[Singapore Leads Southeast Asia in Record Foreign Investment Inflows] UOB points out that Southeast Asia has become a "strategic winner," driven by supply chain shifts and capital reallocation, highlighting the region's economic resilience. According to UOB's analysis of the latest data from the United Nations Conference on Trade and Development, foreign direct investment (FDI) inflows into Southeast Asia are projected to grow by 10% year-on-year, reaching a record US$244 billion in 2025. This growth rate exceeds the global average of 6%, bringing Southeast Asia's investment scale close to that of Europe. Singapore is the second most popular FDI destination after the United States, attracting US$151 billion in inflows. Malaysia performed best, with FDI inflows growing by 51%, mainly driven by digital infrastructure investment. Thailand and Vietnam also saw increases in FDI inflows, while Indonesia experienced a 14% decline. UOB economists Enrico Tanuwidjaja and Vincentius Ming Shen added, "At first glance, the decline in Indonesian FDI inflows may raise concerns, but this decline actually masks continued long-term investment from global investors."
