The case for expanding your business into Asia in 2027

If you're weighing your first move into Asia, you probably have a long list of questions. Which market makes sense for your team? What will it cost to hire there? How quickly can you get your first person started? We support growing teams across Asia, including Singapore, Malaysia, the Philippines and Hong Kong, so we've brought together the numbers you need to build your business case, all drawn from official government and international sources.

Key takeaways

• Growth: The IMF forecasts 4.8% growth for emerging and developing Asia in 2027, and 4.3% for the five largest Southeast Asian economies, ahead of the 3.4% global average.
• Investment: Foreign direct investment into Southeast Asia rose 8% to US$226 billion in 2024, while global flows fell 11%.
• Talent: The Philippines has a labor force of 52.36 million, with 62.8% of employed people working in services.
• Regional hubs: Hong Kong hosts 1,510 regional headquarters of overseas companies, and Singapore secured S$14.2 billion in new investment commitments in 2025.
• Lower-risk entry: You can hire in all four markets without your own entity, using an Employer of Record (EOR).

Why are companies expanding into Asia in 2027?

For most companies, it comes down to growth, investment and talent. Many teams reach a point where their home market can only take them so far, and Asia offers the next chapter: economies growing faster than most of the world, investors who continue to commit capital to the region, and a talent pool that ranges from high-volume customer operations to senior regional leadership.

Add a shared time zone across the region's major business hubs and well-established infrastructure for regional offices, and doing business in Asia becomes a practical, well-trodden next step. Let's look at what the data says about each of these reasons.

Is Asia still growing faster than the rest of the world?

Yes, and by a comfortable margin. In its July 2026 World Economic Outlook Update, the IMF projects emerging and developing Asia will grow 4.8% in 2027, compared with 3.4% for the world as a whole and 1.8% for advanced economies such as the US, the UK and the euro area.

Growth looks different from market to market, so choosing where to start matters just as much as deciding to go. The Philippines and Indonesia lead Southeast Asia's 2027 forecasts. The IMF's July update also singles out Malaysia as one of the economies benefiting from global demand for AI-related hardware and data centers.

Southeast Asia is a sizable market in its own right, too. According to the ASEAN Secretariat, the combined GDP of the Association of Southeast Asian Nations (ASEAN) reached US$3.8 trillion in 2023, making it the world's fifth-largest economy. If your customers are in the region, a local team puts you right alongside them.

Is investment into Asia still growing?

Yes. Even as global investment cooled, investors continued to choose Asia. A helpful signal here is foreign direct investment (FDI), which is money companies invest directly into operations in another country, such as a new office, factory or subsidiary. Rising FDI tells you businesses are building in the region for the long term.

• Southeast Asia: FDI into ASEAN rose 8% to US$226 billion in 2024, while global FDI fell 11%. It was the fourth year in a row that ASEAN led all developing regions for FDI, according to the ASEAN Investment Report 2025.
• Malaysia: The Malaysian Investment Development Authority (MIDA) reports approved investments reached RM218.5 billion in the first half of 2026, up 11.7% on a year earlier, with 99,030 jobs expected once projects are up and running. This follows Malaysia's third record year in a row in 2025.
• Singapore: The Economic Development Board (EDB) secured S$14.2 billion in fixed asset investment commitments in 2025, expected to create 15,700 jobs over five years. About two-thirds of those roles are expected to pay above S$5,000 a month.
• Hong Kong: 11,070 companies with parent companies outside Hong Kong were operating there in 2025, up 11% on 2024, and together they employ about 509,000 people.

For you, joining a region where so many companies are making the same move brings real advantages: experienced local service providers, established payroll and compliance infrastructure, and a community of peers who have already worked through the questions you're asking now.

Can I find the talent I need in Asia?

Absolutely. Asia offers both scale and specialist expertise, and the best market for you depends on the roles you're hiring for. Here's how the picture looks for three common hiring needs.

• Customer support, operations and services at scale: The Philippines had a labor force of 52.36 million in July 2026, with 62.8% of employed people working in services, according to the Philippine Statistics Authority. That depth makes it a strong fit for teams that need to grow quickly.
• Senior and specialist roles: Most of the jobs tied to Singapore's 2025 investment commitments are professional, managerial, executive and technician roles, spanning services, manufacturing and research and development (R&D). If you need experienced specialists, Singapore's talent market is built around them.
• Regional leadership: Hong Kong alone hosts 1,510 regional headquarters and 2,500 regional offices of overseas companies. With that many regional teams in one place, you'll find a deep pool of managers who have led multi-country operations before.

How does Asia help with time zone coverage?

Here's a handy bonus: Singapore, Malaysia, the Philippines and Hong Kong all share the same time zone (UTC+8). A team in any of these markets works the same hours as colleagues across the region, overlaps with European mornings, and covers the hours when North American teams are offline. For customer support, engineering and operations teams, that means wider coverage for your customers without asking anyone to work night shifts.

