Regional Review: Asia Pacific 2026
THE APAC GROWTH ENGINE
Asia Pacific continues to stand out as the world’s principal growth engine. In the latest quarterly Regional Review, we explore the strength and resilience that defines the region, drawing on the distinct dynamics across both its fast-growing Asian markets including the 2nd largest economy in the world, China and the more mature economies of Australia and New Zealand. Professional services across the region continue to experience sustained demand rooted in expanding capital markets, strong economic fundamentals, a digital savvy population and significant investment in AI driven transformation.
While supply chains and geopolitical alignments remain under review globally, the overall sentiment within Asia Pacific remains one of steady confidence. Incumbent countries continue to provide reliable market conditions for advisory, audit, tax and assurance services. Australia and New Zealand, meanwhile, remain influenced by internal structural changes, particularly the growing role of private equity, which has reshaped the competitive landscape in ways that differ from much of Asia. These contrasting forces create a broader and more nuanced growth story that helps explain why the region continues to outperform.
Collaboration across APAC remains one of Praxity’s greatest strengths. Member firms are combining global expertise with local insight across digital transformation, ESG, tax and sector specific work. Joint delivery across borders is becoming more frequent, ranging from supporting overseas listings in Hong Kong to helping clients expand into Southeast Asia. Australia and New Zealand have played a significant role in bringing a different perspective grounded in strong governance, independent decision making and highly developed advisory frameworks.
Key Themes Shaping the APAC Market
Market Connectivity and Economic Integration
Asia Pacific’s global importance continues to increase. Cross border capital flows remain active and consumer behaviours are becoming more digital and more sophisticated. China’s engagement with ASEAN economies and major trading partners across the Middle East and Belt and Road corridors is reshaping the flow of investment and creating diversified export channels. Production is shifting within the region, particularly into Malaysia, Indonesia and Thailand, as companies seek flexibility, cost efficiency and proximity to growing consumer markets.
Australia and New Zealand, though not part of these manufacturing shifts, are responding to the same global pressures in different ways. Their clients are reassessing investment locations, managing geopolitical uncertainty and weighing the impact of higher operating costs relative to other parts of Asia. Viewed together, these contrasting responses highlight the breadth of economic conditions within the wider region and reinforce why Asia Pacific remains adaptable and resilient.
Digital Transformation and AI Acceleration
Digital capability is becoming central to the advisory landscape across Asia Pacific. Firms throughout the region are adopting AI tools and advanced analytics at varying speeds, but the direction of travel is consistent. Larger firms in mainland China are creating their own AI tools for audit, tax and advisory purposes, while many midmarket firms across Asia are adopting off-the-shelf platforms that provide immediate efficiency gains.
Australia and New Zealand are also investing heavily in automation and AI, though the outcomes differ from many Asian markets. Higher labour costs create greater urgency around realising value from digital investment and firms are looking for clearer returns. Many are approaching adoption with careful governance to maintain client trust, focusing on data handling, model evaluation and controlled testing. Partners remain closely involved in decisions regarding the use of these tools, ensuring that technology supports, rather than replaces, professional judgement.
“Even small and midsized firms must incorporate AI. Clients expect it.”
Roy Lo, Hong Kong Managing Partner, SW and Praxity Regional Chair APAC
Sustainability and ESG Momentum
Sustainability continues to develop across Asia Pacific at a pace that differs from trends seen elsewhere. Hong Kong is moving toward ISSB aligned climate standards and ESG reporting is already mandatory for listed companies. Mainland China requires assurance on ESG disclosures, which has created a strong demand for specialist skills in reporting and verification. Indonesia, Malaysia and other Southeast Asian economies are also strengthening their frameworks and placing greater emphasis on environmental and social performance aligned climate standards and ESG reporting is already mandatory for listed companies.
Australia and New Zealand are progressing along their own sustainability journeys. Climate reporting requirements, investor expectations and long-term infrastructure needs are shaping the ESG priorities of their clients.
Although the regulatory pace may differ from parts of Asia, the demand for credible data, reliable controls and defensible reporting is growing sharply. Across the region, firms are being asked to provide a balance of practical advice and technical assurance that supports compliance while helping businesses respond to investor scrutiny.
Capital Markets and the Revival of IPO Activity
Capital markets have become a defining feature of Asia Pacific’s resilience. While some Western markets have faced mixed conditions due to rate environments and sector specific volatility, Asia Pacific experienced a more stable recovery during 2025. Hong Kong’s revitalisation, supported by the Specialist Technology Chapter, encouraged a new wave of technology and innovation-oriented listings. Investor confidence improved as liquidity strengthened and tariff pressures eased.
Investment activity rose across the region and the revival in listings is creating a wider ecosystem of advisory needs. Firms are supporting clients through audit readiness, governance preparation, tax structuring, post listing reporting and risk management. These opportunities illustrate how capital markets activity often amplifies the wider professional services landscape.
Australia and New Zealand are experiencing a parallel but distinctly different trend. While there has not been the same volume of listings as in northern Asian markets, advisory activity has been influenced by the growing presence of private equity.
