Mainland Chinese companies are increasingly looking at ASEAN for overseas expansion, with Malaysia as one of the preferred investment destinations in the region, according to preliminary survey findings by the Hong Kong Trade Development Council released Thursday.

Malaysia was Hong Kong's third-largest ASEAN trading partner in 2025, while Hong Kong was Malaysia's second-largest investor after Singapore, with cumulative foreign direct investment of $34.8 billion at the end of 2025.

According to the survey, 91% of Mainland China companies plan to expand into ASEAN, as they are keen to explore new markets, diversify supply chains, and pursue opportunities in industries such as artificial intelligence, semiconductors, and new energy.

Malaysia has come in as a top destination for both manufacturing and services companies looking to establish or expand regional operations.

Among enterprises planning to expand into ASEAN, 83% of surveyed respondents showed interest in using Hong Kong's professional services to support their regional development.