Southeast Asia Market Insights: A Playful Peek into Performance, Potential, and Power Sectors
May 23, 2025 Edition
What's the Buzz in the Bamboo Grove?
Welcome to your inside scoop on The International Investor’s Southeast Asia Index, a handpicked mix of seven U.S.-traded ETFs, or exchange-traded funds, that track the pulse of Southeast Asia’s most dynamic markets. This isn’t your average index report — it’s a lighthearted yet data-driven look into where sentiment meets substance.
From Singapore to Saigon, we’re not just watching prices flutter — we’re channeling our inner Warren Buffett and asking the deeper question: How are the businesses actually doing?
Snapshot: A Strong Start in the Tropics
Since launching on December 31, 2024, the Southeast Asia Index is up +5.6% as of May 23, 2025, boosting its total market value from US$10,000 to US$10,562. That’s an annualized return of +14.9%, easily beating the U.S. equity market’s -1.7% dip over the same period.
Here’s how the individual country ETFs have fared:
🇸🇬 Singapore: +18.0%
🇵🇭 Philippines: +11.1%
🇻🇳 Vietnam: +8.7%
🌏 ASEAN Top 40: +6.1%
🇮🇩 Indonesia: +3.7%
🇲🇾 Malaysia: +0.2%
🇹🇭 Thailand: -8.5%
But don’t let short-term prices fool you — there’s more under the hood.
Buffett’s North Star: Earnings Drive Everything
While prices bounce like coconuts in a storm, earnings growth is what powers long-term returns. And in that department, Southeast Asia has some serious tailwinds.
Analyst forecast:
+12.8% average annual earnings growth across the index over the next 3 years
+3.3% dividend yield-on-cost
Expected total return: a juicy +16.1% annually
Break it down market by market:
But what’s fueling that earnings engine?
Sector Superstars: Where Growth Really Lives
Behind every market’s macro momentum is a sector or two pulling the weight. Here’s the local flavor of fast-growing industries that analysts expect to supercharge returns over the next five years:
🇮🇩 Indonesia – Materials at +66.5%/yr (think nickel, EV supply chain, and green energy metals)
🇹🇭 Thailand – Materials at +50.7%/yr (cementing its recovery — literally)
🇸🇬 Singapore – Healthcare at +28.6%/yr (aging population meets innovation)
🇲🇾 Malaysia – Tech at +21.6%/yr (semiconductors, baby!)
🇻🇳 Vietnam – Tech at +21.2%/yr (the rising digital tiger)
🇵🇭 Philippines – Materials at +20.9%/yr (infrastructure-fueled demand)
These aren’t just promising industries — they’re national growth anchors. If these forecasts hold, these sectors could dramatically lift each market’s overall earnings and stock prices.
Final Takeaway: Buy the Region, Back the Sectors
Yes, Southeast Asia’s index has started strong. But the bigger story is just beginning.
This is not a bet on a hot quarter — it’s a stake in the long arc of growth, powered by earnings, dividends, and explosive potential in key sectors. If you’re a long-term investor, this region is more than just palm trees and plate lunches — it’s a portfolio powerhouse in the making.
So, what’s next?
Keep your eye on the sectors. Watch the earnings. And remember: when you invest in real business performance, you’re never truly out of season.