AHK Asia-Pacific
Business Outlook
Spring 2024

Results of a survey of German Chambers of Commerce Abroad,
Delegations and Representative Offices – AHKs in Asia Pacific1

AHK Asia-Pacific Business Outlook Spring 2024

Business Situation & Expectations of German Companies
in Asia/Pacific (excluding Greater China)
10080
60
40

business situation
business expectation
economic expectations
investment intentions
employment intentions

200-20-40-60-80

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Balance in points: This method has become established forassessing the overall situation. If you calculate the difference
between positive and negative answers, you get a balance thatindicates whether the overall result is positive or negative.

2

AHK Asia-Pacific Business Outlook Spring 2024

Business Situation & Expectations of German Companies
in Greater China (PR China, Taiwan, Hong Kong)
100
80
60
40

business situation
business expectation
economic expectations
investment intentions
employment intentions

200-20

Balance in points-40-60
2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

3

AHK Asia-Pacific Business Outlook Spring 2024

Asia/Pacific (excluding Greater China)
Business Risks in percent
46
47

demand42
42lack of skilled workers
39

exchange rateeconomic policy

31
32
30

supply chain disruptions

commodity prices

22

trade barriers

21
22
20

energy prices

20

financinginfrastructure

35

24
25

labour costs

legal certainty

41

12
11
10
1126

2724

Spring 2024
Fall 2023

4

AHK Asia-Pacific Business Outlook Spring 2024

Greater China (PR China, Taiwan, Hong Kong)
Business Risks in percent
70

demandeconomic policy

34

trade barriers
supply chain disruptions

16

43

29

23
24

lack of skilled workers

19191821

labour costscommodity prices
14

exchange rate

101210910

legal certainty
energy prices
financinginfrastructure

26
2674

242117

Spring 2024
Fall 2023

5AHK Asia-Pacific Business Outlook Spring 2024

Business Situation APAC

Balance in points - difference between good and bad

Fall2022

Spring2023

Fall2023

Spring2024

World total

3540

3133

Australia
P.R. of China
Hong Kong
India
Indonesia
Japan
South Korea
Malaysia
New ZealandPhilippines
Singapore
Sri Lanka
TaiwanThailand
Vietnam50
1432956283325544754
1013542653
5053272214334158
416305024

6-1065242
5022494426
24281255-13273838
14172732442330
191521

Global business situation
60
50
40

average30
20100-10-20
2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

6

AHK Asia-Pacific Business Outlook Spring 2024

Business Expectations APAC

Balance in points - difference between better and worse

Fall 2022

Spring 2023

Fall 2023

Spring 2024

World total

1636

3336

Global business expectations

Australia

20493955

60

P.R. of China

540

16

10

Hong Kong-7262827India

29596659

40

Indonesia

4433425630

Japan

26412551

South Korea

0332431

Malaysia

38646342

New Zealand

15144716

Philippines

48746359

Singapore

737

712-10

Sri Lanka

10365953-20

Taiwan

028

10

14

Thailand

4363

43

42

Vietnam3423752

50

average20
100-302015 2016 2017 2018 2019 2020 2021 2022 2023 2024

7

AHK Asia-Pacific Business Outlook Spring 2024

Local Economic Development Expectations
Fall 2022

Spring 2023

Fall 2023

Spring 2024

World total-30

1-612Australia
P.R. of China-10-31-9
23-22-17-9-13

Hong Kong-2415-3-27India

18575959

Indonesia

8203138Japan-122-11280South Korea-56-16-21-5-10Malaysia

018

1712New Zealand-46-45-18-28

Philippines

750

2245-30

Singapore-114-2-8-40

Sri Lanka

-50

28

1732

Taiwan-370-18

5Thailand

-939

240

Vietnam-3-92740

Global economic expectations
4030
20
10average-20-50-60
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Balance in points (difference between better and worse)

8AHK Asia-Pacific Business Outlook Spring 2024

Investment Intentions APAC

Balance in points (difference between higher and lower)

