Fewer Japanese multinational corporations in Asia expect to emerge with more money from 2007, with South Korea and Singapore notable exceptions, a published poll said Monday. ( dpa )
Export sales were cited as the single biggest contributor to profit operations, said the poll of 1,745 multinationals taken by the Japan External Trade Organization.
Thailand is a popular alternative location for Japanese manufacturers of chemicals and electric and electronic parts, said the Japanese government's trade and investment promotion agency.
The poll findings in The Business Times showed that the number of multinational corporations likely to post an operating profit in 2007 slipped to 69.9 per cent from 71.5 per cent in the previous year.
The less upbeat sentiment in 2007 came "amid a difficult business environment marked by upward pressure on procurement costs due to soaring resource prices."
Among the countries with an anticipated drop were China, from 67 per cent in 2006 to 62.1 per cent last year, Thailand, from 76.5 per cent to 72.2 per cent, and Malaysia, from 73.7 per cent to 70.3 per cent.
The proportion in South Korea rose from 79.3 per cent in 2006 to 92 per cent in 2007.
In Vietnam, the proportion of Japanese multinationals expecting operating gains rose from 58.2 per cent to 77.8 per cent.
Among non-manufacturing Japanese multinationals with a presence in Asia, the overall proportion looking to an operating profit last year was about the same as that for Japanese manufacturers at 69.5 per cent.