2025 Canada-ASEAN Business Outlook Survey Report
- Canada-ASEAN Business Council (CABC)
- 6 hours ago
- 2 min read
ASEAN continues to demonstrate robust economic dynamism and resilience, positioning the region as a central driver of global growth. In 2024, Canada–ASEAN merchandise trade reached a record CAD 42.3 billion, a 9% increase from 2023, while services trade rose to CAD 9.5 billion. Canadian direct investment also expanded to CAD 37.8 billion, underscoring ASEAN’s importance as a strategic market for Canada.
At the same time, the global business environment in 2025 has become more complex amid rising geopolitical tensions, supply chain restructuring, and shifting regulatory landscapes. Reflecting these dynamics, the Canada-ASEAN Business Outlook Survey 2025 shows that while business sentiment remains positive, it has moderated. 69.2% of respondents remain optimistic about profitability in ASEAN, an 11.4 percentage point decline from 2024, with companies still generally planning to expand, but at a more measured pace.
In this context, understanding where confidence is resilient and where strategic adjustments are needed becomes essential. This report draws on perspectives from senior executives and investors across the region to highlight emerging opportunities, evolving challenges, and priority areas for future engagement.
The survey identifies three sectors where cooperation between Canada and ASEAN is particularly well-aligned: Digital Economy, Sustainable Energy Transition, and Food Security and Agri-Food Trade. Businesses emphasize the need to reduce regulatory fragmentation and strengthen secure cross-border data flows in the digital sphere. The energy transition presents opportunities in natural gas diversification, carbon capture and storage, and civilian nuclear expertise. Meanwhile, agri-food trade continues to grow, though significant potential remains untapped due to market access and regulatory barriers.
These insights reinforce the importance of advancing regulatory transparency, strengthening regional integration, and supporting the timely conclusion of the ASEAN–Canada Free Trade Agreement (ACAFTA). Deeper collaboration among governments, industry, and regional institutions will be key to building a strategic and resilient economic partnership that delivers shared and sustainable prosperity.
