Optimistic about Asia's SME growth this year however, forecasting Asia economy slowdown
Korea, May 28, 2008 -- UPS, world's largest express carrier company and the leader of supply chain management service provider, revealed its report on small and medium enterprises' competitiveness known as 'UPS Asia Business Monitor 2008'. The report indicated that South Korea's business competitiveness came in 3rd place in Asia Pacific, rising from its previous 4th spot. China came in 1st, followed by Japan in 2nd and Hong Kong and Singapore both came in 4th.
This year, business growth prospect among South Korea SME leaders rose by 6% compare to last year and 66% of overall respondents expressed optimism in growth prospect. In terms of detail growth opportunity by industry sector, as for powerful IT nation, 51% of South Korea's respondents pointed IT industry to be the sector of most growth opportunity followed by manufacturing (39%).
However, most of South Korea's SME leaders pointed out lack of government support, access to overseas markets and availability of a qualified workforce as key obstacles in South Korea. Furthermore, SMEs in South Korea would like to see the government form stronger ties with neighbouring countries (26%), and improve its infrastructure (25%) in line with South Korea's aspirations to become a financial, business and logistics hub of Northeast Asia.
The key concerns for SMEs in South Korea are government regulation (55%), Quality of products/service (54%), and Retention of quality employees (43%). Among South Korea's key concerns, issue of government regulation almost doubled since last year 25%.
"Our products are all about our customers and what they need to deliver success in their businesses. We have an intimate understanding of the business opportunities and challenges our customers face and we incorporate such insights into our product development. This new portfolio of products aims to help our customers better their competition in terms of, efficiency, speed, and in some instances, explore new business opportunities," said Ken Torok, President, UPS Asia Pacific.
Steven Chang, managing director of UPS Korea said "The UPS ABM is designed to give SMEs and local governments in Asia a better understanding of the driving factors of SMEs in the region. UPS is well-positioned to help local SMEs become more competitive through a wide range of UPS supply chain solutions using world-class technology.
The fourth annual survey of UPS ABM is aimed to provide valuable insights for SMEs in Asia Pacific by exploring salient business issues affecting SME leaders' decisions across the region. UPS ABM is to developed to help SMEs overcome their obstacles and capitalize on opportunities against the current challenging economic backdrop.
This year's UPS ABM surveyed 1,201 SME leaders between December 18, 2007 and January 24, 2008. Interviews were conducted across the following markets: Australia (100), China (150), Hong Kong (100), India (100), Indonesia (50), Japan (100), South Korea (100), Malaysia (100), Philippines (101), Singapore (100), Taiwan (100), Thailand (100). The ABM survey was conducted through telephone interviews by native-language interviewers at the TNS International Calling Centre in Hong Kong. Respondents were decision makers from a wide range of industries: Automotive, Garments & Textiles, Healthcare & Pharmaceuticals, Toys & Sporting Goods, Electronics & Electricals, Gifts & Housewares, Timepieces, Jewellery & Optical Goods, and others.
The notable facts revealed in this year's report are Asia's SMEs leaders including South Korea are optimistic about their business opportunity growth while many Asian SMEs are forecasting economy downturns.
On the other hand, 41% of region's SME leaders saw China's growth as opportunity and business boost, while 21% of them believed to be a threat. In case of South Korea, 30% of the respondents believed that China's growth would boost their business opportunity, significant increase by three times compare to last year's 9%.
UPS AMB 2008's key points are as follows;
South Korea's SME competitiveness in Asia, 3rd place
In the question of determining SMEs' competitiveness among Asian countries, South Korea came in third after China and Japan.
Asia Pacific economic growth slips
Compare to last year's promising economic growth, except for a few countries, majority of the SMEs in Asia Pacific forecasts economy downturns.
Lack of effective supply and chain management
Majority of respondents in the region are either under-utilizing the power of supply chain or neglecting the management of their supply chain. However, with 69%, South Korea became the country with the most effective supply chain management.
Industry sector growth opportunities
Asian SME leaders forecasted growth in manufacturing by 32%, IT by 28%, Building and Construction by 22%. The lowest growth opportunities were found in Media by 3% and Textiles and Apparel by 4%.
UPS (NYSE: UPS) is the world's largest package delivery company and a global leader in supply chain and freight services. With more than a century of experience in transportation and logistics, UPS is a leading global trade expert equipped with a broad portfolio of solutions. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. The company can be found on the Web at UPS.com. To get UPS news direct, visit pressroom.ups.com/RSS.
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