The shift towards floating exchange rates, less reliance on offshore debt, developing central bank credibility, and inflation targeting regimes, creates a strong foundation for investment opportunities in ASEAN.
However, it requires the ability to embrace short-term macro setbacks and higher levels of volatility, but the opportunity created by these five major sub-themes and the far-reaching economic changes this brings, is significant.
Thus, ASEAN cross border listings, for example, are highly attractive as they allow investees and investors to widen their funding pool while accessing expertise and specialties which could push business models and commercial priorities to a higher level. Cross border involvements can be deemed as companies that trade on the stock exchange of their home country and also on a stock exchange in another country, or more. A Cross Border Listing gives rise to the possibility of arbitrage opportunities, as identical assets are trading in two different markets, enable spread of not just risks, but also marketing presence, expanding sales channels, greater consumer visibility as well as creation of local supply chains to take advantage of host governments’ financial incentives and FDI programs.
Skylight Group targets clients and businesses that are robust throughout ASEAN who are seeking strategic capital and commercial expertise to expand their business or scale their operations. Clients come from various industries and most generally need funds to expand, which can be timely and for some, critical in ensuring their business growth by capturing nascent opportunities. However, raising funds is not an easy process as it requires detailed legal, tax and audit, financial requirements and long list of preparation elements.
As the engines of economic growth and development, small to medium corporations need friendly parties who are able to realize their potential to expand further. This is where Skylight Group fits in. We are able to fill this role, ensuring deserving prospects are able to flex their financial and operational muscle to expand in a practical and timely manner. As Skylight Group focuses across ASEAN, with our presence in Malaysia, Singapore and Hong Kong positions the company to serve as the hub for regional and global multinational companies.
Comprising 11 countries to date; ASEAN has the world’s third-largest population of more than 600 million people which makes up 9% of the world’s population. While also being known for diversity, ASEAN has created varied and broad business opportunities. OUr depth and breadth have made ASEAN a desirable place for businesses seeking access to the region’s rising consumer base and accelerating per capita income.
With a projected GDP of US$4 trillion by 2022, a rapidly growing middle-class as well as its active consumers, ASEAN has been recognized as one of the world’s top economies. According to OECD Development Centre, the growing number in ASEAN’s middle class is expected to increase more than double, from 135 million consisting 24% of ASEAN’s population, to 334 million consisting 51% of the population by 2030. Also, ASEAN’s consumer market is presently at US$1.2 trillion, which makes a good pool for any business to enter and spur growth.
ASEAN’s rapid economic growth, young population and tech-savvy consumers have propelled the region to grow as an attractive investment destination for both multinationals and individual investors. As evidenced by the United Nations Conference on Trade and Development (UNCTAD) report, ASEAN’s foreign direct investment (FDI) inflows have risen by 5% with a record US$156 billion that were mainly driven by strong investment in Singapore, Indonesia and Vietnam which took up more than 80% of the inflows.
Despite global headwinds, foreign investors continue to flock into ASEAN region. ASEAN’s growing population, huge labour force and growing affluence along with the governments’ commitment in supporting economic development will lead to opportunities in various areas including next generation manufacturing, infrastructure, consumer and technology.