ME, Japan firms shift investments to SE Asia

Middle Eastern and Japanese companies are increasingly turning to Southeast Asia as a preferred destination for their investments, according to Martin Siah, Bank of America Corp.’s Singapore country head.

Sectors such as healthcare, digital infrastructure, renewable energy, and financial services are witnessing significant activity in this region.

Siah highlighted Southeast Asia’s “supergrowth cycle” and record foreign direct investment in recent years, expressing optimism about the region’s M&A outlook.

Singapore, with its stable economic and political environment, plays a pivotal role as a business hub, particularly for financial institutions.

The city-state has witnessed a surge in M&A activity in recent months, driven by its favourable conditions. Siah noted that his bankers have been kept busy with numerous deals throughout the year.

While M&A remains robust, initial public offerings (IPOs) and equity capital markets in Southeast Asia have experienced a temporary pause in the past 12 to 18 months.

However, Siah sees potential for a resurgence in IPOs based on the promising pipeline of companies.

Attribution: Bloomberg

Subediting: M. S. Salama