EV craze hits high gear in M’sia; Indonesia dealmaking pumps brakes

This week in Asean:

• Vietnam: Manufacturing sector draws Singapore companies 
• Malaysia: Electric cars are all the rage 
• Thailand: Increased target for rice exports

Dear BT reader,

Ruoxue here – I sit on the regional desk, covering any and all things Asean. Here’s the lowdown on what happened this week in the region.

Singapore stands as Vietnam’s largest foreign investor for the third straight year, accounting for almost a quarter of total foreign capital investment in 2022. Our Vietnam correspondent Jamille Tran spoke with representatives of several Singapore companies, who cited Vietnam’s developed infrastructure, vast land area, diverse modes of transport and reliable electricity supply as pull factors.

Our next stop is in Malaysia, where electric cars seem to be all the rage these days. Electric vehicle (EV) sales more than doubled in the first nine months of 2023 compared with the whole of last year, amid generous government incentives, hefty discounts from car dealers and fears of fuel price hikes. Our Malaysia correspondent Tan Ai Leng spoke to EV converts to find out more. 

Over in Indonesia, the venture capital (VC) sector is heading towards maturity. While the country maintained its VC deal value in 2022 amid global declines, a new report estimates it to see a year-on-year decline for the whole of 2023. Check out the full story by our Indonesia correspondent Elisa Valenta.

Now let’s look at the region through a wider lens. Across South-east Asia, Asean bourses are courting small- and medium-sized enterprises, but face an uphill task as some targets prefer larger overseas markets. Fintech investors in Asean are concentrating the limited funds they are willing to cough up in early-stage startups and alternative lending. Asean and the Gulf nations are also entering a new era of relations.

With that said, I’m running out the clock (and your attention span). Drop me an e-mail if you have any thoughts to share. As always, your support for The Business Times is invaluable. Have a wonderful weekend ahead.

Trending

What’s happening: Laos is gearing up to take over from Indonesia as the Asean chair from 2024, with the first foreign ministerial meeting set to take place in January.

Why you should care: The question on everyone’s minds is whether the cash-strapped and debt-trapped country will be able to lead Asean in addressing the Myanmar crisis.

Asean in Brief

• Bright spots in Asean’s early-stage and alternative-lending fintechs amid funding slowdown Fintech investors in South-east Asia are concentrating the limited funds they are willing to cough up in early-stage startups and alternative lending. Read more
• Alpha startups, SMEs on IPO radar of Asean bourses Regional bourses are courting small- and medium-sized enterprises (SMEs) by easing listing requirements and producing educational resources. Read more
• Vietnam’s manufacturing sector drawing many Singapore companies to set up shop Among the Singapore companies that are betting big on Vietnam are the EV maker Charged Asia, automotive company Dickson Group, IT Technologies, and Asher Lechem. Read more
• Government incentives, rising fuel prices drive Malaysia’s EV sales Fresh government data showed that 7,500 EVs were sold in the first nine months of 2023 – more than double the 3,400 that were sold for the whole of last year. Read more
• After pandemic boom, dealmaking in Indonesia slows in 2023 After enjoying rapid growth during the pandemic years of 2020 and 2021, Indonesia’s venture capital sector is heading towards maturity as more investors favour startups with strong unit economics and profitability. Read more
• Chinese tourists sour on Thailand, Japan amid safety and health concerns: survey Thailand plummeted from the top spot as the most popular destination for Chinese tourists in the first three months of this year to sixth place, while Japan, which topped the list in the second quarter, slid to eighth place. Read more
• Thailand lifts 2023 rice export target to 8.5 million tonnes The kingdom has increased its rice export target for this year as rice prices from competitors such as Vietnam increase. Read more
• After historic Riyadh summit, Asean and Gulf Cooperation Council eager to boost trade links A month after Asean and the Gulf Cooperation Council held their first-ever joint summit, relations between the two blocs are poised to grow, especially on the trade front. Read more
• Asean generating more energy from solar and wind power, but yet to unleash full potential: report Vietnam drives the region’s growth, contributing 69 per cent of Asean’s total solar and wind power generation in 2022. Read more