The Philippines is now the most popular target for expansion plans by Australian companies in Asean at a time when these are planning to expand in fewer countries in the region.
Results of the sixth edition of the AustCham Asean Australian Business in Asean Survey showed the Philippines attracted a 10-percent increase in the number of reported Australia business operations.
The Philippines now hosts the third greatest number of Australian businesses in the region.
The Philippines continues to attract new investments from the Australian business community, with 32 percent having entered the market within the last two years, the report said.
A significant portion of Australian businesses are well established, with 23 percent having operated for 10 years or longer.
The survey said the Philippines is a notable exception in Asean where Australian companies plan expand in fewer markets.
The survey said 14 percent of all Australian businesses plan to expand into the Filipino market, a 26-percent improvement from the 2020 survey when only 11 percent of businesses surveyed planned to expand into the country.
In the region, Australian businesses on average, plan to expand into 1.15 new markets, a 15 percent decline from 2020 when Australian business planned to expand into an average of 1.36 new markets per firm.
Those responses are not surprising since Australian companies in the Philippines, Laos and Vietnam recorded revenue growth when counterparts in other Asean markets reported revenue declines.
The closure of Australia’s international borders has reduced trade and deal transactions for one third of Australian businesses in Asean yet the Philippines, Malaysia and Vietnam report the greatest increases in trade and investment, suggesting these economies have demonstrated the greatest dynamism within Asean over the last two years. – Irma Isip