1%)Korea (77.3%)Thailand (76.1%)

Chemical and petroleum products (82.1%)Iron and steel (79.0%)M t hi l d t l

Sales companies (81.3%)Trading companies (75.1%)

By country/regionIndustry

Manufacturing Non-manufacturingIncrease in local

market sales

Increase in sales due to export expansion

68.0

(%)

36.2

20.0

Philippines (64.2%)Singapore (54.8%)Malaysia (53.3%)

Motor vehicle and motorcycleparts and accessories (77.9%)

Electric and electronic parts and components (62.5%)Fabricated metal products (56.3%)Plastic products (56.6%)

Communications/software (43.2%)Trading companies (42.2%)

due to export expansionIncrease in sales

due to development of new products / services

Improved production efficiency(manufacturing only)

Reduction in other costs

6

19.3Reduction in other costs (improved cost competitiveness)

Copyright © 2009 JETRO. All rights reserved. Reproduction without permission is prohibited.*Only industries for which 30 or more valid survey responses were received are included here.

2. Impact of Economic Recession (1)Impact of the global economic recession

(after Oct 2008) by country/region

Significant negative impact Slight negative impact No impactSlight positive impact Significant positive impact

Negative86.9％

No impact10.7％

Positive2.4％

Hong Kong (n=67)Singapore (n=216)

Thailand (n=701)65.3 24.5 8.866 3 23 4 8 4

6.061.2 32.81.41.3

Total (n=2,963) 58.0 28.9 10.7 1.8 0.6

Thailand (n 701)Taiwan (n=106)

Malaysia (n=269)Korea (n=81)

Pakistan (n=25)

59.4 30.2 9.4

59.3 29.6 7.4 3.744.0 44.0 4.0 8.0

66.3 23.4 8.4

61.3 27.9 8.90.9

0.71.1

0.6

Philippines (n=130)China (n=577)

New Zealand (n=68)Indonesia (n=129)Australia (n=213)

57.4 27.9 11.8

58 2 25 8 14 6 1 4

56.9 30.0 12.3 0.852.7 33.6 10.6

47.3 38.0 8.5

2.6

2.93.9 2.3

0.5

Australia (n=213)Sri Lanka (n=26)Vietnam (n=140)

India (n=175)Myanmar (n=16)

57.7 23.1 19.2

37.5 37.5 25.0

58.2 25.8 14.6 1.4

51.4 29.3 15.745.1 33.1 18.9

2.92.3

0.6

0.7

Bangladesh (n=24) 45.8 29.2 16.7 4.2 4.2

0 20 40 60 80 100

A large majority of respondents (86.9%) report being negatively affected by the global economic recession, with 58.0% citing

(%)

7

“significant negative impact” and 28.9% citing “slight negative impact.” Firms in Hong Kong, Singapore and Thailand ranked highest in terms of the percentage of firms reporting negative impact from

the recession.


2. Impact of Economic Recession (2)Impact of the global economic recession Significant negative impact Slight negative impact No impact

Printing and publication (n=14) 50.0 50.0

Rubber products (n=35) 60 0 37 1 2 9

(after Oct 2008) by industry

Mining (n=18) 77.8 22.2

Securities (n=2) 50.0 50.0

Manufacturing Non-manufacturing

Significant negative impact Slight negative impact No impactSlight positive impact Significant positive impact

Rubber products (n 35) 60.0 37.1 2.9

Electric and electronic parts and components (n=168) 76.2 18.5 1.83.6

Motor vehicles and motorcycles (n=57) 50.9 43.9 3.51.8

Lumber and wood products (n=19) 68.4 26.3 5.3

Fabricated metal products (including plated products) (n=108) 74.1 21.3 2.80.9

0.9 Fishery (n=1) 100.0

Trading company (n=281) 60.5 31.3 6.4 1.8

Sales company (n=346) 60.7 31.5 6.4 1.5

Securities (n 2) 50.0 50.0

Hotel/travel/restaurant (n=38) 81.6 15.8 2.6

components (n=168)

