Against the background of the accelerated restructuring of the global industrial landscape, the Asia-Pacific region is becoming an important engine for the development of emerging industries. With the in-depth implementation of RCEP and the continuous improvement of regional innovation networks, emerging industries such as artificial intelligence, biotechnology, and clean energy have shown an unprecedented trend of coordinated development in the Asia-Pacific region. According to the latest data, the Asia-Pacific region will account for more than 40% of global investment in emerging industries in 2023, and the number of innovation patent applications will increase by 35% year-on-year. However, there are significant differences in industrial policies, access standards and market environments between countries, which brings many challenges to enterprises’ cross-border layout. This article will provide an in-depth analysis of the development status, synergy mechanisms and investment opportunities of emerging industries in Asia-Pacific, and provide enterprises with practical layout strategies and implementation plans.

The new development pattern of emerging industries in Asia-Pacific

The global industrial landscape is undergoing profound changes, and the Asia-Pacific region is playing an increasingly critical role in this restructuring. In 2023, the global supply chain will continue to adjust. Affected by geopolitics, the “Friend-shoring” strategy will gradually become mainstream, which will bring unprecedented development opportunities to the Asia-Pacific region. According to the latest report from the Asian Development Bank, the Asia-Pacific region will attract US$875 billion in foreign direct investment in 2023, a year-on-year increase of 22%, of which investment in emerging industries will account for more than 45%.

In terms of regional industrial collaboration, the in-depth implementation of RCEP is accelerating the integration of regional industrial chains. In the first quarter of 2024, the localization rate of the regional industrial chain has increased to 68%, an increase of 5 percentage points from the end of 2023. Especially in the fields of electronic manufacturing, new energy, biomedicine and other fields, industrial synergy has been significantly enhanced. Taking electronic manufacturing as an example, the core components of South Korea and Japan have formed a close collaboration network with the assembly capacity of Southeast Asian countries, and the efficiency of the industrial chain has increased by about 30%.

Governments of various countries have also introduced supportive policies. Singapore launched the “Digital Economy Partnership Plan” in early 2024, investing S$5 billion to support the development of cutting-edge technologies such as AI and quantum computing; Japan revised the “Economic Security Promotion Act” and will focus on supporting strategic industries such as semiconductors and biotechnology; South Korea has released the “K-Innovation Strategy 2024”, planning to invest 100 trillion won in the development of emerging industries in the next three years. These policies have formed a good environment for industrial development.

In terms of industrial structure upgrading, countries show differentiated development characteristics. Developed economies such as Singapore, Japan, and South Korea focus on high value-added sectors, such as AI algorithm research and development, biopharmaceutical research, etc. Emerging markets such as Vietnam and Indonesia are actively undertaking industrial transfers and gradually moving up the value chain. According to McKinsey’s latest research, Southeast Asia’s share of global high-tech manufacturing is expected to increase from the current 8% to 15% by 2025.

Regional innovation capabilities are also steadily improving. In 2023, the number of PCT patent applications in the Asia-Pacific region will increase by 28% year-on-year, of which AI-related patents will increase by 45%. The innovation clusters in Singapore, Tokyo, and Seoul have entered the top ten in the world, driving collaborative innovation in surrounding areas. It is worth noting that second-tier innovation cities such as Shenzhen, Bangalore, and Jakarta are rapidly rising, forming multi-level innovation networks.

The development of industrial clusters presents new characteristics. Traditional manufacturing clusters are transforming into “intelligent + service-oriented”. For example, Thailand’s Eastern Economic Corridor (EEC) is building a smart car manufacturing base and introducing new technologies such as 5G and the Internet of Things. At the same time, the formation of emerging industrial clusters is accelerating. For example, Singapore’s Jurong Innovation District brings together more than 400 technology companies and has become an important innovation center in the Asia-Pacific region.

Of particular concern are several emerging trends: First, “industrial chain resilience” has become the focus of various countries’ layouts, and companies generally adopt the “center + satellite” multi-point layout model; secondly, digital transformation is accelerating, and 83% of companies plan to Increase investment in digitalization every year; third, the concept of green development is in-depth, and it is expected that the green technology market size in the Asia-Pacific region will reach US$2.1 trillion by 2025.

For companies planning to expand into the Asia-Pacific market, it is recommended to focus on the following aspects and conduct in-depth research on the industrial policies of various countries, especially access conditions and support measures . Choose a suitable location for regional headquarters. Singapore, Hong Kong and other places have special preferential policies for regional headquarters of multinational enterprises . Make full use of tariff concessions and trade facilitation measures under the RCEP framework . Focus on building local R&D capabilities and consider cooperating with local universities and research institutions . To formulate a flexible supply chain strategy, it is recommended to adopt a “1+N” diversified layout model .

