Business

European Firms Bet Big: Why South-East Asia’s Growth Fuels Revenue Despite Global Headwinds?

European firms see SE Asia as vital, with 73% reporting revenue growth despite global trade woes.

September 16, 2025, 9:02 AM

The panoramic skyline of Kuala Lumpur with the iconic Petronas Towers at sunset

The stunning cityscape of Kuala Lumpur, Malaysia, featuring its most famous landmark, the Petronas Twin Towers, at sunset. By MDL.

Executive Summary

European firms consistently identify South-East Asia as a crucial engine for revenue expansion, marking the third consecutive year of its strategic importance.

73% of surveyed European business leaders reported South-East Asia’s increasing contribution to their revenues over the past two years, despite broader global trade uncertainties.

The Philippines currently trails behind its neighbouring markets in performance, suggesting a need for enhanced competitiveness to attract greater European business engagement.

The Story So Far

European firms have consistently identified South-East Asia as a crucial engine for revenue expansion for the third consecutive year, with 73% of surveyed business leaders reporting the region’s increasing contribution to their revenues over the past two years. This sustained optimism highlights the region’s enduring attractiveness as a dynamic market for investment and commercial activity, even amidst broader global trade uncertainties.

Why This Matters

The sustained focus of European firms on South-East Asia as a crucial engine for revenue expansion, despite global trade uncertainties, indicates a continued influx of investment and commercial activity into the region, solidifying its role as a dynamic and attractive market for European businesses. However, the observation that the Philippines is currently lagging behind its neighbors suggests a need for targeted reforms within that country to enhance its competitiveness and fully capitalize on this significant European interest.

Who Thinks What?

European business leaders consider South-East Asia a crucial engine for revenue expansion and see promising growth prospects, with 73% reporting increased revenue contributions from the region.

The European Union-Asean Business Council, through its survey analysis, highlights the overall economic vitality and strategic importance of South-East Asia but notes that the Philippines currently lags behind its neighboring markets in attracting European business engagement.

European firms continue to identify South-East Asia as a crucial engine for revenue expansion, marking the third consecutive year of this strategic importance, according to the latest European Union-Asean Business Sentiment Survey. The poll, conducted by the European Union-Asean Business Council, revealed that 73% of 474 surveyed European business leaders reported the region’s increasing contribution to their revenues over the past two years, despite broader global trade uncertainties.

Regional Economic Outlook

The survey’s findings underscore the “promising” growth prospects South-East Asia presents for European companies, even as international trade concerns create headwinds for economies worldwide. This sustained optimism highlights the region’s enduring attractiveness as a dynamic market for investment and commercial activity.

The strong consensus among respondents reflects a clear recognition of South-East Asia’s economic vitality. Nearly three-quarters of the European business leaders surveyed affirmed the growing significance of the region in bolstering their companies’ financial performance and strategic objectives.

Market Dynamics

However, the analysis also highlighted varying levels of performance within the region, specifically noting that the Philippines currently trails behind its neighbouring markets. This observation suggests a need for the country to enhance its competitiveness and potentially implement targeted reforms to attract greater European business engagement.

Key Takeaways

The consistent designation of South-East Asia as a vital growth hub for European enterprises reaffirms its economic resilience and strategic importance within a rapidly evolving global economic landscape.