“Private equity has reshaped the Australian market. Consolidation has reduced the number of midtier acquisition targets and pushed valuations higher, creating a competitive environment that feels similar to where the US was several years ago.”
Nikolas Hatzistergos, Executive Chairman of William Buck NSW
Consolidation in the midtier has narrowed the landscape of independent firms and altered the competitive environment. This shift has broadened the scope for midsized firms to win work that was previously dominated by the largest global providers. Across both Australia and New Zealand, audit committees and boards are showing greater willingness to engage firms that offer strong governance and independence credentials without the perceived conflicts often associated with larger networks.
Supply Chain Transformation
Global supply chains continue to evolve, yet Asia Pacific remains central to global production. Production is not moving out of the region but redistributing within it as firms build resilience. China’s outbound investment into ASEAN markets, coupled with the rise of new industrial centres in places like Thailand, is reshaping regional manufacturing patterns.
Australia and New Zealand, although less directly involved in manufacturing relocation, are closely connected to these shifts through trade and commodity flows and strategic partnerships. Clients across both markets are reassessing their supply chain footprints and evaluating the implications of new trade relationships. Advisory support is increasingly focused on operational resilience, cost management and risk evaluation as organisations adjust to a more uncertain global environment.
“Geopolitical uncertainty continues to influence how clients invest and plan. We are helping them make informed and resilient decisions at a time when disruption, higher local costs and currency movements all play a part in their strategy.”
Nikolas Hatzistergos, Executive Chairman of William Buck NSW
Challenges Facing APAC Firms
Fee Pressure
Asia Pacific markets are often highly price sensitive. Firms in Hong Kong, China and Singapore face client expectations for efficient delivery supported by technology. This expectation is also present in Australia and New Zealand, though the higher labour cost base intensifies the pressure to demonstrate value.
“Fee pressure is extreme. Clients expect lower fees due to the economy.”
Roy Lo, Hong Kong Managing Partner, SW and Praxity Regional Chair APAC
Talent Shortage
Demand for digitally skilled and globally aware professionals remains high across Asia Pacific. Australia and New Zealand are experiencing similar pressures, although talent mobility has shifted due to private equity consolidation, which has made some senior professionals more reluctant to move. Across the region, firms are investing in training, capability building and retention strategies.
Independence and Regulatory Scrutiny
Regulators across Asia Pacific are tightening independence expectations. This is particularly relevant for multi-firm engagements within Praxity. Pre-engagement checks must be thorough and clearly documented. Firms must identify the client and related entities, assess any existing relationships or conflicts, evaluate independence risks, apply safeguards, confirm that no prohibited services exist, secure confirmations from all staff involved and document the full assessment before proceeding.
“Independence and reputational issues facing the Big Four have opened the door for firms like ours. Clients across government, private enterprise and the midmarket are now more willing to appoint midtier firms for both audit and advisory work.”
Nikolas Hatzistergos, Executive Chairman of William Buck NSW
Changing Client Expectations
Clients across the region expect advice that is integrated, insightful and regionally coherent. They want advisers who can interpret cross border issues, anticipate regulatory changes and provide clear direction. Digital capability continues to influence expectations as clients look for transparent analysis that is supported by reliable tools and strong governance. ESG requirements continue to tighten and clients need data that is assurance ready and aligned with emerging standards.
In Australia and New Zealand, clients face additional pressures related to cost, geopolitical uncertainty and the long-term implications of private equity backed consolidation. They are seeking advisers who can provide stability, sound judgement and practical steps for building resilience.
“Clients want efficiency backed by technology and they want trust supported through strong data security.”
Roy Lo, Hong Kong Managing Partner, SW and Praxity Regional Chair APAC
High Growth Sectors Across APAC
Technology
Financial Services
eCommerce
Renewable Energy
Electric Vehicles
Biotech
Growth continues across technology, financial services, eCommerce, renewable energy, electric vehicles and biotech. Australia and New Zealand share some of these trends, with strong activity in sectors such as renewable energy, infrastructure, agriculture technology and specialist financial services. The subregion is also seeing growth in outbound advisory work due to favourable currency movements and long-established ties with English speaking markets.
What APAC Contributes to the Alliance
Asia Pacific brings a spectrum of complementary strengths. The rapid growth of northern and eastern markets, combined with the maturity and technical depth of Australia and New Zealand, creates a region that is both dynamic and stable. APAC’s strong capital markets, diverse supply chains, advanced governance standards and deep understanding of emerging markets all contribute to Praxity’s global capability.
The Future Shape of APAC
The region’s trajectory will be defined by continued capital market development, investment in advanced manufacturing, and the acceleration of digital transformation. ESG regulation will continue to gather momentum, workforces will become increasingly mobile and supply chains will become more regionally rooted. Australia and New Zealand will continue to form an important part of this evolution, contributing both stability and sophistication to the broader regional narrative.
Chair’s Perspective
Roy Lo’s vision places Asia Pacific at the forefront of Praxity’s global strategy. He sees APAC as the power engine of the Alliance, shaped by deeper collaboration, growing expertise in ESG assurance, digital capability and evolving tax frameworks. Under his leadership, the region’s diversity has become a strength that allows firms to share insight, broaden opportunity and present a united voice across global forums.