More Canadian companies than ever are planning new or expanded investment in Asia over the next few years to build or maintain their stake in the booming markets of the region, according to a survey released today by the Asia Pacific Foundation (APF Canada).

Two thirds of Canadian companies responding to the seventh annual Asian Investment Intentions Survey expect to increase their investment in Asia over the next 12 months.

Even more companies, — an overwhelming 82% — say they expect to put more capital into the region over the next five years, and more than half expecting to boost their investment “substantially” over the longer period. This is a far higher proportion than recorded in any previous survey, APF Canada says.

Overall, companies surveyed are more bullish on Asian investment than at any time in the seven years that the foundation has undertaken the study, with 30% of respondents expecting to boost their Asian holdings substantially in the coming year. Last year the comparable figure was 23%.

None of the companies surveyed expected to reduce their Asian exposure in the coming year.

The study found that the emergence of China has had a substantial impact on the planning or activities of 37% of the respondents, while another 39% said China’s growth has had “moderate” impact.

The survey shows that the top destination for new Canadian investment in Asia remains China, the likely target of 26% of potential investment. If projects planned for Hong Kong and Taiwan are added, 35% of all the investment likely in Asia is targeted at the Greater China region. Southeast Asia follows, but with less than half that proportion. This continues a trend toward greater investment in China and less in Southeast Asia observed in previous surveys.

The largest proportion of likely new investment will go into new or existing facilities, a steady trend observed over the past few years. Expansion by way of mergers and acquisitions is seen as a possibility by only 20% of respondents.

The survey, sent to 601 companies that already have a physical presence in Asia Pacific, was carried out between mid-December and the end of January. The comparison is with a similar survey of 113 respondents a year earlier.

APF Canada is Canada’s leading independent resource on Asia and Canada-Asia relations.