These development patterns and trends are reshaping the industrial landscape of the Asia-Pacific region and bringing new development space to enterprises. Accurately grasping these changes will provide important guidance for companies’ layout in the Asia-Pacific region.

Development trends and entry thresholds in key areas

2.1 Artificial Intelligence Industry

Singapore is building the most dynamic AI innovation ecosystem in the Asia-Pacific region. In early 2024, the Singapore government launched the “AI 2030 Strategy” and planned to invest S$4 billion in AI infrastructure construction and talent training. Currently, the Agency for Science, Technology and Research (A*STAR) of Singapore has established cooperation with more than 200 companies, forming a complete innovation chain from basic research to commercial applications. In terms of access, Singapore adopts a “sandbox supervision” model to implement hierarchical management of AI companies. High-risk AI applications (such as autonomous driving, medical diagnosis) require special permission from the Info-communications Media Development Authority (IMDA).

Japan and South Korea have their own characteristics in AI application scenarios. Japan focuses on the development of industrial robots and service robots. The “2024 New Robot Strategy” proposes a goal of reaching 10 trillion yen in scale of the robot industry by 2025. In terms of supervision, the “AI Governance Guidelines 3.0” issued by Japan’s Ministry of Economy, Trade and Industry places special emphasis on data security and ethical norms. South Korea focuses on the application of AI in the fields of semiconductors and digital content. The newly revised “Artificial Intelligence Industry Development Act” provides companies with R&D tax exemptions of up to 30%.

The Southeast Asian AI market is ushering in an explosive period. According to IDC, the Southeast Asian AI market will reach US$16.5 billion by 2025, with a compound annual growth rate of 42%. The access policies of various countries show differentiated characteristics: Vietnam requires AI companies to set up local data centers; Indonesia has clear restrictions on the shareholding ratio of foreign-funded AI companies, with a maximum of 67%; Malaysia adopts a relatively open policy and establishes in the digital special economic zone Provide “one-stop” services for AI companies.

2. 2 Biotechnology field

The Asia-Pacific biopharmaceutical industry chain presents a dual-center pattern of “R&D + manufacturing”. Japan, South Korea, and Singapore form an R&D innovation belt, with strong basic research capabilities and a complete clinical trial system. Mainland China and India have become important manufacturing bases by virtue of their cost advantages and industrial supporting facilities. In 2023, the number of biotechnology-related patent applications in the Asia-Pacific region will increase by 35% year-on-year, with the fastest growing fields in gene therapy and cell therapy.

Biotechnology regulatory policies in various countries are becoming increasingly strict. Japan will amend the “Regenerative Medicine Safety Act” in 2024 to simplify the stem cell treatment approval process, but strengthen later supervision; South Korea passed the “Biosafety Act Amendment” to improve biosafety level laboratory standards; Singapore adopts a “fast track” system to Breakthrough biotechnology innovations will be given priority review.

In terms of market access certification systems, countries in the Asia-Pacific have established strict biopharmaceutical regulatory frameworks. As a regional biomedical center, Singapore requires companies to obtain certification from the Health Sciences Authority (HSA) and laboratories must strictly comply with Biosafety Level (BSL) standards. Japan’s Pharmaceuticals and Medical Devices Agency (PMDA) is known for its rigor, and its review system pays particular attention to product quality and safety data. South Korea’s Food and Drug Safety Service (MFDS) has recently simplified the approval process for innovative drugs, but strengthened production quality management practices. The Indian Drug Standard Control Organization (CDSCO) attaches special importance to the integrity and traceability of clinical trial data. Generally speaking, the entire approval process takes 6-18 months from submission of application to approval, depending on the product category and the degree of technological innovation. It is recommended that enterprises start preparing relevant certification materials at the early stage of project planning, and may consider hiring local professional organizations to assist in the process.

2.3 Clean energy industry

The development of clean energy in the Asia-Pacific region is entering the fast lane. According to the latest data from Bloomberg New Energy Finance, investment in renewable energy in the region will reach US$280 billion in 2023, accounting for 42% of the global total and setting a record high. Countries have introduced major development plans one after another to lead the rapid development of the industry. The Australian government has launched the “Hydrogen Vision 2024”, which plans to build the world’s largest green hydrogen export base relying on abundant renewable energy resources and advanced hydrogen production technology. Japan recently revised its “Energy Basic Plan” to significantly increase its renewable energy goals, proposing that the proportion of renewable energy will increase from the previous 22-24% to 36-38% by 2030. South Korea’s “Green New Deal 2.0” focuses on the offshore wind power and hydrogen energy industries, and plans to build 7.9GW of offshore wind power installed capacity by 2025.

