HSBC: Asean gearing up for next wave of Chinese tech investment

  • Business
  • Wednesday, 05 Jun 2019

KUALA LUMPUR: Asean’s digital economy is projected to exceed US$200bil by 2025 and many Chinese companies are looking to capitalise on this potential, said HSBC Malaysia, quoting a Google/Temasek report.

HSBC Malaysia chief executive officer Stuart Milne said Chinese companies had signalled their intention to expand, and Asean seemed keen to reciprocate.

“Asean’s urbanisation, digital adoption and consumer growth make it an attractive investment destination. However, its geographic diversity, ease of business, and different foreign investment laws can sometimes make it a tough nut to crack,” he said in a statement.

The digital marketplace is both an opportunity and a challenge to businesses as it brings both customers and competitors to corporate doorsteps. Investment and growth-hungry local companies are alive to the commercial opportunities spinning out of Asean’s burgeoning digital consumers as well, seeing the potential of China’s tech companies as potential partners or investors. But the competition for funds is heating up, he said.

“Attracting investment requires setting up the right environment, culture, and mindset within the company to actively seek technology disruption before it gets thrown upon you.

“More specifically, this means adopting an open and digital-first mindset to engage the tech community, encouraging innovation, and being open to new ideas.It also requires an openness to see investors as partners who can drive a business to higher levels of growth and performance,” Milne added.— Bernama

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