This year marks a meaningful milestone for us – the 10th anniversary of Nihon M&A Center Singapore. Over the past decade, we have seen the conversation around cross-border M&A between Japan and Southeast Asia steadily evolve, moving from exploratory interest to increasingly structured and strategic execution.

Just recently, we had the privilege to welcome over 50 regional bankers from across Japan to Singapore for our 2026 M&A Study Program.

Across Japan, SME and mid-sized business owners are looking outward more actively than before. Domestic growth remains stable but limited, succession pressures are increasing, and labour constraints continue to tighten. For many companies, overseas expansion is no longer a distant idea, it has become a real strategic consideration.

At the same time, Singapore’s own M&A landscape is shifting.

A growing number of local SME owners are approaching succession and exploring suitable exit options, whether through trade sales, strategic partnerships, or cross-border transactions. At the same time, many Singapore-based companies, recognised for strong governance standards and regional networks, are often viewed as attractive platforms for ASEAN expansion.

This creates a natural yet strategic meeting point. Japanese companies are seeking growth and diversification, while Singapore companies are increasingly open to partnerships and ownership transitions.

Singapore therefore serves not only as a gateway to ASEAN, but as an active M&A market in its own right – one where inbound and outbound opportunities are developing in parallel.

However, turning this alignment into successful transactions requires more than opportunity alone, it requires a clear and practical understanding of the local investment environment. Cross-border expansion through M&A involves navigating regulatory frameworks, financing structures, due diligence complexity, and post-merger integration (PMI) considerations.

This is where regional financial institutions play a critical role. In Japan’s business ecosystem, they are often the first point of consultation when SME owners consider succession, capital strategy, or overseas growth. Strengthening their understanding of Singapore’s business environment allows them to provide more informed guidance and better support clients pursuing cross-border expansion.

The M&A study program was therefore designed to equip these invited bankers with both strategic perspective and practical insight into Singapore’s market environment, ultimately reinforcing the advisory foundation supporting Japan’s outbound expansion into ASEAN.

Strengthening Market Understanding Through Multi-Stakeholder Perspectives

To provide a well-rounded perspective, we invited speakers from government agencies, advisory firms, financial institutions, and Japanese companies with real acquisition experience. Together, the sessions offered both big-picture regional insights and practical realities on transaction execution.

Shifts Shaping ASEAN’s Next Phase of Growth

We were honoured to have Mr. Fumitaka Machida, representing ASEANPlus Consulting, open the discussion with a regional outlook. He highlighted on how ASEAN’s economic dynamics are shifting. While the region has long been associated with manufacturing, it is increasingly defined by innovation and higher-value industries. Sectors such as semiconductors, electric vehicle ecosystems, digital platforms, green technology, healthcare, and advanced manufacturing are shaping its next stage of development. At the same time, global supply chain realignment, often referred to as “China+1” or “China+Many,” is accelerating diversification across Southeast Asia. Within this shifting landscape, Singapore plays a distinct role.

Beyond being a domestic market, it functions as an innovation and coordination anchor, supported by an active startup ecosystem, strong venture capital presence, corporate R&D activity, and effective policy alignment. For Japanese companies, the opportunity lies not only in accessing growth markets, but in building long-term, trusted partnerships in a transparent and stable environment.

Why Singapore Continues to Anchor Regional Expansion

Building on the broader ASEAN outlook, Mr. Clarence Chua from the Singapore Economic Development Board (EDB) shared why Singapore continues to serve as a preferred base for regional headquarters and innovation activities.

Singapore’s competitiveness lies in its regulatory transparency, policy consistency, digital infrastructure, and global connectivity. A corporate tax rate of 17%, extensive free trade agreements and double tax treaty networks, and capital gains exemptions provide structural advantages for companies operating across borders.

Participants also gained a clearer understanding of how Singapore integrates with neighbouring regions through the “SG+” model to support broader ASEAN strategies, reinforcing its role as a coordination platform rather than merely an entry market.

From Strategy to Execution: The Realities of Cross-Border M&A

While strategy sets direction, execution determines outcome. Mr. Takuhei Madokoro of AGS Consulting shared practical insights on what truly drives success in cross-border M&A. Overseas acquisitions may begin with clear objectives, but complexity increases quickly once due diligence and integration planning begin.

He emphasized that due diligence should not focus only on historical financial performance, but also on future sustainability and how realistically the business can be integrated. This naturally leads to the importance of early PMI planning. Matters such as accounting standards alignment, tax structuring, internal controls, reporting timelines, and IT systems integration are far easier to manage when considered at the outset rather than after closing.

The takeaway was very clear. Signing the deal is only the starting point. Long-term value creation depends on preparation and disciplined execution before and after completion.

Fostering Stronger Regional Financial Connectivity

In addition to the main sessions, we also held an exclusive senior executive roundtable in collaboration with United Overseas Bank (UOB), represented by Mr. Chao Yong Sai.

The discussion was both engaging and constructive, with participants were keen to better understand Singapore’s financial ecosystem – from banking structures and regulatory frameworks to how capital can be mobilised efficiently for cross-border transactions. There was also interest in exploring how Japanese regional banks can work more closely with financial institutions, like UOB, in Singapore to further strengthen sustainable cross-border flows and better support clients expanding into Southeast Asia.

A consistent theme throughout the conversation was that cross-border growth is not driven by companies alone. Financial institutions play a critical role in enabling and sustaining overseas expansion, and stronger interbank connectivity can further reinforce long-term cross-border activity.

Learning from a Japanese Acquirer’s Real Experience

To bring the discussions into perspective, we invited one of our Japanese clients to share their firsthand experience of acquiring a Singapore-based company. Their reflections offered practical insight into what Japanese buyers typically look for, including strong governance, reliable management, cultural alignment, and long-term strategic fit. They also spoke candidly about the challenges that can arise after closing, and how those challenges can turn into opportunities when approached with preparation, clear communication, and mutual understanding. Hearing directly from a company that has gone through the full cross-border acquisition process added valuable context to the day’s discussions and grounded the broader themes in real experience.

Strengthening the Foundation for the Next Decade – and Beyond

During the program, our General Manager, Mr. Shinichi Imai, also presented an overview of Nihon M&A Center Singapore’s key initiatives and ongoing projects, highlighting how our local team continues to strengthen cross-border execution capabilities and deepen regional partnerships across ASEAN.

Celebrating our 10th anniversary this year gives us a moment to reflect. A decade on the ground has reinforced one consistent belief – sustainable cross-border growth is not achieved through transactions alone. It requires ecosystem building, institutional trust, and long-term commitment.

As we look toward the next decade, we remain committed to strengthening Japan–ASEAN connectivity and supporting our clients in building enduring partnerships.

Because ultimately, cross-border M&A is not simply about entering a new market. It is about building relationships that last well beyond the deal itself.