ASEAN expansion accelerates for 73% of GBA firms: study

Singapore draws a further 23% uplift for financing roles and regional HQ functions, the survey shows.

73% of enterprises in the Guangdong–Hong Kong–Macao Greater Bay Area (GBA) plan to accelerate business development in ASEAN, according to UOB Hong Kong and the Hong Kong Trade Development Council.

Over the next three years, respondents most frequently cited Singapore, Vietnam, Thailand, Malaysia, and Indonesia as priority markets, and said they expect to allocate an average of 30% additional resources to ASEAN expansion, with the largest increases directed to Vietnam, Indonesia, Thailand, and Malaysia.

According to the study, firms’ ASEAN strategies are primarily focused on driving sales growth, particularly in Thailand, Vietnam, and Indonesia, while also expanding production and sourcing bases. Vietnam, Thailand, and Malaysia were identified as the leading destinations for production and sourcing activities.

Singapore, where many respondents already have an established presence, continues to attract additional investment, with companies planning a further 23% increase in resources, mainly for financing functions and regional office operations.

Sales operations remain a key priority, the study found. It reported a 25 percentage point YoY increase in firms seeking to expand or maintain sales operations in ASEAN, with 98% still targeting the region as a sales market.

At the same time, 91% of respondents said they intend to expand or maintain production and sourcing hubs in ASEAN, up seven percentage points from 2024.

The study identified finding suitable local partners as the most commonly cited challenge to ASEAN expansion, reported by 47% of respondents.

Cultural and language barriers were cited by 46%, while 40% pointed to difficulties in sourcing specialist talent. All three challenges increased significantly compared with 2024, according to the report.

On environmental, social, and governance issues, 83% of respondents said they have green initiatives underway, compared with 81% in 2024.

The study said 96% plan to increase or maintain ESG funding over the next two years, with 66% intending to boost investment. Average intended ESG funding for the period was $874,771, nearly double the level reported in 2024.

Respondents rated Hong Kong 7.9 out of 10 for connectivity with GBA cities and ASEAN, and 8.8 out of 10 for green services, according to the study.

It also said two-thirds of firms accelerating ASEAN development have leveraged Hong Kong’s platform, while more than 90% are considering or already increasing their use of Hong Kong’s sustainable development services, including green finance and ESG-related offerings.