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Southeast Asia: The next hub for multinational companies

July 25, 2022
Business Team
873 views

Located at the centre of the broader Asia-Pacific region, Southeast Asia collectively is the world’s third-most populous economy. Several Southeast Asian countries are well-positioned to be hubs for m

Southeast Asia: The next hub for multinational companies
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Insight

Southeast Asia is the world’s third-most populous economy. Several Southeast Asian countries are well-positioned to be hubs for multinational companies.



What’s driving growth in Southeast Asia


Southeast Asian countries are working to integrate their economies with one another and attract foreign investment through ASEAN.


An untapped consumer market: Southeast Asia will add about 140 million new consumers by 2030.



  • Proximity to China: Southeast Asia has grown in popularity as multinationals seek to diversify their supply chains and take advantage of low-cost labor.

  • A digital moment: Across Vietnam, Thailand, the Philippines, Malaysia, Singapore and Indonesia, the internet economy is expected to approach $360 billion in gross manufactured value by 2025.


A trade partner: Southeast Asian countries have worked to reduce trade barriers within the region and across the globe.


A favourable business environment: Singapore is a valuable digital hub with an independent government, strong legal system, sophisticated digital infrastructure and deep talent pool.




Here in the region, ‘glocalisation’ is the rule of thumb. Businesses are able to navigate local complexities while customising their global offerings.


Mahesh Kini, Head of International Banking Asia Pacific




Challenges in Southeast Asia


Even with the upside of a growing population and positive economic momentum, Southeast Asia still faces challenges in creating a frictionless political economic union.


Each country maintains its own financial regulations, complicating the movement of funds.

Southeast Asia is the world’s third-most populous economy. Several Southeast Asian countries are well-positioned to be hubs for multinational companies.

What’s driving growth in Southeast Asia

Southeast Asian countries are working to integrate their economies with one another and attract foreign investment through ASEAN.

An untapped consumer market: Southeast Asia will add about 140 million new consumers by 2030.


  • Proximity to China: Southeast Asia has grown in popularity as multinationals seek to diversify their supply chains and take advantage of low-cost labor.

  • A digital moment: Across Vietnam, Thailand, the Philippines, Malaysia, Singapore and Indonesia, the internet economy is expected to approach $360 billion in gross manufactured value by 2025.

A trade partner: Southeast Asian countries have worked to reduce trade barriers within the region and across the globe.

A favourable business environment: Singapore is a valuable digital hub with an independent government, strong legal system, sophisticated digital infrastructure and deep talent pool.

Here in the region, ‘glocalisation’ is the rule of thumb. Businesses are able to navigate local complexities while customising their global offerings.

Mahesh Kini, Head of International Banking Asia Pacific


Challenges in Southeast Asia

Even with the upside of a growing population and positive economic momentum, Southeast Asia still faces challenges in creating a frictionless political economic union.

Each country maintains its own financial regulations, complicating the movement of funds.

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