The ASEAN foreign direct investments (FDI) inflow had seen a surge of 42%, reaching US$174 billion in 2021.
According to Datuk Lim Jock Hoi, the organization’s secretary-general, the growth has returned to pre-pandemic levels and has reversed the performance loss that the world witnessed in 2020 as a direct result of the COVID-19 outbreak
In a recently released ASEAN Investment Report 2022, Lim said that the performance for last year demonstrates how the region’s economy is still attractive to the global investors.
The performance of ASEAN FDI over the past year demonstrates that the location has a sizable market and robust regional integration, both of which are going to continue playing an important role in becoming a catalyst for the recovery of the global economy, he explained.
In addition, he mentioned that the intra-ASEAN FDI continues to be an important source of FDI and that the establishment of production networks within the region has been strongly influenced by emerging opportunities, particularly within the industries of electric vehicles, electronics, digital economy, and green technologies.
He reported that unicorn startup companies have been extremely helpful in driving new trends and contributing to the shift toward Industry 4.0 revolution in the region.
Additionally, according to him, private equity and venture capital firms have also been taking a more active role to assist the growth of start-ups.
“The total assets under management for private equity and venture capital firms have been increasing swiftly from US$36 billion in 2017 to US$66 billion in 2021,” he stated.
The ASEAN Investment Report 2022 was prepared by the ASEAN Secretariat and the United Nations Conference on Trade and Development. The initiative also included a partnership with the ASEAN Coordinating Committee on Investment and the ASEAN-Australia Development Cooperation Program.
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