Source: PwC, The Future of ASEAN: Time to Act
Source: PwC, The Future of ASEAN: Time to Act
At the centre of the Asian region is ASEAN – the Association of Southeast Asian Nations, formed in 1967. The association is made up of ten nations: Singapore, Malaysia, Vietnam, Thailand, Philippines, Indonesia, Brunei, Lao, Myanmar and Cambodia. During ASEAN’s original inception, economic growth, social progress, cultural development and regional peace were cemented as the core principles by the founding nations and still stand strong today.
They have successfully weathered both the Asian financial crisis of 1997 and the global economic crisis of 2008-09, to make it one of the world’s top 5 economies. ASEAN’s countries equate to a total of 642 million people, accounting for over 8% of the world’s population with a GDP of US$2.76tn growing at a rate of 4.7% - this is significantly higher than any other global region and translates to a per capita metric of US$4,308.
Through the years in ASEAN, HSBC has been part of the prosperous economic growth along the way. Today, ASEAN has become one of the world’s top 5 economies and the world’s fastest growing trade bloc, supported by its young dynamic and digital population.
Now more than ever, companies from all over the world are looking to ASEAN to expand their operations from within the bloc around Asia and globally.
ASEAN is home to a dynamic demographic with 35% of the population under 20 years old and 65% to be classed as middle income by 2030, raising spending to hit US$2.3 trillion.
Currently, ASEAN as a trade bloc is one of the top 5 economies in the world, with its GDP set to exceed US$4tn by 20225. Current exports total US$1.3tn, with forecasts predicting exports to rise to US$2.8tn by 2025, making ASEAN the world's fastest-growing trade bloc2&3
ASEAN’s digital economy is growing rapidly, with expanding digital networks and growing numbers of mobile phone and Internet users – ASEAN has more people coming online than any other region in the world, with eCommerce forecast to grow to US$88 billion by 2025.
ASEAN has driven a significant reduction in trade barriers across the ASEAN and ASEAN + 6 (Australia, China, India, Japan, New Zealand, The Republic of Korea), easing the cost and complexities of trading across the region – and continued easing of restrictions on labour movement for selected professions and new talent gives businesses access to a young dynamic workforce.
1 HSBC in ASEAN (ISB Pitchbook)
2 ASEAN. Driving Your Ambition (Accenture ASEAN Consumer Research)
3 ASEAN Statistical Year Book 2018
4 ASEAN Investment Report 2018
5 PwC, The future of ASEAN: Time to act
The Association of Southeast Asian Nations (ASEAN)
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