ASEAN as the super-connector: Unlocking regional trade and global growth
Why the next five years can cement ASEAN’s position as a major global trading hub.
Produced in Partnership with Bloomberg Media Studios.
With approximately a third of the world’s seaborne trade passing through its waters, the Association of Southeast Asian Nations (ASEAN) has become a pivotal trade super-connector, linking businesses across East and West.
The region’s unparalleled market access, strategic location, and growing manufacturing capabilities are strengthening supply chains and attracting significant foreign investment.
As ASEAN prepares for its next phase of growth, the next half decade will be crucial in shaping its role as a global trade leader, driven by investment, innovation and stronger regional connectivity.
Investment inflows will continue to drive growth
ASEAN has emerged as one of the world’s fastest-growing regions for foreign direct investment (FDI) in recent years. Inflows into ASEAN hit a record USD226 billion in 2023, bucking the trend of global investment flows decreasing over the same period. This represented a 17% share of global FDI, compared to an average of around 8.2% between 2015 and 2019.
The China Plus One strategy, which encourages businesses to diversify operations beyond China to mitigate risks from geopolitical tensions, trade tariffs, and disruptions like COVID-19, is a major reason for this inward investment into ASEAN. As a result, Vietnam has become a key manufacturing hub for electronics, textiles, and machinery, while Thailand and Indonesia are attracting investments in electric vehicle (EV) production.
With its pro-trade policies, easy access to all 10 member markets, and modern transport and manufacturing infrastructure, ASEAN is viewed as a stable and attractive investment destination. FDI inflows could eventually reach USD300 billion annually by 2030.
Strengthening ASEAN’s trade resilience
ASEAN’s growing integration into global trade is supported by robust intra-ASEAN trade networks and stronger connectivity with external partners. Driven by key trade corridors connecting East and West, ASEAN exports are forecast to grow by 6.7% annually through 2030, outpacing the global average of 5%. East Asia is the region’s biggest export partner and forecast to grow to USD958 billion by 2030 — up from USD584 billion in 2021 — followed by the United States, with bilateral trade reaching almost USD500 billion in 2023. ASEAN-South Asia is the emerging trade corridor, with imports and exports set to double by 2030.
Trade between ASEAN member states is also a key growth driver, accounting for almost 10% of total investment flows in ASEAN in 2023. Supported by the ASEAN Free Trade Area (AFTA) agreement, which reduces tariffs on goods traded within the region, intra-ASEAN trade is expected to increase by 8.7% annually until 2030, led by the electronics, manufacturing, and agriculture sectors.
Innovation and partnerships driving connectivity
Innovation and collaboration is at the heart of ASEAN’s trade boom. Standard Chartered is playing a critical role as an enabler by leveraging cutting-edge digital platforms to help its clients operate more efficiently across borders. For example, Partior uses blockchain technology to facilitate real-time, multicurrency payments, while Straight2Bank Autoquote, simplifies cross-border transactions for businesses by enabling them to digitally initiate and accept letters of credit quotations on demand, at any time.
Collaboration with key stakeholders such as the Asian Development Bank amplifies these efforts by removing trade barriers and enabling businesses to grow in emerging markets. As a founding member of Singapore Trade Data Exchange (SGTraDex), a platform that collates data from various actors within the trade ecosystem, Standard Chartered also helps businesses to streamline supply chain data sharing, facilitating faster and more cost-effective cross-border trade.
Empowering MSMEs and driving inclusive growth
Micro, Small, and Medium Enterprises (MSMEs) are the backbone of ASEAN’s economy, making up over 97% of all businesses and contributing nearly half of the region’s GDP. However, six in 10 MSMEs face significant challenges accessing financing. For example, many small businesses lack the formal financial records or credit histories required by traditional lenders, limiting their access to credit. Additionally, female entrepreneurs often encounter greater obstacles in obtaining funding due to gender bias in financial systems.
Standard Chartered is helping to address some of these challenges through a number of targeted initiatives. In Malaysia, it collaborates with the Credit Guarantee Corporation to offer loans tailored to SMEs. In Singapore, the Enterprise Financing Scheme provides businesses with risk-shared loans. Additionally Standard Chartered’s Women’s International Network (SC WIN) is an initiative designed to support women entrepreneurs globally. Active in seven markets, including Singapore, Malaysia, and Vietnam, the program has already extended USD300 million in financing to women-owned SMEs.
By finding solutions for these challenges, Standard Chartered is helping the region to tap the potential of underserved businesses and drive more inclusive growth.
A vision for the future
ASEAN is committed to sustaining growth and reinforcing its position as a global trade hub. By focusing on future-ready sectors such as renewable energy, advanced manufacturing, and digital transformation, the region aims to drive sustainable development in the coming years, strengthening supply chains and bolstering global economic resilience. To further enhance its appeal, treaties such as the ASEAN Trade in Goods Agreement (ATIGA) are reducing trade barriers such as tariffs, while initiatives like the ASEAN Infrastructure Fund are mobilising capital to fund and improve infrastructure across the region in critical areas like transport.
With a presence in all 10 ASEAN member markets, Standard Chartered is uniquely positioned to guide businesses through this transformation by fostering innovation, building strategic partnerships, and delivering tailored financial solutions. This deep regional footprint ensures a comprehensive understanding of the diverse opportunities and challenges across ASEAN’s vibrant economies.
Looking ahead, the continued commitment to sustainability, connectivity, and digital transformation will enable businesses in ASEAN to unlock new markets and growth opportunities to thrive in an interconnected global economy. For businesses and investors alike, there has never been a more opportune time to connect with ASEAN.
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