Mainland enterprises are increasingly expanding into ASEAN, as they pursue new growth opportunities overseas, with Malaysia emerging as one of the region's key destinations for business development and investment. Preliminary findings from a new Hong Kong Trade Development Council (HKTDC) survey show that ASEAN has become a major focus of Mainland companies' internationalisation strategies, while demand for Hong Kong's professional services continue to grow.Results showed that 91% of surveyed Mainland enterprises plan to develop business in ASEAN, reflecting the region's growing importance, as companies seek new markets, diversify supply chains and capture opportunities in emerging industries.
Commenting on the findings, Bruce Pang, Director of HKTDC Research, said: "ASEAN has become a priority destination for Mainland enterprises pursuing international growth. Companies are not only looking to expand their sales networks, but also establishing regional supply chains, investing in higher value-added activities and exploring opportunities in emerging sectors, such as AI, semiconductors and new energy."
"At the same time, businesses recognise the growing complexities of operating across different markets. This explains the strong demand for Hong Kong’s professional services, and reinforces our city's role as a superconnector and super value-adder facilitating opportunities for enterprises across ASEAN and beyond."
Hong Kong remains preferred business services platform
As enterprises expand overseas, professional support has become increasingly important. The survey found that Mainland companies entering ASEAN markets require assistance in areas including legal and accounting compliance, marketing, e-commerce, supply chain management, financing and risk management. Among enterprises planning to expand into ASEAN, 83% of surveyed respondents indicated an interest in using Hong Kong's professional services to support their regional development.
Malaysia gains prominence in ASEAN expansion plans
Among ASEAN markets, Malaysia is attracting significant interest from Mainland enterprises. The survey shows that the country ranks among the leading destinations for both manufacturing and services companies looking to establish or expand regional operations. Malaysia is particularly attractive for businesses involved in semiconductors, industrial materials, AI and other innovation-driven industries.
Malaysia's appeal is underpinned by its mature industrial ecosystem, skilled workforce, competitive business environment and commitment to industrial upgrading. Initiatives, such as the New Industrial Master Plan 2030, the National Semiconductor Strategy and the Johor-Singapore Special Economic Zone, are helping to strengthen the country's position as an advanced manufacturing, technology and services hub in ASEAN.
Economic ties between Hong Kong and Malaysia have also continued to deepen. In 2025, Malaysia was Hong Kong’s 3rd largest trading partner among ASEAN member states.
Regarding bilateral investment, at the end of 2025, Hong Kong was Malaysia’s 2nd largest investor after Singapore, with a cumulative FDI of US$34.8 billion, while Hong Kong was Malaysia’s 2nd largest source of FDI after Singapore in terms of net FDI flow.
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