FDI flows to ASEAN double in past decade on region’s growth potential, supply chain diversification trends

Foreign Direct Investment (FDI) flows into ASEAN have doubled in the past decade, with Singapore being the leading destination in the region.

This growth is expected to continue in the near term as the region’s consumer markets grow in size and affluence and businesses look towards diversification amid geopolitical fragmentation, according to observers.

Bank of America (BOA) economists Faiz Nagutha and Ang Kai Wei estimate that FDI flows to ASEAN grew to more than S$200 billion in 2022 – from S$104 billion in 2010 – and account for 11 to 12 per cent of global FDI, compared to 4 to 5 per cent a decade ago.