Southeast Asia overtakes China in FDI

FlagsASEANSoutheast Asia overtook China in inward foreign direct investments (FDI) last year as China’s workforce peaked and wages increased, according to the Bank of America Merrill Lynch.

The region’s lead over China may widen in the coming years as Southeast Asia’s growing population and lower wage levels attract more investments, Bank of America Merrill Lynch said in a report on Wednesday.

Data compiled by Merrill showed FDI into Indonesia, Thailand, the Philippines, Malaysia and Singapore climbed 7 per cent to $128.4 billion last year, surpassing the $117.6 billion amount received by China.

FDI into China, based on official FDI utilised, reached a peak in 2011 at $124 billion and has declined slightly since, Merrill added.

“Rising FDI into ASEAN will likely remain a favourable structural trend over the next few years given favourable demographics, competitive wages and geopolitical competition between the superpowers,” Merrill said, alluding to tensions between China and Japan.

A drop in China’s working-age population is robbing President Xi Jinping of an engine of three decades of growth, even as it helps the government restructure the economy away from investment and manufacturing-led expansion.

The situation is reversed in Southeast Asia’s developing nations, where rising numbers of young people seek employment, luring firms seeking a cheap workforce and new markets.



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Southeast Asia overtook China in inward foreign direct investments (FDI) last year as China's workforce peaked and wages increased, according to the Bank of America Merrill Lynch. The region's lead over China may widen in the coming years as Southeast Asia's growing population and lower wage levels attract more investments, Bank of America Merrill Lynch said in a report on Wednesday. Data compiled by Merrill showed FDI into Indonesia, Thailand, the Philippines, Malaysia and Singapore climbed 7 per cent to $128.4 billion last year, surpassing the $117.6 billion amount received by China. FDI into China, based on official FDI utilised, reached...

FlagsASEANSoutheast Asia overtook China in inward foreign direct investments (FDI) last year as China’s workforce peaked and wages increased, according to the Bank of America Merrill Lynch.

The region’s lead over China may widen in the coming years as Southeast Asia’s growing population and lower wage levels attract more investments, Bank of America Merrill Lynch said in a report on Wednesday.

Data compiled by Merrill showed FDI into Indonesia, Thailand, the Philippines, Malaysia and Singapore climbed 7 per cent to $128.4 billion last year, surpassing the $117.6 billion amount received by China.

FDI into China, based on official FDI utilised, reached a peak in 2011 at $124 billion and has declined slightly since, Merrill added.

“Rising FDI into ASEAN will likely remain a favourable structural trend over the next few years given favourable demographics, competitive wages and geopolitical competition between the superpowers,” Merrill said, alluding to tensions between China and Japan.

A drop in China’s working-age population is robbing President Xi Jinping of an engine of three decades of growth, even as it helps the government restructure the economy away from investment and manufacturing-led expansion.

The situation is reversed in Southeast Asia’s developing nations, where rising numbers of young people seek employment, luring firms seeking a cheap workforce and new markets.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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