Hong Kong positions ASEAN ties as strategic pillar of GBA growth agenda, launches ASEAN Chamber

Analysis

Hong Kong Chief Executive (CE) John Lee Ka-chiu has called for stronger integration between Southeast Asia and China’s Greater Bay Area (GBA), framing ASEAN as central to Hong Kong’s economic strategy as the city seeks to diversify beyond traditional Western markets.

At the recent GBA-ASEAN Summit 2026, held from June 30 to July 1 in Hong Kong and Shenzhen, Lee said Hong Kong is “uniquely positioned” to connect the two regions and facilitate trade, investment, and innovation.

“Together, the two regions have what it takes to form a powerful and complementary partnership, one offering distinct advantages in the troubled waters of ever-changing geopolitics,” Lee said.

During his speech at the summit, Lee pointed to longstanding trade ties, noting that ASEAN has been Hong Kong’s second-largest merchandise trading partner for 16 consecutive years. “Hong Kong shares a strong and long-standing partnership with ASEAN,” he said. “Last year, our bilateral trade in goods grew an impressive 29%, year on year, reaching USD214 billion.”

“Our services trade is also rising, with trade up 10% to $20 billion in 2024. That makes ASEAN our third-largest trading partner in services […] And we are ready to bring our relationship to the next high level through accession to the Regional Comprehensive Economic Partnership, the world’s largest free trade bloc,” Lee said.

ASEAN connector

Lee repeatedly emphasized Hong Kong’s role as a facilitator between ASEAN and mainland China, particularly within the GBA, during his address. “The tide is rising” for both regions, Lee said. “Our economies sail the same waters, our ambitions ride the same waves and our prosperity could rise with the same currents.”

Lee also added that Hong Kong’s position as a free port and international financial hub enables it to support cross-border flows. “We can enable the smooth flow of trade, investment and innovation, creating opportunities to reward both regions.”

Speaking on the increased level of interest in the city, Lee noted that about 830 ASEAN companies operated in Hong Kong last year, a 13% increase from the previous year, adding, “They’re here, no doubt, to take full advantage of Hong Kong’s unique advantages to access the mainland market, the GBA included,” he said.

Lee also cited the opening of Hong Kong’s fourth Economic and Trade Office in ASEAN, located in Kuala Lumpur.

Malaysia’s competitive edge

For businesses looking outward from the GBA, Malaysia is increasingly viewed as the benchmark for ease of doing business – especially when contrasted with the regulatory hurdles of its peers.

Speaking to the Times during a recent visit by the Macau ASEAN Chamber of Commerce (MAICC) to Vietnam, Kelvin Tan, MAICC chairman, pointed to Malaysia’s pragmatic approach to foreign equity as a major draw for international capital.

Speaking to the Times last month, Tan noted that Malaysia has quietly eclipsed its neighbors in key soft-power metrics. “Malaysia was the number one tourist country in Southeast Asia last year,” he said. Driven by flexible visa policies and improved infrastructure, Malaysia claimed the top spot in Southeast Asia, recording over 38 million arrivals in 2025, while Thailand recorded 32.9 million arrivals.

The country has therefore outpaced Thailand in tourist arrivals for the second consecutive year to claim the top spot in Southeast Asia.

Yet for international capital, Malaysia’s true competitive edge lies in a pragmatic foreign equity policy that stands in sharp contrast to the rigid protectionism often found elsewhere in ASEAN.

While neighboring economies continue to mandate restrictive local majority ownership structures, Malaysia offers a highly adaptable framework overseen by the Malaysian Investment Development Authority (MIDA).

Crucially for GBA manufacturers, Malaysia has permitted 100% foreign equity ownership in new manufacturing projects, expansions, and diversification projects since 2003, completely detached from export conditions.

Where state protections do persist, such as foreign equity ceilings capped between 49% and 70% in strategic sectors like telecommunications, financial services, and oil and gas, the Malaysian government has maintained flexibility through licensing waivers and structured joint ventures.

By doing so, and effectively bridging the gap between national localization goals and global market integration, Malaysia has emerged as the most compelling anchor within the ASEAN bloc.

Innovation anddevelopment focus

The GBA’s growing role as an innovation hub, particularly the cluster formed by Hong Kong, Shenzhen, and Guangzhou, was heavily emphasized by Hong Kong’s CE during the event.

“That reflects Hong Kong’s proven ability to turn ideas into tangible outcomes,” Lee said, pointing to the city’s strengths in fintech, smart city solutions, and digital infrastructure.

Lee also promoted Hong Kong’s Northern Metropolis, a major development project spanning one-third of Hong Kong’s land area near the Shenzhen border. “I invite ASEAN companies to invest in the Northern Metropolis, to capture the far-reaching opportunities opening up right here in Hong Kong,” Lee said.

The project is intended to become a new economic engine and innovation hub.

ASEAN chamber launched

The GBA-ASEAN Summit 2026, held on June 30, also marked the launch of the ASEAN Chamber of Commerce in Hong Kong.

During the launch, Daryl Ng Win-kong, a founding patron of the chamber and chairman of Sino Group, said the platform would connect “businesses, institutions and leaders,” transforming ideas into “real win-win opportunities.”

Nicholas Ho Lik-chi, Hong Kong’s commissioner for the Belt and Road Initiative, described ASEAN and the Greater Bay Area as “two powerful and highly complementary engines,” adding that their cooperation is reshaping supply chains, redirecting investment flows, and redefining innovation pathways.

Vu Lam, a political scientist and policy analyst specializing in Southeast Asian affairs, ASEAN diplomacy, and Indo-Pacific strategy, said a regional chamber could strengthen advocacy on cross-cutting issues such as Hong Kong’s bid to join the Regional Comprehensive Economic Partnership, where bilateral chambers may lack influence. However, he added that economic gains may be “marginal,” given existing trade frameworks and a free-trade agreement, noting that the chamber would instead offer ASEAN businesses a unified interface with Hong Kong’s role in the GBA.

Southeast Asian officials also signaled openness to deeper economic ties during the summit.

Philippine Trade Secretary Cristina Aldeguer-Roque pointed to strong potential for business expansion into the Philippine market with government support.

Broader regional momentum

Guangdong officials are preparing to host the 2026 ASEAN-China Trade Promotion and Supply Chain Cooperation Mechanism Exchange Conference. The conference, first held in Guangzhou last year, will run from Wednesday to Thursday next week.

According to Yao Xinmin, vice-chairman of the China Council for the Promotion of International Trade Guangdong Committee, this year’s conference will focus on artificial intelligence, new energy, and supply chain coordination.

Underscoring this shift, an independent investor active in Southeast Asia told the Times, “Guangdong offers highly advanced manufacturing capabilities in sectors like renewable energy and electric vehicles, whereas ASEAN provides critical raw materials and rapidly expanding consumer markets.”

This growing alignment is increasingly seen as a model of “Guangdong manufacturing plus ASEAN resources” and “Guangdong technologies paired with ASEAN markets.”