Countries generally adopt a multi-level policy support system, covering multiple dimensions such as R&D subsidies, equipment subsidies, and operating subsidies. The Singaporean government provides up to 70% cost subsidies for clean energy technology research and development projects, and plans to build Asia’s largest clean energy technology testing base on Jurong Island. Japan has the strongest support for the hydrogen energy industry. In addition to providing equipment subsidies of up to 50%, it has also established a complete hydrogen energy industry support system, including technology research and development, infrastructure construction, and demonstration applications. South Korea has adopted a dual-track renewable energy quota system and a fixed electricity price purchase system to provide stable income guarantees for clean energy projects for 20 years. Relying on its superior natural conditions, Vietnam focuses on developing the photovoltaic industry and provides preferential policies such as land rent reduction and exemption for qualified photovoltaic power generation projects. These support policies usually have clear application conditions and time windows, and companies need to make project planning and application preparations in advance.

Green financial support is also increasing. The Monetary Authority of Singapore has established a S$10 billion green investment plan to focus on supporting clean energy technology innovation and large-scale application. Japan released the “Transformation Financial Guidelines” in early 2024 to provide financing support for traditional energy companies to transform into clean energy, which is expected to drive market investment of more than 1 trillion yen. South Korea plans to expand the scale of green bond issuance to 50 trillion won by 2025 and establish a specialized green project evaluation system. Enterprises can choose a variety of financing methods such as green bonds, sustainability-linked loans or equity investments based on their own development stages and financing needs.

For companies planning to enter the Asia-Pacific clean energy market, it is recommended to adopt a step-by-step development strategy. You can start with supporting areas such as technical services and equipment maintenance to gain a deeper understanding of local market demands and regulatory environment. At the same time, we must make full use of the subsidy policies of various countries and make application plans in advance to ensure project benefits. In terms of partner selection, it is recommended to give priority to establishing strategic cooperation with local research institutions and leading enterprises, so as to better grasp the direction of technological development and market opportunities. In addition, enterprises also need to establish a complete compliance system, especially in terms of data security and intellectual property protection, pay close attention to policy trends, and adjust development strategies in a timely manner.

As the global energy transformation accelerates, the clean energy market in the Asia-Pacific region will continue to grow rapidly. It is expected that by 2025, the installed renewable energy capacity in the region will exceed 2,000GW, with an average annual growth rate of more than 15%. Enterprises need to establish a flexible market response mechanism to seize development opportunities while preventing and controlling risks to achieve sustainable development.

Regional coordinated development mechanism

The multilateral cooperation framework is reshaping the industrial synergy pattern in the Asia-Pacific region. Since RCEP takes effect in 2022, it has significantly promoted the integration and upgrading of regional industrial chains. As of the third quarter of 2024, the trade volume between member countries under the RCEP framework has increased by 23.8% year-on-year, with the most significant growth in trade in high-tech products and services. In terms of industrial collaboration, RCEP has promoted the formation of a closer regional value chain through measures such as unifying rules of origin and lowering tariff barriers. Especially in the fields of auto parts, electronic products, medical equipment and other fields, industrial clusters for transnational collaboration have been formed. Member states can make full use of the cumulative rules of origin, integrate regional resources, and enhance product competitiveness.

As an important platform for regional cooperation, ASEAN recently launched the “ASEAN Digital Economic Cooperation Framework 2024-2030” to focus on building a digital industry ecosystem. The framework established a US$10 billion industrial development fund to focus on supporting digital infrastructure construction, cross-border e-commerce, smart manufacturing and other fields. The Singapore-Indonesia Digital Economic Corridor project is a typical case. The two countries have carried out in-depth cooperation in areas such as digital payments and data centers and are expected to drive US$30 billion in economic benefits by 2025.

The network of bilateral investment agreements continues to improve, providing a strong guarantee for enterprises’ cross-border operations. In early 2024, the updated investment agreement signed between Japan and Singapore specifically emphasized investment protection in emerging fields such as the digital economy and green technology. The amendment to the investment agreement between South Korea and Vietnam focuses on strengthening intellectual property protection and technology transfer regulations. These agreements generally adopt a “negative list” management model, which significantly lowers market access thresholds and establishes a more complete dispute settlement mechanism.