Precision instruments (n=26) 61.5 30.8 3.93.9

Textiles (yarn, cloth, synthetic fabrics) (n=35) 68.6 22.9 2.92 9

2.9

Iron and steel(including cast and forged products) (n=52) 80.8 13.51.9

3.9Motor vehicle and motorcycle parts and

accessories (n=195) 74.9 18.0 6.2 0.50.5

Agriculture and forestry (n=5) 80.0 20.0

Transport/warehousing (n=131) 73.3 18.3 7.6 0.8

Communications/software (n=73) 42.5 45.2 11.0 1.4

Construction/plants (n=94) 57.5 27.7 13.8 1.1

Chemical and petroleum products (n=109) 61.5 27.5 10.1 0.9

General machinery(including metal molds and machine tools) (n=87) 74.7 16.1 8.1 1.2

El i hi d l i

2.9

Plastic products (n=95) 62.1 28.4 5.33.21.1

Nonferrous metals and products (n=38) 73.7 15.8 5.32.62.6

Distribution (n=27) 37.0 37.0 18.5 7.4

Banking (n=31) 32.3 45.2 16.1 6.5

Insurance (n=29) 27.6 48.3 20.7 3.5

Other (n=261) 39.5 35.6 21.5 0.82.7

Paper and pulp (n=12) 75.0 8.3 8.3 8.3

Electric machinery and electronic equipment (n=142) 59.2 29.6 10.6 0.7

Apparel and textile products (n=45) 33.3 44.4 17.8 4.4

Other (n=190) 56.3 28.4 1.613.7

0 20 40 60 80 100

Real estate (n=18) 16.7 55.6 27.8

Judicial affairs/taxation (n=5) 20.0 60.0 20.0

(%)

Medical devices (n=6) 33.3 16.7 50.0

h i l ( ) 29 4 64 7 5 9

Ceramics and cement (n=26) 50.0 23.1 23.1 3.9

Foods, processed agricultural or marine products (n=120) 17.5 38.3 37.5 5.8 0.8

Furniture and interior products (n=7) 28.6 42.9 14.3 14.3A strong negative impact was felt in nearly every sector,with notable exceptions in pharmaceuticals, medical devicesand foods, processed agricultural or marine products,suggesting these were somewhat immune to the recession,with the percentage of respondents choosing “no impact,”

Pharmaceuticals (n=17) 29.4 64.7 5.9

8

“slight positive impact” and “significant impact” totalingover 40%.0 20 40 60 80 100

(%)


2. Impact of Economic Recession (3)Period when sales bottomed out Period when firms think sales will return to

Manufacturing (n=1,313)Non-manufacturing (n=1,081)

0 10 20 30251550.5 manufacturingO t D 2008

Period when sales bottomed out pre-recession (i.e., before Sept. 2008) levels

08年10月～12月 4.60 10 20 30 40

Total (n=2,395) (%)(%)

October - December, 2008

2.10.3

1.910.9

7.516 5

g

non-manufacturingOct- Dec 2008

Jan-Mar 2009

April - June, 2009

09年1月～3月09年4月～6月09年7月～9月

09年10月～12月10年上期

35.423.2

10.16.6

5.8

January - March, 2009April - June, 2009July - September, 2009

October - December, 2009

The first half of 201016.5

9.48.68.5

14.916.0

July - Sept 2009

Oct- Dec 2009

1st half of 2010

10年下期

11年1月以降

分からない

2.81.0

10.6

Sales hit rock bottom in the

first half of 2009Unknown

The second half of 2010

January, 2011 or later

12.016.7

9.411.8

25.228 0

2nd half of 2010

January 2011 or later

Unknown

Nearly 60% of firms point to the first half of 2009 for when their sales hit rock bottom (35.4% for Jan-March period, and 23.2% for the April-June period)

More than a quarter of respondents can’t point to a specific period for when they think sales will recover to 28.0

Period when firms thinks sales will return to pre-recession levels (by country/region) %

09年4月～6月 09年7月～9月 2010年上期 2010年下期09年10月～12月Taiwan(16.9)韓国(19.4) フィリピン(25.5)

I d i (22 9)ミャンマー(25.0)マレシア(20 4)

バングラデシュ(41 2)

09年4月～6月 09年7月～9月 2010年上期 2010年下期09年10月～12月Taiwan(16.9)韓国(19.4) フィリピン(25.5)

I d i (22 9)ミャンマー(25.0)マレシア(20 4)

バングラデシュ(41 2)

specific period for when they think sales will recover to pre-recession levels, with 25.2% of firms in manufacturing and 28.0% in non-manufacturing selecting “unknown” (average of 26.6% overall). Answers varied depending on country/region.

