Survey on the Impact of COVID-19 on Business Activities and

Supply Chains in the ASEAN Member States and India

June 2021
Contents

Preface

I. Introduction

II. The Survey Respondents: Country, Size, Ownership, Industries, etc.

III. Key Findings

A) Business Activity
Ø COVID-19’s impact on sales and operating profits
Ø Business outlook for the next few years
B) Supply Chains
Ø COVID-19’s impact on demand, supply, and production
Ø Measures taken to recover from the COVID-19 pandemic
C) Impact of the COVID-19 Pandemic
Ø Current status of government assistance
Ø Expected support from the government

2
Preface

Key findings of the survey

The COVID-19 pandemic has brought unprecedented challenges to ASEAN Member States (AMS) and
India’s regional economies.
The Economic Research Institute for ASEAN and East Asia (ERIA) surveyed local and foreign companies in
ASEAN countries and India from November 2020 to February 2021 to better understand the impact of
COVID-19 on business activities and supply chains.

The key findings of the survey include:

u The COVID-19 shocks negatively impacted AMS and India’s reginal economies. But, they also
included positive demand shocks to the economies, such as in the ICT industries. About half of the
companies experienced decreased sales in 2020, while slightly fewer but almost the same number
of companies saw sales increase.
u Many of the respondents have already implemented changes in their relationships with customers.
Changes in relationships with suppliers and production locations are also considerable. In particular,
about 40% of the manufacturing respondents answered ‘already implemented’ or ‘planned to change’
their production location. Companies in these economies have been adapting to the COVID-19
shocks by quickly re-arranging their supply chains.
u Overall, AMS and India’s regional economies have shown vigorous private dynamics in the COVID-
19 pandemic.
u Rather disappointingly, the least selected supply chain measure in the wake of the COVID-19 outbreak
was the digitalisation of supply chain, which should have been an accelerator of digital transformation in
the regional economy.

3
I. Introduction
The survey aims to study the impact of the COVID-19 pandemic on business
activities and the supply chain network in India and the ASEAN region

Background Objective
n COVID-19 has seriously affected the economies of East n The objective is to study the COVID-19 impact on
and Southeast Asia through disruptions to the business activities and the supply chain network
movement of goods and services in the region’s global through a questionnaire survey of manufacturing and
value chains and a fall in demand, resulting from social non-manufacturing companies in the ASEAN member
distancing and lockdown measures. states and India.

n The survey comprises three sections:

n Moreover, the uncertainty in the end of the pandemic A) Business Activity ：
pressures economic activities. The economic shock
caused by the COVID-19 crisis will likely and Ø COVID-19’s impact on sales and operating profits
significantly impact the real economy than the recent Ø Business outlook for the next few years
financial crisis.
B) Supply Chains
Ø COVID-19’s impact on demand, supply, and
n In particular, in East Asia and Southeast Asia, which production
have established themselves as the ‘factory of the
world’, there are concerns about the impact on Ø Measures taken to recover from the COVID-19
corporate activities and production networks. pandemic
C) Impact of the COVID-19 Pandemic
Ø Current status of government assistance
Ø Expected support from the government
n The study results are expected to be submitted to the
East Asia Summit Economic Ministers’ Meeting in
August 2021. Thus, this survey is a critical input to the
5 policymaking process.
ERIA is exceptionally grateful for the support of associations in gathering
the data for this survey

Participating industry associations and chambers of commerce

Industry associations Chambers of Commerce

6
Ⅱ. The Survey Respondents:
Country, Size, Ownership, Industries, etc.
【The Survey Respondents (1/3)】
Across 11 countries in scope, more than half the respondents are large
companies, and about one-third are multinationals
Attributes of respondents

Survey Period Company Size (based on number of employees)

17 November 2020 – 16 February 2021 (N=2016)

426
21% 1-19
Target Countries 57% 1153
20-99

Singapore Thailand 100 or more

267 217 22%
437
Malaysia Indonesia
179 207
Ownership
Viet Nam India
144 750 ASEAN local (N=2083)
1426
Philippines Cambodia 1426 ASEAN Local
68%
186 65 Multinationals
Brunei
Myanmar*
Darussalam 32%
35
18
657
Lao PDR
15 (N=2083)
8 * Almost all (32 out of 35) the Myanmar respondents answered the questionnaire before the military takeover in February 2021.
【The Survey Respondents (2/3)】
The respondents comprise both manufacturing and non-manufacturing
industries
Attributes of respondents

Target Industries Breakdown of ‘Other’ Industry

(N=2082)
Food 95

Textile 36

Wood and/or pulp 9 Professional services 242

Chemical and/or pharmaceutical 87 Finance, banking, and insurance 133
Rubber and/or leather 12 Education and training 107
Steel and/or nonferrous metal and/or metal 43 Other services 104
General machinery 20 Arts, media, advertising, and marketing 60
Electrical machinery 80 Hospitality and tourism 51
Transportation machinery 34 IT services 37
Precision machinery 29 Energy, utilities, oil, and gas 32
Other manufacturing 152 Government and non-profit organisations 29
Wholesale and/or retail 167 Healthcare and wellness 18
Communications and/or software 392

Transportation 113

Other 813

9
【The Survey Respondents (3/3)】
The majority of respondents are independent, unlisted, and owner-
managed companies
Attributes of respondents

Company Type Stock Market Listing

(N=2080) (N=2077)
1,036 1,568

308 345 391 509

Holding Branch office Subsidiary Independent Listed Unlisted

company company

Management Type Business Function

(N=2080) (N=2978, Multiple answers)
1,344 1,418
960
736
600

Owner- Not an owner- Sales Procurement Production

managed managed
company company

10
Ⅲ. Key Findings
A) Business Activity
 Nearly half the respondents experienced decreases in 2020 sales, while
slightly fewer but almost the same number of respondents experienced
increases. More than half the companies expect increases in profits and
plan to hire more employees in the next few years.
Fact Summary
View Fact summary through the survey
Overall • Nearly half the respondents experienced decreases in 2020 sales, while slightly fewer but almost the same number of
respondents experienced increases.
• More than half of the Myanmar, Brunei, and Lao PDR companies experienced increased sales in 2020, while only about 30% of
Country
Sales

Singapore, Thailand, and Malaysia companies did.

Company • No difference in results between company sizes. More than half the communications and/or software companies experienced
Size/Industry increased sales in 2020.
Domestic/ • More than half of foreign-affiliated firms (except for Japan) experienced increased sales in 2020.
Foreign
• Nearly half the respondents experienced increased operating profits in 2020 while slightly fewer experienced decreases. Majority
Overall
Operating Profit

of the companies experienced COVID-19’s impact – whether positive or negative – on operating profits through their local market
channels.
Country • More than 60% of the Myanmar and Brunei respondents experienced increases in 2020 operating profits compared to slightly less
than 40% of Singapore, Thailand, and Malaysia companies.
Company • No difference in results between company sizes. More than half the communications and/or software companies experienced
Size/Industry increases in 2020 operating profits.
Domestic/ • The majority of the European companies that expect decreased operating profits in 2021 plan to downsize their business. In
Foreign contrast, most US companies that expect decreased operating profits in 2021 plan to expand their business.

Business • More than half the respondents expect increased operating profits in 2021. The majority who expect increased profits plan to expand
Outlook their businesses, while most who expect decreased profits maintain the pre-COVID-19 level.

Overall • More than half the companies plan to hire more employees in the next 1 or 2 years
Employment
Recovery

• About 70% of Myanmar, Cambodia, and Viet Nam companies plan to increase employment, compared to only about 40% of
Country Thailand and Malaysia companies.
Company • No difference in results between company sizes or industries.
Size/Industry
Domestic/ • 68% of US-affiliated companies plan to hire more employees compared to only 40% of Japan and 43% of Europe-affiliated
Foreign companies.
13
COVID-19’s impact on sales and operating profits

Nearly half the respondents experienced decreases in 2020 sales, while

slightly fewer but almost the same number of respondents experienced
increases.
Sales (1/4): From the overall perspective

How much did your company's sales increase or decrease

in 2020 compared to the previous year?

