Global recovery bodes well for Asia-Pacific tech firms

  • Business
  • Wednesday, 25 Feb 2004

FINANCIAL advisory and professional services provider Deloitte says the Internet, wireless technologies and nano-technology companies from the Asia-Pacific stand to benefit most from the improving global economic outlook. 

It said a recent Deloitte Touche Tohmatsu Asia Pacific Technology Fast 500 CEO survey found that Asia-Pacific companies had emerged from the technology crash stronger, and were ready to successfully face future challenges and record continued growth. 

“Our survey shows that the tech-crash is now a memory. Lessons have been learned, and Asia-Pacific technology companies are poised for a new era of sustainable growth,” Robert Tan, a partner at Deloitte, said in a statement issued by Deloitte Kassim Chan in Kuala Lumpur yesterday. 

Tan said the survey found that those companies that had been successful in navigating the increasingly competitive global marketplace had concentrated on the solid fundamentals of business – sales growth, sustainable profits and generating adequate cash flows to underpin their expansion. 

The survey, which involved CEOs from 10 markets in the region, was part of Deloitte's Asia Pacific Technology Fast 500 Programme that ranks fast-growing Asia-Pacific technology companies based on percentage revenue growth over a three-year period. 

The CEOs surveyed were from the winning companies. 

Deloitte said the CEOs were positive about the future with more than eight of 10 respondents expressing high confidence in their companies sustaining high level of growth over the next 12 months. 

Forty per cent of the CEOs also agreed that Internet applications would remain the fastest growth area over the next 12 months. 

The wireless segment was also considered prime by 26% of the CEOs, and reflected in certain technologies, particularly 3G with its breakthrough mobile applications. 

Nano-technology meanwhile, was anticipated to be an area providing the greatest potential for growth in the three-year outlook, with 26% of the respondents regarding it as such, Deloitte said. 

More than a quarter of the CEOs also regarded competition from China and India as the biggest threat to economic recovery in their Asia-Pacific neighbours. 

Despite the high confidence levels for future growth in the Asia-Pacific, the CEOs however still remained cautious about several challenges in their field.  

Among them were the development of strong sales and marketing strategy, keeping up with technological advances, and the rapid market changes. 

Attracting and retaining the right people was also regarded as the biggest operational challenge by 18% of the CEOs. – Bernama 

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