Aft “ k ” th t t l h i f

April – June 2009

July – Sept 2009

Oct- Dec 2009 1st half of 2010 2nd half of 2010

Indonesia(22.9)中国(20.6)Taiwan(16.9)ベトナム(14.6)

マレーシア(20.4)インド(20.0)香港(18.8)タイ(17.2)オーストラリア

(14.9)ベトナム(14 6)

(41.2)ニュージーランド

(32.1)スリランカ(20.0)パキスタン(19.1)シンガポール

(14 7)

Indonesia(22.9)中国(20.6)Taiwan(16.9)ベトナム(14.6)

マレーシア(20.4)インド(20.0)香港(18.8)タイ(17.2)オーストラリア

(14.9)ベトナム(14 6)

(41.2)ニュージーランド

(32.1)スリランカ(20.0)パキスタン(19.1)シンガポール

(14 7)

After “unknown,” the next most popular choices for a recovery in sales were: “July-Sept 2009” and “the 2nd

half of 2010”

By country/region, firms in Korea are expecting the fastest recovery in sales levels (April-June 2009),

Korea (19.4) Philippines (25.5) Indonesia (22.9) China (20.6) Taiwan (16.9) Vietnam (14 6)

Taiwan (16.9) Myanmar (25.0) Malaysia (20.4) India (20.0) Hong Kong (18.8) Thailand (17 2)

Bangladesh (41.2) New Zealand (32.1) Sri Lanka (20.0) P ki t (19 1)

9

ベトナム(14.6) (14.7)ベトナム(14.6)

ベトナム(14.6) (14.7)ベトナム(14.6)

y ( p ),followed by the Philippines, Indonesia and China (see chart to the right)

Note: Since Taiwan and Vietnam had multiple periods with same proportion of responses, they appear several times.

Vietnam (14.6) Thailand (17.2) Australia (14.9) Vietnam (14.6)

Pakistan (19.1) Singapore (14.7) Vietnam (14.6)


2. Impact of Economic Recession (4)Measures taken since the global recession began

(multiple answers allowed)

•The top four measures on the left were generally used most among firms in manufacturing; the top choice among non-manufacturing industries was “Launch new business.”

B l h hi h f d t b i d t / t (% i th i )

Total (n=2,427)

雇用調整 45.60 20 40 60(%)

Make employment adjustments

Below shows which measures were favored most by industry/sector (% in parenthesis)* Only industries for which 15 or more valid survey responses were received are included here.生産・販売効率改善によるコスト削減

営業・操業日数の削減もしくは時間短縮

新規投資／設備投資増の中止・延期

45.2

41.929.8

Employment adjustments

Reduce costs through improved efficiency C l/ t

Hotel/travel/restaurant (81.1), Precision instruments (71.4),Fabricated metal products(68.0), Motor vehicle and motorcycle parts & accessories (66.9)

Distribution (68.4), Motor vehicle and motorcycle parts & accessories (66.9), Motor vehicles and motorcycles (66.7), Precision instruments (same)

M t hi l d t l t & i (77 7)

Reduce costs through improved efficiency in production and/or sales

Cancel/postpone new investment/facility investment

Reduce days/hours for sales and operations

販売価格の引き下げ

新規ビジネス展開の開始

仕入先の見直し(絞込み、安価な調達先へのｼﾌﾄ等)

高付加価値製品/サービスの

28.0

22.7

13.1

12 1

Cancel/postpone new investment/facility investment

Reduce operation days

Launch new business

Motor vehicle and motorcycles parts & accessories (77.7), Motor vehicles and motorcycles (63.0), Distribution (57.9)

Motor vehicles and motorcycles (68.5), Iron and steel (66.0)

Trading company (55.3), Communications/ Software (41.4), Banking (38.1), Insurance (36.4)

Launch new business

Review suppliers (limit number of suppliers, change to cheaper suppliers, etc.)

