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.