Meridian / Asia Pacific Growth Fund
Q2 · 2026 · Confidential
The Investment Case for Emerging Asia Vol. III

The next
decade
belongs to Asia.

A structural realignment of capital, manufacturing, and demographics is underway across five markets — Malaysia, Thailand, Indonesia, Vietnam, and the Philippines — together forming the most consequential growth story since post-war Japan. This is the Meridian case for long-dated exposure.

Scroll
§ 01 — Thesis

A generational reallocation of capital, factories, and talent into Southeast Asia.

For three decades, global growth narratives were written in a single country. The next chapter will be written across five — and the capital positioning itself today will compound for a generation.

The ASEAN-5 — Malaysia, Thailand, Indonesia, Vietnam, and the Philippines — are no longer peripheral to the global supply chain. They are becoming its center of gravity. Apparel in Ho Chi Minh, semiconductors in Penang, nickel refining in Sulawesi, electronics in Luzon, automotives in Rayong: the rebuild of the world's industrial map runs directly through them.

Unlike the China story that preceded them, this growth arrives distributed. Five sovereign economies, five central banks, five distinct demographic curves — and a free-trade framework (RCEP) that now binds them into the largest trading bloc on Earth. For investors, that means diversification baked into the thesis itself.

Median age across the bloc is 29. Internet penetration has tripled in a decade. Foreign direct investment into the region has surpassed inbound FDI into China in every year since 2023. The long-duration tailwinds — urbanization, formalization, middle-class expansion — remain in their early innings.

Meridian's mandate is simple: underwrite the companies, infrastructure, and platforms that will serve the next half-billion consumers entering the formal economy. We believe the risk-adjusted return profile here is unmatched in global markets today.

01

Supply-chain redirection

Multinationals are building redundant capacity outside China. Vietnam and Malaysia are the primary beneficiaries — but Thailand and Indonesia are gaining share in higher-value segments quarter over quarter.

02

Demographic dividend

A working-age population still expanding, in contrast to every G7 economy. 190 million new consumers will enter the formal economy by 2035 — the largest cohort anywhere on Earth.

03

Capital deepening

Domestic equity markets, pension pools, and sovereign allocators are maturing. Local-currency debt markets have tripled since 2015, providing deep anchor capital previously only available to OECD issuers.

04

Green-industry leadership

Indonesia controls ~40% of global nickel reserves. Vietnam leads regional rooftop solar. Malaysia's semiconductor packaging is critical to every AI accelerator shipped. The energy transition runs through Southeast Asia.

§ 02 — Macro

The numbers that made us move.

We underwrote the region on five headline metrics: real growth, demographic runway, infrastructure spend, FDI velocity, and equity-market depth. On each, ASEAN-5 now outpaces every other major emerging bloc — and on most, every developed one.

