Generating key takeaways...
UOB’s latest report reveals a ‘once-in-a-generation’ supply chain reset with ASEAN emerging as a key regional hub for manufacturing, distribution, and market expansion, driven by nearshoring, technological advancement, and heightened regional investment.
At the Gateway to ASEAN Conference held in Singapore on October 16, United Overseas Bank (UOB) unveiled its latest ‘Gateway to ASEAN’ report, highlighting a significant shift in global supply chains amid escalating tariffs and trade tensions. The report insightfully reveals that business confidence has fallen back to levels seen during the pandemic, with 75% of global executives planning to reconfigure their supply chains over the next three to five years. This shift marks what UOB describes as a “once-in-a-generation” supply chain reset, positioning ASEAN as a key beneficiary of this global realignment.
The report underscores how companies are moving beyond mere diversification. Instead, cost optimisation has emerged as the predominant strategy for de-risking supply chains, illustrating a shift from cheap sourcing towards smarter inventory management, proactive scenario planning, and nearshoring—relocating production closer to home markets to reduce tariffs, logistics costs, and lead times. Nearshoring, initially a crisis response during COVID-19, has evolved into a proactive and strategic approach. Over half of surveyed businesses express an intent to nearshore within the next three years, reflecting ASEAN’s growing appeal not just as a manufacturing hub but as an integrated regional centre for storage, fulfilment, and distribution.
ASEAN’s value proposition extends beyond cost competitiveness, with countries like Vietnam, Indonesia, and Malaysia balancing affordability with advances in technology, innovation capabilities, and skilled labour availability. The region’s role as an emerging demand engine is highlighted by businesses prioritising market expansion in Indonesia, Singapore, and Vietnam. Rather than picking a single country, companies are building diversified portfolios within ASEAN, aligning their operations to country-specific strengths.
One prominent example of this trend is South Korea’s retail giant Lotte, which has been actively expanding its footprint across ASEAN, focusing on Vietnam, Indonesia, and Singapore. Lotte recently launched Lotte Mart Express in Singapore via a ‘store-in-store’ concept inside FairPrice outlets to bring Korean brands closer to local consumers. Furthermore, Lotte is establishing a Digital Hub for International Business and a Regional Hub for International Procurement in Singapore, demonstrating its commitment to seamless regional integration. Recognising the complexities of operating in diverse ASEAN markets, Lotte has partnered with UOB to provide tailored financial solutions. In Indonesia, UOB has helped implement a supply chain financing scheme benefiting over 1,000 local suppliers, bolstering their cash flow and enabling mutual business growth.
Donghyun Kim, Chief International Business Officer at Lotte International HQ, emphasised at the Gateway to ASEAN Conference that this collaboration is critical for securing reliable product supply and enabling Lotte’s regional scalability. According to So Lay Hua, Head of Group Transaction Banking at UOB, the bank supports major regional clients like Lotte by managing the full procure-to-pay lifecycle—from sourcing and inventory to sales and collections—highlighting UOB’s comprehensive approach beyond mere financing.
UOB’s strong regional presence, including over 90 branches in Indonesia, equips it with deep expertise in local regulations and market dynamics, enabling it to deliver customised solutions that facilitate complex supply chain management. So added that the bank’s dedicated country teams work closely with clients at the local level, providing flexible, phased financing structures and digital tools that simplify cross-border operations. This combination of consumer retail insight and ASEAN-wide infrastructure allows UOB to offer effective support for Lotte’s ambitions in the region.
Supporting evidence from other sources confirms UOB’s growth in cross-border business across ASEAN and Greater China, driven by increasing demand for trade finance, supply chain management, and digital payment solutions as companies diversify their supply chains. ASEAN benefits from a surge in foreign direct investment, with UNCTAD reporting inbound investment reaching US$225 billion in 2024 and UOB projecting an increase to US$370 billion by 2030. This surge aligns with the findings that nearshoring and building regional operational hubs are central to corporate strategies in the Asia-Pacific, with countries like Thailand and Malaysia also emerging as popular locations for regional headquarters.
Furthermore, ASEAN’s expanding role as a procurement and consumer market hub is recognised globally, especially by Chinese enterprises adopting a “China + N” supply chain strategy. This approach builds resilience by establishing multiple sourcing and sales points, with ASEAN countries such as Malaysia, Thailand, Singapore, and Indonesia gaining prominence as key investment and operational bases.
Overall, UOB’s report and actions reflect a broader trend of companies turning to ASEAN not only as a cost-effective manufacturing base but as a strategic regional hub for supply chain resilience, operational efficiency, and market expansion in a fragmented global trade environment.
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Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The narrative is fresh, with the article dated October 20, 2025, and referencing events from October 16, 2025. The opening of Lotte Mart Express in Singapore occurred on May 15, 2025, as reported by FairPrice Group. ([fairpricegroup.com.sg](https://www.fairpricegroup.com.sg/fairprice-group-debuts-first-lotte-mart-express-at-fairprice-xtra-vivocity-lotte-mart-products-to-be-sold-across-more-than-100-fairprice-stores-islandwide/?utm_source=openai)) The collaboration between UOB and Lotte is recent, aligning with the article’s timeline. No evidence of recycled or republished content was found.
Quotes check
Score:
10
Notes:
Direct quotes from Donghyun Kim and So Lay Hua are unique to this narrative, with no prior online matches found. This suggests original or exclusive content.
Source reliability
Score:
7
Notes:
The narrative originates from Vietnam Investment Review (VIR), a publication with limited online presence and credibility. This raises concerns about the reliability of the information presented.
Plausability check
Score:
8
Notes:
The claims about UOB’s report and its collaboration with Lotte are plausible and align with recent developments. However, the lack of coverage by other reputable outlets and the limited presence of the source publication reduce the overall credibility.
Overall assessment
Verdict (FAIL, OPEN, PASS): FAIL
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
While the narrative presents fresh and plausible information, the limited reliability of the source publication and the absence of corroboration from other reputable outlets raise significant concerns about its credibility.
