Some 79 per cent expected their businesses to expand in Asean in the next two years (up from 73 per cent last year), due largely to increasing market share, grater potential for business growth and lower production costs. But only 50 per cent (17 per cent fewer than last year) expected to expand their workforce this year in Thailand specifically.

Factors cited as contributing to stagnation of economic expansion in Thailand included worries about government stability (up more than 25 per cent from last year), general concern about laws and regulations (up 16 per cent), corruption, local protectionism and burdensome tax structures.

These were the conclusions of the 2007 Asean Business Outlook survey conducted by the American Chamber of Commerce (AmCham) in Thailand. More than 1,600 AmCham members in six Asean nations were surveyed.

However, respondents reported being highly satisfied with the quality of life and low-cost labour and moderately satisfied with the Kingdom's infrastructure, availability of raw materials and trained personnel, cost of office space and the free movement of goods within the region.

"Thailand continues to be a good place for US businesses, but it needs to ensure that its policies and economic direction remain competitive with its regional neighbours," said executive director Judy Benn.

"AmCham Thailand looks forward to continuing to work closely with the Thai government on issues of concern to American investors, particularly on ensuring transparency and consultation with all stakeholders, as decisions are made which affect US businesses in Thailand."

The US is the second-largest source of foreign direct investment in Thailand.

Overall, respondents were bullish about the global and Asean economies. American businesses in Asean were optimistic about the global economy, with 43 per cent expecting it to do better this year and 46 per cent expecting it to perform at least close to last year's levels.

Additionally, 62 per cent of respondents believed Asean's importance to the global economy was increasing and indicated that the region would be more important to their company's revenues in the next two years.

Key reasons cited included the recovery of the economy, improvements to infrastructure and limited growth opportunities in other regions.

Factors cited as negatively impacting US businesses in Asean, excluding Singapore, included corruption, protectionism and governance concerns.