Asia M&A Outlook 2026: Webinar key takeaways

Southeast Asia: 

• Singapore maintains its position as the region’s key dealmaking hub. Its popularity as a hold‑company jurisdiction, combined with widespread use of Singapore governing law and arbitration, continues to attract cross‑border transactions. The presence of regional and global deal teams in Singapore supports its role as the “centre of gravity” for Southeast Asian M&A.
• Indonesia experienced a transition year in 2025 as differences in the style and economic priorities of the new Prabowo Government became apparent. Despite this, Indonesia remains resilient and experts observed a shift toward higher‑quality, mature assets as early‑stage investments slowed. The establishment of Danantara, the country’s largest sovereign wealth fund, signals a stronger state‑capital role across priority sectors. Regulatory developments include proposed tighter shareholder disclosure requirements and a material increase in free‑float thresholds in listed companies. 
• Thailand saw a meaningful surge in foreign direct investment in 2025, particularly into energy transition, digital infrastructure and advanced electronics. Enforcement against nominee structures and proposed amendments to the Foreign Business Act are reshaping foreign participation. A forthcoming omnibus law covering land use, construction permits and investor visas is expected to accelerate strategic infrastructure and green‑economy projects.
• Malaysia continues to attract investment in data centres and AI‑related infrastructure, with policy moves expected across manufacturing, semiconductors and energy transition which could fuel further activity. 
• Vietnam is growing in attractiveness for foreign investors, particularly in energy transition, healthcare and education, supported by favourable demographics and demand for asset‑backed, cash‑generative businesses. 
• The Philippines continues to see activity in energy infrastructure, healthcare and telecommunications, contributing to a broader growth story across Southeast Asia.

China & Hong Kong: 

China and Hong Kong are experiencing a strong rebound in dealmaking, underpinned by Hong Kong’s record IPO year and renewed investor confidence. Participation from Middle Eastern and Southeast Asian investors has diversified capital inflows, reinforcing Hong Kong’s position as a major capital‑markets hub. Activity is particularly strong in technology, AI, green energy, EVs, batteries, advanced manufacturing and infrastructure, with outbound investment also increasing as corporates pursue portfolio diversification and resilience. 

India: 

India remains a standout performer with a resilient pipeline into 2026. Strategic inbound investment continues from global corporates and Japanese financial institutions, supported by strong domestic capital markets delivering high‑multiple IPO exits. The rise of secondaries, expansion of Global Capability Centres and continued strong outbound M&A were highlighted as defining features of the market. Recent reforms to FDI regulation and acquisition financing frameworks further support activity. 

Japan: 

Japan continues to attract strong inbound investment driven by governance reforms, Tokyo Stock Exchange initiatives and the favourable financing environment created by low interest rates and a weak yen. Outbound M&A remains structural, supported by Japanese corporates seeking overseas growth amid demographic pressures. 

• Digital infrastructure, especially data centres driven by cloud adoption and AI‑related demand. 
• Energy and energy transition, including renewables and select upstream opportunities. 
• Technology, including AI‑ready platforms, data‑rich businesses and enabling infrastructure (power, compute, connectivity). 
• Healthcare and pharmaceuticals, supported by ageing populations and rising middle‑class consumption. 
• Consumer and industrials, with continued appetite for asset‑backed, cash‑generative businesses.

• Increasing use of earn‑outs, rollover equity, deferred consideration, vendor financing and targeted price adjustments to bridge valuation gaps. 
• We may see more post-completion disputes with the use of these structures. In addition, extended signing‑to‑completion timelines increases focus on termination rights, MAC clauses, interim covenants and warranty bring‑downs. In practice, claims may be easier to bring in respect of covenant or warranty breaches rather than MAC clauses. 
• Early engagement with regulators and voluntary filings now more common given increase in geopolitically sensitive sectors. 
• Growing use of AI across due diligence, drafting, translation, auction management and document review, with expert oversight still essential. AI‑linked businesses attract investment, though valuation challenges persist around data ownership, IP and revenue history.