Insolvencies in the Asia-Pacific region are expected to rise by +3% in 2026 and +2% in 2027, before stabilising in 2028.
This is according to the latest Insolvency Report by Allianz Trade, unveiling updated forecasts for 2026, 2027,
and the outlook for 2028, highlighting that the increase in APAC is due to less favourable short-term GDP momentum and adverse monetary conditions.
Hong Kong is projected to see insolvencies rise +6% in 2026 and +4% in 2027 to approximately 710 cases – the highest level since 2005, as Singapore with -23% in 2026 and +3% in 2027.
Meanwhile, global business insolvencies are expected to rise by +5% in 2026 and +1% in 2027, marking five consecutive years of increases. Given the uncertain geopolitical and macroeconomic environment, Allianz Trade says the peak in insolvencies will be delayed by one year to 2028 (-1%), slightly retreating from very high levels.
These findings undeniably puts pressure on chief financial officers to strengthen cash-flow forecasting, reassess customer credit risks and protect working capital amid less favourable economic conditions.
How this affects APAC CFOs
- Cash-flow protection: Review cash-flow forecasts and maintain sufficient liquidity to withstand delayed customer payments.
- Customer and counterparty risk: Reassess credit limits, payment terms and exposure to financially vulnerable customers and suppliers.
- Working-capital management: Strengthen receivables collection and monitor overdue invoices to reduce the risk of bad debts.
- Financial resilience: Evaluate credit insurance, contingency funding and stress-testing scenarios to prepare for prolonged insolvency pressures.
