Financial media in the Asia-Pacific region focuses predominantly on foreign investment, sustainable practices, and artificial intelligence.
In the dynamic landscape of 2024, the Asia-Pacific (APAC) region continued to assert its position as a global powerhouse, with key developments shaping the financial, technological, and environmental sectors.
According to a survey by Boston Consulting Group (BCG), APAC firms led in investment, allocating 7.6% of their annual revenue in digital and generative AI (genAI), ahead of North America at 7.1% and the European Union (EU) at 4.3%. This investment has begun to bear fruit, with 16% of firms in both North America and APAC already realizing tangible value in genAI.
Singapore cemented its role as a fintech and AI hub, with major firms like Prudential and homegrown companies such as UP Fintech Holding Limited and Wealth AI contributing significantly to the sector's growth. UP Fintech Holding Limited saw record revenue growth and expanded its customer base with advanced trading functionalities, while Wealth AI focused on AI-driven wealth management solutions.
The city-state also took strides towards sustainability, with Temasek-backed firms and green real estate investment trusts (REITs) accelerating sustainable finance initiatives. In October, Hong Kong's rollout of responsible AI guidelines for the finance sector further underscored the region's commitment to sustainable development.
However, the region was not immune to challenges. APAC suffered US$74 billion in economic losses from disasters in 2024, a 13.8% increase from the previous year, according to the 2024 Climate and Catastrophe Report by Aon. The Asian Development Bank (ADB) reported that APAC generated about half of global greenhouse gas (GHG) emissions in 2021, and without mitigation, climate damage could reach 41% of APAC's gross domestic product (GDP) by 2100.
In response, the ADB approved a US$500 million climate adaptation loan for the Philippines in 2024, marking a significant step towards addressing climate change in the region.
Cross-border capital flows were the most prevalent theme in 2024, reflecting rising investment in most jurisdictions. South Korea reported a remarkable 42% year-over-year (YoY) increase in foreign direct investment (FDI), while Hong Kong, Macao, and Taiwan posted YoY gains of 3%, 70%, and 70%, respectively.
Southeast Asia attracted US$225.3 billion in FDI inflows in 2024, a nearly 10% YoY increase, with Indonesia, Malaysia, Singapore, Thailand, and Vietnam leading the growth. Key 2024 headlines included Malaysia's growing role in regional supply chain, renewed investor confidence in Hong Kong, and tax reforms in the Philippines.
The leading topics in APAC financial media in 2024 were foreign investment, sustainability, and artificial intelligence (AI). The Japanese Financial Services Agency issued guidance for ethical adoption of AI across financial institutions, while Hong Kong's regulatory body unveiled responsible AI guidelines for the finance sector.
Deloitte estimates that continued adoption of AI could potentially generate between US$211 billion and US$512 billion in economic benefits across Australia, Indonesia, Malaysia, Taiwan, Thailand, and Vietnam. The Global Sovereign Asset Management Study 2024 reported that more than 70% of asset owners in APAC have adopted ESG policies, integration frameworks, and dedicated in-house ESG teams.
In the realm of cryptocurrency, APAC was the fastest-growing region, according to data from Chainalysis. The region's growing interest in digital assets was further evidenced by Japan's planned JPY 1.6 trillion (US$11 billion) "transition"-labelled bond issuance, a key news event in 2024.
As the region continues to evolve, it remains poised to shape the global financial, technological, and environmental landscapes for years to come.
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