Increase No Change Decrease (N=1812)

44% 46%

10%

14
More than half of Myanmar, Brunei, and Lao PDR companies experienced
increases in 2020 sales, while only about 30% of Singapore, Thailand, and
Malaysia did.
Sales (2/4): From the country perspective

How much did your company's sales increase or decrease

in 2020 compared to the previous year?

Increase No Change Decrease (N=1812)

180 142 104 205 140 727 182 65 34 18 15

27%
32%
41% 39%
47% 47% 46% 48%
53% 55%
63%
6% 20%
11%
6% 6% 12% 7% 3%

15% 10%
6%
62%
49% 50% 53%
47% 47% 46% 48%
32% 36%
30%

Singapore Thailand Malaysia Indonesia Viet Nam India Philippines Cambodia Myanmar Brunei Lao PDR

15
More than half the communications and/or software companies
experienced increased sales in 2020.

Sales (3/4): From the company size and industry perspectives

How much did your company's sales increase or decrease

in 2020 compared to the previous year?

(N=1785) Increase No Change Decrease (N=1811)

388 382 1,015 541 146 346 100 678

39% 44%
49% 45% 48% 48%
50% 53%

9%
10% 8% 16%
9% 7% 5% 11%

51%
42% 43% 45% 44% 42% 41%
40%

1-19 20-99 100 or more Manufacturing Wholesale Communications Transportation Other

and/or retail and/or software

16
More than half of foreign-affiliated firms (except for Japan) experienced
increased sales in 2020.

Sales (4/4): From the ownership perspective

How much did your company's sales increase or decrease

in 2020 compared to the previous year?

Increase No Change Decrease (N=1809)

1,240 153 105 108 75 131

32%
39% 41% 40%
48%
57%
12%
11% 8% 10%
50%
10%
6%

55% 50% 51% 50%

42% 37%

Domestic Japan United States Europe Multiple foreign Other

company investors

Domestic Multinational

17
Nearly half the respondents experienced increased operating profits in 2020
while slightly fewer experienced decreases. Majority of the companies
experienced COVID-19’s impact – whether positive or negative – on operating
profits through their local market channels.
Operating profits (1/3): From the overall perspective
① How much of your company's operating profits increase or decrease
in 2020 compared to the previous year? (N=1775)
Increase
No Change
47% Decrease
42%

10%

② Related to operating profit increase or decrease, which items listed below is impacted by COVID-19?

Increased operating profits Decreased operating profits

Increase in sales due Decrease in sales due

40% 44%
to expansion of exports to contraction of exports

Increase in sales Decrease in sales

64% 74%
in the local market in the local market

Reduction in Increase in
28% 30%
procurement costs procurement costs

7% Other Other 9%

(N=827, Multiple answers) (N=749, Multiple answers)

18 ② excluded blank (N/A) answers from N

More than 60% of the Myanmar and Brunei respondents experienced
increased profits in 2020 compared to slightly less than 40% of Singapore,
Thailand, and Malaysia companies.
Operating profits (2/3): From the country perspective

How much of your company's operating profits increased or decreased

in 2020 compared to the previous year?

Increase No Change Decrease

(N=) 177 138 103 203 139 706 179 65 34 17 14

29% 35%
39% 39% 38% 38% 36%
46% 48%
57% 53%
3%
0%
7% 12% 8% 8%
8% 29%
17% 8%
4%
68% 65%
54% 49% 54% 54%
38% 39% 44%
37% 36%

Singapore Thailand Malaysia Indonesia Viet Nam India Philippines Cambodia Myanmar Brunei Lao PDR

19
More than half the communications and/or software companies’ operating
profits increased in 2020.
Operating profits (3/3): From the company size and industry perspectives

How much of your company's operating profits increased or decreased

in 2020 compared to the previous year?

Increase No Change Decrease

(N=) 376 382 990 522 142 340 99 671

35%
45% 43% 41% 42% 42% 45%
50%

10%
9% 10% 9% 14%
11% 6% 11%

55%
44% 48% 49% 49% 44% 43% 44%

1-19 20-99 100 or more Manufacturing Wholesale Communications Transportation Other

and/or retail and/or software

20
More than half of foreign-affiliated firms (except for Japan) experienced
increased sales in 2020.

Sales (4/4): From the ownership perspective

How much did your company's sales increase or decrease

in 2020 compared to the previous year?

Increase No Change Decrease (N=1809)

1,220 142 104 107 72 130

100%

90%
29%
80% 37% 38%
44% 49% 43%
70%
13%
60%
10% 14%
50% 10% 9% 50%
8%
40%

30% 59%
52% 49% 48%
20%
46% 44%

10%

0%
Domestic Japan United States Europe Multiple foreign Other
company investors

Domestic Multinational

21
Business outlook for the next few years
More than half the respondents expect increases in 2021 operating profits.
The majority of the companies that expect profits to increase plan to
expand their businesses, while most companies that expect profits to
decrease maintain the pre-COVID-19 level.
Business outlook (1/9): From the overall perspective
① What is the outlook for operating profits in 2021 compared to 2020?
(N=1826)
Increase
54% Remain at the same level
Decrease
17%

29%
② What is the optimal direction for your business in the next 1 or 2 years compared to the pre-COVID-19 period?

Direction of companies with increased operating profits Direction of companies with decreased operating profits

66% Expansion 24%

Maintaining the
37% pre-COVID-19 50%
level
6% Downsizing 36%

1% Withdrawal 10%

Transfer to a third
2% 5%
country (region)

Return to country
(N=988, Multiple answers) 0% 2% (N=309, Multiple answers)
of incorporation
22 ② excluded blank (N/A) answers from N
The majority of the Thailand companies that expect decreased operating
profits in 2021 plan to downsize their business.
Business outlook (2/9): From the country perspective
① What is the outlook for operating profits in 2021 compared to 2020?
② What is the optimal direction for your business in the next 1 or 2 years compared to the time before the COVID-19 pandemic?
(N=181) (N=140)
Singapore ① Thailand ①
48% 46%
21% 26%
② 31% ② ② 29% ②
Direction of companies with Direction of companies with Direction of companies with Direction of companies with
increased operating profits decreased operating profits increased operating profits decreased operating profits

59% Expansion 24% 45% Expansion 17%

Maintaining the pre- Maintaining the pre-
31% COVID-19 level 61% 50% COVID-19 level 31%

16% Downsizing 37% 14% Downsizing 46%

2% Withdrawal 11% 2% Withdrawal 17%

Transfer to a third Transfer to a third
5% country (region) 8% 3% country (region) 3%
Return to country of Return to country of
(N=86, m) 0% 3% (N=38, m) (N=64, m) 0% 3% (N=35, m)
incorporation incorporation

(N=104) (N=206)
Malaysia ① Indonesia ① 58%
41% 35%
15%
② 24% ② ② 27% ②
Direction of companies with Direction of companies with Direction of companies with Direction of companies with
increased operating profits decreased operating profits increased operating profits decreased operating profits

56% Expansion 17% 54% Expansion 17%

Maintaining the pre- Maintaining the pre-
40% COVID-19 level 47% 48% COVID-19 level 57%

14% Downsizing 47% 9% Downsizing 33%

0% Withdrawal 8% 1% Withdrawal 7%
Transfer to a third Transfer to a third
2% country (region) 0% 3% country (region) 7%
Return to country of Return to country of
(N=43, m) 0% incorporation 3% (N=36, m) (N=120, m) 0% incorporation 0% (N=30, m)
m = Multiple answers
23 Increase Remain at the same level Decrease ② excluded blank (N/A) answers from N
The majority of the Viet Nam companies that expect increased operating
profits in 2021 plan to expand their business, while most Philippine
companies plan to downsize.
Business outlook (3/9): From the country perspective
① What is the outlook for operating profits in 2021 compared to 2020?
② What is the optimal direction for your business in the next 1 or 2 years compared to the pre-COVID-19 period?
(N=142) (N=739)
Viet Nam ① 54% India ① 59%
15% 12%
② 30% ② ② 29% ②
Direction of companies with Direction of companies with Direction of companies with Direction of companies with
increased operating profits decreased operating profits increased operating profits decreased operating profits

