Mainland Chinese Enterprises Target ASEAN Expansion, with Malaysia as Key Destination and Hong Kong as Preferred Platform

A new survey by the Hong Kong Trade Development Council (HKTDC) has revealed that 91% of Mainland Chinese enterprises plan to develop business in ASEAN, underscoring the region's growing importance as companies seek new markets, diversify supply chains, and capture opportunities in emerging industries. Malaysia has emerged as a key destination for both manufacturing and services companies, particularly in sectors such as semiconductors, artificial intelligence, and new energy.

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." He added that the growing complexities of operating across different markets reinforce Hong Kong's role as a superconnector and super value-adder.

The survey found that 83% of respondents planning to expand into ASEAN expressed interest in using Hong Kong's professional services, including legal and accounting compliance, marketing, e-commerce, supply chain management, financing, and risk management. This demand highlights Hong Kong's position as a preferred business services platform for regional expansion.

Malaysia's appeal is underpinned by its mature industrial ecosystem, skilled workforce, competitive business environment, and government initiatives such as the New Industrial Master Plan 2030, the National Semiconductor Strategy, and the Johor-Singapore Special Economic Zone. Economic ties between Hong Kong and Malaysia have deepened, with Malaysia being Hong Kong's third-largest trading partner among ASEAN member states in 2025. At the end of 2025, Hong Kong was Malaysia's second-largest investor after Singapore, with cumulative FDI of US$34.8 billion.

To capitalize on these trends, HKTDC will host its flagship overseas promotional event, Think Business, Think Hong Kong, in Kuala Lumpur on 11 August. The full-day symposium at Shangri-La Kuala Lumpur will bring together business leaders, investors, innovators, professional service providers, and policymakers from Malaysia and Hong Kong to exchange insights and explore cross-border partnerships. Discussions will cover RMB internationalisation, sustainability, green innovations, Hong Kong's role as an international financial and business centre, and healthcare solutions.

The event will feature an exhibition with a Business Support Zone and InnoVenture Salon, showcasing around 30 Hong Kong service providers and start-ups. One-on-one business consultations and on-site business matching will facilitate deals between Malaysian and Hong Kong companies. A delegation of about 100 officials and business leaders from Hong Kong will travel to Malaysia for the event.

The survey findings and the upcoming symposium underscore the strategic importance of ASEAN, particularly Malaysia, for Mainland Chinese enterprises and the critical role Hong Kong plays in facilitating their international expansion.