ASEAN has solidified its position as a major global investment destination, with foreign direct investment (FDI) inflows reaching a record $244b in 2025, according to a report by UOB Global Economics and Markets Research. This 10% year-on-year increase highlights the region’s growing appeal amidst global supply chain shifts and capital reallocation.
Singapore led the charge, attracting $151b, or 62% of the total ASEAN inflows, making it one of the top five FDI destinations worldwide. Malaysia and Thailand also saw significant growth in FDI inflows, with increases of 51% and 30% respectively. In contrast, Indonesia experienced a 14% decline in FDI inflows, although it remained a leader in merger and acquisition activity, greenfield investments, and project finance.
Despite the uneven distribution of FDI across the region, ASEAN’s overall performance outpaced global FDI growth, which stood at 6% year-on-year. The bloc’s focus on digital infrastructure, green industries, and downstream processing is reshaping its investment landscape. “ASEAN’s total investment capture is now approaching that of Europe,” the report noted, underscoring the region’s strategic importance.
Looking ahead, ASEAN is intensifying its investment promotion strategies, with a focus on green and digital transitions. The ASEAN Regional FDI Investment Promotion Action Plan 2025–2030 aims to enhance the region’s attractiveness to global investors, supporting sustained FDI growth over the medium term. This strategic focus is expected to further bolster ASEAN’s role in global supply chains and investment flows.
