A new study released today by UOB Hong Kong and the Hong Kong Trade Development Council (HKTDC) reveals that 73% of enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) intend to accelerate their business development in ASEAN, driven by escalating global uncertainties and tariff pressures. The study, titled "Hong Kong Empowers GBA Enterprises for ASEAN Growth Amid Global Trade Challenges," underscores the region's urgency to strengthen supply chain resilience and capture growth opportunities.
ASEAN economies, particularly Singapore, Vietnam, Thailand, Malaysia, and Indonesia, remain top destinations for GBA enterprises over the next three years. Companies plan to allocate an average of 30% additional resources to their ASEAN expansion, with Vietnam leading at 47% increase, followed by Indonesia (37%) and Thailand/Malaysia (32% each). The primary strategic focus is on driving sales growth in Thailand, Vietnam, and Indonesia, while expanding production and sourcing bases in Vietnam, Thailand, and Malaysia.
Even in Singapore, where GBA enterprises already have a significant footprint, respondents intend to commit an average of 23% extra resources to accelerate business development, particularly in financing and establishing regional offices. The study also reports a 25 percentage point year-on-year increase in the number of GBA businesses seeking to expand or maintain sales operations within ASEAN, with 98% continuing to target these markets. Additionally, 91% of respondents intend to expand or maintain their ASEAN-based production and sourcing hubs, a seven percentage point increase from 2024.
Despite the momentum, GBA enterprises face significant hurdles. The most cited challenge is finding suitable local partners (47%), a figure that has risen by 24 percentage points since 2024. Cultural and language barriers (46%) and difficulties in sourcing specialist talent (40%) are also on the rise, up 23 and 15 percentage points, respectively. These challenges highlight the need for trusted advisors and deeper cross-border support.
The study also reveals progress in sustainability goals. Of the participating enterprises, 83% currently have green initiatives underway, and 96% plan to increase or maintain ESG funding over the next two years, with 66% intending to boost investment. The average intended ESG funding is now HK$874,771, nearly double the 2024 figure.
Hong Kong's role as a superconnector is reaffirmed, with the city scoring 7.9 out of 10 for connectivity with both GBA cities and ASEAN. Among the 73% of GBA enterprises accelerating ASEAN development, two-thirds have leveraged Hong Kong's platform. On ESG, Hong Kong's green services are rated 8.8 out of 10, with over 90% of respondents considering or increasing uptake of sustainable development services. The most in-demand services include green financial products, green financing, ESG reporting, and green asset valuation.
Adaline Zheng, CEO of UOB Hong Kong, said, "For GBA enterprises, ASEAN is not just the next stop – it is the growth frontier. Hong Kong amplifies that momentum, and UOB has the expertise to connect it." Wing Chu, Deputy Director of HKTDC Research, added, "Hong Kong’s unique positioning as a superconnector allows businesses to leverage the city’s comprehensive trade, financial and professional services platform to navigate this transformation efficiently, while strengthening their ESG commitments."
The report is based on insights from more than 600 businesses across Hong Kong and five mainland GBA cities. For further details, the full report is available at research.hktdc.com (Chinese only, English version available by end of January).
