Technology and advanced manufacturing companies need to align regional operations, supply-chain resilience and cross-border liquidity to bolster overseas growth strategies, according to joint research by DBS Hong Kong and accounting firm EY.
As trade rules and regional market requirements continue to evolve, 88 percent of survey respondents from 50 enterprise questionnaires and 20 management interviews believed geopolitics, industrial policy, tariffs, export controls and investment screening as the top external risks impacting overseas operations.
Meanwhile, 84 percent regard multiple overseas target markets as important now or over the next one to three years, showing firms are diversifying geographically rather than depending on a single market, the study showed.
Jolynn Wong, managing director and head of Global Transaction Services at DBS Hong Kong, said, “The question is no longer whether companies have alternatives, but whether they can activate them quickly when conditions change. The real advantage lies in the ability to switch production, redirect supply chains and mobilise liquidity with minimal disruption, while keeping goods, information and capital moving.”
To build operational resilience, 74 percent favor multiple overseas expansion routes, combining exports with local sales, production, services, acquisitions and partnerships. But additional production sites and inventory alone cannot shield businesses from disruptions to market access or payment flows. 52 percent cited foreign exchange and capital controls are the top treasury challenge, versus just 10 percent pointing to funding access or financing costs — underscoring the need to deploy liquidity efficiently across markets, the research found.
Benny Cheung, managing partner of EY Hong Kong and Macau, said, “The next phase of globalisation is a contest of operational resilience, not just footprint. Leaders need to assess what each expansion decision means for delivery, transaction requirements, cash flow and oversight.”
Moreover, as companies enter new markets, set up local operations and expand regionally, they need to collaborate with banks for support such as financing, credit, transaction or information services, it found.
The research also noted Hong Kong can further leverage its gateway role to help firms coordinate cross-market investment, funding and cash flows, an opportunity aligned with the city’s 2026 Policy Address, which includes measures to attract corporate treasury centres and headquarters for supply-chain and sourcing businesses.
Frank Feng
