MALAYSIA LESS AFFECTED BY ECONOMIC DOWNTURN, SURVEY REVEALS

KUALA LUMPUR, Nov 5 (Bernama) -- Malaysia is less affected by the economic
downturn, a survey by the Institute of Chartered Accountants in England and
Wales reveals.

The Annual Global Enterprise Survey 2009 also showed businesses in Asia were
"less negatively affected" by the economic downturn compared to businesses in
other regions.

It shows businesses in three Asian markets experienced the downturn in
different degrees; one in three ( 33 per cent) Singapore businesses report a
very negative effect on their business compared to 21 per cent in Hong Kong and
only nine per cent in Malaysia.

Institute Regional Director for Southeast Asia Mark Billington said: "
Despite the impact of the economic downturn being felt around the world, the
Asian countries, including Malaysia, appear to have been less exposed than
businesses in other regions."

" However, many of the Asian businesses surveyed have moderated their
growth expectations for the next two years, with one in five forecasting no
growth.

" The recent Malaysian Budget, coupled with fragile signs of economic
recovery in several countries across the world, should hopefully allow us to
expect even more positive Malaysian responses and optimism in our next Global
Enterprise Survey," said Billington

Specific challenges experienced by businesses in Asia impacted by the crisis
include difficulty in planning ahead and reduced revenue growth, the survey
stated.

The survey explained the downturn is expected to have a greater impact
than other economic influences such as changes in consumer demand, changes in
exchange rates and changes in global commodity prices.

Asian businesses are also the most positive about the impact of
globalisation compared to businesses in other regions.

Seventy per cent of businesses in Malaysia, 81 per cent of Hong Kong
businesses and 86 per cent of Singapore businesses believe further globalisation
will be beneficial, the survey revealed.

However, Asian businesses generally see more barriers to international
expansion than other businesses surveyed.

" A higher proportion of Malaysian businesses than their counterparts in
other regions reported that the political environment, availability of
internal resources, language issues and cultural differences are barriers to
international expansion," the survey said.

A supportive and nurturing business environment are vital to the well-being
and growth of enterprises, it said.

It said Singapore and Hong Kong businesses regard their domestic regulatory
and taxation environment as very business-friendly.

Overall, businesses in Asia are far more optimistic about an early end to
the effects of the global economic downturn than those in other regions,
according to the survey.

Globally, most of the people affected by the downturn anticipate the impact
to continue for another one to two years, well into 2010 or 2011, it said.
-- BERNAMA