5.2%
GDP Growth '25–'30e
$229B
Inbound FDI '25
+3.8x
MSCI ASEAN vs. EM (10y)
Real GDP growth · 2026e (IMF)
ASEAN-5 Benchmark
Vietnam
6.4%
Philippines
6.0%
Indonesia
5.1%
Malaysia
4.5%
Thailand
3.4%
China
4.3%
United States
2.0%
Euro Area
1.3%
Source: IMF WEO (Apr 2026), ADB Asian Development Outlook. Illustrative; hypothetical projections.
Ho Chi Minh City at dusk
10°46′N · 106°40′E
§ 03.01 · CountrySocialist Republic of Vietnam
Vietnam
The factory the world is actively relocating to. High-throughput manufacturing at OECD quality, at a fraction of the cost.
Vietnam has quietly become the single largest beneficiary of the global "China+1" reshoring wave. Electronics, footwear, furniture, and increasingly semiconductor assembly are anchoring in a corridor that runs from Haiphong in the north to Ho Chi Minh City in the south. With a young, literate labor force and 17 active free-trade agreements, Vietnam offers the rare combination of cost advantage and market access.
6.4%
GDP Growth '26e
101M
Population
$38B
FDI Inflows
17
Active FTAs
ElectronicsTextilesLogisticsFintechSemiconductors
Jakarta, Central Business District
6°12′S · 106°49′E
§ 03.02 · CountryRepublic of Indonesia
Indonesia
The anchor market — a continent-sized consumer economy sitting on the world's most strategic mineral endowment.
Indonesia is the fourth-most-populous country on earth and the G20's fastest-growing major economy. Beyond scale, it holds the world's largest nickel reserves — the backbone of EV battery chemistry — and has moved aggressively to build midstream refining capacity. The opening of Nusantara as a planned capital signals a state willing to make thirty-year bets. So are we.
5.1%
GDP Growth '26e
282M
Population
42%
Global Nickel Output
$1.4T
Nominal GDP
Critical MineralsDigital EconomyConsumerInfrastructureEV Supply Chain
Kuala Lumpur, Petronas Towers
3°09′N · 101°42′E
§ 03.03 · CountryFederation of Malaysia
Malaysia
The quiet semiconductor superpower — and the region's most institutional capital market.
Malaysia is the silent node inside every AI accelerator shipped: roughly 13% of global semiconductor test and assembly happens in Penang. Add a mature sovereign wealth architecture (Khazanah, EPF, PNB), deep ringgit bond markets, and a fluent English-language business culture, and Malaysia offers sophisticated infrastructure with emerging-market growth rates. Penang alone attracted over $12B in committed chip investment in the last 24 months.
4.5%
GDP Growth '26e
13%
Global Chip ATP Share
$440B
Nominal GDP
A-
S&P Sovereign Rating
SemiconductorsData CentersIslamic FinancePalm OilTourism
Bangkok skyline at blue hour
13°45′N · 100°30′E
§ 03.04 · CountryKingdom of Thailand
Thailand
Southeast Asia's industrial maturity trade — and a rising EV manufacturing hub.
Thailand is the "Detroit of Asia": the region's incumbent automotive base, now pivoting hard into electric vehicles. The Eastern Economic Corridor has attracted the largest Chinese EV OEMs (BYD, Great Wall, SAIC) alongside incumbent Japanese capacity. Combine that with a highly developed tourism and healthcare sector and Thailand offers a genuine diversification against more one-note regional exposures.
3.4%
GDP Growth '26e
71M
Population
#1
Auto Producer, ASEAN
40M
Annual Tourist Arrivals
AutomotiveEVHealthcareTourismAgriculture
Manila, Bonifacio Global City
14°35′N · 120°58′E
§ 03.05 · CountryRepublic of the Philippines
Philippines
The youngest demographic profile in ASEAN — and the English-speaking backbone of the global services economy.
The Philippines combines the region's youngest population (median age 26) with one of its highest English proficiency rates. This has produced a $40B+ business process outsourcing industry that now services nearly every Fortune 500 company — and is evolving rapidly into higher-value digital services, fintech, and creative industries. Remittances add a durable current-account anchor few peers can match.
6.0%
GDP Growth '26e
118M
Population
26
Median Age
$40B
BPO Revenue
BPOFintechDigital BankingRemittance EconomyConsumer
"
Asia in the 2030s will do what Asia in the 1990s promised — compound quietly, and all at once.
Aisha R. Chen
Chief Investment Officer · Meridian APG
Shanghai · Pudong at night31°13′N · 121°28′E
§ 04 — The China Context

A complement to China, not a substitute.

We do not view ASEAN-5 as a zero-sum trade against China. China remains the largest single economy in the region, the deepest manufacturer, and the most important customer for most of these markets. What is changing is the distribution of new marginal capital.

Multinationals are adopting "China + 1" — and increasingly "China + 2" — supply-chain strategies. That means incremental factory investment, incremental logistics infrastructure, and incremental consumer reach now splits across Hanoi, Jakarta, Kuala Lumpur, Bangkok, and Manila. The absolute figures for China stay large; the derivative flows to the ASEAN-5 are where our alpha lies.

$18.6T
China '25 GDP
24%
ASEAN Exports to China
+62%
FDI Redirect to ASEAN ('19–'25)
RCEP
Binding Trade Framework
§ 05 — Next Step

Position for the next
decade of Asia.

Meridian APG is accepting allocations from qualified institutional and accredited investors for Fund IV, closing Q4 2026. Request the full confidential memorandum and data room access below.

Tweaks
Accent
Theme
Serif weight