ASEAN – The future starts here

HSBC aims to be where the growth is. We enable businesses to thrive and economies to prosper, helping people fulfil their hopes and realise their ambitions. This is how we could help you in Association of Southeast Asian Nations (ASEAN).

Why ASEAN?

Opportunities surrounding the ASEAN region

Already an economic force, the ASEAN region looks set to emerge as the world’s third largest economy by 2030, with analysts predicting GDP will more than triple by that time1. An increasingly affluent population with a fast-growing middle class and– not to mention half the population is under 292 – consumer spending is also on the rise and is expected to US$2.3 trillion per annum by 20203. Today, more than 220 leading MNCs are headquartered within the region4, taking advantage of one the 21st century’s most exciting economic opportunities.

Why now?

Now more than ever, leading companies from all over the world are looking to grow their presence in Southeast Asia, eager to take advantage of business opportunities as the region continues to gain economic strength.

  • The birth of the ASEAN Economic Community (AEC) has created US$2.5 trillion with 625 million people, making it the world’s biggest free trade bloc by population and a G7 economy in GDP terms (HSBC research 2015)
  • ASEAN GDP quadrupled in US dollar terms between 2000 and 2015 and ASEAN’s growth opportunity remains huge (HSBC research 2015)
  • ASEAN services exports to China soared 19% year on year in 2015. The lion’s share of ASEAN economic output is in services (HSBC research 2015)
  • A massive 86% of US businesses operating in ASEAN expect to increase current levels of trade and investment in the region over the next five years (ASEAN Business Outlook Survey 2015)
  • ASEAN infrastructure investment is expected to run at US$110 billion per annum in the decade to 2025 (UNCTAD 2015)
  • ASEAN economies link a two-way trade universe worth US$20 trillion (World Bank 2015)
  • The international flow of goods and services is forecast by McKinsey Global Institute to hit US$85 trillion in 2025, from US$28 trillion in 2012 (Mckinsey 2015)
  • ASEAN exports are expected to see a CAGR of 5.5%, ahead of NAFTA’s 4.7%, the European Economic Area’s 3.5% and the Trans-Pacific Partnership’s economies’ 4.4% (Oxford Economics 2015)
  • ASEAN economies are part of trade liberalisation efforts that are driving a substantial increase in global flows:
    • Full implementation of AEC liberalisation reforms could add 5% to the bloc’s GDP by 2030 (HSBC Research 2015)
    • The Trans-Pacific Partnership could boost trade between member economies by more than 10% and raise GDP by 1.1% or more (HSBC Research 2015)

Fast growing trade corridors

ASEAN markets' connection to some of the world’s fastest growing trade corridors

*Forward-looking statements are, by their nature, subject to significant risks and uncertainties. Views, opinions, trends and prices are subject to change without notice and are expressed solely as general market commentary and do not constitute investment advice or guarantee of returns.

ASEAN’s markets connect to some of the world’s fastest-growing trade corridors, facilitating growth for companies not just in the Southeast Asia region, but all over the world.

According to the World Bank, Southeast Asia’s economies linked a two-way trade universe worth US$20 trillion last year5, and its expected the international flow of goods and services will hit US$85 trillion in 2025, rising from US$28 trillion in 20126. Similarly, ASEAN exports are expected to see a CAGR of 5.5%, ahead of NAFTA's 4.7%, the European Economic Area's 3.5% and the Trans-Pacific Partnership’s economies’ 4.4%7.

The economies of ASEAN are part of trade liberalisation efforts that are driving a substantial increase in global flows, and full implementation of the AEC reforms expected could add 5% to the bloc’s GDP by 2030. Meanwhile, the Trans-Pacific Partnership could boost trade between member economies by in excess of 10% and raise GDP by 1.1% or more8.

Footnotes:

  1. HSBC, Global Insights, 2015
  2. ASEAN Secretariat statistics 2015
  3. Accenture ASEAN Consumer Research, 2005
  4. McKinsey, Understanding ASEAN, 2015
  5. World Bank 2015
  6. McKinsey 2015
  7. Oxford Economics 2015
  8. Both sets of statistics from HSBC Research 2015

Disclaimer:

This document is issued by The Hongkong and Shanghai Banking Corporation Limited (HSBC), Singapore Branch. The information contained herein is intended for general information and derived from sources we believe to be reliable, but which we have not independently verified. HSBC makes no representation or warranty (express or implied) of any nature nor is any responsibility of any kind accepted with respect to the completeness or accuracy of any information, projection, representation or warranty (expressed or implied) in, or omission from, this document. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. Any information (including market date, prices, values or levels) contained here are indicative only and any examples given are for the purposes of illustration only and may vary in accordance with changes in market conditions. The opinions in this document constitute our present judgment, which is subject to change without notice. We are not obliged to enter into any actual trade with you based on the any information contained herein. This document does not constitute an offer or solicitation for, or advice that you should enter into, the purchase or sale of any security, commodity or other investment product or investment agreement, or any other contract, agreement or structure whatsoever. The document is intended to be distributed in its entirety. No consideration or advice has been given to the particular investment objectives, financial situation or particular needs of any recipient, you should conduct relevant due diligence and analysis, and seek necessary independent professional advice. Unless governing law permits otherwise, you must contact a HSBC Group member in your home jurisdiction if you wish to use HSBC Group services in effecting a transaction in any investment mentioned in this document. This document must not be copied, transferred or the content disclosed, to any third party and is not intended for use by any person other than the intended recipient.

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The rail way to track growth in Asean

Within six months, billions of dollars in railway projects will have been announced or started between some of Asean’s largest economies and China.

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