Business Investment Picks Up In Emerging Markets, Says Survey

KUALA LUMPUR, July 2 (Bernama) -- Businesses, especially in emerging markets, are more inclined towards taking a longer-term approach to growth, by increasing levels of investments, said a survey by the independent assurance, tax and advisory firm, Grant Thornton. The International Business Report (IBR) said the proportion of businesses globally had witnessed an increased investments in new buildings as well as plant and machinery, from 15 per cent to 21 per cent and 35 per cent to 38 per cent, respectively, over the past 18 months. SJ Grant Thornton managing partner, NK Jasani, said 62 per cent of business owners in Malaysia had indicated in the survey that they planned to increase investments in new plants and machinery. "It is encouraging to see dynamic businesses willing to adopt bolder, long-term growth plans, which would help them in their long-term competitiveness," he said in a statement on Monday. Meanwhile, 15 per cent of the surveyed businesses in China were now looking to increase investment in research and development, while 14 per cent in Mexico planned to boost investment in plant in machinery and 12 per cent in Turkey planned to invest in new buildings. "The IRB results should act like a wake-up call to businesses in developed economies because while they are sitting on their cash, their emerging market counterparts are investing in their future. "Even in tough times, businesses need to be forward thinking, keep pace with their competitors and invest in their companies' future," it said. -- BERNAMA