68% Expansion 41% 74% Expansion 39%

Maintaining the pre- Maintaining the pre-
34% COVID-19 level 36% 32% COVID-19 level 60%

6% Downsizing 36% 2% Downsizing 21%

0% Withdrawal 0% 1% Withdrawal 10%

Transfer to a third Transfer to a third
3% country (region) 0% 1% country (region) 9%
Return to country of Return to country of
(N=77, m) 0% 0% (N=22, m) (N=435, m) 0% 2% (N=87, m)
incorporation incorporation

(N=183) (N=65)
Philippines ① 56% Cambodia ①
46%
17% 29%
② 27% ② ② 25% ②
Direction of companies with Direction of companies with Direction of companies with Direction of companies with
increased operating profits decreased operating profits increased operating profits decreased operating profits

68% Expansion 6% 77% Expansion 21%

Maintaining the pre- Maintaining the pre-
43% COVID-19 level 39% 30% COVID-19 level 47%

4% Downsizing 52% 3% Downsizing 47%

0% Withdrawal 13% 0% Withdrawal 11%

Transfer to a third Transfer to a third
0% country (region) 0% 3% country (region) 5%
Return to country of Return to country of
(N=102, m) 2% incorporation 0% (N=31, m) (N=30, m) 0% incorporation 5% (N=19, m)
m = Multiple answers
24 Increase Remain at the same level Decrease ② excluded blank (N/A) answers from N
The majority of Brunei and Lao companies that expect increased operating
profits in 2021 plan to downsize their business.
Business outlook (4/9): From the country perspective
① What is the outlook for operating profits in 2021 compared to 2020?
② What is the optimal direction for your business in the next 1 or 2 years compared to the time before the COVID-19 pandemic?
(N=34) (N=17)
Myanmar ① 50% Brunei ①
65%
21% 18%
② 29% ② ② 18% ②
Direction of companies with Direction of companies with Direction of companies with Direction of companies with
increased operating profits decreased operating profits increased operating profits decreased operating profits

65% Expansion 0% 64% Expansion 0%

Maintaining the pre- Maintaining the pre-
41% COVID-19 level 100% 18% COVID-19 level 0%

12% Downsizing 0% 18% Downsizing 67%

0% Withdrawal 0% 0% Withdrawal 33%

Transfer to a third Transfer to a third
0% country (region) 0% 0% country (region) 0%
Return to country of Return to country of
(N=17, m) 0% 0% (N=7, m) (N=11, m) 0% 0% (N=3, m)
incorporation incorporation

(N=15)
Lao PDR ① 27%
7%
67%
② ②
Direction of companies with Direction of companies with
increased operating profits decreased operating profits

67% Expansion 0%
Maintaining the pre-
67% COVID-19 level 0%

0% Downsizing 100%

0% Withdrawal 0%
Transfer to a third
0% country (region) 0%
Return to country of
(N=3, m) 0% incorporation 0% (N=1, m)
m = Multiple answers
25 Increase Remain at the same level Decrease ② excluded blank (N/A) answers from N
Irrespective of company size, the majority of the companies that expect
increased profits plan to expand their business, while most companies
that expect decreased profits plan to maintain the pre-COVID-19 level.
Business outlook (5/9): From the company size perspective
① What is the outlook for operating profits in 2021 compared to 2020?
② What is the optimal direction for your business in the next 1 or 2 years compared to the COVID-19 period?
(N=389) (N=386)
1-19 ① 52%
20-99 ① 47%
18% 19%
② 29% ② ② 34% ②
Direction of companies with Direction of companies with Direction of companies with Direction of companies with
increased operating profits decreased operating profits increased operating profits decreased operating profits

64% Expansion 21% 70% Expansion 21%

Maintaining the pre- Maintaining the pre-
33% COVID-19 level 44% 36% COVID-19 level 53%

8% Downsizing 33% 5% Downsizing 42%

2% Withdrawal 19% 1% Withdrawal 7%

Transfer to a third Transfer to a third
2% country (region) 6% 2% country (region) 1%
Return to country of Return to country of
(N=203, m) 0% 1% (N=70, m) (N=183, m) 0% 0% (N=72, m)
incorporation incorporation

(N=1023)
100 or more ① 58%
16%
② 27% ②
Direction of companies with Direction of companies with
increased operating profits decreased operating profits

66% Expansion 27%

Maintaining the pre-
38% COVID-19 level 53%

5% Downsizing 36%

1% Withdrawal 8%
Transfer to a third
2% country (region) 6%
Return to country of
(N=589, m) 1% incorporation 3% (N=160, m)
m = Multiple answers
26 Increase Remain at the same level Decrease ② excluded blank (N/A) answers from N
Irrespective of industry, the majority of the companies that expect
increased profits plan to expand their business, while most companies
that expect decreased profits plan to maintain the pre-COVID-19 level.
Business outlook (6/9): From the industry perspective
① What is the outlook for operating profits in 2021 compared to 2020?
② What is the optimal direction for your business in the next 1 or 2 years compared to the COVID-19 period?
(N=545) (N=147)
Wholesale
Manufacturing ① 57%
① 54%
and/or retail
16% 23%
② 28% ② ② 23% ②
Direction of companies with Direction of companies with Direction of companies with Direction of companies with
increased operating profits decreased operating profits increased operating profits decreased operating profits

61% Expansion 36% 54% Expansion 24%

Maintaining the pre- Maintaining the pre-
40% COVID-19 level 49% 46% COVID-19 level 50%

6% Downsizing 45% 9% Downsizing 32%

2% Withdrawal 11% 1% Withdrawal 18%

Transfer to a third Transfer to a third
2% country (region) 10% 5% country (region) 6%
Return to country of Return to country of
(N=308, m) 0% 4% (N=83, m) (N=79, m) 0% 3% (N=34, m)
incorporation incorporation

(N=345) (N=102)
Communications
① 55% Transportation ① 54%
and/or software
17% 13%
② 28% ② ② 33% ②
Direction of companies with Direction of companies with Direction of companies with Direction of companies with
increased operating profits decreased operating profits increased operating profits decreased operating profits

77% Expansion 25% 78% Expansion 23%

Maintaining the pre- Maintaining the pre-
33% COVID-19 level 53% 27% COVID-19 level 46%

6% Downsizing 30% 4% Downsizing 31%

1% Withdrawal 11% 0% Withdrawal 0%

Transfer to a third Transfer to a third
3% country (region) 7% 0% country (region) 0%
Return to country of Return to country of
(N=190, m) 1% incorporation 4% (N=57, m) (N=55, m) 0% incorporation 0% (N=13, m)
m = Multiple answers
27 Increase Remain at the same level Decrease ② excluded blank (N/A) answers from N
Irrespective of industry, the majority of the companies that expect
increased profits plan to expand their business, while most companies
that expect decreased profits plan to maintain the pre-COVID-19 level.
Business outlook (7/9): From the industry perspective
① What is the outlook for operating profits in 2021 compared to 2020?
② What is the optimal direction for your business in the next 1 or 2 years compared to the pre-COVID-19 period?