Reduce sales price

E d f hi h l dd d d t / i

販売価格の引き上げ

ｸﾞﾙｰﾌﾟ内での整理統合による効率化(他拠点集約等)

既存ビジネスの事業規模縮小

ラインナップ拡充 12.111.7

10.6

10.5

Other measures sampled from free answers

Expenditures “Reduce advertising and promotional expenses etc.", “Reduce fixed costs", "Thorough cost reduction"

“Transfer production from Japanese HQ”, “Switch to in-house production of components”,

Expand range of high value-added products/services

Rise in sales price

Downsizing existing business

Boost efficiency through management integration within group (intensification of other bases, a shift to

(他拠点集約等)

事業拠点の閉鎖・撤退(一部を含む)

納入先の見直し(納入先のシフト等、輸出を含む)

低価格帯製品/サービスのラインナップ拡充

4.9

9.7Production

Finance

Labor

a s e p oduct o o Japa ese Q , Sw tc to ouse p oduct o o co po e ts ,“Postpone start of operations,” “Raise local content ratio,”Purchase price negotiations"

“Measures against exchange risk”, “Exchange reservations”,“Change of settlement currency", "Intensification of bill collection"

"Salary cuts", “Training sessions", " Encouragement of paid vacation ", "Decrease in the number of Japanese expatriate staff"

bases in other countries, etc.)

Review delivering companies (change in delivering companies and new business development, including exports)

Closure / withdrawal of business base (including part of a business base)

具体的な対策は取っていない

その他

4.7

6.63.5

Sales

Decrease in the number of Japanese expatriate staff

"Inventory reduction", "Local sales reinforcement", "Expansion into inland China with new strategic points "

)

Expand the range of low price products / services

No measures taken

Other

Asked about measures companies took since the global recession (multiple answers allowed), top answers were “make employment adjustments” (45.6%), “reduce costs

10Copyright © 2009 JETRO. All rights reserved. Reproduction without permission is prohibited.

through improved efficiency in production and sales” (45.2%), “cancel or postpone new investment / facility investment” (41.9%), “reduce days/hours for sales and operations (29.8%), “launch new business” (28.0%), etc. Only a small percentage (4.9%) selected “closure / withdrawal of business base (including part of a business base).”

In addition, the answers provided by those who chose “other” were in expenditures, production, finance, labor and sales.

2. Impact of Economic Recession (5)Changes in the number of employees

Increase No change Decrease

Local employees(Non-permanent） 24 4 61 8 13 8

0 20 40 60 80 100 China

0 20 40 60 80 100

(past year and forecast for next one year)

September, 2008 - September, 2009 (Past)Total (Non-permanent: n=1,961 Permanent: n=2,901 Expatriate: n=2,760)September, 2009 - September, 2010 (Future)Total (Non-permanent: n=1,930 Permanent: n=2,843 Expatriate: n=2,697)

Increase No change DecreaseForecast for changes in employee numbers in next one year

(%) (%)

Japanese (expatriate) employees (n=525)

Local employees（Permanent）

(n=546)

(Non permanent）(n=340)

47.4 9.343.2

24.4 61.8 13.8

78.7 14.76.7

0 20 40 60 80 100

50.2 37.012.8

23.4 64.6 12.0

Local employees（Non-permanent）

Past

Future

18.4 45.7 35.9Local employees

（Permanent）

PastLocal employees

（Permanent）

Local employees(Non-permanent)

(n=130) 49.2 6.244.6

54.2 39.3 6.6

0 20 40 60 80 100India

(%)

Local employees 0 20 40 60 80 100Vietnam

33.8 57.2 9.0

72 2 18 39 5

（）

Future

Past

Japanese (expatriate) employees(n=161)

(n=168)54.2 39.3 6.6

75.2 6.818.0

(%)

Japanese (expatriate)employees (n=133)

Local employees（Permanent）

(n=136)

p y（Non-permanent）

(n=74) 70.3 14.914.9

52.9 42.7 4.4

76.7 13.59.8

72.2 18.39.5

82.46.7 10.9

Japanese (expatriate) employees

Past

Future

「Increase」＜「Decrease」employees (n 133)

Nearly 40% of respondents chose to reduce staff in response to the global recession (37.0% for non-permanent local employees and 35.9% for permanent local employees) in the year to September 2009. But looking ahead to the next one year, a good percentage of these reductions will be offset by planned additions for the coming next year (23.4% for non-permanent local employees and 33.8% for permanent local employees). Plans to add local staff in coming year was most notable among firms in China, India and Vietnam, where the percentage was in the 40-50% range for all three, reflecting firms’ intentions to expand business.

