Business leaders step up cross-border trade, investment amidst heightened volatility

Cross-border expansion rose as AI and ASEAN shape capital allocation decisions.

Majority of business leaders and institutional investors in Singapore are increasing cross-border trade and investment and adjusting capital allocation strategies amidst heightened global volatility, HSBC said.

In a survey,  released 13 April, HSBC found that 95% of Singapore respondents plan to increase cross-border trade or investment over the next five years, compared with 93% globally. It also showed that 91% have recalibrated capital allocation approaches in response to volatility, versus 88% globally.

Based on responses from 3,000 business leaders and institutional investors across 10 markets, including Singapore, which HSBC described as a regional treasury centre and wealth hub.

Technology and artificial intelligence were identified as key drivers of international strategy, with 88% of Singapore respondents citing access to critical technologies and infrastructure as a major influence, compared with 50% globally.

ASEAN was cited as a growing priority by 68% of Singapore respondents, whilst 57% identified mainland China as the most important market for growth.

Globally, 94% of respondents continue to see international growth opportunities, whilst 87% are more willing to take calculated risks than five years ago.

“Volatility is no longer viewed as a temporary disruption but as an anticipated feature of the global economy, a view held by 95% of global respondents and 98% in Singapore,” the report found.

HSBC Singapore head of banking, corporate and institutional banking Gilbert Ng said the findings reflect a structural shift in global investment behaviour.

“The Global Investment Summit survey findings point to more than a reaction to volatility; they signal a fundamental reset in where growth will be created and how it will be captured,” he said.