Investors flock to South-east Asia markets on renewed interest in tech, safe-haven factor

WITH geopolitics coming into play, investors have been parking their money in some countries in South-east Asia – a region that is seen to be less volatile compared to other global markets.

Supply chains are shifting away from China and into the region, attracting manufacturing and capital inflows, Paul Chew, head of research at Phillip Securities Research, told The Business Times.

The region’s abundant and cost-effective resources – including steel, aluminium and data centres – have also attracted investors, he added.

Craig Loveless, head of Norton Rose Fulbright’s corporate and mergers and acquisitions team in Asia, also said South-east Asia is a “safe haven for the future” as its growing economies, underpinned by demographics, can support long-term growth.

Over the past one year, as at Jan 31, the MSCI Asean Index logged returns of 16 per cent. By comparison, the same one-year period for the S&P 500 saw the index soar nearly 22 per cent, generally rocketing in the past couple of years on artificial intelligence (AI) optimism.