In terms of cross-border innovation cooperation, regional science and technology innovation platforms are playing an increasingly important role. The “Asia-Pacific Innovation Network” led by the Singapore Agency for Science, Technology and Research (A*STAR) has attracted more than 500 companies and research institutions to join, forming an innovation ecosystem covering artificial intelligence, biomedicine, new energy and other fields. The platform provides one-stop services such as R&D facility sharing, joint laboratory construction, and technology transfer, which greatly reduces innovation costs. In 2023, cross-border technology transactions facilitated through the platform will reach US$2.8 billion, a year-on-year increase of 45%.

The talent exchange mechanism is increasingly improving, injecting continuous impetus into regional innovation. The “Asia Innovation Talent Plan” launched by Japan trains 3,000 high-tech talents for ASEAN countries every year and provides internship and employment opportunities. The “Digital Talent Training Fund” established by South Korea focuses on supporting talent exchanges in fields such as artificial intelligence and big data. Singapore provides fast entry and long-term residence convenience for high-end scientific and technological talents through the “Technology Talent Pass” project. These programs not only promote the flow of talent, but also accelerate the dissemination and innovation of technical knowledge.

The synergy of the intellectual property protection system has been significantly improved. Under the RCEP framework, member states are promoting a mutual recognition mechanism for intellectual property review results and simplifying the cross-border patent application process. The Singapore-Japan Patent Prosecution Highway (PPH) project has shortened the prosecution cycle by 60%. Important progress has also been made in the construction of a regional intellectual property database, which has now integrated more than 10 million pieces of patent information to provide enterprises with convenient retrieval and analysis services.

In order to make better use of these collaborative development mechanisms, companies can adopt the following strategies: first, fully understand the RCEP rules of origin and optimize the supply chain layout; second, actively participate in regional innovation platforms and find technology partners; third, utilize various talents Plan and establish an international team; finally, do a good job in intellectual property layout and build competitive advantages in the regional market.

The government level is also constantly improving the supporting service system. For example, Singapore has established a “Regional Cooperation Promotion Center” to provide one-stop consulting services to enterprises; the Japan External Trade Organization (JETRO) has set up service windows in major cities to assist enterprises in connecting with regional resources; the Korean Industrial Park Corporation provides settled enterprises Provide comprehensive localization support. These institutions can help enterprises better grasp regional collaborative development opportunities.

With the deepening application of digital technology and the acceleration of green transformation, regional coordinated development will become more open and innovative. It is expected that by 2025, cross-border innovation cooperation projects in the Asia-Pacific region will increase by more than 30%, and synergistic effects in emerging industries will further emerge. Enterprises need to maintain strategic focus, build a long-term development perspective, and actively integrate into the general trend of regional coordinated development.

Investment Layout Strategy Guide

The market access environments of Asia-Pacific countries are significantly different. With its complete legal environment and efficient administrative system, Singapore has ranked first in the World Bank’s business environment rankings for five consecutive years, and it only takes 3-5 working days for foreign investment to be established. Although Japan has lifted restrictions on foreign investment in most industries, certain areas such as agriculture and medical care still require strict review, with an average approval time of 4-6 weeks. South Korea is generally open to foreign investment, but there are shareholding restrictions in media, telecommunications and other fields. In contrast, Indonesia adopts a “negative list” management model, which imposes equity ratio restrictions or prohibits foreign investment in some areas. The approval process is more complicated and usually takes 2-3 months.

Investment structure design requires comprehensive consideration of tax planning, capital efficiency and exit mechanisms. Taking Singapore as an example, its corporate income tax rate of 17% has obvious advantages in the region, and it has signed comprehensive double taxation avoidance agreements with many countries. It is recommended that companies use Singapore as their regional headquarters and coordinate regional business through a holding company structure. Japan’s recent economic security incentive measures provide investment subsidies of up to 50% for key industrial chain projects, and companies can choose appropriate investment methods based on industry orientation. In terms of capital arrangements, it is recommended to adopt a step-by-step investment strategy. The initial investment scale is appropriate to meet basic operational needs, and subsequent investments will be gradually increased based on business development.

The selection of local partners is directly related to the success or failure of the project. It is recommended that enterprises establish a scientific partner evaluation system, focusing on the following aspects: first, industry resources and market channels, through on-site visits to understand its cooperation with upstream and downstream enterprises; second, technological innovation capabilities, it is recommended to inquire about its patent layout and R&D investment; the third is the financial status, which can be entrusted to a third-party agency to conduct due diligence; the last is the compliance record, which requires special attention to whether there are major violations of laws and regulations. Recent data shows that more than 40% of cross-border investment failure cases are related to improper partner selection, so this link cannot be ignored.

