HSBC has unveiled a $1 billion ASEAN Growth Fund aimed at supporting the expansion of platform players within the rapidly growing digital economy of the region.
Southeast Asia’s digital economy is one of the fastest-growing globally, valued at $218 billion in 2023 and projected to reach $600 billion by the decade’s end, with a compound annual growth rate of 16 percent.
To assist digital platform players in the region in achieving economies of scale, expanding their asset portfolios, and progressing along the corporate lifecycle, HSBC is introducing a dedicated lending fund worth $1 billion.
“Much like many other globally oriented enterprises, we are enthusiastic about the burgeoning digital economy in ASEAN,” remarked Amanda Murphy, head of Commercial Banking for South and Southeast Asia at HSBC. “With a digitally native and expanding workforce poised to consume more goods and services, particularly via e-commerce, ASEAN holds tremendous growth potential. We are pleased to introduce our ASEAN Growth Fund, the first of its kind, and collaborate with digital companies as they expand both regionally and internationally.”
The HSBC ASEAN Growth Fund extends lending support to companies scaling up through digital platforms across Southeast Asia. It assists a range of entities, from emerging new-economy players to more established corporates and non-bank financial institutions, by evaluating operational metrics linked to their cashflow-generating asset portfolios, rather than relying solely on conventional financial metrics.
HSBC recently conducted a survey of 600 companies operating in Southeast Asia, revealing that “digitalizing operations” ranks as the top business priority, chosen by 42 percent of respondents. This is closely followed by “growth in Southeast Asia” (40 percent) and “research and development” (37 percent).
In response to the growing digital economy, nearly 65 percent of respondents plan to increase their investments in digitizing their operations, coming second only to “expanding into new markets within Southeast Asia” (66 percent).
HSBC is leading the charge in driving digital transformation in ASEAN, offering a suite of digital transaction banking solutions like Omni Collect, allowing clients more flexibility to concentrate on business priorities and regional development.