Fall 2022

Spring 2023

Fall 2023

Spring 2024

World total

9191316Australia
P.R. of China
Hong Kong
India
Indonesia
Japan
South Korea
Malaysia
New ZealandPhilippines
Singapore
Sri Lanka
TaiwanThailand

56
-9-35
46-4

15
1-17
41
33

-70-84015

134-29
41
38

19-21
30
0
22
37-25
3
21
0

13
822-21
44
20-3
18
44
27

1523
33
0
24-3
18
716
26

37-16
24-19
36-21
5-11
212

VietnamGlobal investment intentions40302010average

0-10-20-30-40-50
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

9AHK Asia-Pacific Business Outlook Spring 2024

Employment Intentions APAC
Australia
P.R. of China
Hong Kong
India
Indonesia
Japan
South Korea
Malaysia
New ZealandPhilippines
Singapore
Sri Lanka
TaiwanThailand
Vietnam

Balance in points - difference between higher and lower

Fall 2022

Spring 2023

Fall 2023

Spring 2024

30
16-17
21
2030
4-214540-6-9045
18

15-9-20
31
1943
37
46
838
46-40
2349
2132
28
33
943
16-42554
28

24
30
41
1648
1412-21729

39
1437
1252
1530
71731

Global Employment Intentions
4030
20average

100-10-20-30
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

10AHK Asia-Pacific Business Outlook Spring 2024

Risks for the global economy in the next twelve months
DemandFinancingLabourcosts

Shortage ofskilled labour

Exchangerate

Energy prices

Commodity
Legal certainty
pricesEconomic
policyInfra-structure

Tradebarriers

Supply chain
disruptions

Worldwide

45

23

35

3924

23

24

1943

1117

17

Australia

52

1552

48

27

126124202130

P.R. of China

801225201310121054

330

22

Hong Kong

53

132027713272047040

40India52

142841211421

33103434

Indonesia

3138

1938

13662556

1338

6Japan434184282

1829383627

South Korea

53

1536

2925202215

44

332

19

Malaysia

6124295755

222983142233

New Zealand72

162428

24

16

36036

12448

Philippines

30271934

193930

25

44

38

1938

Singapore

68

856

44

12201642042428

Sri Lanka38

32

174564211396292638Taiwan

60

51025

18825

52382328

Thailand63

191946

29

2127

835

61921

Vietnam38

1910331919191038

1729

33

Figures in percent, multiple answers possible, question: Where do you see the greatest risks in the economic development of your company in the next twelve months?

11AHK Asia-Pacific Business Outlook Spring 2024

Measures implemented / plannedin view of increasing geopolitical challenges
Multiple answers possible, except for "Not and not planned"
Development of new sales markets

49%

Expansion of supplier network

46%

Increase in local investments

39%
29%

23%

Already implemented / in implementation

30%(Additional) in planning
Relocation to new sites

19%

21%

Increase in warehousing

18%

24%

0%

20%

40%

60%

80%

100%

Figures in percent

12

AHK Asia-Pacific Business Outlook Spring 2024

Measures implemented / plannedin view of increasing geopolitical challenges
Multiple answers possible, except for "Not and not planned"
Expansion of Supplier Network

Development of New Sales Markets

Relocation to New Locations

Increase in Investments on Site

Increase in Warehousing

Already implemented/ in implementation(Additional) inplanning

Already implemented/ in implementation(Additional) inplanning

Already implemented/ in implementation(Additional) inplanning

Already implemented/ in implementation(Additional) inplanning

Already implemented/ in implementation(Additional) inplanningWorldwide
Australia
P.R. of China
Hong Kong
India
Indonesia
JapanSouth Korea
Malaysia