11

Looking at firms’ plans for keeping/adding Japanese expatriate employees, firms are tending more towards a decrease (10.9%), versus 6.7% for increase, revealing that firms are attempting to reduce labor costs and localize management functions. One exception towards this trend was noted in India, with 18.0% of respondents there planning to boost Japanese expatriates in the country, showing firms’ high expectations for business expansion in India.


3. Future Business Development (1)Business development plans in

Change in percentage of firms planning business

Bangladesh (n=24) 20.879.2Total (n=2,945) 0.951.3 44.6 3.1

the next 1-2 years

0 20 40 60 80 100 2008 (n=2,472)

2009(n=2,945) Difference

T t l 57 2 51 3 5 9

Change in percentage of firms planning business expansion (2008 survey vs 2009 survey)(％)

Indonesia (n=127) 52.8 45.7 1.6

India (n=175) 24.6 0.674.9

Korea (n=81) 32.1 7.460.5China (n=572) 1.834.6 1.861.9

Thailand (n=701) 0.950.9 46.7 1.6

Vietnam (n=143) 0.758.0 39.9 1.4

Total 57.2 51.3China

TaiwanKorea

Hong Kong

60.2 61.939.6 40.258.1 60.542.9 35.4

Thailand 65.5 50.9

-5.91.70.62.4

-7.5-14.6

Singapore (n=215) 2 838 6 50 2 8 4Taiwan (n=102) 40.2 48.0 11.8

Malaysia n=265) 0.840.8 54.7 3.8

Thailand (n 701) 0.950.9 46.7 1.6Australia (n=209) 50.7 46.9 2.4

New Zealand (n=71) 40.9 56.3 2.8Pakistan (n=26) 42.3 57.7

Vietnam

Malaysia Singapore

80.0 58.0

49.4 40.847.4 38.6

Myanmar

Philippines Indonesia

35.0 37.5

40.7 31.053.7 52.8

-22.0

-8.6-8.8

2.5

-9.7-0.9

Singapore (n=215) 2.838.6 50.2 8.4Myanmar (n=16) 37.5 62.5

Philippines n=126) 31.0 63.5 5.6Hong Kong (n=65) 3.135.4 55.4 6.2

Sri Lanka (n=27) 22.2 70.4 7.4Bangladesh

India Sri Lanka Pakistan

78.8 79.2

81.5 74.946.4 22.245.2 42.3

New ZealandAustralia 52.5 50.7

48.4 40.9

0.4

-6.6-24.2-2.9

-1.8-7.5Move to a third country New Zealand 48.4 40.9 7.5

Asked about business development plans in the next 1-2 years, more than half of respondents (51.3%) foresee expansion. Figures were especially high (over 60%) in the developing economies of Bangladesh, India and China , as well as in Korea, where both domestic demand and exports have made an early recovery.

Expansion Status quo Downsizing Move to a third country (region) or withdraw

p y y

The percentage of firms in more fully developed markets such as Taiwan, Singapore and Hong Kong planning to downsize or relocate to a third country average almost 9%.

Although the percentage of firms planning business expansion fell in 2009 due to the global recession the drop was only

12

Although the percentage of firms planning business expansion fell in 2009, due to the global recession, the drop was only 5.9 points (to 51.3%). The percentage actually climbed in all countries/regions in Northeast Asia, with the exception of Hong Kong.


