Why location analysis is key when setting up a regional headquarters in Asia

Asia's booming economic growth amid continued global economic uncertainty is an enticing offer for companies looking to expand outside their home markets. But given the diversity of culture, language, and legal and regulatory frameworks in the region, determining the right location for a subsidiary in Asia is a complex decision. Choosing the wrong location can be a costly mistake.

Which factors should impact location selection?

While multinational companies usually decide to set up their regional headquarters in Hong Kong, Shanghai, or Singapore (see chart below), less prominent locations may prove equally attractive. Businesses must consider:

• Cost factors: Labour and distribution costs, foreign investment incentives, access to free trade zones, e.g., RCEP.