(N=686)
Other ① 52%
18%
② 30% ②
Direction of companies with Direction of companies with
increased operating profits decreased operating profits

66% Expansion 16%

Maintaining the pre-
36% COVID-19 level 51%

6% Downsizing 34%

0% Withdrawal 8%
Transfer to a third
1% country (region) 1%

(N=355, m) Return to country of (N=122, m)

0% 0%
incorporation

m = Multiple answers
28 Increase Remain at the same level Decrease ② excluded blank (N/A) answers from N
The majority of the European companies that expect decreased operating
profits in 2021 plan to downsize their business. In contrast, most US
companies that expect decreased operating profits in 2021 plan to expand
their business.
Business Outlook (8/9): From the ownership perspective
① What is the outlook for operating profits in 2021, compared with 2020?
② What is the optimal direction for your business in the next 1 or 2 years, compared with the time before the COVID-19 pandemic?
(N=1253) (N=151)
Domestic company ① 52% Japan ① 56%
18% 17%
② 30% ② ② 27% ②
Direction of companies with Direction of companies with Direction of companies with Direction of companies with
increased operation profits decreased operation profits increased operation profits decreased operation profits

68% Expansion 22% 49% Expansion 40%

Maintaining the pre Maintaining the pre
35% COVID-19 level 53% 44% COVID-19 level 52%

7% Downsizing 34% 10% Downsizing 24%

1% Withdrawal 11% 1% Withdrawal 4%

Transfer to a third Transfer to a third
2% country (region) 5% 0% country (region) 0%
Return to country of Return to country of
(N=649, m) 0% 1% (N=228, m) (N=84, m) 0% 0% (N=25, m)
incorporation incorporation

(N=105) (N=111)
United States ① Europe ① 57%
70%
7% 14%
② 23% ② ② 29% ②
Direction of companies with Direction of companies with Direction of companies with Direction of companies with
increased operation profits decreased operation profits increased operation profits decreased operation profits

73% Expansion 57% 68% Expansion 25%

Maintaining the pre Maintaining the pre
38% COVID-19 level 43% 37% COVID-19 level 38%

1% Downsizing 29% 5% Downsizing 63%

1% Withdrawal 43% 0% Withdrawal 0%

Transfer to a third Transfer to a third
1% country (region) 14% 2% country (region) 13%
Return to country of Return to country of
(N=74, m) 1% incorporation 0% (N=7, m) (N=63, m) 0% incorporation 13% (N=16, m)
m = Multiple answers
29 Increase Remain at the same level Decrease ② excluded blank (N/A) answers from N
The majority of the European companies that expect decreased operating
profits in 2021 plan to downsize their business. In contrast, most US
companies that expect decreased operating profits in 2021 plan to expand
their business.
Business Outlook (9/9): From the ownership perspective
① What is the outlook for operating profits in 2021, compared with 2020?
② What is the optimal direction for your business in the next 1 or 2 years, compared with the time before the COVID-19 pandemic?

Multiple foreign (N=75) (N=131)

investors ① 60%
Other ① 56%
16% 16%
② 24% ② ② 27% ②
Direction of companies with Direction of companies with Direction of companies with Direction of companies with
increased operation profits decreased operation profits increased operation profits decreased operation profits

64% Expansion 17% 62% Expansion 19%

Maintaining the pre Maintaining the pre
36% COVID-19 level 42% 42% COVID-19 level 38%

2% Downsizing 42% 7% Downsizing 52%

2% Withdrawal 0% 1% Withdrawal 14%

Transfer to a third Transfer to a third
2% country (region) 8% 3% country (region) 0%
Return to country of Return to country of
(N=45, m) 0% 8% (N=12, m) (N=73, m) 0% 0% (N=21, m)
incorporation incorporation

m = Multiple answers
30 ② excluded blank (N/A) answers from N
56% of the companies plan to hire more employees in the next 1 or 2 years.

Expected increase in the number of employees (1/4): From the overall perspective

What is the optimal percent increase or decrease of employees for your business in the next 1 or 2 years
compared to the pre-COVID-19 period?

Increase No Change Decrease (N=1815)

21%

56%

23%

31
71% of Myanmar, 69% of Cambodian, and 67% of Viet Nam companies plan
to hire more employees compared to only 35% of Thai and 45% of
Malaysian companies.
Expected increase in the number of employees (2/4): From the country perspective

What is the optimal percent increase or decrease of employees in your business in the next 1 or 2 years
compared to the pre-COVID-19 period?

Increase No Change Decrease (N=1815)

179 140 103 205 143 731 183 65 34 17 15

7%
17% 19% 20% 18% 15% 18%
21%
30% 26%
33%
15%
12% 12% 40%
17% 24%
29% 26%
16%
25% 56%
(Ave.)
32%

67% 69% 71%

63% 59%
54% 58% 55% 53%
45%
35%

Singapore Thailand Malaysia Indonesia Viet Nam India Philippines Cambodia Myanmar Brunei Lao PDR

32
63% of the communications and/or software companies plan to hire more
employees in the next few years compared to 49% of the transport
companies.
Expected increase in the number of employees (3/4): From the company size and industry perspectives

What is the optimal percent increase or decrease of employees in your business in the next 1 or 2 years
compared to the pre-COVID-19 period?

(N=1789) Increase No Change Decrease (N=1814)

386 385 1,018 542 145 344 101 682

14% 16% 16%

23% 24% 24% 19% 23%

28% 28% 18%

19% 22% 36% 21%
25%
56%
(Ave.)

58% 58% 63%

55% 52% 57% 56%
49%

1-19 20-99 100 or more Manufacturing Wholesale Communications Transportation Other

and/or retail and/or software

33
68% of US-affiliated companies plan to hire more employees compared to
only 40% of Japan and 43% of Europe-affiliated companies.
Expect in # of Employee(4/4): From the ownership perspective

What is the optimal percent increase or decrease of employees for your business in the next 1 or 2 years,
compared with the time before the COVID-19 pandemic?

Increase No Change Decrease (N=1815)

1,245 152 105 109 72 132

22% 22% 16% 19%

26% 22%

16%
17% 20%
22%
38% 31% 56%
(Ave.)

68%
57% 61% 61%
40% 43%

Domestic Japan United States Europe Multiple foreign Other

company investors

Domestic Multinational

34
B) Supply Chains
Many respondents experienced or planned to change customer and
supplier relationships and production locations due to COVID-19. Many
have reduced costs or optimised as a supply chain measure to COVID-19,
but not many digitalised.
Fact Summary
View Fact summary through the survey
Overall • 62% of companies experienced or planned to change customer relationships and 74% of whom answered that the reason
for change is COVID-19.
Demand

Country • More than 80% of Myanmar, Philippines, and Brunei companies experienced or planned to change customer relationships,
while less than half of India did.
Company • Only 44% of the transport companies experienced or planned to change customer relationships. These companies are also
Size/Industry the least likely to be affected by COVID-19.
Domestic/ • Only 43% of Japanese-affiliated companies experienced or planned to change customer relationships. These
Foreign companies are also the least likely to be affected by COVID-19.
Overall • 56% of companies experienced or planned to change supplier relationships and 73% of them answered that the reason for
change is COVID-19.
Supply

Country • More than 75% of Malaysia, Philippines, and Cambodia companies experienced or planned to change supplier relationships
compared to only 40% of India companies.
Company • Only 36% of the transport companies experienced or planned to change supplier relationships. These companies are also
Size/Industry the least likely to be affected by COVID-19.
Domestic/ • Only 43% of Japanese-affiliated and 44% of US-affiliated companies experienced or planned to change supplier
Foreign relationships. These companies are also the first and second least likely to be affected by COVID-19.
Overall • 43% of companies experienced or planned to change production location and 75% of whom answered that the reason for
Production

change is COVID-19.
Country • More than 60% of Malaysia, Philippines, and Cambodia companies experienced or planned to change production locations,
while only 30% of India did.
Company • About 40% of the manufacturing companies already implemented or planned to change production locations.
Size/Industry
Domestic/ • Only 27% of Japanese-affiliated and 30% of US-affiliated companies experienced or planned to change production location.
Foreign These companies are also the first and second least likely to be affected by COVID-19.
Overall • The most preferred measure taken regarding the supply chains in response to COVID-19 is cost reduction and/or
Measures to

optimisation, while the least (excluding other measures) is digitisation.

be taken

Country • Viet Nam, Myanmar, and Cambodia are the three countries where the respondents chose digitisation the least as a supply
chain measure in response to COVID-19.
Company • The larger the company size, the slightly more often the respondents chose digitisation.
Size/Industry • Manufacturing is the industry where the respondents chose digitisation the least.
Domestic/
• Japanese-related companies chose digitisation the least as a supply chain measure in response to COVID-19.
Foreign
36
COVID-19’s impact on demand, supply, and production

62% of companies experienced or planned to change customer

relationships, and 61% of them answered that the reason for the change is
COVID-19.
Change in customer relationships (1/3): From the overall perspective

Did your relationship with your customers change during 2020? If not, do you plan to change?
If so, when will the change be implemented? For which reasons?

