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REVIEW 200/INTRODUCTION Light at the End of the Tunnel The 11th REVIEW 200 survey comes at the end of a year marred by the Sars crisis and conflict in Iraq. Amid signs of recovery, the dominant mood is one of optimism By David Lague/HONG KONG Issue cover-dated December 25, 2003 - January 01, 2004
Charts: * Country leaders 1
* Biggest concerns for 2004 A MOOD OF OPTIMISM dominates this year's REVIEW 200, our 11th annual survey that ranks the performance of companies in our region and explores what lies ahead for business in Asia. After a year where the Severe Acute Respiratory Syndrome battered regional economies and conflict in Iraq posed a threat to growth, the prospect of global economic recovery now seems to be boosting business confidence across the region. In line with official forecasts of stronger growth for Asia, more than 63% of all readers surveyed believe that business will be better in 2004. Indian readers are the most upbeat, with almost 90% expecting a rosier year. Once again, ACNielsen Research (Hong Kong) conducted the survey, asking readers to rank 153 multinational corporations and between 29 and 40 local companies in each of 12 countries. For the ninth straight year, readers ranked software giant Microsoft as the top multinational with widespread admiration for its long-term vision and financial soundness. The company posted a 13% jump in revenues to $32 billion while operating revenue climbed 11% to $13 billion. As Microsoft prepares for the launch of Longhorn, the next generation of the Windows operating system, it is also planning to spend heavily on expanding its business in China. Finnish phone-maker Nokia ranked second, a repeat of its rating last year, as the company increased its share of the global hand-phone market to 39%. For innovation, Nokia was again ranked No. 1. The company spent $3.5 billion on research and development last year. This investment could be crucial if Nokia is to expand its business in an increasingly competitive mobile-phone market. Toyota continues its rise, advancing two places to third position this year. The world's third-biggest car maker is also Asia's top ranked multinational in our list. Toyota's profits are expected to reach $7.2 billion this year, double the figure reported four years ago. Readers rate Toyota highly for long-term vision and it is easy to see why. Within seven years, the company plans to boost its share of the world car market to 15%, about the same share as market leader General Motors. Returning to the top 10 this year are computing heavyweight IBM, General Electric and global financial powerhouse, Citigroup. Out go German luxury car maker BMW, South Korean electronics manufacturer Samsung and the world's largest fast-food chain, McDonalds. Like the best-rated multinationals, the top-ranked regional companies have also proved difficult to displace over the history of our survey. Only in Malaysia and Thailand do we have new leaders in our ratings. Malaysia's state-owned oil conglomerate Petronas finally reached top position at the expense of gambling company Genting, which dropped to fourth after nine years at the top. Over the past decade Petronas has undergone a remarkable transformation from a cosseted domestic player to a highly profitable global oil multinational. In Thailand, Siam Cement jumped to the top of the rankings from third last year as the domestic construction industry boomed. Demand from China for raw materials also contributed to the firm's performance in a year where third-quarter profit jumped 34% to $123 million over the same period last year. The optimism of readers in this year's survey mirrors some of the key official forecasts for economic growth in 2004. In September, the International Monetary Fund forecast that growth in Asia outside Japan will be 6.5% in 2004 as the global economy continues what appears to be a robust recovery. Even in Japan spirits are rising on signs that the world's second-biggest economy is emerging from its third recession since 1991. The Organization for Economic Cooperation and Development forecasts that Japanese economic growth will reach 2.7% in 2003. However, given that the country has endured a decade of stagnation, it is not surprising that Japanese readers are less optimistic about business prospects with just over 53% surveyed believing business will be better in 2004. Then there is China, whose continuing growth seems to be a key factor behind
much of the renewed economic optimism. After a short slowdown earlier in the
year when Sars was at its peak, robust economic growth returned while contracted
foreign investment rose sharply in the latter part of the year. The IMF
forecasts that China's economy will grow 7.5% in 2003, with similar expansion
for 2004. While fears remain that China's financial system remains precariously
overstretched and government pump-priming may be unsustainable, that doesn't
seem to be putting much of a dent in optimism. More than 74% of Chinese readers
expect a better business climate in 2004. No ResultsPlease supply at least one search term. Advertise on feer.com and in FEER |
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