When looking at the world of Asian multinational corporations, many names come to mind, such as Alibaba, Bank of China, Samsung, TikTok, Toyota and numerous others. While many new up-and-coming multinational corporations are technology-based, this concept goes back decades. Consequently, when acquiring shares in multinational corporations based in Asia, you are very often diversifying your exposure across the globe.


So why have some of the largest global companies emerged from the Far East?


Driving forces behind the rise


There are many reasons why Asia-based companies have become multinationals, such as:-


Liberalisation of markets


In years gone by, many areas of the APAC economy were out of bounds for international companies or so restrictive they were not attractive. This has changed dramatically over the last 20 years, with China, Hong Kong and Singapore leading the way. This liberalisation of APAC markets has been replicated overseas, allowing efficient and forward-thinking APAC companies to expand.


Economic growth


As we have mentioned in numerous articles in recent times, the APAC region has one of the strongest economies in the world. The internal and export/import markets continue to grow and will dominate the worldwide economy. This has allowed many companies to sell their services/products overseas, growing their businesses and global profiles.


Technological advancements


The Far East has been a leading light in the world of technology and innovation for many decades. This is demonstrated by the up-and-coming FinTech sector, with APAC governments even more appreciative of new technology (if that were possible!). Unlike countries such as the UK, where many technology companies have been forced to look overseas, pro-business policies in the APAC region have allowed many to maintain their original roots.


Access to global supply chains


We recently published an article about the "Silk Road," which perfectly illustrates the historical access to global supply chains for APAC companies. Unfortunately, this dependence on international trade was exposed during the COVID-19 pandemic when both local and international borders were closed. However, now we're back to some kind of normality; companies and governments are already making plans to protect global supply chains in the future.


Government policies


Many areas of the APAC market have been opened up to international investment, providing access to new funds and international partners. If we look at the likes of Hong Kong, from an investment perspective, the introduction of business-friendly policies regarding FinTech and ESG has created solid bases from which these sectors are set to grow. Recently, we have seen new guidelines regarding stablecoins, which will place the region at the head of the crypto asset revolution, with investors comforted by the new regulatory structure.




Many of the above reasons for growth in Asian multinational companies are obvious when you read them in isolation, but the combined power makes a huge difference. Business-friendly policies have been developed over many years, creating a solid base for traditional and technology-based companies. Over the last few days, the Hong Kong authorities announced a review of listing regulations and funding requirements to make the stock exchange even more attractive to local and international investment. This bodes well for the creation of more huge Asian multinational companies!

Back to News