More than half of local Singapore 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, 60 per cent of Singapore companies have successfully achieved both their financial and strategic objectives during that time.
The survey also found that the outlook for the future is bright in Asia -- with 43 per cent of Singapore companies expecting to exceed their financial and strategic objectives in the region over the next three years. They also admire their leaders with 75 per cent of Singapore businesses viewing their global leadership team as effective.
"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 to 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.
"Singapore is an enduringly attractive location for international expatriate executives, with 39 per cent of workers in Singapore-headquartered companies saying that they will still be working in Singapore in five years," says Blanken. "However, 29 per cent of Singapore companies say that finding good local talent is extremely challenging."
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," says 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 overall."
"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," concludes Blanken.
The report also revealed that 50 percent 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%).
Profile of High Performing Companies in Asia
The report identifies a superior category of top business performers in Asia, termed Asia Business Champions in the report, and categorised as such based on having exceeded their financial and strategic objectives in the last three years, and their expectation to do so again in the coming three years. Asia Business Champions comprise top 5 per cent of overall companies in Asia.
Asia Business Champions are more likely to have a global footprint than others in the study, 82 per cent operate both in and outside of Asia.US and UK firms are over-represented in the ranks of the top five per cent - Asia Business Champions. Thirty-two percent of Asia Business Champions are companies headquartered in the US, compared to a total of 14% of overall respondents being companies from the US. UK companies make up 8 per cent of Asia Business Champions, compared with only 3 per cent of overall respondents being companies headquartered in the UK.
ICT and financial services companies are also over-represented in the Asia Business Champions category, 15 per cent and 12 per cent respectively, compared with 7 per cent of all businesses.