Industry News

The Asia Pacific region, excluding China, has seen a surge in hotel construction projects, reaching a record high by the end of Q4 2025. According to Lodging Econometrics’ latest Construction Pipeline Trend Report, the region’s hotel pipeline grew by 11% year-over-year, totalling 2,323 projects and 433,241 rooms. This growth is largely attributed to the expansion of higher-end hotel chains.

Luxury and upper upscale hotels have been at the forefront of this expansion. Luxury projects increased by 14% year-over-year, closing the quarter with 398 projects and 75,190 rooms. Upper upscale projects also saw significant growth, with a 17% increase in projects and a 13% rise in rooms, totalling 422 projects and 88,958 rooms. Upscale projects reached 568 projects and 111,296 rooms, marking a 12% increase in projects.

India leads the region in hotel construction, with 906 projects and 118,334 rooms, representing 39% of the total pipeline. Vietnam follows with 248 projects, whilst Japan, Indonesia, and Thailand also contribute significantly to the pipeline. Notably, cities like Bangkok, Jakarta, and Bengaluru are experiencing substantial growth in hotel projects.

In 2025, 334 new hotels opened in the region, and forecasts suggest 338 new hotels will open in 2026, followed by 349 in 2027. This continued growth underscores the region’s robust demand for high-end hospitality options.

Private equity (PE) activity in Southeast Asia (SEA) experienced a significant downturn in 2025, with deal values plummeting by 43% to $9.1b across 59 deals, according to the EY Southeast Asia Private Equity Pulse 2025 report. This decline reflects a more cautious investment climate compared to 2024, which saw $16b across 67 deals. Despite this, the market began to regain momentum in the latter half of the year.

The report highlights that digital infrastructure dominated PE investments, accounting for 42% of the total, followed by telecommunications and real estate. Luke Pais, EY-Parthenon Asean Private Equity Leader, noted, “Whilst 2025 started with robust activity in Q1, geopolitical volatility and concerns over potential US tariffs led to more cautious investor sentiments seen in Q2. However, PE investment activity in SEA rebounded in Q3.”

Singapore maintained its status as a regional anchor, contributing over 74% of the total PE deal value. The region also saw an improvement in exit momentum, with 33 deals generating $4.4b, an 18% increase in volume year-on-year. Fundraising efforts in SEA also showed promise, with 10 PE fund closures raising $4.6b, a 97% increase from the previous year.

Looking ahead, the report suggests that digital infrastructure and renewable energy will continue to attract significant investments in 2026, as the market shifts towards value creation-led PE strategies. The private credit market in SEA is also poised for growth, driven by demand from mid-market corporates and financial sponsors.

Asia Pacific’s commercial real estate market concluded 2025 on a stable note, with investment volumes totalling $182.9b, according to MSCI’s latest Asia Pacific Capital Trends report. Despite early-year macroeconomic and geopolitical uncertainties, deal activity surged in the latter half, particularly in individual property sales, which hit nearly $40b in Q4—the highest since 2022.

The office sector saw a 2% decline in Q4 transactions to $16.4b, yet recorded an 11% increase over the year. Markets like Australia, South Korea, Hong Kong, and Singapore experienced strengthened sales activity, whilst China’s investment appetite remained cautious. The industrial sector grew by 2% year-over-year, with notable interest in South Korean logistics assets. A standout transaction was Brookfield’s $700 million sale of the Cheongna Logistics Centre to KKR.

Retail investment volumes surged 29% in Q4 to $10.2b, driven by strong activity in Australia and Singapore. Conversely, the data centre sector faced an 87% decline in Q4, though 2025’s total acquisitions reached $14.1b, the second-highest annual total on record.

Benjamin Chow, Head of Private Assets Research for Asia at MSCI, highlighted optimism for 2026, citing falling long-term interest rates and a return of core investors. “The office sector is coming back into view, with growing interest in value-add opportunities amidst improved leasing sentiment,” he noted.

Looking forward, the stabilisation of financing costs and renewed investor interest suggest a positive trajectory for Asia Pacific’s real estate market in 2026.

