SSINGAPORE - Singapore retained its top spot as Asia's favourite business expansion destination, according to a UOB survey.

One third, or 32 per cent, of the 2,500 business leaders surveyed said they would choose the Republic as the market to expand into in the next three to five years.

Coming in second was Japan (29 per cent), followed by Vietnam (28 per cent). China was 9th placed with 22 per cent.

The Asian Enterprise Survey was first conducted in 2014 and is now in its second edition. It polled mid-cap companies in six markets - China, Hong Kong, Indonesia, Malaysia, Singapore and Thailand.

The poll also found that China continues to be the top expansion destination for Singapore companies, similar to 2014 findings. Of the 300 Singapore companies surveyed, 56 per cent are already doing business or operating in China.

Poll results also showed that rising costs, increasing competition and falling consumer demand are the main factors weighing on business growth in the region.