47445364

2830
182745
52
35
46

4241
43
54

16
23842

2223
2425

2225
26
33

32
18
210

1715
100

198
171352
36

43
2930
4456
38

37
31

16033
2333
38

35
830
233250
61

31
30
2052
4157

3346371820141536
23

16
14
38

32
41
296168172230

New Zealand

252946

38

82125

17926

Philippines
Singapore
Sri Lanka
TaiwanThailand
Vietnam

4744
47
52
3950

34
32
33
26
29
32

55
68
50
57
45
58

35
36
48
31
39
28

14
20
15
34
16
2126
28
13
20
1426

24
21
33
820
20

31
38
31
23
32
43

14
30
1525
13
18

32
425
51012

Figures in percent

13

AHK Asia-Pacific Business Outlook Spring 2024

Obstacles for diversificationof supply chains and/or sales markets
Multiple answers possible, except for "No obstacles"Finding suitable suppliers / business partners

57%

Increased legal and regulatory problems

84%

16%

40%

High business costs

as follows:

35%

Identifying suitable sales markets

31%

Trade barriers

24%

Finding suitable locations for new production
facilities
No hurdles

Hurdles

Other issues

12%4%

Figures in percent, multiple answers possible

14

AHK Asia-Pacific Business Outlook Spring 2024

Obstacles for diversification of supply chains and/or sales markets
Multiple answers possible, except for "No obstacles"
Share that sees Share that sees Identifying suitableFinding suitable

Finding suitablesuppliers / businesslocations for newpartners

production sites

High business costs

Trade barriers

Increased legal andregulatory problems

Otherno hurdles

hurdlessales markets

Worldwide

1585

2950

1134

24

40

6

Australia

991

33

53

357

30

57

3

P.R. of China
Hong Kong

191581
85

43
27

61
27

13
18

34
27

30
36

30
45

2
9India

2179

39

78

1730

39

43

4Japan198130

63

522

1927

4

South Korea

1882

15

43

947

30

47

2

Malaysia

1486

40

72

942

2335

5

New Zealand

2575

3350

112863311Philippines

1189

2158

1439

1963

4

Singapore

2080

4555

2540

20400

Sri Lanka

1387

36

38

849

26

33

5Taiwan

2080

1653

1628

1931

3Thailand

1387

33

58

1330

1530

8Vietnam

1090

2971

2429

32

47

8

Figures in percent, multiple answers possible

15

AHK Asia-Pacific Business Outlook Spring 2024
How well positioned do you think your company is to deal with international crises
and geopolitical risks, e.g. diversified supplier network, short transport routes,
diversified procurement and sales markets?
APACVery bad1948384BadMediocre
Good
Very good

0%10%20%30%40%50%60%

70%

80%

90%

100%

Worldwide
10%

8

47
10%

20%

30%

3840%
Very bad50%
BadMedium

60%
Good

70%

680%

90%

100%

Very good

Figures in percent, Scale from 1 to 5; 1 = very poor, 5 = very good

16

AHK Asia-Pacific Business Outlook Spring 2024

Robustness of companies
to deal with international crises and geopolitical risks
Very bad
13

Bad
818Medium
4734

Good
38
30

Very good
6150013053
4328436143030301573956
3749553843420622New Zealand00644152494440Philippines
Singapore
Sri Lanka
TaiwanThailand
Vietnam

0060009164211105540486653423436383230382840610Worldwide
Australia
P.R. of China
Hong Kong
IndiaIndonesia
JapanSouth Korea
Malaysia

Figures in percent, Scale from 1 - 5; 1 = very poor, 5 = very good17

Methodology &Questionnaire

18

AHK Asia-Pacific Business Outlook Spring 2024
Business
Situation of Companies in Asia PacificAsia Pacific Countries
Australia, India, Indonesia, Japan, Korea, Malaysia,
New Zealand, Philippines, Singapur, Sri Lanka,Thailand, Vietnam
Including Greater China: P.R. of China, Hongkong,Taiwan