It is urgent to build a policy risk early warning mechanism. It is recommended that enterprises establish a three-level early warning system: the first level is daily monitoring, which is to keep abreast of policy trends by subscribing to local government announcements, industry association briefings and other channels; the second level is in-depth analysis, which is to carry out special projects on major policy changes that may affect the operation of the enterprise. Research and assess potential impacts; the third level is emergency response, formulating response plans for unexpected policy risks. For example, Indonesia’s revised Mining Law in early 2024 significantly increased resource taxes, causing many foreign-invested projects to run into operating difficulties. Companies that have prepared response plans in advance have better mitigated risks by adjusting their business structures and negotiating compensation plans.

A compliance management system should focus on several key areas. The first is antitrust compliance. Asia-Pacific countries have generally strengthened antitrust enforcement recently. The number of fines issued by the Korean Fair Trade Commission to illegal companies in 2023 increased by 85% year-on-year. Second is data compliance. Japan’s revised “Personal Information Protection Law” has strengthened the management of cross-border data flows, and penalties for violations can reach up to 4% of a company’s annual revenue. In addition, environmental compliance is becoming increasingly important. Singapore will impose a carbon tax on high-carbon-emitting enterprises from 2025, and the tax rate will increase from the current S$5/ton to S$25/ton. It is recommended that enterprises adopt a two-tier management structure of “compliance officer + professional team” to ensure that compliance requirements are effectively implemented.

Intellectual property protection requires the construction of a comprehensive protection network. First of all, it is necessary to make a good patent layout. It is recommended to apply for patent protection simultaneously in core markets. You can consider speeding up the review process through the “patent review highway” mechanism. Secondly, we must pay attention to the protection of business secrets, sign confidentiality agreements with employees, and establish a hierarchical information management system. Third, we must strengthen brand protection. In addition to traditional trademark registration, we must also pay attention to domain name protection and online keyword control. It is worth noting that intellectual property litigation cases in the Asia-Pacific region will increase by 30% in 2023, of which cross-border disputes will account for more than 50%. Companies must be more vigilant.

At the specific operational level, it is recommended that enterprises take the following measures:

• Establish a dedicated risk management team and conduct regular risk assessments and stress tests;
• Purchase corresponding insurance products, such as political risk insurance, intellectual property insurance, etc.;
• Establish long-term cooperative relationships with local law firms and obtain timely legal support;
• Actively participate in industry association activities and expand local relationship networks;
• Conduct regular compliance training to improve employee risk awareness.

Enterprises should pay special attention to the prevention of unexpected risks. Geopolitical tensions have intensified recently and the risk of supply chain disruption has increased. It is recommended that enterprises optimize their supplier structure, increase inventory reserves appropriately, and establish backup supply channels. At the same time, attention should be paid to exchange rate risks and risk hedging can be carried out through financial instruments such as hedging. In addition, the impact of natural disasters and public health events cannot be ignored. Enterprises must develop complete business continuity plans to ensure that key businesses are not interrupted.

Analysis of typical cases

In the field of artificial intelligence, the operating model of Google’s Singapore AI R&D center provides valuable experience. Since its expansion in 2023, the center has adopted a trinity development model of “R&D + application + ecology”. In terms of research and development, the center has established joint laboratories with the National University of Singapore and Nanyang Technological University, focusing on breaking through technical problems such as large language model localization and computer vision. Practice shows that in-depth cooperation with local universities not only reduces R&D costs, but also provides strong support for talent reserves. At the application level, the center supports local start-ups through the “AI Accelerator Program” and has incubated more than 50 implementation projects, covering smart healthcare, smart transportation and other fields. In terms of ecological construction, the center took the lead in establishing the “Southeast Asia AI Alliance”, attracting more than 200 companies to join, forming a complete industrial ecological chain.

SoftBank’s layout in Japan’s AI industry demonstrates how to achieve industrial upgrading through investment portfolios. In early 2024, SoftBank announced an investment of US$10 billion to build the “Vision AI Fund” and adopt an “investment + empowerment” model to promote the development of the AI ​​industry. In terms of investment strategy, the fund adopts the “1+N” model, which is to deploy multiple vertical application fields around an AI core technology platform. For example, Pepper, the leading Japanese robotics company acquired by SoftBank, has successfully realized the large-scale application of AI technology in retail, education, medical and other fields. It is worth noting that SoftBank attaches special importance to intellectual property protection and unified management of technology assets through patent pools, effectively reducing legal risks.

