A joint study by UOB Hong Kong and the Hong Kong Trade Development Council reveals that enterprises across the Guangdong-Hong Kong-Macao Greater Bay Area are accelerating expansion into ASEAN markets amid escalating global uncertainties and intensifying tariff pressures. The research indicates 73 percent of surveyed GBA companies intend to fast-track their ASEAN business development, marking a significant strategic shift toward regional diversification.
ASEAN economies continue gaining prominence as key destinations, with Singapore, Vietnam, Thailand, Malaysia and Indonesia emerging as top priorities for GBA enterprises over the next three years. Companies plan to allocate an average of 30 percent additional resources to ASEAN expansion, with Vietnam receiving the highest allocation increase at 47 percent, followed by Indonesia at 37 percent, and Thailand and Malaysia each at 32 percent. Even in Singapore, where GBA enterprises already maintain their largest footprint, respondents intend to commit an average of 23 percent extra resources to accelerate development, particularly in financing and regional office establishment.
The study reports a 25 percentage point year-on-year increase in GBA businesses seeking to expand or maintain sales operations within ASEAN, with 98 percent of surveyed enterprises continuing to target these dynamic markets. This acceleration underscores heightened urgency to navigate intensifying geopolitical and tariff pressures. Notably, 91 percent of respondents intend to expand or maintain ASEAN-based production and sourcing hubs, representing a seven percentage point increase from 2024 and highlighting stronger intent to diversify supply chains and mitigate external risks.
Despite clear momentum, the study identifies significant challenges facing GBA enterprises in ASEAN expansion. Finding suitable local partners remains the most cited obstacle at 47 percent, a figure that has risen by 24 percentage points since 2024. Cultural and language barriers at 46 percent and difficulties sourcing specialist talent at 40 percent have also increased by 23 and 15 percentage points respectively, underscoring the need for trusted advisors and deeper cross-border support.
The research reveals continued progress in sustainability goals among GBA companies, with 83 percent currently implementing green initiatives, slightly up from 81 percent in 2024 and marking a three-year high. Furthermore, 96 percent of respondents plan to increase or maintain ESG funding over the next two years, with 66 percent intending to boost ESG investment, representing a 26 percentage point jump from 40 percent in 2024. The average intended ESG funding level now stands at HK$874,771, nearly double the HK$462,535 recorded in 2024.
Hong Kong's role as a critical platform for GBA enterprises seeking to accelerate ASEAN expansion and strengthen ESG programs is reaffirmed by the survey. The city's superconnector function earns a score of 7.9 out of 10 for connectivity with both GBA cities and the ASEAN bloc. Among the 73 percent of GBA enterprises intending to accelerate ASEAN development, two-thirds have leveraged Hong Kong's platform to advance their expansion. On the ESG front, Hong Kong offers diversified sustainable development solutions, with green services rated at 8.8 out of 10 by surveyed enterprises.
More than 90 percent of respondents are considering or already increasing their uptake of Hong Kong's sustainable development services over the next two years. The most in-demand services include green financial products and services, green financing services, ESG reporting and due diligence, and green asset valuation. The full report is available at https://research.hktdc.com/tc/article/MjIxMDQzMTcwMQ with additional research materials accessible at https://research.hktdc.com/en.