Which Asian market should I enter first?

The best first market is the one that matches what you need your team to do. A regional headquarters, a cost-effective operations hub and a specialist engineering team each point to a different answer. Here's how four popular first markets compare on the basics.

A quick glossary of the terms above:

• CPF (Central Provident Fund): Singapore's mandatory savings scheme for retirement, housing and healthcare, paid by employers and employees for citizens and permanent residents (PRs).
• MPF (Mandatory Provident Fund): Hong Kong's retirement scheme, with matching employer and employee contributions.
• EPF, SOCSO and EIS: Malaysia's retirement fund, social security scheme and employment insurance scheme.
• SSS, PhilHealth and Pag-IBIG: the Philippines' social security, national health insurance and housing savings programs.
• 13th-month pay: a mandatory extra month of pay in the Philippines, equal to at least one-twelfth of an employee's basic salary for the year.

Want the full detail on a market? Our country guides walk through costs, leave, contracts and payroll step by step.

What's changing for employers in Asia in 2027?

Planning your 2027 headcount? These are the rule changes to build into your budget and hiring timeline now. If you plan to relocate talent to Singapore, the work pass changes deserve a spot at the top of your list.

What are the risks of expanding into Asia right now?

Every expansion comes with risks, and naming them early helps you plan with confidence. On the economic side, the IMF's July 2026 update points to higher energy prices linked to the Middle East conflict, renewed trade tensions and a possible correction in AI-related investment as the main downside risks to its forecasts. Economies that import most of their energy are more exposed to price shocks, so it's worth factoring that into your market choice.

Day to day, the risks you'll deal with most are compliance ones. Work pass rules, statutory contributions (the mandatory payments employers make into retirement, health and social security schemes) and termination rules vary by market and change often. A regular compliance review for each country where you hire keeps you ahead of those changes.

This is also where the right tools make a real difference. Platforms like Omni keep payroll, statutory contributions and employee records for every market in one place, with local rules for each country built in, so your HR team spends less time tracking rule changes and more time supporting your people.

What's the lowest-risk way to test a new Asian market?

Many companies start with an Employer of Record. An Employer of Record (EOR) is a company that legally employs your hires on your behalf. The EOR runs payroll, pays statutory contributions and manages local employment compliance, while your new team member works with you day to day.

It's a popular way to test a market because you can hire in days, learn how the market works, and move your team onto your own entity once you're ready to commit. Here's how the three main hiring routes compare.

Frequently asked questions

Is Asia a good place to expand a business in 2027?

For many companies, yes. The IMF projects emerging and developing Asia will grow 4.8% in 2027, compared with 1.8% for advanced economies, and foreign direct investment into Southeast Asia reached US$226 billion in 2024. The right market for you depends on your goals, budget and the roles you need to fill.

Which country is best for a regional headquarters in Asia?

Singapore and Hong Kong are the most common choices for a regional headquarters. Hong Kong hosted 1,510 regional headquarters of overseas companies in 2025, and Singapore is a frequent choice for teams covering Southeast Asia. Both offer experienced regional talent and well-established business infrastructure.

Which Southeast Asian country is growing fastest in 2027?

Of the Southeast Asian economies the IMF breaks out in its July 2026 update, the Philippines (5.5%) and Indonesia (5.1%) have the highest growth forecasts for 2027. Malaysia follows at 4.3%.

Do I need a local entity to hire in Asia?

Not to get started. An Employer of Record can legally employ your hires in Singapore, Malaysia, the Philippines and Hong Kong, handling payroll and compliance for you. Many companies use an EOR for their first hires, then set up their own entity once the market proves itself.

How much does it cost to employ someone in Asia?

It depends on the market. On top of salary, employer contributions range from 5% in Hong Kong (capped at HK$1,500 a month) to about 16% in Malaysia. In the Philippines, you'll also budget for a mandatory 13th-month pay. Our country guides include a cost calculator for each market.

What changes should employers in Asia plan for in 2027?

The biggest change is in Singapore, where the Employment Pass minimum salary rises to SGD 6,000 for new applications on 1 January 2027. Hong Kong also now reviews its minimum wage every year, so plan for an annual update to your pay floors there.

Ready to plan your move into Asia?

Expanding into a new market is exciting, and it comes with a lot to manage: new payroll rules, new contributions and new compliance requirements in every country. We built Omni to make that part simple.

Omni is an all-in-one HRIS and multi-country payroll platform built for teams operating across Asia. We bring employee records, multi-country payroll, APAC compliance and AI-powered insights together in one place, supporting teams in 200+ countries. We fit how you work, and we scale with you as you add each new market.

Book a demo, or start your 7-day free trial and see how it works for your team.

‍