PartnerInAsiaPacific

19

AHK Asia-Pacific Business Outlook Spring 2024

Methodology
The Asia-Pacific Business Outlook is a Special Edition of the AHK World Business Outlook, published May 2024
(Link), a survey of member companies of German Chambers of Commerce Abroad (AHK) conducted twice a year.
Number of responses: In spring 2024 worldwide: 4,300, more than 660 responses in Asia-Pacific countries
Time of conduction: The survey was conducted from 25 March to 21 April 2024.
Set of participating companies:
German companies, branches, subsidiaries and foreign companies with close ties to Germany
Set of question: Six recurring questions to analyse trends plus supplementary questions focussing on diversification
Balance in points: This method has become established for assessing the overall situation. If you calculate thedifference between positive and negative answers, you get a balance that indicates whether the overall result ispositive or negative.
Response Rate: Minimum 20 responses per country needed (Hong Kong and Indonesia less than 20, more than 15)

20

AHK Asia-Pacific Business Outlook Spring 2024

Questionnaire

1. How do you assess the current business situation of your company?
• good• Satisfactory• bad
2. What business development do you expect for your local company in the next
twelve months?
• better• constant• worse3. How do you assess the local economic development over the next twelve
months?
• better• constant• worse4. How do you expect your company's expenditure on local investments todevelop over the next twelve months?
• higher• constant• lower• No investments

5. How do you expect the number of employees in your company to develop
over the next twelve months?
• higher• constant• lower
6. Where do you see the greatest risks to the economic development of yourcompany in the coming twelve months? (multiple answers possible)• Demand• Financing• Labour costs• Shortage of skilled labour• Exchange rate
• Energy prices• Commodity prices• Legal certainty• Economic policy framework• Infrastructure• Trade barriers/favouring domestic companies• Disruptions in the supply chain (e.g. logistics, missing preliminary products)

21

AHK Asia-Pacific Business Outlook Spring 2024

Questionnaire (continued)
7. In view of increasing geopolitical challenges: What measures has yourcompany already implemented and what measures is your company stillplanning? (Multiple answers possible, except for "Not and also not planned")("Already implemented/in implementation", "(Additionally) in planning", "Not andalso not planned")

••
•
•
•
•

Expansion of supplier networks
Development of new sales markets
Relocation of production/branches to new locations
Increase investment at your local siteIncrease in warehousing
Other

8. What obstacles do you see in the diversification of your supply chains and/orsales markets? (Multiple answers possible, except for "No obstacles")•No obstacles•
Identify suitable sales markets•
Find suitable suppliers/business partners•
Finding suitable locations for new production facilities•
High operating costs•
Trade barriers•
Increased legal and regulatory problems (compliance with country regulationsor the Supply Chain Due Diligence Act, etc.)•
Other
9. How well positioned do you think your company is to deal with international
crises and geopolitical risks (e.g. diversified supplier network, short transportroutes, diversified procurement and sales markets)? (Scale from 1 to 5; 1 = verypoor, 5 = very good)

22

AHK Asia-Pacific Business Outlook Spring 2024

Imprint

German Chamber of Industry and Commerce
International Economic Policy, Foreign Trade Law
Publisher and copyright
German Chamber of Industry and Commerce
Postal address: 11052 Berlin | House address: Breite Straße 29 | Berlin-Mitte
Phone 030 20308-0 | Fax 030 20308-1000
Internet https://www.dihk.de/deFacebook https://www.facebook.com/DIHKBerlin/
X (Twitter) https://twitter.com/DIHK_NewsLinkedIn https://de.linkedin.com/organization-guest/company/dihk
Instagram https://www.instagram.com/dihk_official
Youtube https://www.youtube.com/c/DihkDeBerlin/featured
Editorial office Dr. Gabriele Rose and Carolin Herweg
Graphics Sebastian Titze
Picture credits https://www.gettyimages.de

Status June 2024

23

AHK Asia-Pacific Business Outlook Spring 2024

Contact person

Dr. Gabriele Rose
International Economic Relations
Initiative International Resources & Sustainability
Special Representative Asia-Pacific
DIHK | German Chamber of Commerce and Industry
Breite Straße 29 | 10178 Berlin | Germany
Tel +49 156 78 345 218
E-Mail rose.gabriele@dihk.de | www.dihk.de24