The Centre of Advanced Power and Autonomous Systems (APAS), under the Hong Kong Productivity Council (HKPC), made its inaugural appearance at the Asia Photonics Expo 2026 in Singapore from 4 to 6 February. APAS showcased its cutting-edge automotive photonics research and development (R&D) achievements, including an automotive-grade MEMS Drive OIS Actuator and an Augmented Reality Head-up Display for commercial vehicles.

APAS also organised the “Go Global to Southeast Asia” delegation, leading representatives from Hong Kong and Chinese Mainland enterprises to engage in the expo and related activities. This initiative aimed to demonstrate Hong Kong’s R&D strengths in photonics and emerging industries to the international community, facilitating cross-regional business networking and supporting enterprises in expanding into Southeast Asian and global markets.

Yonghai Du, Chief Innovation Officer of HKPC and General Manager of APAS, highlighted the importance of photonics in intelligent driving, stating, “Photonics plays an irreplaceable role in data acquisition, transmission, and processing.” APAS’s participation in the expo aims to strengthen the foundation for the long-term development of automotive photonics technologies.

During the event, APAS set up a dedicated exhibition zone to display its latest solutions supporting smart mobility and smart city development. The MEMS Drive OIS Actuator enhances image stability in dash cameras, whilst the Augmented Reality Head-up Display projects critical driving information onto the windscreen, improving driver focus and safety.

In addition to the expo, the delegation visited top universities and research institutions in Singapore, gaining insights into the latest R&D and technology commercialisation trends. These efforts underscore HKPC and APAS’s commitment to promoting international R&D exchange and exploring market opportunities in Southeast Asia.

Global fintech investment saw a significant resurgence in 2025, climbing to $116b from $95.5b in 2024, according to KPMG’s latest Pulse of Fintech H2’25 report. This rebound was largely fuelled by a surge in exit activity, which hit $104.4b, marking the third-highest year on record. Despite a decline in overall deal volume, the substantial increase in capital deployed indicates a focus on larger, strategic deals and scaled growth platforms.

The Americas led the charge with $66.5b in investment, primarily driven by the United States. However, the Asia-Pacific region experienced a decline, despite robust activity in India accounting for $3.5b of total fintech investment across 213 deals. Japan accounted for $645.6m of total investment, while Australia attracted $609.9m and China recorded $876.1m. Overall, deal sizes across the region remained relatively small, reflecting continued investor caution and a focus on early-stage and selective opportunities.

The digital assets sector emerged as a key driver, with investment nearly doubling to $19.1b, thanks to improved market conditions and regulatory clarity, particularly following the GENIUS Act in the US.

Anton Ruddenklau, Global Lead of Innovation and Fintech for Financial Services at KPMG International, noted, “After several years of contraction, fintech investment is clearly finding its footing again. Whilst deal volumes remain muted, the increase in capital deployed—and the resurgence of exits—signal growing investor confidence, particularly around scalable platforms in digital assets and AI.”

The payments sector remained stable at $19.2b, with investors concentrating capital in proven, scaling platforms. As liquidity improves, the renewed momentum is expected to translate into stronger deal activity in the coming year. The report highlights a shift towards more mature consolidation in payments-focused M&A activity, focusing on operational strength and long-term competitiveness.

Sumitomo Mitsui Banking Corporation (SMBC) has appointed Salim Zaman as the Global Head of Foreign Exchange (FX), a role he will undertake from Singapore. Zaman will spearhead the bank’s global FX business whilst maintaining his position as Co-Head of Global Markets and Treasury in Asia Pacific.

In his new capacity, Zaman is tasked with overseeing SMBC’s global FX strategy, aiming to bolster the bank’s comprehensive and integrated FX solutions for clients worldwide. His leadership is expected to enhance SMBC’s global trading capabilities and solidify its reputation as a reliable partner for corporate and institutional clients.

Zaman will collaborate with regional leadership teams to manage resources for the global FX business. This includes focusing on the sourcing, development, and retention of talent to support the long-term growth of SMBC’s FX platform.

This strategic appointment underscores SMBC’s commitment to expanding its global markets capabilities and offering a wider range of FX solutions to its international clientele.

AirAsia X (AAX) Berhad has announced a pivotal step in its global expansion strategy by designating Bahrain as a key strategic hub. This move is set to bolster the airline’s medium-haul connectivity across Asia, the Middle East, Europe, and Australia, marking a significant milestone in its international growth journey.

