BERNAMA – ASEAN Maintains FDI Strength Despite Global Uncertainties

By Maizatul Jamny Muhammad Rosli

KUALA LUMPUR, Sept 23 (Bernama) — Despite ongoing global uncertainties, ASEAN has continued to retain its unique strength, attracting robust foreign direct investments (FDI) particularly in sectors such as digitalisation, sustainable energy, high-value manufacturing and financial services.

Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said the FDI into ASEAN rose by nine per cent in 2024 to US$226 billion (US$1 = RM4.20), accounting for 15 per cent of global FDI inflows, hence maintaining its position as the top FDI recipient among developing regions for the fourth consecutive year.

“With a combined market of over 680 million people and a growing middle class, ASEAN remains a key driver of global economic growth,” he said in his opening remarks at the 28th ASEAN Investment Area (AIA) Council meeting here today, held in conjunction with the 57th ASEAN Economic Ministers’ Meeting (AEM) and related meetings.

At the same time, Tengku Zafrul also noted that intra-ASEAN investment remains modest compared to external inflows.

“Strengthening intra-regional investment will not only reinforce our supply chain connectivity but also enhance the resilience of our economies against external shocks,” he said.

Calling for deeper regional cooperation, Tengku Zafrul urged ASEAN member states to strengthen their collaboration and reaffirm their commitment to position the region as an attractive investment destination.

He said the AIA framework has played a key role in facilitating ASEAN’s deeper economic integration by facilitating the seamless flow of investments, enhancing transparency and promoting a predictable and competitive business environment.

However, he acknowledged the growing challenges faced by the region.

“Today, we meet against a very complex backdrop in terms of the global landscape, where strategic competition among major powers, coupled with supply chain vulnerabilities and shifting trade patterns, has posed challenges and uncertainties for ASEAN.

“These developments could affect capital flows, alter investment decisions and reshape the comparative advantages of our economies,” he said.

The 28th AIA Council Meeting discussed global and regional economic issues, reviewed ASEAN’s economic achievements, and explored ways to strengthen cooperation in support of ASEAN’s regional economic integration journey.

Held under Malaysia’s 2025 ASEAN Chairmanship, the 57th AEM and Related Meetings will see a gathering of over 500 delegates from ASEAN member countries.

— BERNAMA

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