HSBC has launched a USD1 billion ASEAN Growth Fund in Southeast Asia, where it said the digital economy is among the world’s fastest-growing; worth USD218 billion in 2023 and expected to reach USD600 billion by the end of this decade at a
compound annual growth rate of 16%.
“Like so many other internationally minded businesses, we are excited about ASEAN’s booming digital economy,” said Dato’ Omar Siddiq, Chief Executive Officer, HSBC Malaysia. “With a working population that is digitally native, increasing in size, and poised to consume more goods and services – especially on e-commerce – ASEAN has so much potential for growth. We are delighted to work with digital companies as they expand in the region and beyond.”
The fund will provide lending to companies that are scaling up through digital platforms across Southeast Asia and supports new economy names, more established corporates, and non-bank financial institutions by assessing operating metrics tied to their cashflow-generative asset portfolio, rather than relying solely on traditional financial metrics.
The six highest growth countries in ASEAN are: Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam. The bank also has a presence in all six countries.
Accordingly HSBC said it surveyed 600 companies operating in Southeast Asia and found that “digitalising operations” is a key business priority, selected by 55% of Malaysian respondents. Other priorities include “growth in ASEAN” (59%) and “product development / research and development” (33%).
