Consumption...

The survey also showed that 62 percent of respondents had expanded their trade and investment in the region over the past two years, with only 6 percent of firms reducing their presence in the region over that time. This is a moderate growth from last year’s survey where 60 percent of firms indicated they had expanded their trade and investment and 7 percent indicating a contraction, according to the survey.

Among the ASEAN countries, Singapore has been the favorite destination with more than 50 percent of Australian firms operating their regional hubs in the city state.

Malaysia and Thailand also got their fair share of regional hubs at 40 percent, reflecting their growing importance as regional hubs.

The survey further showed that more than 86 percent of firms plan to increase their investment in the ASEAN region over the next five years, with less than 2 percent of businesses planning to reduce their presence in the region.

Vietnam has overtaken Myanmar as the most popular market for expansion, but Myanmar, Indonesia and the Philippines were also targeted by more than 15 percent of firms for expansion.

ASEAN is an import trading partner of Australia, accounting for 14 percent of Australia’s total trade ($93 billion in 2015-2016). Two-way investment was valued at $224 billion at the end of 2016.

Australian business operations in the region continued to be dominated by services firms, with property, construction and infrastructure, and manufacturing making the top five industries represented.