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Grant No.

22－G36

Research Report
Name :

Mangado Darren de la Torre

Organization (at the start of the grant period):

Osaka University

Title of Research:
The Political Economy and Growth of Southeast Asian Multinational Corporations
Purpose of Research:（200 words）
This research examines the Southeast Asian economic success as manifested by the spectacular
growth and expansion of Southeast Asian multinational corporations (MNCs). It looks atregionalization and Southeast Asia’s synergistic relations with Japan as contributing factors to thisSoutheast Asian post-Asian Financial Crisis economic miracle. It aims to:
1. contribute to the literature by (a) reappraising Southeast Asian economic policies andregionalization strategies post-economic crises (1999-2019); (b) presenting an account of
the development and growth of Southeast Asian MNCs from a regional perspective; and,(c) assessing the relevance of the Japanese-sponsored production networks in thedevelopment of Southeast Asian MNCs and the regional market;
2. extrapolate economic lessons for developing countries to promote inclusive andsustainable economic development; and,3. intervene and help redirect the focus of popular conversations in East Asia away from
geo-political and -economic competition and towards mutual benefits of cooperativeinteractions among states.
Content/Methodology of Research:（400 words）
The impressive growth and expansion of Southeast Asian MNCs point to the region’s economic
success amidst economic downturns. However, current popular discussions continue to focus on USJapan-China rivalry while designating Southeast Asia as a passive participant in regional andinternational economic affairs. Meanwhile, the extant literature deliberates successful Southeast
Asian MNCs almost exclusively in the context of Southeast Asian capitalism characterized by market
dominance of conglomerates and profitable predatory alliances of political and business elite. Bothdiscourses overlook the importance of cooperative policies of regionalization in Southeast Asian
economic affairs.
This research asks how Southeast Asia has nurtured Southeast Asian MNCs post-1997/98
crisis and investigates how Southeast Asian MNCs influence the regionalization enterprise. It argues
that Southeast Asian post-crisis regionalization has intensified investment interactions in the region
by facilitating regional economic policy coordination; consolidating regional production networks toensure consistent capital supply into the region from Japan; and improving regional institutions topromote and sustain an efficient regional market. The resulting regional market encouraged theexpansion of Southeast Asian MNCs. As new important regional players, Southeast Asian MNCs havestarted influencing the Southeast Asian regionalization project according to their own demands.

This study employed a qualitative approach to scrutinize Southeast Asian economic policies
from 1999 to 2019. Since it aims to offer a regional perspective, it looked at Indonesia, Malaysia, thePhilippines, Singapore, and Thailand (ASEAN5), which exhibit relatively the same level of capitalist
maturity and with all of them simultaneously serving as home and host countries of Southeast Asian
MNCs. It tracked developments in three policy areas—Regional Economic Development, Regional
Production Networks, and Regional Institutions—by triangulating data from relevant (national,regional, and international) public institutions; private institutions; and the academe (with referencesto grey literature particularly news articles and industry reports). The section on Regional Economic
Development examines Southeast Asian national and regional plans and priorities and exploresSoutheast Asian MNCs’ responses to regionalization; the section on Regional Production Networks
interrogates Japan-Southeast Asia relations while Regional Institutions explores ASEAN initiatives
and programs that strengthen Southeast Asian private and public engagements.
It used archival and online research and fieldwork interviews as main instruments for datacollection. Southeast Asian MNCs are relatively new as a topic to International Political Economy.
Accessing the Southeast Asian private sector for data remains a difficult task. The research grant has
been appropriated to research fieldwork in Bangkok, Singapore, Manila, Jakarta, and Kuala Lumpur.
Conclusion/Observation（200 words）
Southeast Asian post-crisis policies that prioritized regional cooperation underpinned the process ofdeeper regionalization. This strategy attracted foreign direct investment into the region and created aregional market conducive for Southeast Asian MNCs to thrive and expand. Moreover, the consistentfinancial support of Japan through different channels and the approximately 14,000 Japanese business
entities engaged with Southeast Asian public and private sectors have contributed to the growth anddiversification of corporate Southeast Asia. However, the rapidly changing constellations of Japaneseand Southeast Asian business partnerships need to be reexplored continuously.
Southeast Asian MNCs with their related and associated companies operating acrossindustries and borders and their significant intra-ASEAN investment dominate the regional marketand even challenging the preponderance of the region’s external partners. Deriving strength from theirnascent regional dominance, Southeast Asian MNCs have taken interest in shaping regional businessgovernance. ASEAN has responded by instituting initiatives that involve the private sector.
Nevertheless, it still needs to be validated how Southeast Asian MNCs will influence regionaldynamics—they can opt to order their interactions following liberal, coordinated, or hierarchicalcapitalist varieties. As the regional market evolves, the repeated slogan of “open and free” Southeast
Asian market must be constantly qualified.