{"id":12080,"date":"2019-09-02T16:13:30","date_gmt":"2019-09-02T14:13:30","guid":{"rendered":"https:\/\/gbp-international.com\/?p=12080"},"modified":"2019-09-02T16:13:30","modified_gmt":"2019-09-02T14:13:30","slug":"expanding-your-business-to-asean-east-asia","status":"publish","type":"post","link":"https:\/\/perfectoholic.pro\/gbp\/expanding-your-business-to-asean-east-asia\/","title":{"rendered":"Expanding your business to ASEAN \/East Asia? But which country is best suited to establish your Asian office, factory, etc.?"},"content":{"rendered":"\n

ASEAN \/ East Asia’s\neconomic rise is reflected in the economic competitiveness of its cities. Given\nthe rapid growth and development of these cities, their mutual competition for\ncompanies, investments and talent has already begun. What is the best location\nin ASEAN \/ East Asia for Dutch or German SMEs?<\/strong><\/p>\n\n\n\n

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While\nSingapore and a few other Asian cities have developed themselves as global\ncompetitive centers in recent years, size and growth potential alone does not\ndetermine the competitiveness of a country. Meanwhile, emerging markets such as\nMyanmar and Indonesia have the potential of comparable benefits. In addition to\neconomic size and growth, various other factors determine the overall\ncompetitiveness of a country, such as quality of human capital, level of\neducation, English skills, costs of doing business, income level, business and\nregulatory environment, etc.<\/p>\n\n\n\n

To determine which location in ASEAN \/ East Asia is best for a European SME to set up its business operation, we have further studied a number of large and emerging countries in ASEAN \/ East Asia through interviews with industry experts, corporate executives, and civil servants, and study of various quantitative and qualitative indicators (Labor cost, skilled labor, political & social framework, taxes, cost of doing business, visa regulations, ease of doing business). These countries are: Thailand (Bangkok), Malaysia (Kuala Lumpur), Singapore, Indonesia (Jakarta), Philippines (Manila), Hong Kong and South Korea (Seoul).<\/p>\n\n\n\n

1-ASEAN (Association of Southeast Asian Nations) is an organization of ten countries in Southeast Asia (Brunei, Cambodia, Philippines, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand, Vietnam) to promote economic, cultural and political cooperation.<\/p>\n\n\n\n

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Case Study: Kuala Lumpur – Asia’s most underrated city<\/strong><\/h3>\n\n\n\n

Although Singapore is still the choice for finance and Hong Kong is the preferred city if you are looking for a “safe way” to enter the Chinese market (although currently likely less though, due to the political tensions), Kuala Lumpur has become one of the global Islamic financing centers in recent years, with the petrochemical and IT industries also being very important in Malaysia.<\/p>\n\n\n\n

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Figure 1: Competitiveness scores for Kuala Lumpur – based on selected parameters (on a scale of 1-3, with 3 being the most favorable score for competitiveness)<\/figcaption><\/figure>\n\n\n\n
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Our most important findings<\/strong><\/h3>\n\n\n\n

Unlike\nmost European countries, the countries we have studied do not perform equally well\non all pillars of competitiveness. In fact, very few cities are good all-round\nperformers and no city has absolute benefits in all dimensions that potential\ninvestors consider important.<\/p>\n\n\n\n

A\nmanufacturer looking for cheap (building) land, competitive labor and good\ntransport facilities will inevitably be attracted to a different city than\nwhere a technology company looking for highly skilled graduates to invest in\nR&D would be attracted to. Even companies in the same sector will find\nother locations attractive.<\/p>\n\n\n\n

Dutch\nor German luxury brand suppliers will consider the purchasing power of\nhigh-income residents in Singapore, Seoul or Hong Kong, while a low-cost\nconsumer goods manufacturer is more focused on untapped markets such as\nMyanmar.<\/p>\n\n\n\n

The\ntop rankings of cities like Singapore, etc. are largely due to their attraction\nto a wide range of companies, low level of corruption, high level of government\nefficiency and excellent Financial Services hubs. Despite these facts, due to\nthe high cost of doing business, these cities will be unattractive for many\ncompanies with special wishes \/ circumstances. For companies looking for\nmoderate business costs, excellent quality of life, good English-speaking\nstaff, good infrastructure, affordable office rental and a stable political\nsystem, Kuala Lumpur is by far the best, and also the most underrated, location\nin ASEAN \/ East Asia.<\/p>\n\n\n\n

Contact for more details<\/a><\/div>\n\n\n\n
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