Nearly half (46%) of Southeast Asian respondents expect their region will generate the most growth prospects and opportunities for their organization in the next three years. Other geographic regions that are expected to generate growth opportunities are India (18%), Japan (15%) and Oceania (11%).
Unsurprisingly, given the trajectory of growth and opportunities, the top five investment destinations among Southeast Asian companies are: India, Singapore, Japan, Thailand and China. An overwhelming 95% of respondents indicate that they are targeting cross-border deals.
The main strategic drivers for M&A include issues relating to regulations, tariffs and trade flows (24%), strengthening technology, talent and new capabilities (24%), and growth into adjacent business sectors or activities (22%). For global organizations, Southeast Asia’s draw appears to stem from its attractive market as well as the global supply chain rebalancing.