<div id="readability-page-1"><div><p>[SINGAPORE] In the decades before the pandemic, South-east Asian exports drove economic growth for the region. However, business leaders here are now looking closer to home for opportunities.</p><p>From the 1980s to the 2000s, exports of goods to markets such as the United States helped to power economies of countries such as Singapore, Malaysia and Thailand.</p><p>More recently, they have also boosted Vietnam’s economic growth as Hanoi capitalises on a restructuring of global supply chains.</p><p><em>The Business Times Insights: Asean Intelligence 2026</em> found that 63 per cent of the 538 business leaders surveyed think the strongest economic opportunities in the next three yearsare in Asean.</p><p>Sixty-two per cent also viewed their domestic markets as offering the most compelling opportunities. China ranked third, with 48 per cent of those surveyed citing it.</p><p>Working with market survey firm Kantar, the BT study polled corporate leaders from different industries in the Asean-6 economies: Singapore, Malaysia, Indonesia, Thailand, the Philippines and Vietnam.</p><div><div><div><h3>Asean Intelligence</h3><p>Get insights into businesses across South-east Asia</p><p>Get the free report</p></div></div></div><p>Asean, now the world’s fifth-largest economic bloc, is poised to become the world’s fourth-largest by 2030, said DBS chief economist Taimur Baig and senior economist Chua Han Teng.</p><p>The economies of Indonesia, Vietnam and the Philippines have expanded by at least 4 per cent annually since 2022, based on World Bank statistics.</p><h2>In the “neighbourhood”</h2><p>Beyond the growth narrative, familiarity and policy are also key contributors to this outlook, said Maybank Securities economist Brian Lee.</p><div><div><div><p>SEE ALSO</p><div><div><div><div><p><img height="2667" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/55cff04dcf415d017b0adf194de121de5082dce950d48de47a674816ee6d677b/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="4000" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/55cff04dcf415d017b0adf194de121de5082dce950d48de47a674816ee6d677b/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>Indonesia leads Asean in AI adoption as demand for sovereign models rises: BT survey</span></h3><p></p></div></div><div><div><div><p><img height="2667" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/afd8a034a49da08663441cfc2bf585a6770c1f34699c67d59791ecf904c9155e/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="4000" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/afd8a034a49da08663441cfc2bf585a6770c1f34699c67d59791ecf904c9155e/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>Asean firms to allocate 81% of investments within Asia, move supply chains to region: BT survey</span></h3><p></p></div></div><div><div><div><p><img height="2667" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/44345b2b81bb58bcf3f0fd424b56af9fe553663e33f6cfbac853ba33e7462d89/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="4000" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/44345b2b81bb58bcf3f0fd424b56af9fe553663e33f6cfbac853ba33e7462d89/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>What will power growth in 2026? Asean business leaders say answer lies close to home: BT survey</span></h3><p></p></div></div></div></div></div></div><p>“Many business leaders surveyed across Asean could have had prior experience in doing business around the region,” he noted, adding that “the region is within their immediate neighbourhood”.</p><p>“The longstanding network for intra-Asia free-trade agreements and bilateral free-trade agreements between China and Asean countries has helped ease investment barriers and strengthen market access,” he said.</p><p>In an investor presentation in March, Philippine conglomerate SM Investments Corporation (SMIC) highlighted that it intends to expand its retail footprint by adding three or four malls this year.</p><p>It also plans to expand its banking operations with branches in underserved areas of the country. The group is the Philippines’ largest integrated real estate developer, and it also owns BDO Unibank, the nation’s largest bank.</p><p>In an e-mail interview with BT, SMIC president and chief executive officer Frederic DyBuncio said the conglomerate’s outlook from March still holds.</p><p>“The Philippines continues to benefit from a strong domestic consumption base,” he noted. “Household spending accounts for about three-quarters of the economy, supported by remittances and a young and growing population.</p><p>“This provides a relatively stable demand environment, even during periods of cost pressure.” </p><p>He added that SMIC remains generally positive on the Philippines, and is investing responsibility to capture the opportunities.</p><p>Apart from its banking, real estate and consumer businesses, the group has been investing in newer segments such as logistics through 2GO, and renewable energy via Philippine Geothermal Production. </p><h2>Opportunity vs trust gap</h2><p>While the region offers many opportunities – which track with the business activity – there are trust hurdles that Asean and some individual economies may need to overcome.</p><p>These are markets that businesses perceive as attractive, but harder to navigate. </p><p>At the regional level, this mismatch of “high opportunity and low trust” is especially pronounced, as the BT survey has found.</p><p>For example, more than 40 per cent of respondents in the Philippines and Singapore said they had low trust in the region, even as they saw “strong” opportunities there.</p><p>Business leaders from Vietnam, Indonesia and Malaysia likewise reported significant levels of thisgap in their sentiments towards Asean.</p><p>Intense competition and rising costs in Asean economies were cited as key contributing factors. Other reasons include the uneven pace of economic development and structural fragmentation within the bloc. </p><p>Domestically, the Philippines had the largest gap between opportunity and trust, with a third of the 46 executives surveyed identifying such a divide in their home market. They cited reasons including rigid local regulations.</p><p>Indonesia came in second, with 21 per cent of the 43 respondents citing a mismatch. They attributed it to factors such as fluctuating exchange rates and rising inflation.</p><p><strong>Gain deeper insights into the future of business and be better informed as you navigate what is ahead with </strong><em><strong>The Business Times Insights: Asean Intelligence</strong></em></p><div><p>Decoding Asia newsletter: your guide to navigating Asia in a new global order. <span>Sign up here to get Decoding Asia newsletter.</span> Delivered to your inbox. Free.</p></div></div></div>

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<p>A recent survey by The Business Times reveals that 63% of business leaders in Southeast Asia see strong economic opportunities in the Asean region over the next three years, with domestic markets viewed as most compelling. However, a significant trust gap exists, particularly in the Philippines and Singapore, where over 40% of respondents expressed low trust despite recognizing opportunities. Factors such as intense competition, rising costs, and regulatory challenges contribute to this disparity.</p>

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‘High opportunity, low trust’: Why firms see Asean market as attractive but not easy to navigate