Chinese companies' shift to high-tech manufacturing in ASEAN benefits region: expert

KUALA LUMPUR, Aug. 14 (Xinhua) -- Chinese companies' drive into the Southeast Asian region is expected to pay dividends for the region, a senior executive of United Overseas Bank (UOB) said on Wednesday.

The trend will not only result in stability but also add value as Chinese companies shift from seeking low-cost labor to developing high-tech manufacturing and an ever-growing affluent regional consumer base, UOB Group Chief Financial Officer Lee Wai Fai told Xinhua on the sidelines of UOB's corporate day event here.

Lee noted that members of the Association of Southeast Asian Nations (ASEAN), particularly Thailand, Malaysia and Singapore have benefited as Chinese companies have divested their activities in the region of low-tech sectors and increasingly shifted to high-tech sectors.

Among the factors driving this move are the availability of skilled workers and good regional integration and transportation links, with Chinese companies having notably made Malaysia a hub while Thailand and Singapore have become key distributors. "I think this will pick up, and I think ASEAN will benefit from this move," he said.

With the theme of "Building the Future of ASEAN," the UOB corporate day brings together equity analysts, investors of the bank and the media to reflect on current trends in the banking and financial sector.

Wee Ee Cheong, UOB's deputy chairman and chief executive officer, said the megatrends driving regional growth include supply chain diversification, digitalization, net zero emissions and a growing middle class.

"With these, the region will be a dynamic playing field for the next big wave of development," he said.