Insurers, brokers, and risk managers assessing business conditions in the Asia-Pacific region are observing contrasting trends in regulatory complexity and trade dynamics, according to two recent reports – the Global Business Complexity Index (GBCI) 2025 from TMF Group and the Allianz Trade Global Survey 2025.
Hong Kong and New Zealand have once again emerged as the most accessible environments for business within APAC.
Ranked 76th and 77th respectively on the GBCI – where higher numbers indicate less complexity – the two markets remain among the top 10 globally for ease of doing business.
TMF Group attributed Hong Kong’s ranking to its efficient tax policies and minimal administrative overhead, maintaining its attractiveness to multinational firms.
New Zealand similarly benefits from a regulatory framework designed to facilitate foreign investment and operational transparency.
On the other end of the spectrum, Mainland China has climbed into the top 10 most complex jurisdictions globally, ranking 10th. The report noted that frequent regulatory changes and significant regional variations in implementation contribute to rising business challenges.
India, positioned at 18th, has introduced a series of compliance reforms focused on transparency and governance. While these are expected to produce long-term efficiencies, they have increased short-term operational requirements for companies.
Meanwhile, Japan moved to 43rd from 38th in the previous year, reflecting incremental improvements, including expanded English-language services for international firms.
Singapore holds the 48th position, underpinned by digital infrastructure investments and trade connectivity enhancements.
The Allianz Trade survey, which included feedback from 4,500 companies in nine economies, indicated that exporter confidence has declined sharply.
This follows the announcement of US tariff adjustments in April, leading to a drop in positive outlooks from 80% to 40%.
A significant proportion of exporters in China (82%) and Singapore (55%) now expect decreased overseas sales, largely due to shifting US trade policies. Businesses in both jurisdictions are targeting new international markets to reduce dependency on US demand.
US-based firms are also reacting by fast-tracking shipments to avoid additional costs, with 86% reporting early import strategies.
Exporters are increasingly passing costs to buyers, with more than half of US firms raising export prices. Changes in shipping logistics are also common, with 62% exploring alternative routes amid declining transport costs.
Contract terms are being adapted as well. Nearly 60% of surveyed firms have introduced foreign exchange risk-sharing provisions, spreading financial exposure across their supply chains.
Payment delays are becoming more pronounced. One in four exporters expects invoice settlement periods to extend by over seven days. Additionally, 48% reported an increase in non-payment risks, especially in markets such as the US, the UK, and Italy.
A majority of firms now experience receivable cycles in the 30-to-70-day range, with larger enterprises facing the most pronounced delays.
Global insolvencies are projected to rise by 6% in 2025 and another 3% in 2026, according to Allianz Trade’s latest forecast.
This continues a five-year trend linked to persistent economic challenges, including interest rate pressures and the phased removal of pandemic-related support.
In APAC, insolvency levels remain elevated in countries such as Singapore, Australia, and New Zealand. While a slowdown in insolvency growth is anticipated in some regions, others – including Hong Kong and Taiwan – are likely to see sustained pressure.
China is forecast to register a 7% increase in business failures in 2025, escalating to 10% in 2026, driven by underperformance in construction and export-reliant sectors.
