Corporate philanthropy in Southeast Asia could generate $5.3 billion—nearly six times the 2024 USAID budget for the region—just by matching global standards. What can the sector do to raise and channel these funds effectively?
Over the past decade, the concept of sustainability and related terms have become increasingly ingrained in corporate strategy thanks to shifts in the policy space, consumer demand for more environmentally and socially responsible products, and an increasing appetite among investors to seek sustainable investments.
Corporate philanthropy is playing a big role for these companies with sustainability strategy aims, yet the breadth of what corporate philanthropy is accomplishing, including company activities undertaken to address societal needs through community investments, including donations and grants, pro-bono goods and services, and corporate volunteer schemes, remain unclear to many outside of the space.
This is particularly true in Southeast Asia, as the region seeks domestic alternatives to fill gaps in development finance following recent geopolitical shifts that have led to drastic cuts in foreign aid from the US, UK, France, the Netherlands, and others.
But while overseas development aid is drying up, struggling nonprofits—at least those in Asia—might be able to look closer to home for financial support. A recent report by the Centre for Asian Philanthropy and Society (CAPS), commissioned by the ASEAN Business Advisory Council Malaysia (ASEAN-BAC Malaysia), estimates that US$5.3 billion could be generated annually from corporate philanthropy in the region if it matches global benchmarks. To put that in perspective, this would be nearly six times the USAID budget for Southeast Asia in 2024.
So, what’s holding back corporate philanthropy in the region, and how does it fit within developments in the sustainability space?
Is corporate philanthropy captured under sustainability or ESG frameworks?
Over the past decade or so, there has been a clear shift in the priorities of Southeast Asian companies toward sustainability, especially in terms of corporate communications. An analysis of messages by C-suite executives in the region from 2014 to 2023 demonstrates this shift, alongside an increased focus on related terms such as climate, energy, and community.
Alongside this, a growing number of Asian national stock exchanges have introduced Environmental, Social, and Governance (ESG) reporting requirements for listed companies[1]. But among the three aspects of ESG, the ‘E’ is often given the most emphasis for a mix of reasons. A contributing factor is its clearer and more easily quantifiable metrics, guided by frameworks like the Task Force on Climate-Related Financial Disclosures (TCFD). Additionally, the ‘E’ part demonstrates a visible link to a company’s financial and physical risks. After all, Asia is one of the most vulnerable regions to climate change, necessitating corporate planning for climate risk and disaster response.
Yet, it is imperative that companies do not overlook the ‘S’. Beyond doing the right thing, contributing to societal good is important for companies, given the significant long-term risks of not doing so. These risks include financial risks when community development challenges affect the security of investments and business operations, reputational risks, and even community backlash. This is particularly true in most Asian economies, where companies are closely intertwined with communities and require an informal ‘social license’ to operate.
Corporate philanthropy can go a long way in developing strong social sustainability for a company by strengthening the relationship between the business and the community and creating more job satisfaction amongst employees because of its impactful work. However, it is important to note that under the current regulatory frameworks in southeast Asia, philanthropic activities are not typically captured under the ‘S’ of ESG. While a community indicator is often included in company reporting, it typically does not require nor encourage proactive investment of financial resources towards addressing local needs. Reporting guidelines issued by Malaysia and the Philippines are exceptions, as they require disclosures about the ‘total amount invested in the community’ and ‘investments to community’ respectively.
Moreover, ESG, regardless of whether community investment is recognised, is understood and framed in terms of risk and return, whereas corporate philanthropy traditionally stems from community-based commitments—how companies can do good to tackle local challenges. Investor-oriented reporting can risk pushing companies toward one-off, performative social efforts that solely meet disclosure requirements (e.g., number of beneficiaries) rather than having long-term social impact.
What’s holding back corporate philanthropy in southeast Asia?
Although policy and regulatory frameworks related to sustainability-focused initiatives and reporting have grown rapidly, there is a notable absence of similar frameworks for reporting corporate philanthropy in southeast Asia. Consequently, there is a lack of consistent and reliable data about the scale and scope of corporate philanthropy in the region. If corporate philanthropy is to become a core component of a country’s development finance framework, accurate and reliable data is essential to deploy those resources strategically to address community needs and to mitigate the duplication of initiatives.
Furthermore, it will be in the best interests of governments to provide more policy incentives to facilitate greater corporate philanthropy. For instance, several countries in southeast Asia, such as Indonesia, Myanmar, and Vietnam, offer tax incentives only for donations to specific sectors (Figure 2). This leads to the allocation of resources to a select few causes while straining other sectors.
Figure 2: Tax incentives for corporate giving in ASEAN
| Country | Tax Rate | Restrictions to Specific Sectors |
| Brunei | 100 percent | N/A |
| Cambodia | 100 percent | N/A |
| Indonesia | 100 percent | Disaster relief, research and development, and the development of social infrastructure, education facilities and sports. |
| Laos | 100 percent | N/A |
| Malaysia | 100 percent | N/A |
| Myanmar | 100 percent | Education, health, relief for the poor and affected persons by natural disaster. |
| Philippines | 100 percent | N/A |
| Singapore | 250 percent | N/A |
| Thailand | 100 percent | N/A |
| Vietnam | 100 percent | Education, vocational training, health, culture, sports, and environment |
Source: CAPS (2025). Corporate Social Responsibility in ASEAN.
There are several non-tax policies and initiatives that governments can also embrace to help unlock corporate philanthropy. For example, more public-private-philanthropic partnerships can be strengthened and leveraged through legal and institutional reforms. Building trust will also be key. CAPS’ Doing Good Index 2024 also finds that only 40 percent of nonprofits and social enterprises in Asia believe they are trusted by corporations, while only 36 percent feel trusted by the government. Philanthropic donors, including corporates, are likely to dedicate more resources if they find key stakeholders, such as nonprofits, in the ecosystem to be more trustworthy, which will be invaluable as developing economies seek to address grassroots-level issues, such as last-mile access to education and healthcare.
Way forward
The growing focus on sustainability within the corporate sphere has been much-needed. However, as demonstrated in Southeast Asia, in order to leverage its potential, it’s necessary to create an enabling ecosystem that includes policy incentives, reporting guidelines, and institutional support.
To achieve this, the government, the private sector, and the social sector have equally important roles to play. If these conditions can be achieved, not only will Southeast Asia be able to increase the level of corporate philanthropy and reaffirm the region’s commitment to the community, but it will also become a leader in this space for fellow nations in the Global South.
This article was first published in Alliance Magazine and was co-authored by Jodee Fok, a former Research Associate at the Centre for Asian Philanthropy and Society (CAPS).
- According to CAPS’ analysis (as of October 2025), at least 11 Asian markets have introduced mandatory ESG reporting in place: China (beginning in 2026), Hong Kong (SAR), India, Indonesia, Japan, Malaysia, the Philippines, Singapore, Taiwan, Thailand, and Vietnam.