This year’s ASEAN Investment Report is prepared against a backdrop of a post-crisis world. It highlights the challenges facing the ASEAN region after the 2008 global financial crisis, particularly the fundamental changes in FDI location determinants that can affect the attractiveness of ASEAN as an investment destination, as well as the region’s ability to manage the volatile global capital flows. Unfortunately the post-crisis recovery has recently become much more uncertain. The adverse developments in advanced markets (particularly in the Euro Zone area) – a major source of foreign direct investment (FDI) inflows in ASEAN – will surely put additional strains on global and regional investment climate. The Report provides a critical assessment of FDI developments in the global economy and ASEAN. It reveals that like other emerging and developing markets, ASEAN has done well in overcoming the recent global economic and financial crisis. In 2010, total FDI inflows into the region increased by 100% and reached a record high US$75.8 billion. This reflects not only the region’s improved economic fundamentals, but also its ability to implement a number of structural reforms that contributed to the strengthening of investors’ confidence into the region.