The mergers and acquisitions (M&A) market in the technology sector in Southeast Asia is going through a clear adjustment period. After a period of hot growth in the post-pandemic years, the region is now witnessing a sustained decline in transaction numbers, reflecting a change in investment appetite, a high interest rate landscape, adjusted corporate valuations and concerns about capital efficiency.

Deal count plunges – “Approximately quiet” is happening

According to DealStreetAsia's report Southeast Asia Tech M&A Review 2025, in 2024 the entire region recorded only 99 M&A deals in the technology industry – a decrease of 12% compared to last year.�m ago and nearly half below its peak in 2022. This is the second year in a row that the tech M&A market is in decline, suggesting an adjustment cycle is in full swing.

Notably, the number of deals continues to decline steadily quarter-on-quarter: from 109 deals in the first half of 2022, to just 48 in the same period of the year 2024.

Vietnam and Thailand: Low divestment market

The speed of "deal closing" is slowing down significantly in most economies in the region. The cause comes from credit tightening, macroeconomic instability, and increasingly strict supervision requirements for startups and fast-growing businesses.

Vietnam and Thailand hi�It is still in the group of markets with a low divestment rate, because the startup ecosystem is still young and the transaction scale is not really attractive to international investors. Meanwhile, Malaysia is showing signs of recovery, while the Philippines has emerged as an unexpected bright spot with the number of M&A deals increasing from 10 (2023) to 14 (2024), and the recovery momentum continues to be recorded in early 2025.

Singapore still plays a central role in M&A activities in the region, but transaction volume has decreased significantly. compared to the peak period high.

International investors continue to lead

In 2024, foreign investors still dominate with 59 of the total� 99 deals - equivalent to nearly 60%. Although this number has decreased from 74 deals in 2023, the level of participation is still significantly higher than in the pre-pandemic period.

US companies continue to lead, with 17 transactions in 2024. From 2020 to now, the US has carried out a total of 88 technology M&A deals in Southeast Asia - demonstrating steadfastness and solid financial capacity. sure.

Singapore ranked second with a total of 68 deals from 2020, but recorded a clear deceleration: from 32 deals in 2022 to only 8 in 2024.

Other investors from China, Japan, Korea, and India also simultaneously narrowed the scale of operations in the region. area, indicating a t� shiftTimely in capital allocation strategy.

Fintech - A rare bright spot

Despite the gloomy landscape, Fintech continues to maintain its role as a segment attracting many deals Most M&A. In 2024, this sector recorded 22 transactions - a sharp increase compared to 15 transactions in 2023. The main driver comes from the need for consolidation in the fields of payments, digital lending, embedded finance and digital infrastructure, to serve the population that does not have full access to traditional financial services.

In the first 5 months of 2025, there were 12 more deals. Fintech is implemented, shows that the growth momentum is likely to continue – taking the total number of transactions past the 20 mark for the second time in a row.

AI and data: Slow recovery

On the contrary, the field of artificial intelligence (AI) and data still recorded a low number of transactions, reaching only 4 deals in 2024 - slightly better than 2023 but still far lower compared to the peak in 2022. Some positive signals have appeared in the first months of 2025 with 3 new deals, but the recovery momentum is still not clear.

Lull for a breakthrough?

According to Mr. Herston Elton Powers - Co-founder of 1982 Ventures, Southeast Asia is in the phase of "gaining momentum" after a period of adjustment.

He commented: "We expect technology M&A activities to be vibrant.return in the second half of 2025. What is happening now is only a temporary silence - the market needs time to establish a new level in terms of valuation, investment strategy and coordination policy."

The technology M&A market in Southeast Asia is temporarily slowing down to adapt to global changes. This is not the end of the growth cycle, but an opportunity for businesses and investors to restructure, review strategies and get ready for the next stage of recovery.

With the strong trend of digitalization, the need to merge technology platforms and increasingly selective investment capital flows, the upcoming period will be for units with good management capacity, clear and competitive business models.ability to adapt flexibly.