Plan to change Reason for change

(N=1605) (N=1614, Multiple answers)

61%

29%

42%
9%
16%
20%
5%

COVID-19 Change in Other

Change already implemented trade
Plan to change
62% environment

Not sure
No plan to change
37
More than 80% of Malaysia, Philippines, and Brunei companies experienced
or planned to change customer relationships, while less than half of Indian
companies did. The majority of companies in all countries, except India,
experienced changes in customer relationships due to COVID-19.
Change in customer relationships (2/3): From the country perspective
Did your relationship with your customers change during 2020? If not, do you plan to change?
If so, when will the change be implemented? For which reasons?

COVID-19 Change in trade environment*

Reason for

78% 80% 83% 76% 73%

change

71% 68% 69%

62% 63%
44%
16% 15% 21% 17% 20% 14% 18% 19% 14% 8% 9%

Change already implemented Plan to change Not sure No plan to change

(N=) 158 119 84 173 125 689 150 55 29 12 11

7% 9% 10% 13% 17% 18%
Plan to change

23% 29% 10% 23% 9% 24%

12% 9% 0% 0%
45% 12%
12% 19% 8% 11% 3% 18%
8% 25%
19% 21%
15% 16% 18%
7%
83%
24% 69% 67%
64%
50% 47% 53% 50% 52% 45%
24%

Singapore Thailand Malaysia Indonesia Viet Nam India Philippines Cambodia Myanmar Brunei Lao PDR

38
m = Multiple answers * e.g., imposition of additional customs duties, US-China trade friction
Only 44% of the transport companies experienced or planned to change
customer relationships. These companies are also the least likely to be
affected by COVID-19.
Change in customer relationships (3/3): From the company size and industry perspectives

Did your relationship with your customers change during 2020? If not, do you plan to change?
If so, when will the change be implemented? For which reasons?

COVID-19 Change in trade environment*

Reason for

68% 66% 66% 65% 67%

change

57% 54%
38%
16% 17% 18% 20% 18%
13% 14% 14%

Change already implemented Plan to change Not sure No plan to change

(N=) 334 328 919 488 137 316 91 572

Plan to change

24% 28% 26% 28% 22%

30% 34%
52% 9%
10% 7% 10%
9% 9%
9% 20%
19% 19% 21%
21% 21%
20% 4%
15%
46% 46% 43% 49%
40% 38% 41%
29%

1-19 20-99 100 or more Manufacturing Wholesale Communications Transportation Other

and/or retail and/or software

39
m = Multiple answers * e.g., imposition of additional customs duties, US-China trade friction
Only 43% of Japanese-affiliated companies experienced or planned to
change customer relationships. These companies are also the least likely
to be affected by COVID-19.
Change in customer relationship(4/4): From ownership perspective

Did your relationship with your customers change during 2020? If not, do you plan to change?
If so, when will the change be implemented? For which reasons?

COVID-19 Change in trade environment

Reason of change

64% 64%
58% 58%
47% 49%
29%
15% 15% 17% 19%
13%

Change already implemented Plan to change Not sure No plan to change

(N=)
1,090 141 94 106 64 110
When will changes be

27% 20% 23%

implemented

40% 34%
45% 6%
7% 14%
20%
14% 15%
22% 9%
13%
17% 21%
11%
53% 49%
44%
32% 34% 31%

Domestic Japan United States Europe Multiple foreign Other

company investors

Domestic Multinational
40
m = Multiple answers * e.g., imposition of additional customs duties, US-China trade friction
56% of companies experienced or planned to change supplier
relationships, and 53% of them answered that the reason for the change is
COVID-19.
Change in supplier relationships (1/4): From the overall perspective

Did your relationship with your suppliers change during 2020? If not, do you plan to change?
If so, when will the change be implemented? For which reasons?

Plan to change Reason for change

(N=1544) (N=1582, Multiple answers)

53%

35%

40%

9% 15%
16%
4%

COVID-19 Change in Other

Change already implemented trade
Plan to change 56% environment

Not sure
No plan to change

41
More than 75% of Malaysia, Philippines, and Cambodia companies
experienced or planned to change supplier relationships, while only 40%
of Indian companies did. Indian companies are also the least likely to be
affected by COVID-19.
Change in supplier relationships (2/4): From the country perspective

Did your relationship with your suppliers change during 2020? If not, do you plan to change?
If so, when will the change be implemented? For which reasons?

COVID-19 Change in trade environment*

Reason for

68% 74% 73% 74%

67%
change

57% 61%
54% 54%
46%
38%
18% 19% 19% 23% 22%
15% 12% 13% 13% 11% 15%

Change already implemented Plan to change Not sure No plan to change

(N=) 154 115 83 171 116 656 147 54 28 11 9

16% 16% 13% 15% 18%
Plan to change

23% 22%
31% 33% 10% 7%
8% 39% 9%
15% 5% 53% 8%
11% 15% 11%
9%
13% 11% 22%
21% 11% 22%
13% 11%
7% 18%
65% 69% 63% 64%
18%
44% 48% 50% 44%
43%
32%
22%

Singapore Thailand Malaysia Indonesia Viet Nam India Philippines Cambodia Myanmar Brunei Lao PDR

42
m = Multiple answers * e.g., imposition of additional customs duties, US-China trade friction
Only 36% of transport companies experienced or planned to change
supplier relationships. These companies are also the least likely to be
affected by COVID-19.
Change in supplier relationships (3/4): From the company size and industry perspectives

Did your relationship with your suppliers change during 2020? If not, do you plan to change?
If so, when will the change be implemented? For which reasons?

COVID-19 Change in trade environment*

Reason for

62% 64% 60%

55%
change

49% 47% 52%

30%
18% 19% 23%
13% 16% 15% 14% 10%

Change already implemented Plan to change Not sure No plan to change

(N=) 319 319 882 472 134 303 83 551

Plan to change

30% 29% 31% 29%

38% 39% 37%
57%
11% 9% 7% 10%
9% 8% 11%
14% 18% 20% 15%
16% 15% 18%
7%
12%
45% 44% 41% 46%
37% 38% 35%
24%

1-19 20-99 100 or more Manufacturing Wholesale Communications Transportation Other

and/or retail and/or software

43
m = Multiple answers * e.g., imposition of additional customs duties, US-China trade friction
Only 43% of Japanese-affiliated and 44% of US-affiliated companies
experienced or planned to change supplier relationships. These companies
are also the first and second least likely to be affected by COVID-19.
Change in supplier relationship(4/4): From the ownership perspective

Did your relationship with your suppliers change during 2020? If not, do you plan to change?
If so, when will the change be implemented? For which reasons?

COVID-19 Change in trade environment

Reason of change

57% 59%
48%
38% 41% 42%

15% 18% 20% 18%

14% 11%

Change already implemented Plan to change Not sure No plan to change

(N=)
1,052 133 88 99 63 109
When will changes be
implemented

33% 36% 30%

45% 38%
49%
8% 13%
13% 5%
16% 12% 19% 14%
9%
21%
14% 14%
43% 38% 43%
29% 28% 29%

Domestic Japan United States Europe Multiple foreign Other

company investors

Domestic Multinational
44
m = Multiple answers * e.g., imposition of additional customs duties, US-China trade friction
43% of companies experienced or planned to change production locations,
and 43% of them answered that the reason for the change is COVID-19.
Change in production locations (1/4): From the overall perspective

Did your production locations change during 2020? If not, do you plan to change?
If so, when will the change be implemented? For which reasons?

