Singapore Dominates Southeast Asia with $3.7B in Private Capital Investment

Singapore emerged as the leader in private capital investment in Southeast Asia in 2023, securing a whopping $3.7 billion, accounting for 41.1% of the region’s total private equity deal value. According to a report by global management consultancy Bain & Company, Singapore also topped the region in transaction volume, closing 62 out of the 109 deals made across Southeast Asia.

Despite being the largest economy in the region, Indonesia came in second place. The drop in private equity activity across Southeast Asia last year was attributed to “higher for longer” interest rates and uncertain global growth, leading to a 35% decrease in deal values to $9 billion and a 40% decline in the number of deals to 109.

Singapore, in particular, saw a significant decline in private equity deal value and volume compared to 2022. The internet and tech sector continued to attract the most private equity investment, while the healthcare sector emerged as a promising target for investors, representing 24% of the region’s deal value in 2023.

Looking ahead, the consumer products sector is expected to witness increased investment due to the region’s rising incomes. However, dealmaking in Southeast Asia has been sluggish in 2024, with only $1.4 billion in private equity deals in the first quarter, projecting an annual total of $5.6 billion, a 37.8% decrease from the previous year.