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APAC Regulatory Complexity Creates 29% Higher Workload for Multinationals

Digital divide creates efficiency gap for inhouse teams managing cross-border subsidiaries
Date: 2025-07-20

SINGAPORE -- Multinational organizations face significantly higher operational demands in Asia-Pacific, with entities requiring 28.7% more management tasks than the global average, according to new data released in the Asia-Pacific Special Report by Mercator® by Citco (Mercator).

The analysis reveals stark contrasts in processing times - from 11 days in digitally advanced Singapore to 64 days in Macau - creating unprecedented challenges for corporate secretarial teams managing multi-jurisdictional portfolios. The findings, representing $USD10.37 billion in market capital, draw from actual operational data across 180 jurisdictions and 20 different types of corporate secretarial activities.

Regional Position

Activity Level: 5.37 tasks per entity vs global average of 4.18

APAC entities average 5.37 tasks versus the global 4.18, reflecting complex regulatory requirements and varying governance approaches. While regional hubs offer streamlined processes, the overall management burden remains significantly higher, often requiring local expertise.

Governance: Highest global volume of board and shareholder decisions

APAC leads globally in board-level activity, with triple the board and shareholder tasks compared to European counterparts. This reflects the region's distinct approach where boards serve as active management tools, with many markets requiring local directors and in-country representatives.

Cost: 14% above North America, 47% below Middle East & Africa

Entity management costs position APAC 14% above North American averages while maintaining a 47% advantage against Middle East & Africa. This reflects APAC’s uniquely diverse market composition - from Malaysia‘s competitive rates to South Korea’s premium service environment.

Jurisdictional Rankings

New Zealand leads the overall cost and time efficiency rankings, with multinationals benefiting from its streamlined digital processes and straightforward compliance requirements. Singapore tops processing speed, while Malaysia emerges as most cost-efficient.

At the other end of the scale, South Korea, China, and Indonesia rank lowest with the most costly and complex, demanding careful planning and necessitating specific local expertise.

Kariem Abdellatif, Head of Mercator® by Citco comments:

"Our analysis reveals a stark reality in Asia-Pacific: organizations face a 29% higher workload managing their entities compared to global averages, driven by a growing digital divide across the region. While markets like New Zealand have fully embraced and embedded technology-enabled processes, others like Japan maintain more traditional requirements that significantly increase complexity and resources needed. This creates two distinct operational realities for multinational organizations.

What's particularly challenging for global in-house teams is navigating these extremes both within a single region and a single team - from 11-day processing times in Singapore to 64 days in Macau. The contrast is striking: while one jurisdiction accepts simple e-signature execution, another requires multiple sequential approvals in a foreign language just to process a single document. As regulatory requirements evolve and digital transformation accelerates, this gap will likely widen further, making strategic entity management crucial for operational success."



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