Plan to change Reason for change

(N=1492) (N=1546, Multiple answers)

43%

46%

31%

9%
11% 12% 5%

COVID-19 Change in Other

Change already implemented trade
Plan to change 43% environment

Not sure
No plan to change

45
More than 60% of Myanmar, Philippines, and Cambodia companies
experienced or planned to change production locations, while only 30% of
Indian companies did. Indian companies are also the least likely to be
affected by COVID-19.
Change in production locations (2/4): From the country perspective
Did your production locations change during 2020? If not, do you plan to change?
If so, when will the change be implemented? For which reasons?
COVID-19 Change in trade environment*
Reason for

65% 69% 63%

change

56% 58%
44% 48% 46%
41% 42%
32%
10% 11% 9% 10% 9% 13% 10% 8% 13%
6% 3%

Change already implemented Plan to change Not sure No plan to change

646
(N=) 143 106 80 168 115 11% 137 52 27 10 8

19%
Plan to change

26% 26% 30% 25%

34% 37%
44% 48% 44% 10%
5% 60% 9% 13%
16% 4% 10%
6% 20%
10% 15% 13%
11% 19% 10% 0%
12%
13% 11% 7% 15%
7%
61% 62%
50% 14% 50% 50%
32% 33% 39% 35% 33%
16%

Singapore Thailand Malaysia Indonesia Viet Nam India Philippines Cambodia Myanmar Brunei Lao PDR

46
m = Multiple answers * e.g., imposition of additional customs duties, US-China trade friction
About 40% of the manufacturing companies already implemented or
planned to change production location. Transport companies are the least
likely to be affected by COVID-19.
Change in production locations (3/4): From the company size and industry perspectives

Did your production locations change during 2020? If not, do you plan to change?
If so, when will the change be implemented? For which reasons?

COVID-19 Change in trade environment*

Reason for

46% 43% 43% 50% 50%

change

43%
37%
25%
11% 11% 15%
8% 9% 7% 8% 8%

Change already implemented Plan to change Not sure No plan to change

(N=) 309 310 854 453 125 296 79 538

Plan to change

44% 44% 39% 39%

47% 51% 48%
66%
13% 12%
11% 12% 11%
9% 11% 12%
10% 12% 15%
13% 12% 13%
6%
8%
35% 32% 33% 36%
29% 27% 28%
20%

1-19 20-99 100 or more Manufacturing Wholesale Communications Transportation Other

and/or retail and/or software

47
m = Multiple answers * e.g., imposition of additional customs duties, US-China trade friction
Only 27% of Japanese-affiliated and 30% of US-affiliated companies
experienced or planned to change production location. These companies
are also the first and second least likely to be affected by COVID-19.
Change in production locations (4/4): From the ownership perspective

Did your production locations change during 2020? If not, do you plan to change?
If so, when will the change be implemented? For which reasons?

COVID-19 Change in trade environment

Reason of change

47% 48%
37% 39%
30%
24%
10% 10% 13% 9%
8%
3%

Change already implemented Plan to change Not sure No plan to change

(N=)
1,026 119 85 97 62 103
When will changes be
implemented

43% 42% 40%

52%
66% 59%

11% 13% 14%

13% 13% 8%
11% 13%
7% 12%
9% 8%
33% 32% 39%
18% 22% 23%

Domestic Japan United States Europe Multiple foreign Other

company investors

Domestic Multinational
48
m = Multiple answers * e.g., imposition of additional customs duties, US-China trade friction
The respondents most frequently chose China and India as the countries
from or to where they plan to move their production locations.

Plan to move production locations

Please indicate the countries from and to where you will move your production

Country from where you will move production

Manufacturing Non-manufacturing
75
(N=383, Multiple answers)

56 45
25 29
25 24 26
23 23
20
11 22 16 14
31 21 10 30 21 14
16 22 9
5 3 3 3 13 2 6 4 2 8 4
12 8 8 1 9
7 4 6
1 4 0 3 3 0 3 0 4 4 3 2 2 1 1 1 2 1 3 5 0 1 0 2 0 4
Japan China Hong Taiwan Republic Brunei Singapore Thailand Malaysia Indonesia Philippines Viet Nam Cambodia Lao PDR Myanmar India Other United Mexico Central Europe Middle Other
Kong of Darussalam Asian States & South East
Korea countries America

East Asia ASEAN Other Asia US S. America EU ME Other

Country to where you will move production

Manufacturing Non-manufacturing
50
(N=344, Multiple answers)
29
27
25 24 29
22 22 23
19
17 21 16
13 20 15 14 16
11 15 16
9 15 10
6 12 7 21 8
5 5 5 8 5
8 10 9 8 2
7 2 3 8 6 6 7 0 1 6 4 7
5 3 5 4 4 3
1 2 0 2 1 1 1 0 0 0 1 1
Japan China Hong Taiwan Republic Brunei Singapore Thailand Malaysia Indonesia Philippines Viet Nam Cambodia Lao PDR Myanmar India Other United Mexico Central Europe Middle Other
Kong of Darussalam Asian States & South East
Korea countries America

East Asia ASEAN Other Asia US S. America EU ME Other

49
From-China-to-India and From-India-to-Other Asian countries are the most
chosen combinations of countries from and to which the respondents plan
to move their production.
Plan to move production locations – From and To combination

Please indicate the countries from and to where you will move your production

Number of responses
From China to India 10 5 15

From India to Other Asian countries 6 7 13

From India to Other 5 6 11

From India to United States 3 7 10

<Patterns of From and To>
From India to Singapore 6 3 9

From the US to India 2 6 8

From Singapore to India 1 7 8

From Malaysia to Indonesia 8 8

127 16
From Viet Nam to Thailand 7 7

From China to Viet Nam 5 1 6

From Japan to China 1 5 6

From the US to China 1 5 6

From Other to China 1 5 6

Combinations with less than 5 responses
Combinations with 5 or more responses From China to Thailand 4 1 5

From Europe to India 3 2 5 Manufacturing

From China to Philippines 2 3 5 Non-manufacturing

50
Measures taken to recover from the COVID-19 pandemic
The most preferred measure taken regarding the supply chain in response
to COVID-19 is cost reduction and/or optimisation, while the least
(excluding other measures) is digitisation.
Measures to be taken regarding the supply chain (1/5): From the overall perspective

In response to the COVID-19 pandemic, what measures has your company taken regarding the supply chain?

(N=1530, Multiple answers)

Cost reduction and/or optimisation 63%

Rebuilding relationship with customers 53%

Rebuilding relationship with suppliers 35%

Supply chain network optimisation 30%

Digitisation of supply chain 23%

Design of remotely managed-enabled operations 31%

Other measures 7%

51
Viet Nam, Myanmar, and Cambodia are the three countries where the
respondents chose digitisation the least as a supply chain measure in
response to COVID-19.
Measures to be taken regarding the supply chain (2/5): From the country perspective

In response to the COVID-19 pandemic, what measures has your company taken regarding the supply chain?

Singapore Thailand Malaysia

Cost reduction and/or optimisation 73% 70% 74%

Rebuilding relationship with customers 44% 44% 63%

Rebuilding relationship with suppliers 28% 21% 47%

Supply chain network optimisation 24% 24% 20%

Digitisation of supply chain 24% 21% 30%

Design of remotely managed-enabled operations 30% 37% 42%

Other measures 3% (N=150, m) 7% (N=111, m) 4% (N=81, m)

Indonesia Viet Nam India

Cost reduction and/or optimisation 74% 76% 51%

Rebuilding relationship with customers 53% 44% 56%

Rebuilding relationship with suppliers 33% 22% 38%

Supply chain network optimisation 27% 26% 36%

Digitisation of supply chain 27% 13% 21%

Design of remotely managed-enabled operations 42% 31% 21%

Other measures 4% (N=165, m) 2% (N=115, m) 10% (N=664, m)

m = Multiple answers
52
Viet Nam, Myanmar, and Cambodia are the three countries where the
respondents chose digitisation the least as a supply chain measure in
response to COVID-19.
Measures to be taken regarding the supply chain (3/5): From the country perspective

In response to the COVID-19 pandemic, what measures has your company taken regarding the supply chain?

