Investors are increasingly pulling out of China and redirecting their investments to Southeast Asia, according to a panel discussion during the Asia Private Equity Summit.
Malaysia's state pension fund is hoping to drive VC activity with its new $105 million investment vehicle, both domestically and across Southeast Asia, focusing largely on promising early-stage companies.
Vietnam's factory, logistics, and residential segments offer promise, while high interest rates and poor risk-reward ratios have dampened interest in regional peers.
Although developed markets are expected to outperform, the Asia Pacific region also holds appeal for many institutional investors, a 2023 investment outlook survey shows.
Momentum for decarbonisation across Southeast Asia is growing, as more market players pay attention to their carbon footprint, and countries transition towards net zero.
Sovereign and pension funds as well as private equity firms are looking at opportunities in data centres, telecom towers, and fibre networks in the region.