Terry KS A new joint study by UOB Hong Kong and the Hong Kong Trade Development Council shows enterprises across the Guangdong-Hong Kong-Macao Greater Bay Area are accelerating expansion into ASEAN to counter global trade uncertainties and tariff pressures. The report highlights stronger commitments to supply chain diversification, sales growth, and ESG investment, with Hong Kong positioned as a key gateway and superconnector.
MALAYSIA, 15 JANUARY 2026 – Enterprises across the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) are stepping up their expansion into ASEAN markets as global trade uncertainties and tariff pressures intensify. A new joint study by UOB Hong Kong and the Hong Kong Trade Development Council (HKTDC) reveals a heightened sense of urgency among GBA companies to strengthen growth and supply chain resilience through deeper ASEAN engagement.
According to the study, 73 percent of GBA respondents plan to accelerate their business development in ASEAN, underscoring the region’s growing importance as a long-term growth engine amid geopolitical and trade challenges. Singapore, Vietnam, Thailand, Malaysia, and Indonesia have emerged as the top destinations over the next three years, with companies expecting to allocate an average of 30 percent more resources to their ASEAN expansion plans.
Vietnam stands out as the top priority, with respondents planning a 47 percent increase in resource allocation, followed by Indonesia at 37 percent and Thailand and Malaysia at 32 percent each. Strategically, enterprises are focused on boosting sales growth, particularly in Thailand, Vietnam, and Indonesia, while also expanding production and sourcing bases, with Vietnam, Thailand, and Malaysia leading as preferred locations.
Even in Singapore, where GBA enterprises already have their largest presence, companies intend to commit an average of 23 percent additional resources to accelerate growth, particularly in financing activities and the establishment of regional offices.
The study also notes a 25 percentage point year-on-year increase in the number of GBA businesses seeking to expand or maintain sales operations in ASEAN, with 98 percent of respondents continuing to target the bloc’s markets. Meanwhile, 91 percent plan to expand or maintain ASEAN-based production and sourcing hubs, reflecting stronger efforts to diversify supply chains and mitigate external risks.
Despite the momentum, GBA enterprises face growing challenges in ASEAN expansion. Nearly half cited difficulties in finding suitable local partners, while cultural and language barriers and shortages of specialist talent are also rising concerns. These challenges highlight the importance of trusted advisors and robust cross-border support.
The report further reveals a strong and growing commitment to sustainability. Eighty-three percent of surveyed enterprises have green initiatives underway, while 96 percent plan to increase or maintain ESG funding over the next two years. Average intended ESG funding has nearly doubled from 2024, signalling a stronger alignment between growth strategies and sustainability goals.
Hong Kong continues to play a pivotal role as a gateway and superconnector for GBA enterprises expanding into ASEAN. Among companies accelerating their ASEAN strategies, two-thirds have leveraged Hong Kong’s platform to support expansion. The city is also widely recognised for its green and sustainable development services, which are increasingly in demand as enterprises strengthen their ESG commitments.
Based on insights from more than 600 businesses across Hong Kong and five mainland GBA cities, the study underscores how enterprises are adapting to global challenges while positioning ASEAN and Hong Kong at the centre of their next phase of growth.