In the field of biotechnology, Takeda Pharmaceutical’s Asia-Pacific regional integration is a model. The company’s “Asia-Pacific Biopharmaceutical Innovation Plan” launched in 2023 has achieved efficient integration of regional resources through differentiated layout. In Japan, the company retains its high-end innovative drug research and development functions; in Singapore, it has established a regional supply chain center to be responsible for the production and logistics of raw materials; in China and India, it focuses on generic drug production and clinical research. This layout makes full use of the advantages of each country and will achieve cost savings of US$230 million in 2023 alone. It is particularly worth mentioning that Takeda Pharmaceutical has established a complete quality management system to ensure that products produced in different regions meet the highest standards.

The development model of Songdo Biomedical Industrial Park in South Korea is worth learning from. The park adopts a three-wheel drive model of “government guidance, enterprise leadership, and financial support”. At the government level, it provides land concessions and tax exemptions and builds a public service platform; at the enterprise level, it introduces 30 leading enterprises as the core of the industrial chain to drive the gathering of upstream and downstream supporting enterprises; at the financial level, it establishes a US$5 billion industrial fund to provide park enterprises with Full life cycle financing services. As of the first quarter of 2024, the park has gathered more than 200 companies, forming a complete chain from basic research to industrialization. The park pays special attention to the protection of intellectual property rights and establishes a specialized intellectual property trading platform to promote the transformation of technological achievements.

In the field of clean energy, the Queensland Hydrogen Corridor Project in Australia demonstrates a new model of international cooperation. The project adopts the innovative mechanism of “industrial chain collaboration + market guarantee” and has attracted investment from Japan, South Korea and other countries. In terms of industrial chain coordination, Australia is responsible for renewable energy power generation and hydrogen production, while Japanese and Korean companies are responsible for storage and transportation technology and terminal applications. The advantages of each party complement each other. In terms of market guarantee, the project adopts an “order-based” development model and locks in sales channels through long-term supply agreements. The first phase investment of the project is US$5 billion. It is expected to produce 100,000 tons of green hydrogen per year after it is put into operation in 2025. It has become the largest green hydrogen project in the Asia-Pacific region.

Indonesia’s North Kalimantan New Energy Industrial Park provides an example of clean energy industry cluster development. The park adopts the “one core, multiple wings” development model, with photovoltaic manufacturing as the core and supporting the development of energy storage equipment, smart grid and other related industries. In terms of investment policies, the park adopts differentiated strategies: providing up to 50% equipment subsidies for core industries such as photovoltaic cells; providing preferential factory rents to supporting enterprises; and providing R&D funding support to R&D institutions. The park also pays special attention to environmental protection and has established a strict environmental impact assessment mechanism. As of 2024, the park has attracted more than US$8 billion in investment, becoming an important clean energy industry base in Southeast Asia.

The successful experience of these cases is mainly reflected in this aspect , focusing on localized innovation and in-depth cooperation with local research institutions; adopting differentiated layout strategies to achieve regional resource complementarity; attaching great importance to the construction of industrial ecology to drive the development of supporting enterprises; establishing complete risk management system, especially intellectual property protection; flexible use of multiple cooperation models to ensure sustainable development of the project.

When enterprises draw on these experiences, they need to pay attention to formulating appropriate development strategies based on their own actual conditions and target market characteristics. At the same time, we must pay close attention to changes in industrial policies and market dynamics, adjust investment layout in a timely manner, and ensure maximum investment benefits.

Prospects for coordinated industrial development

As industrial upgrading accelerates in the Asia-Pacific region, technological innovation will take on new characteristics in the next five years. In the field of artificial intelligence, the industrial application of large language models will enter the deep water area. It is expected that by 2025, professional models in vertical fields will become mainstream, especially in fields such as finance, medical care, and manufacturing. Quantum computing technology is expected to achieve a commercial breakthrough in 2026, and Japan has announced that it will invest 200 billion yen to support the development of the quantum computing industry. In terms of biotechnology, gene editing and cell therapy will usher in major breakthroughs. South Korea plans to invest 1 trillion won by 2025 to support the research and development of new generation biotechnology.

Industrial integration presents three major trends: First, the deep integration of digitalization and traditional manufacturing. Technologies such as the Industrial Internet and digital twins will reshape the manufacturing value chain. Singapore is advancing the “Digital Factory 2.0 Plan” and it is expected that 60% of manufacturing companies will achieve digital transformation by 2026. Secondly, there is the coordinated development of new energy and traditional energy. The “hydrogen energy +” model will be widely used in high energy-consuming industries such as chemical industry and steel. Australia plans to increase green hydrogen production capacity to 1 million tons per year by 2027. The third is the accelerated integration of biotechnology and the medical and health industry, and precision medicine and smart medicine will become key development directions.

