Megatrends that offer future investing opportunities

Every decade, there are new trends that upheave and shape society. These megatrends can leave a long-term and deep impact on businesses and societies. While disruptive, they can also offer investment opportunities in new areas.

1. Going green

Countries worldwide are doubling down on ESG investing , which gives rise to new investing opportunities. And China is no exception. As China transitions to carbon neutrality and clean energy, the country is investing more in the electric vehicle (EV) sector – specifically, in selected EV companies and upstream suppliers in the EV supply chain. Taiwan’s semiconductor ecosystem, which includes its foundries and Integrated Circuit design houses, is also likely to benefit as global demand for EV rises.

2. Changing demographics

Asia has a growing ageing population but some countries like Vietnam have a young demographic. Since different age groups have different needs, the changing demographics will herald a change in consumption preferences. Asia’s expanding middle-income class will also support growing trends like digitalisation and sustainability, offering new investment opportunities in areas such as financial services, healthcare, consumer goods, and green products.

3. Increasing digitalisation

Digitalisation helped many ASEAN businesses survive the pandemic. As new technological innovations like 5G, cloud computing, and machine learning continue to be developed and used, we can also expect more disruptive investments in the software, e-commerce, and internet sectors.

Are you up to date with megatrends? As with all investment opportunities, it bodes well to remain vigilant, so keeping an eye on these can help you better understand the opportunities and risks involved.

For more insights into investment opportunities, check out our 2022 Market Outlook – Recalibrating Risks. Reassessing Opportunities.