Webinar Summary – Emerging Asia: ASEAN M&A Outlook

This article is based on insights shared during an ASEAN M&A Trends 2025 webinar organised by EMIS Insights, which brought together leading advisors and market analysts to discuss the region’s dealmaking outlook.

The panel featured:

• Michael H., Principal Advisor, Deal Strategy, KPMG Singapore
• Rickard Wärnelid, Partner, Head APAC, Financial Advisory & Energy, Forvis Mazars
• Albert Porta Gutiérrez, Market Head of Corporates, TMF Group
• Velizar Velikov, Head of M&A Database, EMIS Insights
• Alvaro Diaz-Bejar, Head of New Business – ASEAN, EMIS Insights

Drawing from EMIS’s proprietary M&A database and on-the-ground transaction experience, the speakers explored the latest deal volume and value trends, sector opportunities, regulatory challenges, and private equity strategies shaping ASEAN’s mergers and acquisitions landscape 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.”

Rickard Wärnelid

ASEAN M&A Trends 2025: Opportunities, Risks, and Sector Insights

Emerging Asia’s mergers and acquisitions (M&A) market is showing strong momentum in 2025 despite macroeconomic headwinds. Insights from the latest EMIS M&A database reveal sector-specific growth, shifting investment patterns, and a resilient private equity presence across ASEAN.

In this article, we break down the key findings, sector trends, and investment themes shaping M&A activity in the region.

M&A Activity in Emerging Asia: Strong Volumes, Diverging Values

In the first half of 2025, Emerging Asia recorded a 20% year-on-year increase in deal volume, with more than 1,800 transactions announced. Machinery, electronics, and appliances led growth, particularly in China and India, thanks to integration into global manufacturing supply chains.

However, total deal value fell 11.5% to USD 106 billion due to a lack of large-cap transactions in early 2025. This divergence between deal count and value reflects cautious investor sentiment.

ASEAN M&A: Volume Resilient, Values Under Pressure

ASEAN recorded 350 transactions in H1 2025 — a modest 4.2% increase year-on-year. Singapore, Thailand, and the Philippines were the most active markets.

• Real estate and construction emerged as the most active sector, driven by activity in Malaysia and Thailand.
• Services and machinery/electronics also showed growth.
• Total deal value halved to just over USD 15 billion, showing the impact of fewer large-ticket transactions.

Supply Chain Shifts and the “China Plus One” Strategy

Geopolitical shifts, including potential US tariff changes, are prompting companies to diversify manufacturing beyond China. Vietnam, Malaysia, and Indonesia are attracting investment not only for exports but increasingly for APAC’s growing domestic demand.

Lower-cost manufacturing, particularly in apparel and electronics, is moving into markets like Indonesia, supported by population growth and urbanisation.

Technology and Manufacturing: Driving ASEAN’s 2025 Momentum

Technology Sector

• Data centres and digital infrastructure are top 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 Sector

• Broader industrial services — from facilities management to engineering — are in demand.
• Supply chain diversification is creating opportunities for equipment suppliers, logistics, and industrial parks, especially in Vietnam.

Private Equity Strategies: Value Creation Over Easy Wins

Higher interest rates, valuation mismatches, and regulatory complexities are reshaping private equity strategies in ASEAN:

• Greater focus on value creation and operational improvements post-acquisition.
• Increased diligence in commercial viability and sector fundamentals.
• Mid-market deals are more prevalent, though large-cap activity continues in digital infrastructure.

Regulatory Complexity and Cross-Border Dealmaking

ASEAN’s regulatory environment remains fragmented:

• Liberal markets like Singapore contrast with restrictive regimes like Thailand, which caps foreign ownership in key sectors.
• Countries such as Vietnam and Indonesia are liberalising certain industries but still require local partnerships in sensitive sectors.
• Regulatory change often creates both friction and opportunity, as seen when investment boards adjust rules to attract strategic projects.

Key Opportunities for 2025

1. Digital Infrastructure – Data centres, towers, and edge computing facilities.
2. Energy Transition – Grid modernisation, renewable integration, and storage.
3. Consumer Growth – Health insurance, wealth management, packaged food, and QSRs driven by middle-class expansion.

Key Risks to Monitor

• Valuation Gaps – Sellers holding on to pre-2022 pricing expectations.
• Regulatory Hurdles – Sector-specific restrictions and evolving FDI rules.
• Geopolitical Trade Shifts – Tariff impacts and transhipment scrutiny.

Outlook: Resilient but Selective M&A Growth

While deal values in ASEAN remain subdued, the pipeline for private equity exits and capital deployment is building. Mega-trends like digitalisation, consumer growth, and supply chain diversification will continue to drive activity. Investors who combine sector specialisation, regulatory navigation, and value creation expertise are best positioned to capitalise on ASEAN’s evolving M&A landscape.

Learn more from EMIS

EMIS & CMS Webinar On Demand: M&A Trends, Sector Focus & Market Dynamics in Emerging Europe

• Summary: This on-demand session explores findings from the Emerging Europe M&A Report (2024/25), including key updates from Q1 2025. It covers evolving M&A trends, high-activity sectors, investor types (private equity, strategic buyers, family offices), the influence of AI on M&A strategies, and outlook projections.
• Speakers:
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  • Alexander Rakosi (Partner, CMS Austria)
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• Summary: A detailed review of the dynamic M&A landscape across India and ASEAN markets based on EMIS’s Emerging Asia M&A Report. The session highlights India’s robust surge in deal activity and ASEAN’s resilience amidst economic headwinds. Key focus areas include sectoral trends, the impact of private equity growth, and foreign investment dynamics.
• Speakers:
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CEE M&A Outlook

• Overview: An on-demand EMIS webinar offering insights into the M&A landscape of Central and Eastern Europe (CEE). Key agenda items include the results of the EMIS CEE M&A Report for Q1–Q3 2024, analysis of deal activity and values, sector highlights, private equity dynamics, foreign investor trends, and noteworthy regional markets, followed by a Q&A.
• Speakers:
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