Although the opportunities to expand the business are obvious, action is needed. The question is no longer whether to enter the region, but how.

International horizons

Australian furniture designer King Living recognized the region’s potential as both a manufacturing center and growth market several years ago. Since then, it has launched new showrooms in Singapore and Malaysia, reflecting increased demand for higher-value consumer goods, and established a manufacturing site in Thailand in 2021, supporting the company’s regional tilt.

A key piece of the puzzle fell into place when King consolidated its banking business with HSBC in 2017, a move designed to bolster its international push.

As King Living CEO David Woollcott explains, the company made the decision to consolidate its banking business and move forward with HSBC in 2017. This allowed the company to take advantage of an existing presence in 62 markets and territories, supporting brand expansion in Singapore and New Zealand Markets, followed by Malaysia, China, Canada, UK. King was able to access tailored country-by-country support, including the provision of accounts, payment infrastructure and bank guarantees to build their new sites.

Going global

King’s success is representative of a renewed burst of Australian business expansion into ASEAN markets in recent years, noting the growth potential of the region’s demographics, digitization and dynamism.

Steve Hughes, head of commercial banking, HSBC Australia and New Zealand, says the bank is seeing increased demand from clients to explore the ASEAN opportunity, particularly in Singapore, Malaysia, Indonesia and Thailand. It’s a trend particularly suited to HSBC’s footprint and experience in ASEAN, he says.

“There is an inflection point where Australian companies engage us – typically when they are considering entering a new market or when they are active in multiple markets but struggling to manage multiple banking relationships,” Hughes says.

“For companies operating across the globe, the ability to work with one bank provides simplicity and transparency.”

Hughes and his team in Australia and New Zealand work with clients on all aspects of new market expansion, from local operational requirements to managing currency dynamics to securing capital or financing acquisitions. Once on the ground, companies find that the bank’s network makes their properties.

“Our network can connect companies with opportunities and local knowledge in parts of the world that many others cannot, including market introductions,” says Hughes.

Hughes explains that although ASEAN is talked about as a homogenous group, it is important to understand the nuances that exist between each member state.

“The ASEAN region is unique and each country has different trade rules, financial systems and legal systems. This presents both challenges and opportunities, so its major Australian corporations have a partner with a deep understanding of the region and a local presence in its key markets.

“We provide local support in multiple markets – from the moment a client considers venturing offshore and we continue to provide that support throughout their journey,” he says.

To find out more, business.hsbc.com.au/international