South-East Asia Consulting Services Market - Growth, Trends, Covid -19 Impact, and Forecasts (2023 - 2028)

South-East Asia Consulting Services Market - Growth, Trends, Covid -19 Impact, and Forecasts (2023 - 2028)

South-East Asia consulting service market is expected to register at a CAGR of 11.7% during the forecast period. The COVID-19 pandemic negatively impacted multiple industries, including management consulting. To recover from the impact and adapt to the post-pandemic scenario, consultancies have been devising various work opportunities and new business strategies.

• There is an increasing need for consultancy services. Owing to the strong economic growth in South-East Asia (GDP growth rate account for 4.9% currently, according to the Asian Development Outlook (ADO) 2022) markets, regulatory reforms in the financial sector, outsourcing of back-end activities to low-cost economies, and public investments, Faster economic growth, and the introduction of digital consulting are likely to drive further expansion throughout the forecast period.
• The Asian Development Bank (ADB) identified five critical areas after analyzing several sectors, their potential for growth, and the strengths of Southeast Asian countries. Tourism, agro-processing, and textiles are well-established sectors that require reform or enhancement; however, electronics and digital trade are emerging sectors with significant growth potential. Hence, to remain consistent with regulations, industries need high-value advice, raising the demand for management consulting services.
• Disruptive strategic innovations that provide more straightforward or elegant solutions to existing challenges, enabled by the emergence of new technology and typically at a lower cost, are likely to fuel market growth throughout the projection period.
• Consulting firms in this region are acquiring and collaborating to drive growth and enhance customer experiences through data-driven innovation and technology-driven marketing, thereby boosting the demand for management Consultancy service market.
• For instance, Deloitte Digital could Pixel People and The Union in Southeast Asia. These two acquisitions are expected to strengthen its growth marketing and Adobe suite capabilities across the region, allowing it to provide clients with a deeper and broader range of services. Pixel People and The Union have offices in Malaysia and Singapore, respectively.
• Although the pandemic harmed many industries, it is projected to create opportunities for some consulting firms. For instance, certain organizations may seek the advice and expertise of these firms to develop future business plans and scenarios. Some businesses may also require strategic knowledge to restructure their processes to become digital, assuring business continuity and resilience in the event of future disruptions.

• Accounting, auditing, finance, taxation, and regulatory services are the most common financial consulting services. The services assist clients not only with finance transformation, defining and executing risk management, and compliance management but also with project financial planning, fiscal and tax-related concerns, and the financial side of mergers and acquisitions, as well as financing and debt restructuring. Transaction services, corporate finance, crisis and recovery, risk management, accounting advisory, tax advisory, real estate advisory, forensics, and litigation are the key components of financial advisory.
• Banks in this region are recruiting financial advisors to stabilize the demand for rising financial solutions. For instance, in February 2021, DBS announced hiring 650 wealth planning managers and insurance consultants by the end of 2021, doubling the number of financial planning advisers it may employ this year.
• M&A transactions have been driving significant growth in the consultancy market. For instance, in February 2022, Just Analytics, in collaboration with Equiteq strategy, merger, and acquisition consultants, executed a deal with global cloud firm Rackspace Technology. Equiteq assisted Just Analytics' shareholders in developing and implementing its expansion strategy.
• Mazars in Thailand stated in an article that, As COVID-19 eases, M&A transactions in Thailand are starting to rebound. Thai listed firms actively engage in M&A transactions in both Thailand and Southeast Asia as a whole. In contrast, international private equity and venture capital investors are involved in the Thai market. As of October 31, 2021, 206 deals were announced, with 101 completed. From July to October 2021, over 77 new agreements were announced, most of which were in the real estate, software, energy, logistics, healthcare, and hospitality sectors.

• There is a significant need for consulting services. Owing to the growing investment in emerging technologies is boosting the company's growth Strategies. For instance, despite the COVID-19 pandemic, Singapore received USD 11.8 billion in fixed asset investments last year, bolstered by significant manufacturing projects from the semiconductor and biotech industries, which could exceed the Singapore Economic Development Board's (EDB) medium- to the long-term annual objective of USD 8 billion to USD 10 billion.
• Moreover, the manufacturing output value of pharmaceutical and biological products in Singapore was SGD 17.58 billion (12.69 billion), a rise over the previous year. Singapore is Asia's premier biomedical sciences center, and the Singapore government invests billions of Singapore dollars each year in biomedical sciences research and development. These firms also need strategic expertise to restructure their operations, ensuring business continuity and resiliency in future disruptions.
• The Thailand Board of Investment (BOI) announced that the combined value of foreign and local applications for investment promotion last year totaled USD 19.5 billion, a 59% increase, boosted primarily by FDI in tech sectors and continued growth in the value and number of projects in Bio-Circular-Green (BCG) industries, as well as the continued expansion of the power generation sector, thereby boosting the demand for management consulting services.
• In addition, The Thailand Board of Investment (BOI) stated that investment applications in BCG operations are continuously increasing as investors take advantage of the promotion measures they have provided to help Thailand's economy and enterprises operating here prepare for changing consumer demand and supply chains in the post-COVID-19 world. They are experiencing consistent growth in target industries such as smart electronics, specialty chemicals, bioplastics, and the medical cluster in foreign direct investment.

The Southeast Asian consulting service market is highly competitive and consists of many global and regional players. These players account for a considerable market share and focus on expanding their global client base. They focus on R&D activities, strategic alliances, and other organic and inorganic growth strategies to stay in the market over the forecast period.

• August 2021 - The Project Management Institute partnered with Deloitte Consulting to advance project management expertise in Southeast Asia.
• May 2021 - Singapore's Economic Development Board (EDB) chose McKinsey and BCG's venture to support a new SGD 10 million (USD 7.2 million) business growth project. Leap by McKinsey and BCG Digital Ventures is expected to act as the designated studios for the 'Corporate Venture Launchpad,' along with venture-building organizations Rainmaking and FutureLabs (the latter created by McKinsey alumnus Mario Aquino and Philippe Mauchard).

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