Southeast Asia and China are emerging as the two leading destinations for overseas expansion as 83% of businesses in Asia are keen to expand their operation abroad, according to a report of the United Overseas Bank (UOB).

Illustrative image (Photo: Bangkok Post)

The latest Business Outlook report released by the UOB, which surveyed more than 4,000 small- and medium-sized enterprises (SMEs) in the region as well as large enterprises within Asia, found that more than four out of every five businesses are planning to expand their operation overseas in the next three years.

Companies in Indonesia, China, Thailand, and Vietnam are looking to grow their revenue and profits internationally, the report said.

According to Eric Lian, head of group commercial banking at the UOB, companies in Southeast Asia said they demand more tax incentives and sustainable financing options.

Nearly 30% of the respondents are trying to diversify their supply chain, investing in building stronger relationships with their suppliers and utilising data analytics for decision-making purposes.

The report indicated that around 90% of businesses consider sustainability important. However, only 45% have implemented sustainability practices.

Over 50% of SMEs in Thailand and Vietnam have adopted sustainable practices, while only 38% of Singaporean SMEs have done so, it said.

Source: VNA