KUALA LUMPUR: Malaysia ranks joint third with Thailand among ASEAN markets targeted for expansion by European businesses, with 49 per cent of respondents planning to expand their operations or investments in the country over the next five years.
According to the European Union (EU)-ASEAN Business Council’s (EU-ABC) 12th Business Sentiment Survey 2026, Vietnam records the highest expansion intention at 64 per cent, followed by Indonesia at 57 per cent, while Singapore and the Philippines register 44 per cent and 43 per cent, respectively.
The survey said Malaysia and Thailand form a second group of established expansion markets after Vietnam and Indonesia, with more than 70 per cent of respondents already operating in both countries, while 20 per cent of those not currently present in Malaysia are considering entering the market.
In a statement today, EU-ABC executive director Chris Humphrey said European businesses remain committed to ASEAN despite global uncertainties.
"The global situation has certainly proved challenging, but European businesses have shown a firm commitment to ASEAN.
"Investment appetite has increased, with most companies planning to expand within the region. That tells us ASEAN remains central to business growth, even as companies rethink their investment and operational strategies,” he said.
While the survey found that non-tariff barriers, regulatory unpredictability and burdensome customs procedures remain key constraints, ASEAN still emerged as the leading destination for supply-chain shifts, considered by 67 per cent of relevant respondents, ahead of South Asia at 29 per cent and China at 24 per cent.
Humphrey said this points to an untapped opportunity for ASEAN, which has strong fundamentals as an attractive supply-chain hub, including market heft, a strategic location and regional connectivity.
"Addressing regulatory and cross-border frictions will strengthen market integration, allowing businesses to derive greater value from ASEAN’s combined scale and encouraging more commercial activity,” he added. - Bernama