3. Future Business Development (2)Industries expecting an expansion

India (n=175)0 20 40 60 80 100

in the next 1-2 years (China, India)

China (n=572)0 20 40 60 80 100(％) 0 20 40 60 80 100

Total(n=175) 74.9 24.6 0.6Total

(n=572)

0 20 40 60 80 100

61.9 34.61.8

1.8

(％) (％)

6 2 23 8Trading

Trading companies

(n=42)

Sales i

88.1 9.52.4

80.7 16.1 3.2Sales

companies(n=31)

76.2 23.8companies(n=21)

75.0 25.0Transport/

warehousing(n=12 )

companies(n=33)

Foods, processed agricultural or

marine products

78.8 21.2

66.7 30.8 2.6

72.7 27.3

Motor vehicle and motorcycle

parts andaccessories

(n=22)

(n=12 )(n=39)

Motor vehicle and motorcycle parts and accessories

(n=27)

66.7 33.3

A high percentage of respondents in sales and trading in China and India plan business expansion, reflecting firms’ hope for h i d i i I ddi i fi i h hi l d l d i

*Top four industries in which 10 or more respondents replied “Expand” business.

Expansion Status quo Downsizing Move to a third country Expansion Status quo Downsizing Move to a third country

13

growth in domestic consumption. In addition, firms in the motor vehicle and motorcycle parts and accessories sector were optimistic about expansion, reflecting increased motorization and local procurement among auto makers in these countries.


3. Future Business Development (3)Future Directions for Business Expansion Comparison of replies from China, India and ASEAN

Development of new markets (expand business / sales networks) 58.3

p(multiple answers allowed)

0 20 40 60

(China: n=353 India: n=131 ASEAN: n=742)

Development of new markets (expand business / sales networks)0 20 40 60

(％)(%)(n=1,508)

(expand business / sales networks)

Expansion of existing business scalethrough additional investment

Diversification of products and services(sector expansion)

46.0

38.7

India

China

ASEAN

58.8

68.3

51.6( p )

Shift to high value-added products and services

Strengthening of planning, R&D and design functions

31.6

14.0

Expansion of existing business scale through additional investment

India

China

ASEAN

53.4

39.9

50 0Consolidation of production and service

bases for specific products

Acquisition of local businesses (M&As)

8.0

4.8

ASEAN 50.0

Strengthening of planning, R&D and design functions

India

China

10.7

23.5

Other 2.3

•Topping the list of future directions for business expansion were: “development of new markets”, “expansion of existing business scale

ASEAN 11.3

through additional investment” and “diversification of products and services (sector expansion).”

•Comparing responses from firms in India, China and ASEAN, different tendencies emerged: respondents in China favor “development of new markets” and “strengthening of planning, R&D and design functions,” firms in India favor “development of new markets” and“expansion of existing business scale through additional investment”—a choice that was also relatively popular among firms in ASEAN.

14

•While respondents in China aim to develop new markets and add new products, firms in India and ASEAN are striving to expand on top of existing businesses.


4. Measures Against New Influenza A (H1N1) (1)

I t f i fl fi Top three problems/difficulties by regionImpact of new influenza on firms

Companies not

1st 2ndASEANn=1,580

3rdProcurement of antiviral

flu drugs

20.8

Deciding whether to evacuate expatriate staff and

families or not

18.9

Health checks for visitors to workplaces

18.5

(n=2,923)

Top three problems/difficulties by region(%)

Companies citing

problems/ difficulties

pencountering

specific problems/ difficulties due to

new influenza

Southwest Asian=245

Oceanian=279

Procurement of anti-viral drugs

22.0

Procurement of masks

12.2

Deciding whether to evacuate expatriate staff and

families or not

11.4Observing staff who have

returned from affected countries

20 1

Gap between assumed pathogenicity and actual

measures

15 1

Absence of employees due to themselves or families being

affected by the virus, etc.

14 357.0%43.0%Northeast Asia

N=819

20.1 15.1 14.3Procurement of antiviral

flu drugs

25.8

Deciding whether to evacuate expatriate staff

and families or not

20.6

Health checks for visitors to workplaces

16.7

Procurement of flu medicine topped the list in all regions except

Hong Kong (n=67)Malaysia (n=264)

Myanmar (n=17)Philippines (n=125)Indonesia (n=124)

31.330.3

35 335.234.7

1st 2nd

ASEAN3rd

Health education (such as Stockpiling of daily

Concrete measures against new influenza strain

pp g pOceania, where respondents were more concerned with observing staff who have recently returned from affected regions.

