16 January 2015

CIMB shares regional strategies for joining the ASEAN Economic Community

Source: CIMB. Chairman of CIMB
Group YBhg Dato' Sri Nazir Razak
(right) and Director, Southeast Asia
of The Economist Intelligence Unit
Justin Wood showcasing the
special report Re-drawing the
ASEAN Map: How companies are
crafting new strategies in
Southeast Asia. 
CIMB has launched Re-drawing the ASEAN Map: How companies are crafting new strategies in Southeast Asia in collaboration with the Economist Intelligence Unit (EIU). The report, an independent management brief co-sponsored by CIMB and Baker McKenzie, is aimed at preparing companies for the pending unveiling of the ASEAN Economic Community (AEC) on 31 December 2015.

Justin Wood, Chief Economist and Director for South-East Asia at the Economist Corporate Network, part of the EIU, said, “We surveyed 170 business leaders running companies in ASEAN for this report. Of those companies, 76% now have a strategy in the region that is specifically oriented around the ASEAN bloc. Most companies in our survey are clearly taking steps to organise themselves around the unfolding economic liberalisation and integration in South-east Asia. 

"Interestingly, though, non-ASEAN companies are much more likely to have an ASEAN-oriented strategy (81%) than local companies (only 55%). The big global multinationals are further along in recognising the significance of the ASEAN story and are positioning themselves to benefit from ideas like achieving scale in the region, consolidating operations and manufacturing, and exploring how product and service strategies, as well as sales and marketing strategies can be harmonised and regionalised.”

Dato' Sri Nazir Razak, Chairman of CIMB Group said, "The independent findings of the report further reinforces the importance of ASEAN as an economic region, and validates our decision as a bank to fully-embed ourselves in and across ASEAN. Foreign multinationals are very much aware of the potential that the region represents and local companies really need to step up their game. Generally speaking, local companies in ASEAN countries have an incumbent advantage but need to clearly define their strategy to both realise the opportunities and face the challenges of ASEAN liberalisation and the increased competition that this brings to the table.”

“CIMB has prepared for ASEAN. We have more research analysts on-the-ground in every country, a diverse staff force of over 41,000 individuals in every market across the region and the most extensive network of branches and ATMs. I would say that in terms of advisory, investment banking, trade finance, treasury and markets capabilities, we are best placed to advise any company located in an ASEAN country on how best to strategically leverage the potential of the region."