Philippines Cambodia Myanmar

Cost reduction and/or optimisation 72% 58% 30%

Rebuilding relationship with customers 62% 45% 19%

Rebuilding relationship with suppliers 41% 45% 13%

Supply chain network optimisation 27% 15% 11%

Digitisation of supply chain 32% 19% 9%

Design of remotely managed-enabled operations 54% 30% 16%

Other measures 3% (N=144, m) 9% (N=53, m) 3% (N=64, m)

Brunei Lao PDR

Cost reduction and/or optimisation 64% 78%

Rebuilding relationship with customers 45% 22%

Rebuilding relationship with suppliers 36% 22%

Supply chain network optimisation 36% 44%

Digitisation of supply chain 27% 33%

Design of remotely managed-enabled operations 36% 33%

Other measures 9% (N=11, m) 0% (N=9, m)

m = Multiple answers
53
The larger the company, the slightly more often the respondents chose
digitisation as a measure in response to COVID-19.

Measures to be taken regarding the supply chain (4/5): From the company size perspective

In response to the COVID-19 pandemic, what measures has your company taken regarding the supply chain?

1-19 20-99 100 or more

Cost reduction and/or optimisation 60% 67% 63%

Rebuilding relationship with customers 54% 53% 53%

Rebuilding relationship with suppliers 29% 35% 37%

Supply chain network optimisation 17% 23% 36%

Digitisation of supply chain 19% 20% 25%

Design of remotely managed-enabled operations 32% 34% 30%

Other measures 9% 5% 6%

(N=315, m) (N=315, m) (N=875, m)

m = Multiple answers
54
Manufacturing is the industry where the respondents chose digitisation
the least as a supply chain measure in response to COVID-19.

Measures to be taken regarding the supply chain (5/5): From the industry perspective

In response to the COVID-19 pandemic, what measures has your company taken regarding the supply chain?

Wholesale Communications
Manufacturing
and/or retail and/or software

Cost reduction and/or optimisation 66% 65% 58%

Rebuilding relationship with customers 52% 48% 55%

Rebuilding relationship with suppliers 39% 38% 36%

Supply chain network optimisation 35% 38% 30%

Digitisation of supply chain 19% 20% 28%

Design of remotely managed-enabled operations 25% 28% 41%

Other measures 7% (N=467, m) 6% (N=132, m) 6% (N=301, m)

Transportation Other

Cost reduction and/or optimisation 56% 64%

Rebuilding relationship with customers 63% 52%

Rebuilding relationship with suppliers 30% 31%

Supply chain network optimisation 37% 22%

Digitisation of supply chain 21% 24%

Design of remotely managed-enabled operations 21% 33%

Other measures 6% (N=82, m) 7% (N=547, m)

m = Multiple answers
55
Japanese-related companies chose digitisation the least as a supply chain
measure in response to COVID-19.

Measures to be taken regarding the supply chain(6/6): From ownership perspective

In response to the COVID-19 pandemic, what measures has your company taken regarding the supply chain?

Domestic company Japan United States

Cost reduction and/or optimisation 64% 70% 52%

Rebuilding relationship with customers 55% 38% 56%

Rebuilding relationship with suppliers 36% 23% 33%

Supply chain network optimisation 29% 25% 41%

Digitisation of supply chain 22% 13% 28%

Design of remotely managed-enabled operations 29% 32% 32%

Other measures 7% (N=1044, m) 6% (N=125, m) 5% (N=93, m)

Multiple foreign
Europe Other
investors

Cost reduction and/or optimisation 52% 65% 69%

Rebuilding relationship with cutomers 51% 47% 56%

Rebuilding relationship with suppliers 36% 31% 36%

Supply chain network optimisation 34% 18% 36%

Digitisation of supply chain 33% 19% 28%

Design of remotely managed-enabled operations 26% 40% 46%

Other measures 10% (N=99, m) 13% (N=62, m) 5% (N=107, m)

m: Multiple answers
56
C) Impact of the COVID-19 Pandemic
The degree of government assistance, except in Malaysia and Myanmar, is
relatively proportional to satisfaction, and tax reduction is the most
expected support.
Fact Summary

View Fact summary through the survey

• 18% of companies receive a government assistance package and 22% of them reckon the assistance is
Current funding situation

Overall sufficient.

• The degree of assistance is relatively proportional to satisfaction, except in Malaysia and Myanmar.
Country

Company • Companies in wholesale have the highest rate in receiving assistance while telecommunications has the least.
Size/ • There is no difference in tendency among company sizes.
Industry

Domestic/ • 33% of domestic companies think the assistance is insufficient.

Foreign

• In general, 58% of the companies expect to receive tax reduction support from the government in response to the
Expected assistance from

Overall COVID-19 pandemic.

the government

• Majority of companies in all countries (except Singapore and Brunei) expect tax reduction support from the
Country government.

Company • There is no difference in tendency regardless of company size and industry.

Size/
Industry

Domestic/ • More than half of the domestic and foreign-affiliated companies expect to receive tax reduction support from
Foreign the government.

58
Current status of government assistance

18% of companies receive a government assistance package, and 22% of

them think the assistance is sufficient.

Current status of government assistance (1/4): From the overall perspective

Is your company receiving or expecting to receive a government assistance package in response to COVID-19?
Do you consider the assistance package by the government in response to COVID-19 to be sufficient?

(N=1553) (N=1515)

18% 22%

Receive gov’t 48% Gov’t assistance

assistance? 17% sufficient?

64%
30%

Receiving assistance package Sufficient

Expecting to receive assistance package Insufficient
Not receiving assistance package Neither sufficient nor insufficient

59
The degree of assistance is relatively proportional to satisfaction, except
in Malaysia and Myanmar.

Current status of the government assistance (2/4): From the country perspective
Is your company receiving or expecting to receive a government assistance package in response to COVID-19?
Do you consider the assistance package by the government in response to COVID-19 to be sufficient?

Singapore Thailand Malaysia Indonesia

12% 15% 10%

22% 27%
31% 29%
35% 38% 39%
Receive Gov't asst 43% Receive 20% 44% Gov't asst 46% Receive Gov't asst Receive Gov't asst
gov’t asst? 56% sufficient? gov't asst? sufficient? gov't asst? sufficient? 57% gov't asst? sufficient?
68% 21%
13% 41% 52%
29% 20% 34%

(N=158) (N=157) (N=116) (N=113) (N=81) (N=81) (N=166) (N=163)

Viet Nam India Philippines Cambodia

14% 10% 11% 13% 15%

24% 19% 21%
11%
19% 38%
Receive 13% 48% Gov't asst Receive Gov't asst Receive Gov't asst Receive 15% 42% Gov't asst
gov't asst? sufficient? gov't asst? sufficient? 20% gov't asst? sufficient? gov't asst? sufficient?
61%
73% 28% 71% 49% 70%
78% 38%

(N=119) (N=112) (N=662) (N=650) (N=147) (N=138) (N=54) (N=53)

Myanmar Brunei Lao PDR

Receiving assistance package
11% 10% Expecting to receive assistance package
20%
28% 27%
33% Not receiving assistance package
Receive Gov't asst Receive 45% Gov't asst Receive Gov't asst 40%
52% gov't asst? 30%
sufficient? 55% gov't asst? sufficient? gov't asst? sufficient?
9% 64% 60% Sufficient
21% 56% 40%
0% Insufficient
Neither sufficient nor insufficient
(N=29) (N=27) (N=11) (N=11) (N=10) (N=10)

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Companies in wholesale have the highest rate in receiving assistance,
while telecommunications has the least.

Current status of the government assistance (3/4): From the company size and industry perspectives

Is your company receiving or expecting to receive a government assistance package in response to COVID-19?
Do you consider the assistance package by the government in response to COVID-19 to be sufficient?

