The United Overseas Bank has conducted the Asian Enterprise Survey of 2014 and findings show that China remains the top destination for business expansion in Asia but Singapore is not too far behind. Malaysia took second place while Singapore and Vietnam are in joint third position as destinations for regional companies to expand.

The survey was conducted among 1,024 business leaders across six markets in Asia. It explored what steps Asian enterprises are taking for their next stage of growth, any expansion strategies and which markets within Asia are most favored.

One of the factors driving Asian enterprises to expand abroad is increasing labor costs so many are expanding into countries with lower costs to sustain profitability. Meanwhile for Chinese enterprises, many are choosing to stay in their domestic market as they are fully aware of the growth potential. 32% named mainland China, according to the UOB. Singapore appealed to 24% while other choices included Malaysia at 27% and Vietnam with 24%.