Market Trends of South-East Asia Consulting Services Industry
Financial Advisory to Witness the Highest Growth Rate
- Accounting, auditing, finance, taxation, and regulatory services are the most common financial consulting services. The services assist clients not only with finance transformation, defining and executing risk management, and compliance management but also with project financial planning, fiscal and tax-related concerns, and the financial side of mergers and acquisitions, as well as financing and debt restructuring. Transaction services, corporate finance, crisis and recovery, risk management, accounting advisory, tax advisory, real estate advisory, forensics, and litigation are the key components of financial advisory.
- In April 2023, Life insurer Prudential Singapore declared the official introduction of Prudential Financial Advisers, its financial advisory arm. With PFA, Prudential delivers a broader range of insurance products, including general insurance as well as wealth solutions. This is a significant addition to the core solutions of Prudential in whole and term life, savings, health, retirement, and group insurance.
- Also, the rise in M&A transactions has been driving significant growth in the consultancy market. For instance, in February 2022, Just Analytics, in collaboration with Equiteq strategy, merger, and acquisition consultants, executed a deal with global cloud firm Rackspace Technology. Equiteq assisted Just Analytics' shareholders in implementing and developing its expansion strategy.
- According to the Institute for Mergers, Acquisitions, and Alliances (IMAA), in the year 2022, the total M&A deal value in Southeast Asia accounted for around 1.15 trillion U.S. dollars. However, in the year 2020, the total M&A deal value within the region was around 949 billion U.S. dollars. Such a significant rise in the total value of M&A deals within the Southeast Asia region is expected to drive the market exponentially.
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Singapore to Hold a Significant Market Share
- Singapore has a substantial share of the consulting service market in the South-East Asian region, owing to the presence of various major global consultancy firms catering across a broad range of end-user verticals. Furthermore, the highly volatile marketplace across the economy, along with the sustained reforms in government regulation, is driving companies to turn to various management consulting providers for acquiring guidance and assistance in their financial operations across the country.
- The growing investment in emerging technologies is boosting the company's growth strategies significantly. According to OECD, as of March 2023, Trax Technology Solutions Pte. Ltd. was the leading Artificial Intelligence startup in Singapore, with a total capital investment value of around USD 1.02 billion. The value of venture capital investment in AI in the country peaked in 2021, reaching around USD 2.5 billion.
- Moreover, the country is witnessing several strategic developments that are taking place in the consulting services landscape. For instance, in November 2022, in its 2022 year-end promotion cycle, the global strategy and management consulting company Oliver Wyman assigned a record number of new partners worldwide, including seven in its Singapore and Tokyo location offices.
- Also, in October 2022, KNR Management Consultants, an Indian consulting business, declared its first overseas expansion with the opening of a Singapore office covering the APAC region. The primary purpose of this expansion is to increase its executive search experience in the foreign market and to establish a worldwide footprint on all major continents. The brand's regional office in Singapore would focus on developing strong leadership hiring processes in the Fintech, BFSI, and Technology sectors while also expediting the local team of consultants with appropriate domain experience.
- In June 2022, Dalberg, a global consulting firm, acquired Ravel Innovation, a Singapore-based startup incubator and corporate innovation organization. Ravel Innovation is one of the most important innovation management services networks in South-east Asia. Ravel Innovation has around 28,000 associated innovators that help to build, manage, and create an ecosystem of innovation communities and corporate innovation initiatives.
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