Singapore remains the top choice of Asian companies for business expansion

3 in 10 business leaders said so in a survey.

Singapore is still the most preferred business expansion among Asian companies, a survey from UOB show.

According to the second edition of the Asian Enterprise Survey, one third or 32% of the 2,500 business leaders surveyed indicated they would choose Singapore as the market to expand into in the next three to five years.

They are drawn to Singapore’s stable political and economic climate (41%), large and growing customer demand (40%) and its favourable tax and regulatory environment (35%).

 In particular, Indonesian (43%), Malaysian (36%), Thai (34%) and Hong Kong (32%) companies ranked Singapore among their top three expansion destinations.

Japan came in second (29%) and was closely followed by Vietnam (28%).

The survey, which was first conducted in 2014, polled mid-cap companies in China, Hong Kong, Indonesia, Malaysia, Singapore and Thailand.

China, meanwhile, continues to be the top choice for Singapore firms for business expansion. Over half or 56% of the 300 Singapore companies surveyed are already doing business or operating in China.

Business leaders cited rising costs, increasing competition and falling consumer demand as major drags on business growth in Asia.