Ask anyone why they invest in Southeast Asia (and we did) and they will give the same simple answer - that it has one of the most attractive demographics. At the most basic level, ASEAN represents 8.4% of the world’s population. Its 671.7 million people make it the third-most populous region and, by default, a key market for the chemical industry.

ASEAN is emerging as a prominent FDI destination both because it is in the middle of APAC, indirectly benefiting from a rising Asian-centric consumer and manufacturing hub, and for its own merits as a rising growth engine: As a bloc, ASEAN is expected to rise from fifth to the fourth largest economy in the world by 2030. Singapore, one of the Four Asian tigers (alongside Hong Kong, South Korea, and Taiwan) is a magnet for FDI investment, especially in high-tech and R&D-heavy sectors. Meanwhile, the so-called “tiger cubs,” the developing economies of Indonesia, Malaysia, the Philippines, Thailand, and Vietnam (known also as the Emerging 5), have the strongest growth outlook to 2030 among major regional groupings.

China’s world factory is not easily replaceable and few are those who try to. However, to protect themselves from the perverse effects of protectionist measures across the US-Chinese orbit, the manufacturing sector has started to diversify from its reliance on China, replacing the “made in China” strategy with “made around China,” in a twinning model where Indonesia, Malaysia, the Philippines, Thailand, and Vietnam emerge as ideal twinning destinations.

Across the hydrocarbon value chain, the chemical industry is doing some of the hardest market calculations it has done in years – possibly ever – as demand, supply, and everything that links the two in the convoluted global value chain has not followed any “normal” pattern since the start of the pandemic.

At the midstream, the Southeast Asian petrochemical industry is to see ferociously more competition, both at home and in its primary export market, China, as demand remains languid and supply is strong, particularly from the Middle East. Southeast Asia is not only a feedstock net importer but also export-focused, a dangerous combination of dependencies that weakens its grip on the market. To make matters worse, most of the local crackers are naphtha-based, subjecting the industry to oil price volatility. More feedstock could become available though, after a flurry of major discoveries in the region lit up investors’ interest, driving exploration and development work in oil and gas projects.

Further downstream, the specialty chemicals producers is starting to get much closer to the end-consumer. Performance chemical and ingredient suppliers are now routinely co-designing with their customers end-products in a trend that has been described “chemistry as a service.”

In an era of low-priced commodities and an uncertain geopolitical landscape, logistics companies are prioritizing the long-haul business, not just because it is probably the most profitable, but also because their customers are searching for new markets out to sea.

TESTIMONIALS

"Thank you for the collaboration and wonderful job for Southeast Asia Chemicals 2024 report edition. This has entailed extensive exercise, networking, energy and lengthy interviews with each element in the industry.  GBR did the great job, especially your team. My sincere appreciation to your entire team and every company who participated in this work." – Ubolrat Wiwattanakul Vice President Business Development, Lummus Technology 

"It was an absolute pleasure to have participated in the GBR interview series. Both Lorena and Salma were very professional, and all was very well taken care of. Also, I was positively surprised with the level and seniority of most of the profiles interviewed that also provided very insightful information on trends, opportunities, and challenges in specific market segments, which besides opens doors for future networking and collaboration. Can only recommend.” – Rui Fernandes Teixeira Global VP Sales & Marketing Sustainability, Bureau Veritas

"Collaborating with GBR on various interesting topics from chemical industry has always been enriching for me. Their professional analysis and insightful contributions drawn from the industry greatly enhance the domain knowledge. Well done yet again." – Vinod Agnihotri, MD ASEAN & VP and Head of MPP APAC, Lanxess

"I believe that taking the time to absorb the detailed information discovered from the many interviews skilfully compiled by GBR should allow any business reader to gain tremendous insight in navigating our difficult economic trends, even beyond South East Asia." – André Nothomb, Senior Vice President, Syensqo

"Southeast Asia Chemicals 2024 provides useful direct insights and expert commentaries with narratives that resonate the regional chemical industry. The GBR Team sets a high standard of professionalism, always putting effort on in-depth research before having conversations and articulating reports on the crux of industry issues. A pleasure to work with." – Muhtar Hashim, Executive Director, CICM 

"The Greenitio team is grateful for the opportunity to be featured in Global Business Reports' Southeast Asia Chemicals 2024. We appreciate your support in promoting sustainable material development in the chemical and polymer industries. This feature will no doubt raise awareness for the need for high-performing, cost-competitive bio-alternatives. We look forward to continuing to develop innovative solutions!" – Amit Kumar, Co-founder and CEO, Greenitio 

“Our collaboration with GBR for the South East Asia Chemicals Report was exceptional. Their knowledge of the industry, thoughtful questions, and professionalism made the entire experience seamless. GBR displayed a commitment to accuracy in reporting which truly sets them apart.” – Mahesh Swaminathan, McDermott’s Senior Vice President, Subsea and Floating Facilities, McDermott

"Working with GBR has always been a highly pleasant experience. The interview engagement format is relaxed, fostering a delightful and organic development of the conversation. GBR has adeptly captured a wide range of perspectives and compiled the latest developments in the Southeast Asia chemical market, resulting in a comprehensive and insightful read.” – BJ Chua, GM, SEA, Newport Tank Containers

"It was a seamless collaboration and I felt that the interview process went well, and the interviewers gave me an opportunity to share our business and our initiatives in the ESG space." – Julian Soong, Managing Director Singapore & General Counsel APAC, Arlanxeo

“Having been part of the interview process with GBR several times; yet again, the GBR team was very professional, accommodating and fun to work with. It is always a pleasure working alongside professionals and being able to contribute with insights of our industry to the publication. Thank you and well done GBR team!" – Alexander Donau, Regional Head Asia Pacific, Leschaco

"Salma and Lorena did an impressive job of extensively interviewing all the relevant players from the Chemical Industry in SEA, from startups to local companies and multinational corporations. This comprehensive report is a must read for those in the Chemical Industry interested in the SEA region." – Patrick Teyssonneyre, CEO and Co-founder, Xinterra