Kuala lumpur: Despite ongoing global uncertainties, ASEAN has continued to retain its unique strength, attracting robust foreign direct investments (FDI) particularly in sectors such as digitalisation, sustainable energy, high-value manufacturing, and financial services. Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz highlighted this development during his opening remarks at the 28th ASEAN Investment Area (AIA) Council meeting, held in conjunction with the 57th ASEAN Economic Ministers’ Meeting (AEM) and related meetings.
According to BERNAMA News Agency, FDI into ASEAN rose by nine percent in 2024 to US$226 billion, accounting for 15 percent of global FDI inflows. This performance maintains ASEAN’s position as the top FDI recipient among developing regions for the fourth consecutive year. Tengku Zafrul emphasized ASEAN’s significance as a key driver of global economic growth, citing its combined market of over 680 million people and a growing middle class.
Tengku Zafrul also pointed out that intra-ASEAN investment remains modest compared to external inflows. He stressed the importance of strengthening intra-regional investment to reinforce supply chain connectivity and enhance the resilience of ASEAN economies against external shocks. He called for deeper regional cooperation among ASEAN member states to position the region as an attractive investment destination.
He highlighted the role of the AIA framework in facilitating ASEAN’s deeper economic integration by enabling seamless investment flows, enhancing transparency, and promoting a predictable and competitive business environment. However, he acknowledged the growing challenges faced by the region, including strategic competition among major powers, supply chain vulnerabilities, and shifting trade patterns, which could impact capital flows and investment decisions.
The 28th AIA Council Meeting addressed global and regional economic issues, reviewed ASEAN’s economic achievements, and explored ways to strengthen cooperation to support ASEAN’s regional economic integration journey. Under Malaysia’s 2025 ASEAN Chairmanship, the 57th AEM and Related Meetings are hosting over 500 delegates from ASEAN member countries.