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Here’s why Southeast Asia cannot be overlooked
Many have spoken of "Asia's century" - a term that reflects the rising dominance of Asian economies in global affairs. But rather than repeating familiar headlines, we want to draw attention to Southeast Asia (ASEAN), a region that is not only dynamic but essential for any company serious about global growth.
If you're building a growth strategy for the next decade, here’s why Southeast Asia cannot be overlooked:
Southeast Asia boasts a median age of around 30 - substantially younger than most developed markets. This youthful population drives both consumption and innovation. While many European economies struggle with aging populations and rising social costs, ASEAN nations enjoy a demographic dividend that supports economic vitality for decades to come.
ASEAN is not just about cheap labour or outsourced manufacturing. Singapore and South Korea continue to rank among the top 10 globally in the World Intellectual Property Organization’s Global Innovation Index. Equally promising, middle-income countries like Indonesia, Vietnam, and the Philippines are among the fastest climbers in the same index - highlighting an emerging innovation ecosystem that stretches beyond the traditional tech hubs.
By 2030, ASEAN’s population is expected to surpass 700 million, with nearly 500 million classified as middle class. This expansion will account for a significant share of global consumption growth. The region is rapidly shifting from subsistence spending to discretionary spending - fueling demand for higher-quality products, digital services, and modern experiences
The region is forecast to grow at over 5% annually from 2024 to 2028, according to the IMF - far outpacing the 1–2% projections for Europe. This isn’t short-term hype; it’s the result of increasing exports, domestic consumption, infrastructure investment, and improved governance.
The ASEAN bloc is expected to become the fourth largest global economy by 2030, surpassing the EU in some measures. Intra-regional trade is growing by over 10% annually, boosted by frameworks such as the Regional Comprehensive Economic Partnership (RCEP). ASEAN is not a monolith, but its economic interconnectivity creates opportunities for multi-market scaling.
The ASEAN region is increasingly recognized as a powerhouse of talent. Long gone are the days where companies only invest here because of low-cost labour. Government share of budget spent on education has been increasing across the region with countries like Malaysia, Singapore, Thailand and Vietnam all dedicating >20%.
Not only is the ASEAN population sizable and young; they are also increasingly highly educated. The share of total population with a university degree may still be below rates seen in Europe but many indicators point towards ASEAN catching up. For instance, look at the number of students enrolled in higher (tertiary) education: Indonesia (>7m), the Philippines (>3m), and Vietnam (>2m), over 12 million in total and growing (and a high share with degrees in STEM fields and business); that’s about the same as the combined student body at universities in Germany, France and Spain, Italy and Benelux.
The narrative that Western markets are “safe” and emerging ones are “risky” has flipped. There’s a palpable sense of fear and/or reluctance in many Western markets, while some markets in Asia not only present exciting opportunity but at the same time have become much more stable and less uncertain.
Asia’s growth opportunities also require a different mindset. You might be used to being a leader in your home market (and as such highly exposed to the overall market growth, or contraction), but in Asia, taking a different, more targeted approach can open avenues you never thought possible.
In markets like China, India, and Indonesia, the sheer size presents immense opportunities, even for those starting with a small market share. We help our clients to look beyond market growth and instead spend time understanding and defining their product-market fit. Doing the work on what it would mean and what it would take to go from 0% to 1% market share.
Remember, even a modest market share can translate to substantial value for you in these dynamic markets. Even if the economy may not grow or decline, shift your focus to gaining market share. Being a small fish in a vast ocean can be a very value generative strategy.
Entering ASEAN is not about copying and pasting what worked in Europe. It demands humility, adaptability, and long-term commitment. Companies that succeed here don’t just enter markets - they embed themselves, localize offerings, invest in talent, and build partnerships.
So the next time you’re reviewing your growth strategy, ask yourself: Are you building for where the world was - or for where it's going?
Managing Partner of Silberstein + Partners
Managing Partner of Silberstein + Partners
Identifying four core traits shared by companies that succeed in the region.
