Ecosystem Roundup: SEA financial services deals hold firm despite sharp drop in value

Despite a significant decline in the disclosed value of financial services deals, Southeast Asia's dealmaking scene in the first half of 2026 remained robust, with 31 M&A transactions mirroring the activity of the previous year. The wealth and asset management sector saw a surge in activity, with eight deals worth US$145M, nearly tripling the volume from three deals worth just US$800K a year earlier.

Meanwhile, banking and capital markets saw a decline in both the number of deals (from 20 to 14) and value (from US$1.1B to US$669M) due to regulatory hurdles and complexity in legacy systems. Insurance deals also saw a decrease in value, with nine deals worth US$123M as opposed to eight deals worth US$478M. Foreign acquirers became more selective, engaging in five deals worth US$410M, compared to seven deals worth US$344M.

EY anticipates a resurgence in larger transactions during the second half of 2026 if financing conditions improve. In a regional highlight, Malaysia's ride-hailing and delivery giant Grab generated the most revenue in the first half of 2026, surpassing all other markets, indicating the country's pivotal role in the company's recovery.

Meanwhile, ZUS Coffee is considering an IPO that could raise at least US$245M, signaling growing investor interest in Southeast Asian consumer brands. Additionally, VinFast and Gowa Motor are set to open 30 EV showrooms in Indonesia, aiming to bolster their presence in the region amidst mounting competition from Chinese automakers.

Finally, Malaysia's AI Nation 2030 plan aims to transition the nation from an AI consumer to a producer, leveraging locally developed models fluent in Bahasa Melayu to gain an edge in high-value domestic applications.