The decision to establish Bahrain as a strategic hub underscores AirAsia X’s commitment to expanding its network beyond Asia. By leveraging Bahrain’s geographical position, the airline aims to enhance its connectivity and offer more travel options to its passengers.

“Now, we are rebuilding with discipline – backed by a secured orderbook of 374 aircraft and counting, as well as a comprehensive five-year growth plan that will see us steadily cementing our footprint across the regions. Bahrain fits squarely into our long-term network blueprint to link ASEAN and Asia to the world,” Bo Lingam, Group CEO of AirAsia X, said.

This strategic expansion is expected to facilitate better access and connectivity between major regions, thereby strengthening AirAsia X’s presence in the global aviation market.

Influencer marketing in the Asia-Pacific (APAC) region is undergoing a significant transformation, as revealed by AnyMind Group’s new report, “The State of Influence in Asia 2026”. The report highlights a notable shift from awareness-led campaigns to performance-driven strategies, with such campaigns increasing from 28% in 2023 to 42% in 2025. This change reflects brands’ growing emphasis on measurable outcomes beyond mere reach.

The report, based on data from AnyMind’s influencer marketing platform AnyTag, analysed nearly 7,000 campaigns across 10 APAC markets, including Singapore, Malaysia, and Japan. It provides insights into regional platforms, demographics, and category trends, offering a comprehensive view of the evolving influencer landscape.

Key findings indicate that whilst Instagram’s dominance is waning, platforms like TikTok and Xiaohongshu are gaining traction, particularly in Southeast Asia. The report also notes a rise in the use of Nano- and micro-influencers, who are valued for their high engagement rates and authenticity.

Brands are increasingly investing in lifestyle verticals such as Fashion & Beauty and Food & Drink, focusing on authentic storytelling that resonates with consumers’ daily habits. The report suggests that to succeed in 2026, brands must adopt a locally informed strategy, leveraging trusted creator networks and integrating influencers into the commerce journey.

As the influencer ecosystem continues to mature, AnyMind’s report provides actionable recommendations for brands aiming to maximise their impact in this dynamic landscape.

Klook’s latest Travel Pulse study highlights that Millennials and Gen Z are prioritising travel in 2026, with 88% intending to maintain or increase their travel budgets. This trend persists despite global economic challenges, with Asia Pacific (APAC) travellers showing a 50% higher intention to boost spending compared to their counterparts in Europe and the US.

The study reveals a shift in consumer priorities, with travellers opting for experiences over material goods. This trend is particularly pronounced in APAC, where individuals are cutting back on physical purchases to focus on activities and creating memories. Additionally, the study notes a growing interest in multi-destination trips and secondary cities, with places like Hiroshima in Japan and Cairns in Australia gaining popularity.

Social media remains a key tool for travel discovery and planning, complemented by the practicality of artificial intelligence. However, the study emphasises that trust is crucial, with reviews and recommendations playing a significant role in converting interest into action.

Klook’s findings underscore the resilience of the travel sector, particularly in APAC, as it continues to drive global growth. The study suggests that the region’s travellers are leading the way in adapting to new travel trends and preferences, setting the stage for a dynamic year in travel.

Zenyum and MakeO Toothsi, two leading consumer dental companies in Asia and India, have announced a strategic merger set to complete by the end of February, pending customary approvals. This union aims to establish Asia’s foremost consumer dental company, enhancing access to high-quality, affordable dental care across the region.

The merger will leverage economies of scale, technology, and support to locally licenced dentists and consumers across nine countries, from the Middle East to Japan. The combined entity will offer orthodontic solutions, including clear aligners and digital dental solutions, accessible through a seamless digital and physical customer experience.

Julian Artopé, CEO of Zenyum, stated, “This merger marks a pivotal moment in the Asian dental industry. By combining our strengths, we are creating a regional powerhouse that will redefine how millions of consumers access and experience dental care.”

Dr. Arpi Mehta, CEO of MakeO, expressed enthusiasm for the partnership, highlighting its potential to accelerate the mission of bringing advanced dental solutions to households across India, the Middle East, and beyond. The merger is poised to drive significant innovation and deliver unparalleled value to customers.