Challenging the widely held view that the purchase of big-ticket items by companies across Asia will help fuel loan demand, a survey has found that most businesses are planning to make do with their existing facilities for the next year. The joint survey, conducted last month by investment bank JP Morgan and research firm East and Partners, of 840 large companies in Northeast and Southeast Asia found no significant change in their capital expenditure plans from five months ago. Most economists and analysts are expecting companies to begin spending money on plant and facilities to expand as the economy improves, which would drive a rebound in general loan demand. However, JP Morgan managing director and banking analyst Scott Christensen said that structural changes in the market, including trends towards funding corporate expansion through internal cash or directly from the bond markets, meant corporates would no longer drive credit demand. 'The investment cycle turning in Asia isn't going to give us the 20-plus per cent growth in credit that we were seeing in the early and mid-1990s,' he said. Instead, pick up in credit demand is likely to come in the form of consumer loans, including mortgages, credit cards and from small and medium-sized enterprises. The survey found that 45 per cent of companies in Northeast Asia - which includes China, Hong Kong, Taiwan and South Korea - did not plan to spend more on capital expenditure in the next 12 months. This was virtually unchanged from the last survey, carried out in March. Only 23 per cent said they planned to boost capital expenditure, down 4 per cent. The number of respondents not planning to take out new loans or extend existing credit lines in the next 12 months fell to 47 per cent from 51 per cent. However, the survey also found that 47 per cent of these loans will be used for refinancing purposes. Moreover, banks in the four countries could face stiff repricing, with 36 per cent of respondents saying they are likely to switch to a new banker for credit. The picture for Southeast Asia - consisting of Indonesia, Malaysia, the Philippines, Singapore, and Thailand - was slightly more upbeat, with more than 43 per cent of those surveyed saying they will increase their capital expenditure, up from just under 40 per cent.