Regional collaboration presents a new model. The dual-chain collaboration of “industrial chain + innovation chain” has become mainstream, and countries are building innovation corridors around key industries. For example, Singapore, Malaysia and Thailand are jointly building the “Southeast Asia Digital Innovation Corridor”, focusing on the development of emerging industries such as 5G, artificial intelligence, and the Internet of Things. The “R&D + manufacturing” gradient transfer model has become more mature. Japan and South Korea will transfer some manufacturing links to Southeast Asia but retain their core R&D capabilities. It is worth noting that the industrial cooperation mechanism under the RCEP framework will begin to show results in 2024, and the regional industrial division of labor will become more optimized.

For the enterprise layout strategy, it is recommended to adopt the “core + network” layout model. In terms of core layout, enterprises should focus on their own advantageous areas and establish R&D centers or regional headquarters in areas with strong innovation capabilities and good business environment. For example, Singapore is used as a regional innovation center, Japan is used as a high-end manufacturing base, and Vietnam is used as a processing and manufacturing base. In terms of network layout, we will build a business network covering the entire industry chain through investment, mergers and acquisitions or strategic cooperation. In particular, companies should establish a flexible supply chain system to ensure rapid adjustment when geopolitical changes occur.

Resource integration requires innovative solutions. The first is talent integration. It is recommended that enterprises establish regional talent pools and implement a transnational job rotation system. For example, the “Asia-Pacific Talent Training Plan” implemented by Samsung Electronics selects 300 core talents to rotate in various subsidiaries in the region every year, and the results are remarkable. The second is technology integration, which can achieve technology synergy through various methods such as the establishment of joint laboratories, technology licensing, and patent cross-licensing. The third is the integration of market resources. It is recommended to coordinate regional market resources through digital platforms to achieve accurate matching of supply and demand.

Risk responses need to be more systematic. In terms of geopolitical risks, it is recommended that companies establish a “multi-center” operating model to avoid over-reliance on a single market or supply chain. In terms of technical risks, it is necessary to strengthen the independent control of core technologies and establish technical barriers through patent layout. In terms of market risk, it is recommended to adopt a “localization + digitalization” two-wheel drive model to improve market response speed. Of particular concern is that as data protection regulations in various countries become stricter, companies must establish a complete data compliance system.

Specific implementation suggestions include establishing an industrial intelligence system to track technology development and policy changes in real time; establishing an innovation fund to support key technology research and development and innovation project incubation; building a regional industry alliance to strengthen collaboration with upstream and downstream enterprises; promoting digital transformation and improving operations efficiency and risk management and control capabilities; strengthen talent training and establish a regional professional talent training system.

The next three years will be a critical period for the reshaping of the Asia-Pacific industrial landscape. Enterprises must seize opportunities, make scientific judgments, and make precise layouts. At the same time, we must pay attention to preventing risks, especially geopolitical risks, technological risks and market risks, to ensure sustainable development. It is recommended that enterprises regularly evaluate their development strategies, adjust resource allocation in a timely manner, and build a resilient business system. At the same time, we must maintain an open and cooperative attitude, actively participate in the reconstruction of regional industrial chains, and occupy a favorable position in the new round of industrial transformation.

Companies also need to pay special attention to the impact of ESG (environmental, social, governance) requirements on industrial development. As countries advance their carbon neutrality commitments, green and low-carbon transformation will become an inevitable trend. It is recommended that enterprises deploy green technologies in advance and establish sustainable business models. This is not only a need to cope with regulatory requirements, but also an important way to enhance corporate competitiveness.

Practical Guide (Special Section)

Qualification processing is the primary task of an enterprise’s overseas layout. In Singapore, companies need to focus on three types of qualifications: first, basic business license, including ordinary company registration certificate (1-2 weeks) and special industry business license (4-8 weeks); second, high-tech enterprise certification, which requires recent Proof of two-year R&D investment, processing time is about 12 weeks; third, data security compliance certification, which companies involved in cross-border data transmission must obtain. In Japan, the focus is on manufacturing investment licensing (8-12 weeks) and environmental impact assessment certification (16-20 weeks). South Korea needs to pay special attention to the foreign-invested enterprise registration certificate (2-3 weeks) and industrial park settlement qualifications (4-6 weeks).

Common problems during the qualification process mainly include: incomplete document notarization and certification, financial certificates that do not meet the requirements, insufficient technical qualification certificates, etc. It is recommended that enterprises start qualification applications 3-6 months in advance and hire local professional service agencies to assist in the process. Special reminder: Singapore, Japan and other countries are promoting electronic approval. Some qualifications can be applied directly through the online platform, which significantly improves the processing efficiency. The annual inspection and renewal times for various qualifications are different. It is recommended to establish qualification management files and set up an automatic reminder mechanism.