(%)

China (n=568)

Taiwan (n=103)Vietnam (n=142)

Thailand (n=694)

Singapore (n=214)Myanmar (n=17)

New Zealand (n=70)

43.0

42.743.0

45.5

37.935.3

47 1

ASEAN (coughing etiquette and hand

washing)

63.2

p g ynecessities, masks and

disinfectants

58.6

Preparation of manuals

25.950.8 22.7 32.5

Southwest Asia Health education (such as coughing etiquette and hand

washing)

Stockpiling of daily necessities, masks and

disinfectantsPreparation of manuals

20092008

n=1,585n=661

Korea (n=81)

Bangladesh (n=24)

India (n=171)

Sri Lanka (n=26)

Pakistan (n=24)

New Zealand (n=70)Australia (n=209)

58.0

70.8

49.7

76 9

62.5

47.147.9 51.6 36.6 30.5

49.5 21.1 32.120092008

n=246n=109

Oceanian=281 (2009)

55.9 39.2

Restrictions on business trips

32.7

Health education (such as coughing etiquette and hand

washing)

H lth d ti ( h


disinfectants

Stockpiling of daily

15

Sri Lanka (n=26) 76.9

0 10 20 30 40 50 60 70 80 90(％)

Northeast AsiaN=822 (2009)

63.1 60.8

Preparation of manuals

35.9

Health education (such as coughing etiquette and hand

washing)


disinfectants


4. Measures Against New Influenza A (H1N1) (2)Measures firms would take if new influenza

41.241.2 11.811.823.523.5Myanmar (n=17)

Measures firms would take if new influenza mutated into a more deadly strain

(n=2,882)

Evacuation to home countries or

Comparison of replies by country/region about evacuating staff or allowing them to remain

16.716.7 28.828.827.327.3Hong Kong (n=66)

13.613.6 25.625.625 6Philippines (n=125)

13.213.2 39.739.721.521.5Indonesia (n=121)

18.118.1 22.322.312.712.7India (n=166)

Prompt evacuation to home countries or surrounding countries

surrounding countries of some expatriate employees only 22.4%

12.5%36.5%

14.014.0 24.724.724.424.4China (n=566)

11.511.5 26.926.926.926.9Taiwan (n=104)

18.918.9 18.218.224.524.5Vietnam (n=143)

25.6Philippines (n=125)Remain in the local area

Other

Unknown 24.2%

4.5%

9.99.9 21.021.0Korea (n=81)

7.77.7 26.126.125.225.2Thailand (n=687)

12.512.5 23.423.426.126.1Malaysia (n=257)

22.722.7 9.19.122.722.7Bangladesh (n=22)

The proportion of respondents selecting “unknown” was relatively small in ASEAN and Northeast Asia.

Evacuation to homecountries or surrounding countries of some expatriateemployees only

28.4Korea (n=81)12.012.0 16.316.3

29.229.2Singapore (n=209)12.012.0 12.012.012.012.0Sri Lanka (n=25)

9.19.1 13.613.69.19.1Pakistan (n=22)

ASEAN (n=1,559)

Southwest Asia (n=235)

Proportion of respondents selecting “Unknown” by region

35.1%

45 5%

Prompt evacuationto home countries or surrounding countries

Remain in the local area

14.314.3 1.61.633.333.3New Zealand (n=63)

11.5 7.218.818.8Australia (n=208)

Southwest Asia (n=235)

Oceania (n=271)

Northeast Asia (n=817)

45.5%

50.6%

31.8% A higher proportion of respondents in all locations (with the exception of

0 20 40 60 (%)

16

0 25 50 75 A higher proportion of respondents in all locations (with the exception of

Oceania and also Singapore) would evacuate staff to some degree. The percentage of firms choosing “evacuate staff” was high in Hong Kong

and Indonesia, reflecting firms’ high evaluation of risk in these locations.

