Southeast Asian countries, collectively known as the ASEAN, have shown the ability to adapt prosper amid economic uncertainty. The region’s plastics manufacturing sector, in particular, has leveraged its strategic position within global supply chains and its diversified industrial base - including automotive, bio-plastics, medical devices, packaging, and chemicals.
While the plastics market in the regionis already growing due to a booming manufacturing sector, rising consumer goods demand and increasing urbanisation, it may also benefit a windfall of sorts given the tariffs being imposed in the US by President Donald Trump on imports to the US. Since the tariffs threaten supply chains and will increase costs for US manufacturers, it is expected that US companies will seek out other sourcing locations, perhaps even to Asia.
Preliminary growth reports suggest that Southeast Asia’s plastics sector will register a turnover of 32 million tonnes this year and grow by 4% to almost 39 million tonnes by 2030, according to Mordor Intelligence.
Regional EV growth accelerates
In recent years, Southeast Asia has intensified its efforts to ramp up policies for the adoption of electric vehicles (EVs), in response to the growing global take on carbon emissions reductions. According to the ASEAN Secretariat, the region's per capita CO₂ emissions remain among the lowest in the world at 3.9 tonnes - well below China (7.1) and the United States (14). With strong growth potential in production and natural resources, Southeast Asia’s EV market is set to grow from US$1.5 billion in 2025 to US$6 billion by 2030, with a 32% CAGR, according to Mordor Intelligence.
Thailand, known as the "Detroit of Asia," is pushing ahead, aiming for 30% production by 2030 (725,000 cars, 675,000 motorcycles). The country has also significantly reduced excise tax for electric cars from 8% to 2% and offers import duty reductions of up to 40%, attracting manufacturers like China’s BYD, which recently opened its first Southeast Asian EV plant there.
"Next door" neighbour Malaysia is "walking the talk" as it recently launched its first locally produced battery electric vehicle, called e-Mas, manufactured by national car brand Proton in collaboration with Chinese automaker Geely. Proton has also established a new R&D centre in China to accelerate EV development.
As the world’s top nickel producer, Indonesia is focusing on battery production. In 2023, the country produced 55 million tonnes of nickel - 42% of the global supply. It is staying on track to produce 140 gigawatt hours (GWh) of batteries by 2030, and last year, launched its first US$1 billion EV battery plant in Karawang, West Java, capable of powering 150,000 EVs annually.
Meanwhile, the Philippines remains in the early planning stages. This is despite the transport sector contributing over 50% of outdoor air pollution in urban areas like Metro Manila. The shift to EVs is seen as a critical solution for improving urban air quality.
Despite strong growth potential, Southeast Asia’s EV industry still faces key challenges, including high costs of EV batteries, shortages of parts, lack of EV experts and skills programmes, electricity grid challenges and inconsistencies in EV charging standards and installation guidelines, says the Malaysian Investment Development Authority.
The US-ASEAN Business Council highlights foreign direct investment as crucial for overcoming these barriers and accelerating EV adoption in Southeast Asia.
Medical technology filling the prescription for growth
Southeast Asia’s medical devices sector is expanding rapidly, driven by rising healthcare demand, an aging population, and technological advancements. The market is projected to reach US$12 billion by 2025 and US$16 billion by 2029 (+7.5% CAGR), according to Statista.
Southeast Asia’s rapid integration of advanced technologies, such as automation, telemedicine, AI-driven healthcare solutions and robotics, plus healthcare infrastructure expansion - new hospitals, care facilities, and strengthening of medical workforce support - will amplify the need for increased capital flow and business opportunities.
Malaysia is emerging as the fastest-growing market, focusing on ultrasound machines, MRI machines, in-vitro diagnostics, as well as orthopaedic and dental implants, according to Fitch Solutions.
Vietnam is strengthening its position by investing in facilities that manufacture plastic-based medical consumables, while the Philippines and Indonesia are focusing on domestic demand for PPEs and medical supplies.
In Singapore, the market for medical devices is experiencing rapid growth due to the government's focus on enhancing healthcare infrastructure and promoting innovation in the medical technology sector. However, the market faces regulatory hurdles, such as the recently introduced Cybersecurity Labelling Scheme for Medical Devices, which may increase compliance costs for manufacturers and limit market access to unlabelled products.
Hotspots for sustainable plastics solutions
In terms of sustainable plastics, Malaysia and Thailand are leading the Southeast Asian market.
Malaysia utilises empty fruit bunches (EFBs) and palm oil waste to produce bio-plastics such as polylactic acid (PLA), polysaccharides, lignin, and polyhydroxyalkanoates (PHA) through microbial fermentation. The country positions itself as a strong competitor to Thailand in sustainable plastics, according to the Malaysian Palm Oil Council. On the other hand, Thailand, exports 90% of its bio-plastics to markets including Italy, the Netherlands, China, South Korea, and the US.
Major investors in Thailand include French energy major Total and Dutch biochemical giant Corbion’s joint venture, Total Corbion PLA, which manufactures sugarcane-based PLA, and has scaled up production from 75,000 to 100,000 tonnes/year, running at nameplate capacity.
