Connect with us
Welcome to Long An

Asean

ASEAN bucks record 155 billion USD FDI in 2018

The flow of foreign direct investment (FDI) into the 10 ASEAN countries has gone up for the third consecutive year, breaking a record 155 billion USD set in 2018.

Olivier Languepin

Published

on

Last year inflows to the ten-member Association of South East Asian Nations (ASEAN) were up 11.5%, from US$147 billion in 2017 to $155 billion in 2018, according to new UNCTAD research.

According to the ASEAN Investment Report released on November 3, the services industry was the largest recipient of FDI in ASEAN. In line with the global average, the sector’s share of the bloc’s total FDI grew from 50 percent in 1999 –2003 to 66 percent in 2014 – 2018.

Thailand witnessed a 65 per cent increase in FDI to $13 billion in 2018, building on the 186 per cent rise from 2016 to 2017. The rise was contributed by a considerable increase in FDI in manufacturing, from $2 billion in 2017 to more than $5 billion in 2018. The increase in FDI in finance, real estate, wholesale and retail trade also help pushed up inflows. Manufacturing and two key services industries (finance and real estate) accounted for more than 88 per cent of FDI inflows in the country last year.

The rise in manufacturing FDI was widespread across ASEAN Member States. The majority went to Singapore, Indonesia, Viet Nam and Thailand. The growth was part of the gradual shift of production capacity from China and elsewhere to ASEAN, caused by structural factors (the increase in relative labour costs in China) and accelerated by the United States– China trade tensions.

Focus on healthcare

This year’s ASEAN Investment Report features the FDI in the services sector, with a special focus on health care.

The Report looks into foreign investments and the Multi-National Enterprises (MNEs) in the healthcare industry in ASEAN, as well as the investment environment they thrive in. ASEAN is doing much to strengthen regional health care provision.

Work on improving market opening and investment regime in health care is progressing, along with the implementation of other related sectoral agreements and strategic action plans. It is worth noting that the demand for health care services in ASEAN and the corresponding need for investment in this sector are expected to increase rapidly in the coming years.

This demand is driven by population growth, changing demographics, universal health care programmes and rise in the incidence of non-communicable diseases. Therefore, policies to support the development of private health care are necessary to complement public health care spending in order to keep up with the demand.

Medical tourism has been a factor stimulating private investment in health care industries in some Member States. Medical tourism is rising in Malaysia, Singapore and Thailand, which have become significant destinations because of their high-quality and efficient health care services (table 2). Promoting medical tourism can have positive effects on the attractiveness of the market for private investors, due to its potentially higher returns.

It can help finance better equipment and training and avoid the brain drain of highly qualified medical personnel – all with potential benefits for care services provided to locals, which should remain the primary objective.

Advertisement
Comments

Asean

Coronavirus’ economic impact in East and Southeast Asia

The ASEAN+3 Macroeconomic Research Office (AMRO) estimates that the COVID-19 epidemic could deduct as much as half a percentage point from the economic growth of some regional economies in 2020.

East Asia Forum

Published

on

As the number of coronavirus cases continues to rise around the world, there are deep concerns over the potential economic impact of the virus.

(more…)

Continue Reading

Asean

Trade War Incentive Schemes flourishing in ASEAN

Countries such as Thailand, the Philippines, Malaysia, and Indonesia have unveiled an array of incentive packages to entice businesses affected by the US-China trade war.

Avatar

Published

on

Governments across ASEAN have been unveiling an array of incentive packages to entice businesses affected by the US-China trade war.

(more…)

Continue Reading

Corporate

Employers should hire new workers based on their potential

Avatar

Published

on

A Thailand representative office is essentially a branch of a foreign corporation

58 percent of employers have hired employees based on their potential, and 94 percent of them said their potential-based hires had become a valuable part of their teams. 

(more…)

Continue Reading

Must Read

Upcoming Events

Apr 06

26th World Cardiology Conference – Bangkok

April 6 @ 8:00 am - April 7 @ 5:00 pm BMT
Apr 08

Global Public Health 2020

April 8 @ 8:00 am - April 9 @ 5:00 pm BMT
Apr 13
Apr 17

2nd International Conference on Nanomedicine and Nanotechnology

April 17 @ 9:00 am - April 18 @ 5:00 pm BMT
Aug 21

16th International Expo on Recycling and Waste Management

August 21 @ 8:00 am - August 22 @ 5:00 pm BMT

Press Release

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 12,265 other subscribers

Trending