In terms of localized talent recruitment, the situation varies greatly among countries. Singapore attaches great importance to cross-cultural management capabilities, and middle and senior managers need to have regional market experience. Recruitment can be done through mainstream platforms such as LinkedIn and JobsDB, or through cooperation with local headhunting companies. The salary system should refer to the local market level. For example, the annual salary of IT engineers in Singapore is usually SGD 70,000-120,000, and that of managers is SGD 150,000-250,000. The Japanese market attaches great importance to long-term employment relationships. It is recommended to build a talent pool through campus recruitment and pay attention to the handling of trade union relations. South Korea needs to pay special attention to labor regulations, such as overtime compensation and annual leave systems, which need to be strictly enforced.

Supply chain construction should adopt a “local + regional” two-wheel drive strategy. In Singapore, we can rely on the advantages of Changi Airport and ports to establish a regional logistics center. The supplier certification system is divided into three ABC levels: Level A is a core supplier and requires an exclusive cooperation agreement; Level B is an important supplier and requires a long-term framework agreement; Level C is a general supplier and adopts the bidding and procurement method. Japanese supply chain management emphasizes quality control and recommends the introduction of a TQM (total quality management) system. South Korea can make full use of its advantages in industrial clusters and establish strategic cooperation with local industrial parks.

The development of market channels needs to be tailored to local conditions. In Singapore, the penetration rate of e-commerce and mobile payment is high. It is recommended to prioritize online channels and cooperate with platforms such as Shopee. The physical channels are mainly shopping mall counters and chain stores. To enter the Japanese market, you need to go through large local trading companies or agents, and it is difficult to develop directly. In the Korean market, you need to pay attention to the relationship with large local enterprise groups (chaebols), and you can consider entering through equity cooperation.

Government docking is a systematic project. Wanqibang provides all-round support, including site selection, talent, policy and other services , and has a dedicated foreign investment service team that can provide one-stop services. Application for preferential policies requires grasping key links. Singapore has a complete policy support system, which mainly includes pioneer enterprise plans, development and expansion plans, and productivity improvement plans. Among them, the Pioneer Enterprise Plan provides tax incentives for qualified enterprises for 5-15 years. The Development and Expansion Plan focuses on supporting enterprise R&D and innovation, and can receive up to 50% of R&D expense subsidies. The Productivity Improvement Plan provides funds for enterprises to update equipment. support. When companies apply for these policy supports, they need to prepare application materials six months in advance, focusing on financial forecasts and benefit analysis.

In terms of connecting government departments, each country has its own unique communication methods and cultural characteristics. Singapore adopts an appointment system, and companies need to reserve a meeting time through the official platform two weeks in advance. Japanese government departments pay more attention to procedures and usually need to be introduced through credible intermediaries or chambers of commerce. The Korean government attaches special importance to the localization of materials. Companies must prepare standardized Korean materials and equip professional Korean translators.

When communicating with the government, companies should focus on preparing bilingual versions of project materials, display important data in charts and tables, and highlight the degree of fit between the project and local industrial planning. At the same time, it is necessary to emphasize the company’s contribution to technological innovation and employment, as well as its commitment to environmental protection and social responsibility. It is also important to establish a regular communication mechanism to help maintain good interaction with government departments.

It is worth noting that there are significant differences in the office culture of government departments across countries. The Singapore government is efficiency-oriented and pays special attention to the completeness and accuracy of application materials. Japanese government departments pay more attention to etiquette and procedures, and the decision-making process is relatively long and requires sufficient patience. South Korean government departments attach great importance to the establishment of personal relationship networks, and companies need to invest more energy in maintaining relationships. Therefore, companies should establish a dedicated government relations team, with personnel familiar with the local culture responsible for the docking work.

In terms of compliance risk management, enterprises need to establish a systematic management system. Basic compliance involves basic regulatory requirements such as industry and commerce, taxation, and labor; industry compliance rules include special industry access standards and technical specifications; special compliance mainly targets specific areas such as data security and environmental protection. Enterprises should establish corresponding compliance management systems and processes based on their own circumstances.

In order to ensure the continued compliance of corporate operations, it is recommended to establish a complete localized operation filing system. Regularly update key information such as the status information of various certificates and licenses, government department contact information, and preferential policy application progress. At the same time, enterprises must attach great importance to the cultivation of localized management teams and gradually realize the localized transformation of operation and management through systematic training and practice. This will not only improve the company’s operational efficiency, but is also the key to ensuring the company’s long-term development in the local market.