1-19 Manufacturing Wholesale and/or retail

20% 17% 21% 23%

24% 25%
Receive Gov't asst Receive Gov't asst Receive 42% Gov't asst
46% 50% sufficient?
gov't asst? 15% sufficient? gov't asst? gov't asst? sufficient?
62% 18% 63% 14%
65%
37% 26%
33%

(N=327) (N=319) (N=477) (N=455) (N=133) (N=130)

20-99 Telecommunications and/or software Transportation

20% 14% 18% 18%

22% 23%
Receive Gov't asst Receive Gov't asst Receive Gov't asst
46% 18% 47% sufficient?
gov't asst? sufficient? gov't asst? gov't asst? 15% sufficient? 19%
14%
64% 68% 67% 64%
35% 30%

(N=322) (N=315) (N=300) (N=299) (N=88) (N=85)

100 or more Others

Receiving assistance package

17%
Expecting to receive assistance package
18% 19%
24%
Receive Gov't asst Receive Gov't asst Not receiving assistance package
49% sufficient? 46%
gov't asst? 20% gov't asst? 18% sufficient?
64% 64%
27% 35% Sufficient
Insufficient
(N=879) (N=857) (N=554) (N=545) Neither sufficient nor insufficient

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33% of domestic companies think the assistance is insufficient.

Current status of the government assistance (4/4): From the ownership perspective

Is your company receiving or expecting to receive a government assistance package in response to COVID-19?
Do you consider the assistance package by the government in response to COVID-19 to be sufficient?
Domestic Multinational
Domestic company Japan United States

18% 11%
21% 23% 23%
31%
Receive 46% Gov asst Receive Gov asst Receive 19% Gov asst
gov asst? 18% sufficient? gov asst? 53% sufficient? gov asst?
64% 60% 58% sufficient?
24% 70% 19%
33% 9%

(N=1041) (N=1022) (N=151) (N=135) (N=90) (N=90)

Europe Multiple foreign investors

14% 17%
27% 26%
Receive 18% Gov asst Receive 8% Gov asst
gov asst? 56% sufficient? gov asst? 52% sufficient?
68% 17%
75% 21%

(N=101) (N=101) (N=64) (N=61)

Other
Receiving assistance package
Expecting to receive assistance package
16% 23%
39%
Not receiving assistance package
Receive Gov asst
gov asst? 24% sufficient?
60%
Sufficient
39%
Insufficient

(N=106) (N=106) Neither sufficient nor insufficient

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Expected support from the government

58% of the companies expect to receive tax reduction support from the
government in response to COVID-19 pandemic.
Expected support from the government (1/6): From overall perspective

What response to the COVID-19 pandemic do you expect from the government?
(N=1552, Multiple answers)

Acceleration of mobility between countries

32%
for business people

Mitigation of VISA condition 18%

Financial support for supply chain investment 31%

Salary support 37%

Social security support 28%

Rent support 22%

Tax reduction support 58%

Other 12%

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The majority of companies in all countries (except Singapore and Brunei)
expect tax reduction support from the government.

Expected support from the government (2/6): From the country perspective

What response to the COVID-19 pandemic do you expect from the government?

Singapore Thailand Malaysia

Acceleration of mobility between countries

34% 53% 43%
for business people
Mitigation of VISA condition 24% 34% 21%
Financial support for supply chain investment 30% 26% 44%
Salary support 57% 29% 60%
Social security support 19% 39% 32%
Rent support 42% 18% 39%
Tax reduction support 52% 60% 74%
Other 1% (N=156, m) 3% (N=116, m) 7% (N=82, m)

Indonesia Viet Nam India

Acceleration of mobility between countries

37% 41% 23%
for business people
Mitigation of VISA condition 17% 23% 11%
Financial support for supply chain investment 42% 31% 27%
Salary support 39% 35% 30%
Social security support 46% 28% 20%
Rent support 14% 19% 16%
Tax reduction support 69% 64% 53%
Other 5% (N=167, m) 3% (N=116, m) 22% (N=667, m)
m = Multiple answers
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The majority of companies in all countries (except Singapore and Brunei)
expect tax reduction support from the government.

Expected support from the government (3/6): From the country perspective

What response to the COVID-19 pandemic do you expect from the government?

Philippines Cambodia Myanmar

Acceleration of mobility between countries

36% 41% 34%
for business people
Mitigation of VISA condition 21% 24% 24%
Financial support for supply chain investment 36% 22% 21%
Salary support 46% 22% 38%
Social security support 43% 35% 41%
Rent support 26% 22% 31%
Tax reduction support 67% 54% 55%
Other 8% (N=144, m) 7% (N=54, m) 3% (N=29, m)

Brunei Lao PDR

Acceleration of mobility between countries

36% 20%
for business people
Mitigation of VISA condition 27% 40%
Financial support for supply chain investment 36% 30%
Salary support 45% 20%
Social security support 27% 30%
Rent support 27% 10%
Tax reduction support 18% 60%
Other 0% (N=11, m) 10% (N=10, m)
m = Multiple answers
65
In all company sizes, more than half of the companies expect to receive
tax reduction support from the government.

Expected support from the government (4/6): From the company size perspective

What response to the COVID-19 pandemic do you expect from the government?

1-19 20-99 100 or more

Acceleration of mobility between countries

32% 34% 32%
for business people

Mitigation of VISA condition 19% 20% 17%

Financial support for supply chain investment 28% 32% 32%

Salary support 36% 43% 36%

Social security support 25% 30% 30%

Rent support 32% 24% 17%

Tax reduction support 58% 63% 58%

Other 12% 10% 12%

(N=320, m) (N=322, m) (N=884, m)

m = Multiple answers
66
In all industries, more than half of the companies expect to receive tax
reduction support from the government.

Expected support from the government (5/6): From the industry perspective

What response to the COVID-19 pandemic do you expect from the government?

Wholesale Communications
Manufacturing
and/or retail and/or software
Acceleration of mobility between countries
36% 29% 33%
for business people
Mitigation of VISA condition 22% 17% 17%
Financial support for supply chain investment 32% 32% 34%
Salary support 30% 44% 34%
Social security support 27% 32% 27%
Rent support 16% 24% 22%
Tax reduction support 60% 56% 53%
Other 12% (N=474, m) 11% (N=131, m) 13% (N=303, m)

Transportation Other

Acceleration of mobility between countries

31% 30%
for business people
Mitigation of VISA condition 14% 16%
Financial support for supply chain investment 22% 28%
Salary support 36% 42%
Social security support 15% 32%
Rent support 20% 26%
Tax reduction support 59% 59%
Other 27% (N=88, m) 9% (N=555, m)
m = Multiple answers
67
More than half of the domestic and foreign-affiliated companies expect to
receive tax reduction support from the government.

Expected support from the government (6/6): From the ownership perspective

What response to the COVID-19 pandemic do you expect from the government?

Domestic company Japan United States

Acceleration of mobility between countries

28% 55% 32%
for business people
Mitigation of VISA condition 14% 38% 17%
Financial support for supply chain investment 33% 11% 26%
Salary support 40% 27% 25%
Social security support 29% 28% 20%
Rent support 22% 10% 24%
Tax reduction support 57% 58% 54%
Other 12% (N=1042, m) 6% (N=146, m) 17% (N=92, m)

Multiple foreign
Europe Other
investors
Acceleration of mobility between countries
25% 51% 36%
for business people
Mitigation of VISA condition 16% 23% 27%
Financial support for supply chain investment 34% 28% 34%
Salary support 30% 25% 43%
Social security support 27% 29% 34%
Rent support 29% 25% 21%
Tax reduction support 60% 63% 66%
Other 20% (N=100, m) 11% (N=65, m) 10% (N=107, m)
m = Multiple answers
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ECONOMIC RESEARCH INSTITUTE
FOR ASEAN AND EAST ASIA (ERIA)

Headquarters: Contact person:

The ASEAN Secretariat 70A, Jalan Sisingamangaraja Keita Oikawa
South Jakarta 12110, Indonesia E: [email protected]
T: +6221 7262 991
W: https://www.eria.org/

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