Investment Banks Expect More M&A, Fund-Raising Activities in Region

But experts say interest rates and market uncertainty may affect deal-making volume

- Sheila Chiang

Investment banks expect fund-raising activities and mergers and acquisitions (M&A) in the region to pick up in 2025 after a tough year in 2024, with Singapore expected to play host to more of such deals.

Mr Nicolo Magni, head of global banking for South-east Asia and South Asia at UBS, said: "We are positive about the Asia-Pacific investment banking landscape in 2025 and we have seen more activity in the market."

Mr Edmund Leong, head of group investment banking at UOB, noted the consistent growth in investments related to artificial intelligence, such as data centre investments and electronics manufacturing.

This could see fund-raising and M&A activities pick up in the region, he said.

The rosier outlook comes after a tough year for deal-making in the region.

Investment banking fees in the Asia-Pacific, excluding Japan, plunged 11 per cent to approximately US$20.3 billion (S$27.8 billion) in 2024, the lowest level since 2019, a Jan 6 report by the London Stock Exchange Group (LSEG) showed.