Labubu & the New Chapter of Singapore-China Collaboration
Its creator, Chinese toy maker Pop Mart, has seen profits nearly triple in the past year. But more importantly, it reflects a growing wave of new-generation Chinese companies expanding into Southeast Asia, not with bulldozers and megaprojects, but with emotional resonance, consumer appeal, and cultural savvy.
The impending signing of the China-ASEAN Free Trade Area (Cafta) 3.0 upgrade by the end of year will further clear the path for broader collaboration between mainland China and ASEAN1.
Southeast Asia’s thirst for household consumption has been a major driver of economic growth in the region, especially in the new economy sectors, with digital services and e-commerce expanding rapidly.
ASEAN’s digital economy has experienced explosive growth where its total value of merchandise sold via the digital marketplace is expected to reach USD263 billion in 20242. While global trade tensions pose a challenge, Southeast Asia’s resilient domestic demand and recovering tourism sector are expected to offset these headwinds.
By 2030, when 70% of ASEAN’s population - which currently stands at over 670 million - is expected to have attained middle-class income levels, the consumer market could reach USD4 trillion3. Demand will grow for a wide range of products, from electronics to automobiles, and services such as education, healthcare and leisure. This poses huge opportunities for companies in the consumer goods sector, including those emerging Chinese brands with ambition and capabilities of overseas expansion.
This trend coincides with a broader shift in Chinese outbound investment - one that’s becoming more private-sector led, brand-driven, and people-focused. And it’s creating new opportunities for Southeast Asian partners - particularly Singapore corporates - to co-create, co-invest, and scale up regional value chains.
In this new wave, Singapore stands at a strategic intersection. With its position as ASEAN’s financial, legal, and digital hub, Singapore is not just a destination for outward direct investment (ODI) - it can be a gateway and partner for Chinese brands looking to expand across Southeast Asia in more nuanced, sustainable, and culturally relevant ways.
Already, Singapore has been a top destination for Chinese outbound investment in the region, alongside Indonesia and Thailand. But more can be done to channel these investments into joint innovation, green transition, AI and new consumer experiences.
This wave of commercial activity is underpinned by strong bilateral ties. Prime Minister Lawrence Wong’s maiden visit to China in June reaffirmed this mutual commitment, one cultivated over 35 years of diplomatic relations.
Across dynamic sectors like the new economy, energy, healthcare, commodities, and infrastructure, Chinese companies are increasingly localizing their operations. This presents a unique opportunity for Singaporean firms - from logistics and infrastructure to retail and fintech - to support and benefit from this shift.
For instance, a Singapore logistics partner could help Chinese companies like Pop Mart navigate last-mile delivery challenges in markets like Indonesia or Vietnam. While data centre operators could host cloud services for Chinese tech firms, ensuring seamless connectivity for regional users. Healthcare is another promising area for collaboration, where local distributors can act as vital enablers for Chinese medical and pharmaceutical companies. By leveraging Singapore’s strong healthcare infrastructure, firms could distribute Chinese-made medical devices and pharmaceuticals, while local research organizations could partner with Chinese biotech firms to conduct clinical trials, driving innovation in the sector.
By acting as regional distribution nodes, customer insight partners, or co-investors in local markets, Singapore corporates can help ensure this new chapter of China-ASEAN business integration creates shared value.
This isn’t just a matter of commercial logic - it’s a way to build trust, strengthen economic resilience, and uphold ASEAN’s position as a balanced and dynamic growth engine in the face of rising global protectionism.
If the past decade of Chinese outbound investment was more about speed and scale, this next chapter is leaning towards sustainability and influence. For this momentum to be lasting, it must involve partnerships that are rooted in mutual respect, local insight, and long-term commitment.
Corporates and institutions from both China and Singapore are now facing a golden opportunity to shape this evolution. Whether through supporting cross-border supply chains, co-developing digital platforms, or offering legal and ESG advisory, the win-win path forward is clear: growth that is shared, inclusive, and grounded in regional collaboration.
After all, even a fuzzy figurine like Labubu can remind us that the future of business in Asia, or even the whole world, might just depend on who can create the right connections and emotional resonance.
A contribution piece by Wong Kee Joo, CEO, HSBC Singapore and Mark Wang, CEO, HSBC China. This piece was first published in The Business Times Singapore on 23 September 2025.