Report: Southeast Asia's private credit market is expected to grow this year.

Professional services firm Ernst & Young stated in a report that the private credit market in Southeast Asia may see significant growth, thanks to the continued demand from middle-market companies and financial sponsors. The firm mentioned that this is due to banks tightening their lending conditions. Industries with lending opportunities include digital infrastructure, healthcare, education, real estate-intensive businesses, and renewable energy, all benefiting from strong demand and the growing digital economy. Borrowers are increasingly willing to pay a premium for customized transactions with relaxed contractual terms. Insurance companies and retirement funds increasing their allocations to private credit are also boosting market depth. Ernst & Young added that regulatory reforms and improvements in credit infrastructure could support the expansion of private credit strategies throughout the Southeast Asian region.