Singapore, Malaysia, Vietnam and Thailand are most popular investment destinations, finds poll of 657 firms by the Hong Kong Trade Development Council and UOB
660 million population and China ties are part of region’s draw. Malaysia lures consumer goods, Thailand industrial products and Singapore financial services
About six in 10 businesses in the Greater Bay Area are planning to boost investments and further their operations in Asean countries over the next three years as firms eye the region’s rich resources and huge market, according to a new trade report.
Within the Association of Southeast Asian Nations (Asean) bloc, Singapore, Malaysia, Vietnam and Thailand are the most popular investment destinations and trade is seen as likely to concentrate in these four economies in the years to come.
The report by United Overseas Bank (UOB) and the Hong Kong Trade Development Council, launched on Monday, was based on a poll of 657 firms headquartered in the Greater Bay Area, with data collected from July to September.
Enterprises from sectors including consumer goods, financial services, real estate, hospitality and construction were asked to rate their keenness to invest or expand operations in the countries, with 1 being “extremely unlikely” and 10 being “extremely likely”.
Asean stood out as a viable investment destination primarily for its cost effectiveness, the report said. Also, with a combined population of 660 million people, the region offers a huge, growing market. Other reasons included good China-Asean trade ties as well as attractive local government incentives, the report said.
“The presence of a young population, rapid economic development in recent years and the emergence of the middle class has made Asean a market with enormous potential for Greater Bay Area-based businesses,” it added.