KUALA LUMPUR - Malaysia is set to be the biggest beneficiary of Singapore-based companies’ expansion into Asean due to the growing consumer market and relative ease of doing business, according to a report by HSBC.

Based on a survey of 1,036 Singapore-based companies, the report stated that 36 per cent had indicated Malaysia as their destination of choice for overseas expansion in the next two years.

In a statement today, HSBC said 80 per cent of the respondents cited potential customer demands, 75 per cent highlighted ease of building relationships and 73 per cent noted Malaysia’s overall investment climate as factors which influenced their decision.

Those who were surveyed also highlighted Malaysia’s manufacturing sector’s adoption of higher-end automation and innovation and the lower cost of living compared to Singapore.

Currently, there are approximately 37,400 international companies in Singapore, including 7,000 multinational corporations.