Inflation, operating costs had the biggest impact on Asian firms last year, survey shows

Higher costs had the biggest impact on Asian businesses in 2023, even as they continued to grapple with a global economic slowdown and rising borrowing costs, according to a survey by UOB.  Apart from rising costs, 27% of the respondents said they were affected by an overall economic slowdown, while 23% said a higher interest rate environment took a toll on their businesses More than 4,000 businesses in Southeast Asia and Greater China were surveyed in China, Hong Kong, Thailand, Vietnam, Malaysia, Singapore and Indonesia. Customers work a cafe and a co-working space in Hanoi, Vietnam, on Thursday, July 20, 2023.  Bloomberg | Bloomberg | Getty Images

Higher costs had the biggest impact on Asian businesses in 2023, even as they continued to grapple with a global economic slowdown and rising borrowing costs, according to a survey by UOB. 

More than 4,000 businesses in Southeast Asia and Greater China were surveyed in China, Hong Kong, Thailand, Vietnam, Malaysia, Singapore and Indonesia.

Of those polled, 32% said they were impacted by high inflation, another 32% said they faced increased operating costs, while 24% said rising labor costs hurt their business, UOB’s 2024 Business Outlook Survey reported

The online survey, carried out from last December to the middle of January, polled 4,050 small- and medium-enterprises and large companies.

Apart from rising costs, 27% of the respondents said they were affected by an overall economic slowdown, while 23% said a higher interest rate environment took a toll on their businesses. 

Still, about four out of 10 companies said they felt “very positive” about the business environment in 2023, while 32% said they were “somewhat positive,” the survey showed. Indonesia

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