(%)


5. Average Salary (annual total pay burden)

Manufacturing industry- worker Manufacturing industry-engineer Manufacturing industry-manager

Australia (33)New Zealand (12)

Korea (28)Singapore (43)Hong Kong (7)

42,41434,109

24,64620,85220 174


Singapore (36)Korea (24)

Hong Kong (6)

67,59046,621

32,65831,178

26 515


Singapore (39)Hong Kong (8)

Korea (31)

93,99868,122

52,68247,579

42 660

Unit: U.S. dollars Unit: U.S. dollarsUnit: U.S. dollars

Hong Kong (7)Taiwan (42)

Thailand (318)Malaysia (114)

China (316)Philippines (72)Indonesia (58)

India (44)

20,17415,200

4,4494,1974,1073,6063,4543 213

Hong Kong (6)Taiwan (37)

Malaysia (109)Thailand (308)

China (283)Pakistan (11)

India (52)Indonesia (55)

26,51519,114

12,0689,1978,262

8,0705 748

8,094

Korea (31)Taiwan (41)

Malaysia (114)Thailand (305)

Pakistan (11)India (53)

Indonesia (55)China (296)

42,66030,442

22,78221,522

18,989

14,85814 694

18,978Ref: *Yokohama: 41,757

Ref: Yokohama: 57,486 Ref: Yokohama: 64,956India (44)Pakistan (12)Vietnam (79)

Sri Lanka (15)Bangladesh (16)

Myanmar (6)

3,2132,4701,9031,646906547

40,000

Indonesia (55)Philippines (66)

Vietnam (72)Sri Lanka (14)

Bangladesh (15)Myanmar (6)

5,7485,5444,5203,8293,339

1,04640,000 80,000

China (296)Philippines (63)

Vietnam (68)Sri Lanka (14)

Bangladesh (14)Myanmar (6)

14,69413,956

11,5009,979

6,8732,463

40,000 80,000

U i U S d llU i U S d ll

Ref: Yokohama: 57,486 ,

Australia topped the list in all categories, followed by New Zealand and the Asian NIEs (Hong Kong, Korea, Singapore and Taiwan).

Salaries were up (compared to last survey) in China and

Non-manufacturing industry-staff Non-manufacturing industry-manager

Australia (118)Singapore (116)

New Zealand (33)Korea (34)

Hong Kong (41)

51,97335,65435,492

29,84626,867


Singapore (108)Hong Kong (39)

Korea (30)

98,05462,89362,565

48,91748,274

Unit: U.S. dollarsUnit: U.S. dollars

Indonesia in all categories. Salaries were also up among manufacturers in Vietnam

and India—especially India, which saw a rise of 15-21% in this category. Average salaries among non-manufacturers remained about the same in these locations.

S l i d i ll t i d t

Taiwan (39)Malaysia (77)

Thailand (225)China (149)

India (72)Bangladesh (4)Philippines (34)

20,67714,644

10,20510,155

5,8645,783

8,473

Taiwan (39)Malaysia (70)

China (125)Thailand (194)

India (66)Bangladesh (4)Philippines (33)

36,33428,168

24,60621,998

17,37616,400

21,642Ref: Yokohama: 39,699

R f Y k h 70 572 Salaries were down in all categories among respondents in Thailand, especially in manufacturing—where drops of 11-24% were recorded.

Vietnam (42)Indonesia (32)

Sri Lanka (6)Pakistan (11)Myanmar (9)

5,5845,2154,3623,966

1,35940,000

Indonesia (32)Pakistan (11)Vietnam (33)Sri Lanka (6)

Myanmar (10)

16,17615,111

13,64612,775

6,36440,000 80,000

For all countries except Vietnam and Myanmar responses were given in home currency which were converted into U S dollar amounts based on average exchange rates for September 2009 (as

Ref: Yokohama: 70,572

17

For all countries except Vietnam and Myanmar, responses were given in home currency, which were converted into U.S. dollar amounts based on average exchange rates for September 2009 (as announced by central banks of each country). For Vietnam and Myanmar, responses varied from home currency to U.S. dollars; figures provided in home currencies were converted into U.S. dollars before being included in the calculation for the weighted average. The U.S. dollar amount for Myanmar was obtained using current local market rates.

Reference values are from the “Yokohama 2009 Private Sector Wage Survey by Occupations” (carried out in April) converted into U.S. dollars (using average exchange rates for April 2009.


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