65% of Singapore CFOs predict profits will jump in 2013

71% forecast revenue growth.

According to a survey conducted by Bank of America Merrill Lynch, Southeast Asia Chief Financial Officers (CFOs) are among the most bullish in Asia when it comes to forecasting increased year-on-year growth in revenue and profits in 2013.

Southeast Asia CFOs most bullish on earnings potential: 81 percent and 72 percent of CFOs expect year-on-year growth in revenues and profits, respectively, in 2013. Singapore’s figures show that 71 percent of CFOs forecast revenue growth (in line with Asia Pacific average), while 65 percent of CFOs expect to see an increase in profits (above the Asia Pacific average of 62 percent).

Of the CFOs surveyed from Malaysia, Thailand, Indonesia and the Philippines, 81 percent and 72 percent forecast year-on-year growth in revenues and profits respectively this year. This is significantly higher than the Asia Pacific averages of 71 percent and 62 percent.

“Resilient domestic demand in Southeast Asia is key to explaining the optimism we are seeing,” said Percy Batliwalla, Head of Treasury Sales for Asia Pacific at BofAML. “In general, countries in Asia Pacific are experiencing a slowdown in exports, while countries in Southeast Asia are still enjoying strong economic growth relative to the rest of the world, fuelled in part by domestic consumer spending.”

According to analyst forecasts at BofAML, Southeast Asia’s ASEAN-5* is expected to grow by 5.1 percent in 2013, higher than the projected growth of 1.7 per cent in the US and 2.7 percent in EMEA (Europe, Middle East and Africa).

In its second edition, the 2013 CFO Outlook Asia survey incorporates the views of 600 CFOs and senior finance executives in the Asia Pacific region. The resulting report provides insight into the perceptions and strategies of key financial decision makers across the region, revealing insights into the outlook for their companies’ prospects, their own roles and their expectations for financing and M&A activity.

For Southeast Asia, CFOs based in Singapore, Malaysia, Thailand, Indonesia and the Philippines were surveyed. Together, they make up almost one-third of the 600 survey respondents, with 13 percent coming from Singapore and a combined 18 per cent from the four developing countries in Southeast Asia.