KUALA LUMPUR: ASEAN continues to demonstrate remarkable resilience by attracting robust foreign direct investment despite ongoing global uncertainties.
Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz revealed that FDI into the region increased by 9% in 2024 to reach US$226 billion.
This substantial inflow represents 15% of global FDI and maintains ASEAN’s position as the top FDI recipient among developing regions for the fourth consecutive year.
Key sectors driving this investment include digitalisation, sustainable energy, high-value manufacturing and financial services.
Tengku Zafrul emphasised ASEAN’s significant market potential with over 680 million people and a growing middle class during his opening remarks at the 28th ASEAN Investment Area Council meeting.
The minister highlighted the region’s continued role as a key driver of global economic growth while acknowledging the need for stronger intra-regional investment cooperation.
He noted that current intra-ASEAN investment levels remain modest compared to external inflows despite the region’s overall success.
Strengthening regional investment connectivity will enhance economic resilience against external shocks according to the minister’s assessment.
Tengku Zafrul called for deeper cooperation among ASEAN member states to reinforce supply chain connectivity and maintain the region’s attractiveness to investors.
The ASEAN Investment Area framework has been instrumental in facilitating economic integration by ensuring seamless investment flows and promoting transparent business environments.
The minister acknowledged the complex global landscape featuring strategic competition among major powers and supply chain vulnerabilities.
These developments present significant challenges that could affect capital flows and reshape regional economic advantages according to his analysis.
The 28th AIA Council Meeting addressed these global economic issues while reviewing ASEAN’s achievements and exploring enhanced cooperation pathways.
Over 500 delegates from ASEAN member countries are participating in the 57th ASEAN Economic Ministers’ Meeting and related events under Malaysia’s 2025 ASEAN Chairmanship.
These gatherings will further strengthen regional economic integration efforts through collaborative policy development and strategic alignment.
The meetings represent crucial platforms for addressing contemporary investment challenges while capitalising on emerging opportunities in the evolving global economic landscape. – Bernama