See more of our CEOs’ thoughts on the issues shaping 2025 and beyond

How will China’s policy stimulus and US trade policies play out for domestic consumption?

The year of 2025 is poised to be filled with uncertainty as US trade policies could significantly influence global trade flows, writes Mark Wang, President & CEO, Mainland China. China has made a wave of coordinated policy changes in recent months. With external headwinds stiffening, I expect the government to redouble its efforts to spur domestic demand, including potentially expanding the scope of direct consumption stimulus. In addition, China is likely to increase the budget deficit, with the central government taking more proactive measures to bolster effective investment, including building a better social welfare system to stimulate sustainable growth in domestic consumption.

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How will Malaysia’s ASEAN 2025 Chairmanship steer regional economic prosperity?

Malaysia’s appointment as ASEAN Chair for 2025 signifies a prime opportunity to showcase the region as a key player in global investment and trade, explains Omar Siddiq, CEO, Malaysia.

ASEAN offers diverse investment opportunities with a focus on key sectors like manufacturing, infrastructure, and digital innovation. Strengthening trade and investment activities across these sectors will be vital to elevating the region’s economic landscape.

Resilience is crucial to Southeast Asia’s development, with regional integration enabling product and service diversification to cater to a growing consumer market. Initiatives like an integrated payments system among ASEAN governments can deepen financial integration and economic cohesion within the bloc.

Banks will remain crucial partners with governments to attract foreign investments, strengthen economic resilience and drive economic integration. Their collaboration is essential for advancing the region’s international growth and supporting businesses investing in ASEAN.

With a longstanding presence in the ASEAN region for over a century, including Malaysia for more than 140 years, HSBC has been actively involved in supporting trade and financial services. These deep roots, and our strong global presence in 60 countries and territories, mean we are well-positioned to help clients capture opportunities in the region.

See more of our CEOs’ thoughts on the issues shaping 2025 and beyond

How will the Philippines economy fare in a digital world?

Global trade in services has grown faster than trade in goods, enabled by digital technology making services more tradable, explains Sandeep Uppal, CEO, Philippines. This is a wave the Philippines has captured with the local ‘gig’ economy and digitalisation weaving their way through the country’s economic fabric. With a young (median age of 25), tech savvy and talented workforce, the economy can move up the global value chain, with receipts from services exports now outpacing overseas remittances.

Since the pandemic, 3.4 million jobs have been created in the digital space, outpacing the 1.9 million non-digital jobs created. Women in particular have used e-commerce to expand trading, fueling growth in the economy. The country’s business process outsourcing sector also continues to be a driver for growth, with BPO revenues neck-to-neck with India despite the latter’s size. That said, the Philippines leads developing ASEAN when it comes to exporting ‘light-asset’ services.

Artificial intelligence, however, poses a risk to the longevity of this growth driver. We think the Philippines can look at India’s diversified services exports to build the resilience it needs. Giving opportunities to the Philippines’ professionals and highly-skilled workers to extend their markets and service the rest of the world, further boosting the Philippines’ potential.

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How is Sri Lanka becoming a maritime and business process outsourcing hub?

Sri Lanka is geographically well positioned to tap into significant maritime trading opportunities in 2025, according to Mark Surgenor, CEO, Sri Lanka & Maldives. Just 10 nautical miles away from the country’s southern tip lies the world’s busiest sea lane through which two-thirds of the global oil shipments pass through every year. Currently, only 6,000 of those ships berth in the three main ports in Sri Lanka. This is changing and changing fast.

Deepwater port infrastructure is expanding significantly at several ports and Free Trade Zones (FTZs) are also fast developing alongside them. Transshipment volumes are on the rise boosted by the fact that nearly 30 per cent of India’s growing maritime trade is handled through Sri Lanka. The tech Business Process Outsourcing (BPO) sector in Sri Lanka continues its capacity build to deliver world class services with a very competitive cost base. The country has invested steadily in skill development and technology, and this has fuelled a growth in the sector of 20 per cent annually. In 2025, Sri Lanka’s skilled and English-speaking workforce is expected to continue to support this growth. Established firms in Sri Lanka are expanding into healthcare, agriculture, electric vehicle and education tech, supported by specific Special Economic Zone (SEZ) infrastructure.

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What challenges and opportunities does Taiwan face in fostering AI innovation and industrial development in 2025?

Taiwan has always been a world leader in the semiconductor, ICT and other technology industries, with Taiwanese companies accounting for around 70 per cent of global semiconductor foundry market share and over 90 per cent of advanced chip segments, writes Adam Chen, President & CEO, Taiwan.

We are currently entering a world empowered by AI, and the trend is irreversible. This will definitely bring up significant opportunities for Taiwan in 2025, given that Taiwan’s market share of AI chip production below 7 nanometers stands at over 80 per cent.

Taiwan’s robust research and development ecosystems can also drive advancements in AI applications across different fields such as manufacturing, healthcare, energy, and smart cities.

In the middle-to-long term, leveraging its strong development in semiconductor and technology industry to bolster the development of AI software and hardware, Taiwan will play a pivotal role in the global AI supply chain in the next 20 years.

In terms of challenges, issues relating to privacy and personal data protection and requirements to implement robust encryption methods to adhere to stringent data protection regulations, will be something that we will need to pay more attention, considering the critical role AI chips play in data processing and transmission. Moreover, integrating AI into industries may encounter pushback due to concerns about costs and implementation complexities. The management change associated with these challenges require strategic planning, stakeholder participation, and iterative implementations to optimise AI and minimise disruptions.

