EU Firms Eye ASEAN Expansion, Philippines Ranks Last Among Top Markets

MANILA, Philippines — Nearly 80 percent of European businesses plan to continue investing in the Association of Southeast Asian Nations (ASEAN), but the Philippines ranked last among the top markets considered for investment in the region. This was among the findings of the survey published by the European Union (EU)-ASEAN Business Council (EU-ABC), which groups European businesses operating in the ASEAN region. The survey showed that 78 percent of respondents plan to expand in at least one ASEAN market, with more than half looking to scale up in three or more markets. EU firms’ expansion plans focus on six markets, with Vietnam topping the list, with 64 percent of respondents looking to increase their presence in the country. Indonesia ranked second at 57 percent, followed by Malaysia and Thailand at 49 percent. Singapore came in next with 44 percent, while the Philippines took the last spot at 43 percent. EU firms’ expansion plans are driven mainly by economic recovery and growth opportunities. Other factors affecting EU firms’ expansion plans are investment-friendly laws and regulations, a diversified customer base and production costs. “The global situation has certainly proved challenging, but European businesses have shown a firm commitment to ASEAN. Investment appetite has increased, with most companies planning to expand within the region. That tells us ASEAN remains central to business growth, even as companies rethink their investment and operational strategies,” EU-ABC executive director Chris Humphrey said. While the survey showed that the percentage of those looking to expand this year declined from 87 percent in 2025, those planning to contract operations also fell to 29 percent this year from 39 percent in 2025. “With both expansion and contraction plans declining, the findings point more toward a stabilizing European presence, rather than withdrawal from the region. This is further supported by stronger investment expectations and an improved perception of economic opportunities,” Humphrey said. While many EU firms are looking to expand in ASEAN, respondents cited challenging trade and investment conditions in the region.