ASEAN is increasingly significant in the global geopolitical and economic landscape. With a population exceeding 680 million, it ranks third globally after India and China, with over half under 30 years old. From 2010 to 2022, ASEAN's average growth rate was 4.4%, driving its aggregate GDP to USD 3.6 trillion, surpassing India’s USD 3.5 trillion, making it the world’s fifth-largest economy after the US, China, Japan, and Germany. In 2023, Southeast Asia continued to perform robustly with strong domestic demand, controlled inflation, and rising exports, contrasting with the global economic slowdown. Major ASEAN central banks maintained interest rates during the last quarter of 2023. McKinsey reports that controlled inflation and growth momentum allow for monetary policy easing, further stimulating economic growth. ASEAN’s economic potential and young demographics make it an attractive region for international expansion compared to the relatively aging developed countries. An HSBC survey of 3,500 multinational companies with business interests in ASEAN found that 91% plan to expand further in Southeast Asia.
Indonesia, with around 270 million people, serves as the gateway for ASEAN's 680 million population and a regional and international market hub with 35 international trade agreements, including the Regional Comprehensive Economic Partnership (RCEP). Indonesia contributes more than a third of ASEAN’s GDP, making it the largest economy in the region and the only ASEAN member of the G20. Over the past decade, Indonesia has aimed to add value to its resources through domestic mineral processing, export bans on certain concentrates, extensive infrastructure development outside Java, and increased incentives for research and development. The nickel mining sector exemplifies this strategy, attracting billions in foreign direct investment (FDI) and establishing Indonesia as the world’s largest nickel producer. HSBC, with 140 years of operation in Indonesia and 135 years in ASEAN, leverages its extensive experience and deep understanding of regional nuances to empower promising sectors. Its robust network, comprising over 15,000 staff across 200 locations, serves 93% of ASEAN’s GDP, providing a reliable platform for secure and efficient international transactions. HSBC is committed to supporting clients in implementing ESG practices and being a leading partner in ASEAN's sustainability transition.
