UOB's FDI Advisory Unit facilitates $27b worth of investments into Southeast Asia
Singapore remains a top investment destination.
Asian companies in the fast-moving consumer goods, natural resources, and building and construction related sectors opt to expand their businesses in the region according to the data presented by United Overseas Bank.
UOB has helped in connecting clients to business and investment opportunities in Southeast Asia. This has attracted more than $27b into the region in 2016, double the amount recorded in 2015. Indonesia, Malaysia, Myanmar and Singapore remain as top investment destinations.
“Companies are planning their Southeast Asia expansion efforts carefully. Many are choosing Singapore as their regional headquarters and then springboarding into other markets. However, we are now seeing more companies invest directly into Indonesia, Malaysia and Myanmar,” said Sam Cheong, managing director and head of UOB’s Foreign Direct Investment unit (FDI).
According to Cheong, Southeast Asia remains as an attractive investment destination due to the opportunities that the region’s rapid urbanisation, major infrastructure projects, rising incomes and increasing consumption create.
This is due to the desire of businesses to capture the opportunities driven by the young population and increased consumption brought about by the rising income in the region.
AOB predicted that the combined gross domestic product of the countries that make up the ASEAN will expand from US$2.5t to US$8.1t by 2030, making it the fourth largest global economy.
Despite long-term positive outlook, Cheong noted the there are distinct challenges companies need to face when investing in the region. The region’s cultural diversity may be challenging for businesses seeking to enter new markets.
“Each market has its own business and cultural practices that must be understood to ensure business success,” Cheong said.