More than half of local companies operating in the highly competitive Asia region are experiencing growth – and have achieved financial success over the last three years. According to a new Telstra Global survey, 65 per cent of Hong Kong companies have successfully achieved both their financial and strategic objectives during that time.
The outlook for the future is also strong with 83 per cent of companies expecting to meet or exceed their business targets in the next three years. This comes as a fifth of businesses in the region were very successful in achieving business targets over the last three years.
“Multinationals from around the world are meeting and exceeding their strategic and financial objectives in Asia," says Telstra Global Managing Director, Martijn Blanken. "As a company with a long track record of operating successfully throughout Asia, we launched Connecting Countries research to quantify the business sentiments of multinationals operating in the region, and ascertain the attributes and success factors of companies that are excelling in the region.”
The first in an annual series, Connecting Countries research is commissioned to benchmark the mind-set and strategies of high performing international companies in Asia.
“While the outlook is generally very positive, Hong Kong companies identified three clear pain-points that are proving extremely challenging for doing business in Asia,” added Blanken. “Nearly 30 per cent say that finding good local talent is extremely challenging, and just over a fifth say companies expecting to see financial returns too quickly is extremely challenging as well as a lack of understanding of local culture.”
The research identifies a superior category of top performing companies in Asia, termed Asia Business Champions in the report, and categorised as such based on having far exceeded their financial and strategic objectives in the last three years, and their expectation to succeed again in the coming three years. Asia Business Champions comprise top 5 per cent of overall companies in Asia.
“On a global level, the ICT industry is a standout in Asia, with more than 70 per cent of these companies having been very successful in Asia in the past three years, compared to 61 per cent of companies across other sectors,” said Blanken. “Over the next three years both financial services and insurance companies and those in the ICT sector are most bullish about exceeding their objectives in Asia, with 55 and 51 per cent respectively, compared to 42 per cent across the board.”
“Besides the promising market conditions, successful companies in Asia have the necessary foundations – strong leadership and communication across global headquarters and local offices, combined with a long term view and investment strategy,” concluded Blanken.
The report also revealed that 50 per cent of companies see expanding into new markets as extremely important to the success of their firm in the next three years.
China is the primary growth market for companies who see expansion into new markets as a high priority in Asia over the next three years, 50 per cent nominated China as part of their strategic expansion plans. Additionally, companies are also focused on expansion into Singapore (38%), Hong Kong (33%) and India (32%).