KPMG and HSBC have released the Emerging Giants in Asia Pacific report, which examines new economy businesses across the region with strong potential to impact the global business landscape over the next decade.
Over 6,472 technology-focused startups with valuations of up to US$500 million were studied across 12 markets, with ten leading Emerging Giant companies identified in each market. The report also names 100 Leading Emerging Giants within the overall Asia Pacific region.
Maturing technology-focused ecosystems in the Asia Pacific are producing billion-dollar companies at a rapid rate. With the International Monetary Fund predicting that the region’s emerging markets and developing economies will grow 20 percent faster than the global average, this year, Emerging Giants – fast-growing, influential and innovative start-ups with unicorn ambitions – are a leading indicator of the Asia Pacific’s growth trajectory.
According to the report, the emergence of new sector verticals is attracting record-breaking investments, leading to a proliferation of larger, more valuable start-ups in the region.
Beyond the traditional sectors associated with new economy businesses such as FinTech or software-as-a-service, the report identified around 120 technology-related industry subsectors among these businesses, with blockchain, smart city, and sustainability and ESG verticals being most prominent.
Additionally, six out of the 12 markets studied had average valuations of US$300 million or more among their leading Emerging Giants.
The report has also listed 10 Malaysian businesses under the Leading 10 Emerging Giants in Malaysia category. This includes emerging startups such as Lapasar, PolicyStreet and Jirnexu.
Other industry shakers that have been listed include Boost Holdings, Exabytes, Presto Mall, Mindvalley, Neurogine and Says.
“The government’s focus is a smart one,” said Guy Edwards, Head of Technology, Media and Telecommunications, KPMG in Malaysia. “Rather than just looking to attract MNCs and foreign investment as it did in the past, now it wants to both grow its own advanced manufacturing base and add digital startups.”
“The country has all the right ingredients for startup companies to flourish. Financial insitutions must be committed to offering them the right support so these startups can scale beyond Malaysia,” said Karel Doshi, Head of Commercial Banking, HSBC Malaysia.