It is therefore not surprising that for the current fiscal year, SMBC’s business in Southeast Asia, South Asia and Oceania is expected to account for approximately 10% of the group’s total net business profit, double the 5% contribution seen in FY2017. Southeast Asia alone is expected to account for 7% of net business profit. This includes investee companies and before credit costs and taxes.
As nations realign themselves in a multipolar world due to rising geopolitical tensions, the Asia Pacific region will continue to serve as a core growth driver for Sumitomo Mitsui Banking Corporation, better known as SMBC.
Against this backdrop, Asean is becoming an increasingly promising manufacturing hub for MNCs including Japanese companies, as they adopt an Asia ex-China or China+1 strategy.
