Asia's smaller companies to recapture past growth
This year's list of the best small- and midsize companies throughout
the Asia Pacific region is chock-full of survival stories and lessons
for entrepreneurs. Unprecedented dislocations in the global economy
disrupted supply chains over the past 12 months, froze lines of credit,
depleted consumer coffers and sent business spending into hibernation.
The 64 companies returning from last year are a testament to fearless
management; 136 new entrants have seized opportunities arising from the
economic uncertainty.
John Keells (JKH) is listed under the "200 Best Under a Billion"
companies in Asia Pacific. JKH is the only Sri Lankan company to be
listed.
The 78 China-Hong Kong companies, is the biggest yet and up 15 from
last year. Relative economic strength on the mainland played a part, as
does an increasing presence thereabouts of retailing, apparel, Web
advertising and health care. Together, consumer-focused industries
accounted for 102 companies on the list this year, compared to 78 in
2008 and 67 on our first edition in 2005.
How tough of a year was it overall? Roughly 600 companies passed our
criteria for profitability, growth, modest indebtedness and future
prospects this year, down from over 1,000 in years past.
Challenges remain. Though developed economies have begun to emerge
from recession, consumers, particularly in the US, remain weakened by
rising unemployment. Its seen in the dwindling count of
consumer-electronics parts suppliers from Taiwan, which registered only
16 companies this year compared to 25 in 2008, and 41 two years ago.
Consumption will fare better in Asia, and not just in China as the rest
of the region rebounds.
Through August 31 last year's selections had outperformed their
benchmark FTSE Small Cap Asia Pacific stock index by 26.4 percent to
17.3 percent. That's including one that got away: Shares of machine-
tool maker Produce Co. went to zero when the company was delisted
following a raid on its headquarters by Japanese Securities and Exchange
officials, looking into financial misstatements, just after we wrapped
up. Forbes Asia Magazine
|
