Foreign direct investment (FDI) inflows to ASEAN reached a record $230 billion in 2023. The increase was marginal – less than 1 per cent – but it occurred despite a 10 per cent decline in global FDI. The third consecutive annual increase solidified ASEAN’s position as the largest FDI recipient among developing regions, accounting for 17 per cent of global inflows, up from 16.5 per cent in 2022. 

In 2023, the top five industries accounted for 86 per cent of inflows. FDI in financial activities (including banking, insurance, investment funds, and finance functions of industrial multinational enterprises or MNEs) increased by 53 per cent to $92 billion. Investment in high value-added services, including professional, scientific and technical (research and development) activities, rose from $0.3 billion to $21 billion. Investment in knowledge-based and higher value-added activities is supporting industrial upgrading in several Member States.