Processing seafood for export at the factory of Kien Cuong Import-Export Seafood Processing Joint Stock Company, An Giang province. (Photo: Phu Cuong)

Despite global economic fluctuations, the six largest economies in Southeast Asia are projected to grow by an average of 4.8% annually over the 10-year period ending in 2035.

A report released by Bain & Company (US), DBS Bank and Vriens & Partners (Singapore) on September 16 showed that Viet Nam is projected to record the highest growth rate, at 6.2% per year.

Viet Nam is followed by the Philippines, with projected average annual growth of 5.8%, Indonesia at 5.4%, and Malaysia at 4.3%.

Singapore is projected to grow by an average of 2.7% annually, while Thailand is expected to expand by 2.2%.

Thus, among the six economies covered in the report, Viet Nam has the highest projected growth rate, 1.4 percentage points above the group average.

The report noted that growth among economies in the region is showing clear divergence.

In 2024 and 2025, Viet Nam, Malaysia and Singapore recorded stronger-than-expected growth, supported by a range of drivers, including demand for semiconductors linked to artificial intelligence (AI), exports of manufactured goods and rising investment momentum.

Speaking at a dialogue session held as part of the event, Singapore's Minister for Trade and Industry Tan See Leng said Singapore's growth is closely tied to the prosperity of the region as a whole.

According to the report, Singapore attracts more than 60% of total foreign direct investment (FDI) into the region. Tan See Leng said Singapore is receiving strong investment interest in technology-related sectors, including advanced manufacturing and medical technology.

However, he said these capital flows are unlikely to remain in Singapore, as many businesses use the city-state as a base from which to expand into other Southeast Asian markets.

According to Minister Tan See Leng, Singapore's attraction of a large share of FDI is only one stage of the process, and capital flows will ultimately be reallocated to other parts of Southeast Asia.

He stressed that Singapore's development is closely linked to that of its neighbours, describing this as a “shared destiny” among the region's economies.

One area with potential for regional cooperation is the ASEAN Power Grid, which is expected to be realised by 2045.

According to Tan See Leng, the system will enable member states to exchange surplus electricity. For Singapore, importing clean electricity is one of the key strategies for achieving its net-zero emissions target.

The report also noted that Singapore is emerging as ASEAN's regional capital hub, and is currently the largest source of FDI into Indonesia, Malaysia, Thailand and Viet Nam.

The US remains Singapore's largest source of FDI and is expanding its presence in Malaysia through investments in AI, cloud computing infrastructure and data centres.

Meanwhile, FDI flows from China are increasing in several markets across the region, including Indonesia's nickel and electric vehicle battery supply chains.

Singapore will assume the ASEAN Chairmanship in 2027. Minister Tan See Leng affirmed that the country would continue to promote ASEAN centrality and Southeast Asian unity.

He said ASEAN is in a relatively stable position as the world faces geopolitical shifts, uncertainty and tensions.

According to him, ASEAN comprises 11 diverse economies that together create an attractive growth and investment outlook, while the region's underlying fundamentals remain strong.

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