Business leaders optimistic on Asia-Pacific region, Grant Thornton says

However, political uncertainty, regulatory red tape and a shortage of skilled workers are still hampering business sentiment in the Kingdom, it says.

Edward Nusbaum, global chief executive officer of the firm, said the purchasing power of people in China and Asean had increased in recent years and the increase of the middle class population could only spell good fortune for the region.

"China in particular has a |growing middle class, increasing wealth, higher salaries, higher spending levels and willingness to spend," he said.

"We are also seeing the rise of imports in China, and this trend is expected to continue from the rising of its middle class," he added.

Asean is very attractive for investment and there will be a huge trade flow under the circumstances, Nusbaum said. Bangkok is seen as a hub for this investment and establishment of businesses in the region because of regulatory ease when compared with its rivals in the region.

Thailand will be a major player in driving the regional economy, he added.

Business leaders’ optimism in Thailand is higher than for China as the latter’s economy is on a downturn. As well, business sentiment in Thailand has not been unduly affected by political uncertainty.

Business confidence, exports and profitability in the Asia-Pacific region have strengthened according to the "Grant Thornton Business Report", based on a quarterly global survey of more than 2,600 business leaders. Business optimism in the region rose to 31 per cent in June from 27 per cent three months earlier, while optimism in Thailand increased from 27 per cent to 36 per cent in the same period.

Nusbaum said the Thai educational system was more effective than in the majority of the countries in the region, making investors and businesses more confident in the country’s qualified workforce and production ability. However, there is still a significant lack of skilled labour.

Andrew McBean, partner of Grant Thornton in Thailand, said: "The lack of skilled workers occurred due to the higher demands of the workforce, not because of the quality of education, but development is still required on a regular basis."

He noted that Thailand was shifting from low-cost manufacturing to value-added production, and that had led to high demand for skilled workers as companies try to transform to the new production perspective and adjust their image with greener and higher-quality products.

The overall regional outlook is extremely positive, McBean said, and the potential of the AEC has shined a spotlight on the region that made it more visible to foreign investors."The business leaders in the foreign countries where we hold the conference are confident about the overall economy, available opportunities, and collaboration between the countries at present and also the in next five years," he said.

The conference has been held in Japan, China, Australia, New Zealand, and India.