BUSINESS

ASEAN is Top Destination for Greater Bay Businesses’ Global Supply Chain Expansion

Published: Jan. 10, 2025 8:27 a.m. GMT+8, Updated: Jan. 10, 2025 8:27 a.m.

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Pedestrians in front of buildings in the central business district of Jakarta, Indonesia on July 28, 2024. Photo: Bloomberg

Businesses in the Greater Bay Area are increasingly turning to the ASEAN bloc of Southeast Asian countries as their preferred destination for overseas supply chain expansion, according to a recent study.

A survey of more than 600 companies in the Greater Bay Area, which includes Hong Kong, Macao and nine cities in Guangdong province, found that 84% of respondents plan to either maintain or expand their production and sourcing operations within ASEAN, a bloc of 10 Southeast Asian countries with some of the fastest growing economies in the world. This marks a significant increase from 31% a year ago.

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Over 84% of businesses in the Greater Bay Area plan to maintain or expand operations in ASEAN, with Singapore, Malaysia, and Indonesia being top choices.
ASEAN's trade links with China and agreements like the Belt and Road Initiative attract businesses for supply chain expansion due to reduced regulatory concerns.
Hong Kong is pivotal as a trade hub and financing center for companies looking to expand in ASEAN, highlighting its role in managing capital flow and investments.

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Who’s Who

United Overseas Bank: United Overseas Bank (UOB) is a leading bank headquartered in Singapore. It is involved in a study with the Hong Kong Trade Development Council, examining businesses' shift towards ASEAN expansion. UOB's involvement reflects its interest in supporting businesses in the Greater Bay Area, particularly in supply chain operations and financing amid increasing economic ties with Southeast Asia. Adaline Zheng, UOB Hong Kong's chief executive, highlights Hong Kong's role in facilitating these business expansions.

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What Happened When

In 2023：: Only 31% of respondents planned to maintain or expand operations within ASEAN, compared to 84% in the 2024 study.

In 2024：: Businesses are much more optimistic about doing business with the ASEAN bloc, with perceived difficulties significantly reduced compared to 2023.