The sixth ANZ Royal Business Confidence Index (BCI) research findings conducted by Kantar TNS recently released reflects the story of two markets, with the confidence of larger corporates holding steady and SMEs expressing lower confidence.
The overall business confidence dropped to 76 compared to 83 in 2015. The aggregate drop in confidence echoes lower expectations for increases in revenue and bottom line profit in the next 12 months.
The slight drop can be attributed to a number of factors including an increase in competition within the market, deterring business from investments in the near term.
Despite the same concerns raised by large-scale companies, their confidence persists.
These positive prospects are fuelled by the “growth” of their business which enhances their ongoing performance and secures room for future expansion. The business community is pleased with Cambodia’s stable economic growth and growing demand from consumers.
Sixth BCI key findings include:
• Increasing number of businesses believe ASEAN Integration has little effect on Cambodia’s market. Positive impacts such as access to a larger market and reduced taxes are still embraced, though associated with stiff competition.
• Despite the rapid emergence of digital in business over the past few years, marketing activities on digital platforms are considered “a little” important with its importance continuing to grow.
• Migration has resulted in labour shortages and loss of consumption, posing challenges to businesses, particularly in the agriculture sector.
• The business community is pleased with Cambodia’s reclassification from lower-income to lower-middle-income economy in 2016, a status believed to attract more investors and to indicate of higher expenditure from consumers.
About the index
The ANZ Royal Business Confidence Index is a measurement of business and economic sentiment in Cambodia. Drawing upon customer data and insights, it’s the first index of its kind and serves as a leading indicator of confidence in the market. ANZ Royal delivers a number of insight-driven initiatives like this to its customers. For example, it just recently hosted its Annual Outlook Conference with the Cambodia Development Resource Institute (CDRI), where industry experts discussed how Cambodia can continue to progress with industrialisation, digitisation, growth and development.