FDI into ASEAN down 20%, Indonesia, Thailand drop the most

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Foreign direct investments (FDI) flows into the Association of Southeast Asian Nations (ASEAN) fell by 20 per cent to $96.7 billion in 2016, the second consecutive year of decline and much larger than the reduction seen in 2015 when FDI inflow fell by seven per cent. Much of it was owing to declines of FDI into Indonesia and Thailand, which saw significant contractions of 78.84 per cent and 68.19 per cent, respectively.

In turn, the Philippines posted the highest growth in 2016 to become fourth largest FDI recipient among the ten ASEAN countries, according to the ASEAN Investment Report 2017 which was launched at the APEC Meeting in Manila on November 13.

FDIs from most ASEAN dialogue partners such as the US and Japan and even intra-ASEAN investments rose in 2016, the report said. However, these gains were not enough to offset the “one-off factors” that caused much bigger outflows.

In particular, FDI flows from the EU rose by 46 per cent to $30.5 billion, those from China rose by 44 per cent to $9.2 billion, those from South Korea rose by three per cent to $6 billion and those from Australia rose by 77 per cent to $3.4 billion. Significant FDI from the Netherlands, Ireland, Luxembourg, Denmark, Spain and France help pushed up the investment in ASEAN from the EU economies.

Flows from the US fell by 50 per cent to $11.7 billion, while flows from Japan fell by five per cent to $14 billion because of various factors.

The rise in intra-ASEAN investment in 2016 was driven by a two-thirds increase in investment in manufacturing, to $8.3 billion and a doubling of investment in finance to $5 billion.

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Reading Time: 1 minute

Foreign direct investments (FDI) flows into the Association of Southeast Asian Nations (ASEAN) fell by 20 per cent to $96.7 billion in 2016, the second consecutive year of decline and much larger than the reduction seen in 2015 when FDI inflow fell by seven per cent. Much of it was owing to declines of FDI into Indonesia and Thailand, which saw significant contractions of 78.84 per cent and 68.19 per cent, respectively.

Reading Time: 1 minute

Foreign direct investments (FDI) flows into the Association of Southeast Asian Nations (ASEAN) fell by 20 per cent to $96.7 billion in 2016, the second consecutive year of decline and much larger than the reduction seen in 2015 when FDI inflow fell by seven per cent. Much of it was owing to declines of FDI into Indonesia and Thailand, which saw significant contractions of 78.84 per cent and 68.19 per cent, respectively.

In turn, the Philippines posted the highest growth in 2016 to become fourth largest FDI recipient among the ten ASEAN countries, according to the ASEAN Investment Report 2017 which was launched at the APEC Meeting in Manila on November 13.

FDIs from most ASEAN dialogue partners such as the US and Japan and even intra-ASEAN investments rose in 2016, the report said. However, these gains were not enough to offset the “one-off factors” that caused much bigger outflows.

In particular, FDI flows from the EU rose by 46 per cent to $30.5 billion, those from China rose by 44 per cent to $9.2 billion, those from South Korea rose by three per cent to $6 billion and those from Australia rose by 77 per cent to $3.4 billion. Significant FDI from the Netherlands, Ireland, Luxembourg, Denmark, Spain and France help pushed up the investment in ASEAN from the EU economies.

Flows from the US fell by 50 per cent to $11.7 billion, while flows from Japan fell by five per cent to $14 billion because of various factors.

The rise in intra-ASEAN investment in 2016 was driven by a two-thirds increase in investment in manufacturing, to $8.3 billion and a doubling of investment in finance to $5 billion.

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