SEA’s allure pulls global investors

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Hello reader,

Tech giants – folks like Tesla, Apple, Alphabet, and Meta – collectively lost US$750 billion on March 10 in what has been called “the Nasdaq’s worst day since 2022.”

I don’t really follow the stock markets or understand it beyond the basics, but this seems pretty stressful, especially if you’re an investor in these companies. Sure, these may be short-term losses and the market will rally, but still.

In the face of such volatility – and amid ongoing tensions between the US and China – it’s no surprise that investors are turning their attention to “safer” bets, both in terms of the markets and the industries that they’re putting money into. As today’s featured story shows, Southeast Asia seems a safer bet.

Today we look at:

• Southeast Asia’s potential as a “safe haven”
• A Singapore-based AI startup’s acquisition
• Other newsy highlights such as VinFast’s partnership with Bank Negara Indonesia and Alibaba.com’s plans to make all its sellers use AI tools

Premium summary

All eyes on SEA

Image credit: Timmy Loen

Amid ongoing US-China tensions, investors have shown heightened interest in Southeast Asia – particularly Singapore and Malaysia.

• The appeal: Gains in Singapore’s financial, communication services, and industrial sectors have driven the country’s strong equity market performance. Malaysia, on the other hand, provides some key opportunities for investors, such as the establishment of the Johor-Singapore Special Economic Zone.
• Top picks: Banks and semiconductors are investors’ top sector picks in Singapore and Malaysia, analysts say. There’s been strong interest in the banking industries of both countries because of stable earnings and expectations of higher interest rates. Additionally, Malaysia’s semiconductor trade is attracting investments through its National Semiconductor Strategy.
• No true safe haven, but…: “While there is “no true safe haven” when investors are derisking from equities, Southeast Asia is “well-positioned” to benefit from rising foreign direct investment and increased foreign capital inflows in the long run.

Read more: Global investors bet on SEA stocks amid US-China tensions

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