This article summarises an ASEAN M&A Trends 2025 webinar run by EMIS Insights. Advisors and market analysts discussed deal volume and value, the sectors drawing investment, regulation and private equity strategy across the region.
Who spoke at the ASEAN M&A outlook webinar
- Michael H. (opens in a new tab), Principal Advisor, Deal Strategy, KPMG Singapore
- Rickard Wärnelid (opens in a new tab), Partner, Head APAC, Financial Advisory and Energy, Forvis Mazars
- Albert Porta Gutiérrez (opens in a new tab), Market Head of Corporates, TMF Group
- Velizar Velikov (opens in a new tab), Head of M&A Database, EMIS Insights
- Alvaro Diaz-Bejar (opens in a new tab), Head of New Business, ASEAN, EMIS Insights
The speakers drew on the EMIS M&A database and their own transaction work. They covered deal volume and value trends, sector opportunities, regulatory challenges and the strategies private equity investors are using in ASEAN in 2025.
“The strengthening momentum in certain sectors drive an increasing demand for Forvis Mazars and our Financial Advisory teams in the region. Financial modelling for digital infrastructure is a hot topic, and the activity in Renewable Energy (financial modelling / M&A) is going from strength to strength.”
Deal activity across emerging Asia
Emerging Asia’s M&A market kept its momentum in 2025 despite macroeconomic headwinds. In the first half of 2025 the region recorded a 20% year-on-year rise in deal volume, with more than 1,800 transactions announced. Machinery, electronics and appliances led the growth, particularly in China and India, helped by their place in global manufacturing supply chains.
Total deal value fell 11.5% to US$106 billion, because early 2025 saw few large-cap transactions. The gap between deal count and deal value reflects cautious investor sentiment.
ASEAN M&A deal volume and value
ASEAN recorded 350 transactions in the first half of 2025, up 4.2% year on year. Singapore, Thailand and the Philippines were the most active markets.
- Real estate and construction was the most active sector, driven by activity in Malaysia and Thailand
- Services and machinery and electronics also grew
- Total deal value halved to just over US$15 billion, reflecting fewer large transactions
Supply chain shifts and the China Plus One strategy
Geopolitical shifts, including possible changes to US tariffs, are leading companies to spread manufacturing beyond China. Vietnam, Malaysia and Indonesia are attracting investment for exports and, increasingly, for growing domestic demand across Asia Pacific.
Lower-cost manufacturing, particularly apparel and electronics, is moving into markets such as Indonesia, supported by population growth and urbanisation.
Technology and manufacturing investment
Technology
- Data centres and digital infrastructure are the leading investment themes
- Regional demand is rising sharply, supported by AI adoption and cloud services
- Indonesia is emerging as a strong contender for hyperscale projects
Manufacturing
- Industrial services, from facilities management to engineering, are in demand
- Supply chain diversification is creating opportunities for equipment suppliers, logistics providers and industrial parks, especially in Vietnam
How private equity is investing in ASEAN
Higher interest rates, gaps between buyer and seller valuations and regulatory complexity are changing how private equity invests in ASEAN:
- More focus on value creation and operational improvement after acquisition
- More diligence on commercial viability and sector fundamentals
- More mid-market deals, though large-cap activity continues in digital infrastructure
Regulation and cross-border deals
ASEAN’s regulatory environment remains fragmented:
- Open markets such as Singapore contrast with more restrictive regimes such as Thailand, which caps foreign ownership in some sectors
- Vietnam and Indonesia are opening up some industries but still require local partners in sensitive sectors
- Regulatory change often brings friction and opportunity together, for example when investment boards adjust rules to attract strategic projects
ASEAN M&A opportunities and risks for 2025
Opportunities
- Digital infrastructure: data centres, towers and edge computing facilities
- Energy transition: grid modernisation, renewable integration and storage
- Consumer growth: health insurance, wealth management, packaged food and quick-service restaurants, driven by a growing middle class
Risks to watch
- Valuation gaps, with sellers holding on to pre-2022 pricing expectations
- Regulatory hurdles: sector restrictions and changing foreign direct investment rules
- Trade shifts: the effect of tariffs and closer scrutiny of transhipment
Deal values in ASEAN remain subdued, but the pipeline for private equity exits and new capital is building. Digitalisation, consumer growth and supply chain diversification will keep driving activity. The panel’s view was that investors who combine sector specialisation, a clear read of local regulation and a plan for value creation are best placed to win deals in the region.