Southeast Asia offers opportunities for EVs' manufacturing and fintech firms

Southeast Asia has emerged as a global investment hub, with the region serving as a "bright spot "despite global challenges, including geopolitical conflicts, inflationary pressures and economic slowdown, a forum heard on Tuesday.

Member countries of the Association of Southeast Asian Nations, or ASEAN, also offer opportunities for electric vehicle manufacturing and financial technology, according to participants at the Invest ASEAN 2023 forum.

The hybrid forum, which runs until Wednesday, is held in Singapore. Kuala Lumpur-based Maybank, one of Southeast Asia's biggest commercial banks, organized the annual event.

Khairussaleh Ramli, Maybank's group president and chief executive officer, said that ASEAN is "most definitely back and open for business" after the pandemic.

Against the backdrop of ongoing global volatilities, "ASEAN is likely to remain a bright spot amid intensifying headwinds as the region's resilience is once more on display", Khairussaleh said in his opening address.

He said Maybank sees the ASEAN-6 economies, comprising Malaysia, Singapore, Thailand, Indonesia, the Philippines and Vietnam, to grow at 4.2 percent in 2023.This outpaces the projected global GDP growth of 2 percent, he said.

"ASEAN's strength certainly is in its 'diversity' — celebrating a melting pot of culture while navigating differences in terms of political, economic and social systems. There is for me, however, another quality that aptly encapsulates the ASEAN spirit, and it is our 'resilience'," Khairussaleh said.

Suhaimi Ilias, Maybank's chief economist, said the region's growing middle class and high net worth population, digitalization and the pursuit of decarbonization are among the main drivers of ASEAN economic growth.

He said the region needs to invest in low-carbon infrastructure, renewable energy and greening operations, including the supply chains, in line with its commitment to reduce carbon emissions under the Paris climate pact and the UN's Sustainable Development Goals.

Digitalization accelerated

Jens Lottner, CEO of the publicly-listed Vietnam Technological and Commercial Joint Stock Bank, or Techcombank, said the pandemic has accelerated digitalization and expanded financial inclusion in Vietnam. Lottner said digital banking has enabled more people to open their accounts as this is easier to do than physically going to a branch.

Lottner said Vietnam's fast-growing economy offers more opportunities to the wealth management sector. "The GDP per capita is really going up and I think for the first time, a broader set of the population (has more) disposable income," he said.

Vietnam's economy rose to a 25-year high of 8.2 percent in 2022 on the back of strong exports and domestic retail sales.

Reza Yamora Siregar, special adviser to Indonesia's coordinating minister for economic affairs, said digital transformation and financial inclusion are also important to Indonesia. "Less than 50 percent of Indonesia's population have access to credit. We have over 17,000 islands — that's why it's difficult for us to get access," he said.

Siregar said Indonesia is also strengthening its industrial base. This is why Indonesia is moving from being a major exporter of coal, nickel and copper to becoming one of the world's biggest manufacturers of electric vehicles.

Iwan Suryaputra, commissioner of Energi Selalu Baru, or ESB, a company that provides EV infrastructure, said that Indonesia has a big demand for EVs, specifically electric motorcycles.

He estimated that there are now over 100 million EV motorcycles on Indonesia's roads as this is the main mode of transportation for Indonesians, especially those who live outside of the metropolis.

"They come from the suburban areas, so they need to travel 30 kilometers, sometimes 40 km, to work in Jakarta or the capital city of the province," Suryaputra said, noting that the long-distance travel means these riders will need an accessible place where they can recharge their batteries. He said this is why ESB has set up swap battery stations.

"With this swap battery station, the idea is to give you only less than one minute to swap the battery and then you can continue your journey without the need to worry or become anxious about the distance," he said.