The Asia-Pacific region remains a compelling growth destination for global financial firms, despite facing significant regulatory and geopolitical complexities. According to the latest ASIFMA 2025 Asia-Pacific Capital Markets Survey, now in its fourth year, there is a strong sense of optimism among firms looking to deepen their presence across the region.
MCO (MyComplianceOffice), which unifies key compliance functions in a single system, recently delved into the challenges and opportunities in the APAC region.
While firms acknowledge the regulatory challenges of operating across diverse jurisdictions, there is clear commitment to long-term growth. The report highlights that more firms plan to expand in APAC this year compared to previous years, with none indicating plans to exit any market. This continued interest underscores confidence in the region’s long-term potential, even amid short-term regulatory friction.
Singapore, Hong Kong SAR and Australia emerged as leaders in regulatory environment scores, suggesting these jurisdictions provide a relatively mature and stable framework. Singapore scored 7.55, closely followed by Hong Kong at 7.45 and Australia at 7.28. In contrast, Mainland China scored the lowest at 5.06. Notably, both India and China scored better in operating and market development categories than in regulatory terms, reflecting that their frameworks may be lagging behind rapid financial market growth, MCO explained.
The appetite for regional expansion has also grown significantly. The survey found 59% of respondents intend to broaden their footprint across APAC, up from 40% the previous year. Key drivers include diversifying product offerings and scaling existing operations, with equities (59%) and asset management (47%) cited as priority areas. Singapore remains the top destination for expansion, with Mainland China and India also seen as attractive despite challenges.
Regulatory clarity, investor protections and reform pace are central concerns. While India is praised for its growth outlook and insulation from international sanctions, participants cited frustration with sluggish reforms. Firms also raised concerns over regulatory interpretation in China, despite welcoming recent investor protection efforts.
Workforce skill sets and language proficiency are generally viewed as operational advantages, though geopolitical risks and rising costs remain top of mind. Yet, despite regional tensions and policy shifts—from tariffs to data sovereignty—70% of firms have risk mitigation strategies in place, including geographic diversification and long-term planning.
However, regulatory change remains a key operational difficulty. India, Australia and Mainland China are viewed as the most challenging countries in this regard. Firms cite frequent and high-volume rule changes as a major hurdle, alongside perceived over-regulation.
To navigate these dynamics, firms are increasingly turning to RegTech. Solutions such as MCO’s Regulatory Change Manager are helping firms monitor and interpret regulatory changes more efficiently. Regulatory Change Manager, which is part of MCO’s Know Your Obligations (KYO) suite, provides horizon scanning capabilities using AI technologies including Natural Language Processing and machine learning to classify, interpret, and alert users to regulatory developments.
MCO’s Regulatory Change Manager offers features such as daily alerts, access to a regulatory reference library, global regulatory coverage, and custom rules that help firms link external changes to internal policies. This ensures firms are not only informed but also able to demonstrate active compliance to regulators.
The broader MYComplianceOffice platform extends beyond regulatory updates. It includes surveillance tools for managing conflicts of interest, third-party risk, personal trade monitoring, and accountability frameworks. Its integrated solutions help firms detect red flags, strengthen compliance processes, and minimise reputational, operational and financial risks.
With operations across APAC, North America, and Europe, MCO supports over 1,500 firms in 125+ countries. Clients range from boutique firms to large multinationals managing over 100,000 employees. Its technology is used across banking, investment, corporate and capital markets sectors, including in countries such as Singapore, Australia, Japan, India, the UK and US.
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