Australian business targets Southeast Asia with growth plans

While opportunities for business expansion are clear, action is required. The question is no longer whether to enter the region, but how.

International horizons

Australian furniture designer King Living recognized the region’s potential as a manufacturing hub and growing market several years ago. The company has since opened new showrooms in Singapore and Malaysia, reflecting increased demand for higher-value consumer products, and opened a manufacturing site in Thailand in 2021, supporting the company’s regional focus.

A key piece of the puzzle fell into place when King consolidated its banking operations with HSBC in 2017, a move to support its international expansion.

As King Living CEO David Woolcott explains, in 2017 the company decided to consolidate its banking activities and continue to work with HSBC. This allowed the company to leverage its existing presence in 62 markets and territories, supporting the brand’s expansion into Singapore and New Zealand markets, followed by Malaysia, China, Canada, UK. King was able to access customized support from each country, including provision of invoices, payment infrastructure and bank guarantees for the creation of new sites.

Going global

King’s success is evidence of a renewed surge in Australian business expansion into ASEAN markets in recent years as he sees growth potential in the region’s demographics, digitalization and dynamism.

Steve Hughes, head of commercial banking at HSBC Australia and New Zealand, says the bank is seeing growing customer demand for support in exploring ASEAN opportunities, particularly in Singapore, Malaysia, Indonesia and Thailand. The trend is particularly well-suited to HSBC’s presence and expertise in ASEAN, he said.

“There comes a tipping point when Australian companies engage us – typically when they are considering entering a new market or when they are active in multiple markets but are struggling to manage multiple banking relationships,” says Hughes.

“For businesses operating globally, the ability to work with one bank provides simplicity and transparency.”

Hughes and his team in Australia and New Zealand work with clients on all aspects of entering a new market, from local operational requirements to managing currency dynamics to securing capital or financing an acquisition. Once in place, companies find that the bank’s network takes over on its own.

“Our network can provide companies with capabilities and local know-how in parts of the world that many others cannot, including market implementation,” says Hughes.

Hughes explains that while ASEAN is spoken of as a homogeneous group, it is important to understand the nuances that exist between each member state.

“The ASEAN region is unique and each country has different trade rules, financial and legal systems. This creates both challenges and opportunities, which is why important Australian corporations have a partner with a deep understanding of the region and a local presence in its key markets.

“We provide local support across multiple markets from the moment a customer considers going overseas, and we continue to provide that support throughout their journey,” he says.

To find out more, business.hsbc.com.au/international