M&A appetite and capacity expected to go up
Despite recent turbulence in the markets, analysts expect the world’s largest businesses to show more appetite for M&A transactions and an increasing capacity to fund deals over the next 12 months.

Overall, the outlook for ASEAN appetite for deals appears bright. Indonesia and Thailand are expecting a growth in appetite above the global average of 11 percent – the former’s appetite is expected to increase by 16 percent, the latter by 17 percent.

The forward P/E ratios for Malaysia and the Philippines are expected to increase six and 10 percent respectively.

Of the five ASEAN nations analysed, only Singapore registered an expected two percent fall in appetite over the next year.

ASEAN is also expected to have more capacity over the next year. Indonesia’s capacity is expected to grow 12 percent, Malaysia’s 15 percent and the Philippines by 16 percent. Singapore is expected to see an increase of 22 percent in capacity to fund deals. Only Thailand’s growth in capacity - at four percent - fell below the global average.

Despite recent volatility in stock markets and tensions in the global economy, the long-term scenario for ASEAN is expected to be promising. The upcoming formation of the ASEAN Economic Community is also likely to provide an additional boost.

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