In summary, by fostering partnerships between startups and established businesses, Taiwan can stimulate creativity and drive industry growth. Overall, effectively leveraging these opportunities while addressing existing challenges will be essential for sustaining Taiwan’s prominent role in the global AI landscape.

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What’s on the horizon for fintech and new economy companies in Hong Kong?

Digital innovation is crucial to securing Hong Kong’s position as a global financial centre while driving economic growth through fintechs and new economy companies, including start-ups, explains Luanne Lim, CEO, Hong Kong. Hong Kong currently ranks ninth globally as a fintech hub and third on the emerging start-up ecosystems list. The government has taken proactive steps, including policies to embrace frontier technologies, foster the digital economy, and attract global and local talent.

The city’s strategic location serves as a gateway to both international markets and mainland China, and its status as one of the world’s premier financial hubs adds to its appeal. Its world class universities provide a steady talent pipeline and foster research and development. With China hosting nine of the top and emerging startup ecosystems globally, Hong Kong is ideally positioned to serve as a launchpad for Chinese start-ups expanding internationally.

In November 2024, HSBC supported promising Hong Kong Science and Technology Parks companies in exploring expansion in Saudi Arabia. On the IPO front, activity is warming up. Chinese autonomous driving firm Horizon Robotics raised nearly USD700 million with its successful Hong Kong listing in October 2024, signaling more momentum is likely in 2025. These developments cement Hong Kong’s role as a hub for innovation, talent, and business growth in a fast-evolving global economy.

See more of our CEOs’ thoughts on the issues shaping 2025 and beyond

What will be Macau’s positioning in the Greater Bay Area Region in 2025?

Macau has played a significant role in facilitating China’s international investments leveraging its proximity to neighboring Greater Bay Area (GBA) cities, writes Henry Chow, CEO, Macau. This is evidenced by a 64 per cent increase in total wealth customer accounts, a 30 per cent growth in investment portfolios, and a 42 per cent rise in total Chinese corporate investments over the past three years.

As one of the two special administrative regions in China, Macau complements Hong Kong’s global financial prominence while maintaining its unique city proposition. In 2025, Macau will continue to remain its dominant focus on tourism and leisure. On top of that, Macau will continue to serve as the bridge between Mainland China and Portuguese-speaking countries, fostering Sino-Lusophone corridors with trade, investment, and cultural exchanges. Macau also offers favorable business and policy incentives, attracting new corporate investment, capital and talent.

One of the focuses for the Macau financial sector in 2025 is to further develop its bond market. Initiated since 2018, Macau’s bond market is rapidly growing, with efforts to broaden global investor participation. Up until 1H2024, 332 bonds valuing USD64.9 billion had been issued or listed in Macau, within which 15 per cent related to ESG finance offerings, marking a 34 per cent increase over the past five years.

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How will Korea’s inclusion in the World Government Bond Index impact the country’s economy?

In October 2024, FTSE Russell announced Korea’s inclusion in the World Government Bond Index (WGBI). This landmark decision has been widely welcomed by market participants and is expected to have far-reaching implications for the Korean economy, explains Peter Kim, CEO, Korea.

One of the most notable impacts will be a sharp increase in global capital inflows into Korea Treasury Bonds (KTBs). This boost is anticipated to stabilise interest rates and enhance market liquidity.

At HSBC, we expect that WGBI inclusion will attract sizeable foreign investment ranging between USD55-65bn into the Korea Treasury Bond (KTB) market. The inclusion process, which will be carried out over 12 months starting November 2025, is projected to bring in an initial USD13.5-16.5 billion during the fourth quarter of 2025. The remaining inflows are expected to materialize in 2026. We anticipate that it will account for approximately 80-90 per cent of the government’s net bond issuance for that year.

Increased foreign capital inflows could reduce funding costs for the government and stabilise exchange rate as rising demand for Korean won is expected.

Additionally, WGBI inclusion could enhance Korea’s international credibility, signaling that Korea has met global standards. This could pave the way for the country’s potential future inclusion in the Morgan Stanley Capital International (MSCI) Developed Market Index.

Ultimately, we expect that this WGBI inclusion would position Korea as a key player in Asia’s bond market, opening new opportunities for economic growth and financial innovation.

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With supply chains on the move, how will Thailand’s manufacturing renaissance take shape?

Thailand remains open for business writes Giorgio Gamba, CEO, Thailand. Exporting, may it be through goods or services, is ingrained and inseparable in Thailand’s economic fabric. While global supply chains are currently in motion, Thailand is experiencing a resurgence of FDI interest. Using its reach and, most especially, its history of being ASEAN’s first manufacturing powerhouse as leverage, Thailand, over the past two years, has attracted a record high in FDI applications of THB553bn (approx. USD15.5bn) in 2023 and THB546bn (approx. USD15.7bn) in 2024 Jan-Sept.

For instance, Thailand is first in mind in ASEAN when it comes to investing in electric vehicle production given its deep supply chains in manufacturing. The economy has been successful in attracting a vast amount of interest in data centers with Thailand having a considerably high supply of renewable energy across the ASEAN region.

Chinese companies are increasingly doing business in ASEAN as geopolitical tensions push international businesses to diversify their supply chains. Among our Chinese clients, Thailand stands out as one of the key markets of interest for expanding into ASEAN and is well-positioned for a manufacturing renaissance as supply chain shifts continue.

See more of our CEOs’ thoughts on the issues shaping 2025 and beyond