Southeast Asia FDI Climbs to US$226 Billion, Singapore Attracts Record US$143 Billion
Foreign direct investment into the region grew 8% in 2024, driven by new manufacturing and digital economy projects, according to the Singapore Economic Development Board.
Regional Inflows Defy Global Trend
Southeast Asia's foreign direct investment (FDI) inflows reached US$226 billion in 2024, an 8% increase from 2023, according to the Singapore Economic Development Board (EDB). This accounted for 15% of global FDI inflows. Worldwide FDI, conversely, decreased by 11% in 2024, following a 10% drop in 2023.
Annual FDI into Southeast Asia has consistently exceeded US$200 billion since 2021, significantly above the annual average of under US$130 billion from the previous decade. The EDB also noted that ASEAN's total FDI stock rose from US$1 trillion in 2010 to US$3.6 trillion in 2024.
Manufacturing and Digital Investments Accelerate
The rise in regional investment largely reflects new greenfield projects and capacity expansions, with equity capital comprising over two-thirds of inflows. Cross-border mergers and acquisitions, by contrast, fell by 61% from 2023.
Manufacturing FDI saw a substantial 147% year-on-year increase, particularly in supply chain-intensive sectors such as automotive, electronics, and semiconductors. These investments, often first-time entries or significant upgrades, were spurred by increasing regional demand and the adoption of advanced manufacturing technologies.
Concurrently, greenfield investment in digital-related sectors more than doubled to US$16 billion in 2024, supporting data centres, cloud services, and software development.
Singapore's Record FDI and Innovation Hub Role
Singapore continues to be a central hub for this regional growth, attracting a record US$143 billion in FDI during 2024. This 6% year-on-year increase was the highest level on record for the city-state, boosted by a strong rebound in manufacturing investment.
Beyond production, Singapore secured US$22 billion in professional, scientific, and technical investments, including research and development (R&D) and headquarters activities. Notable expansions include Amazon's AWS APAC Hub, OpenAI's APAC Hub, and Databricks' Asia Pacific & Japan Hub. Swiss firms like Kendris, Julius Baer, Sulzer, and Novartis also expanded their presence.
This sustained investment flow into Southeast Asia, particularly in new projects rather than acquisitions, indicates a long-term commitment from multinational corporations to build out regional capabilities. Businesses should note the focus on advanced manufacturing and digital infrastructure, which strengthens supply chain resilience and digital trade across the region.
The continued expansion of R&D and headquarters functions in Singapore suggests its enduring role as a strategic base for regional operations and innovation. The next ASEAN Investment Report will provide updated figures on these trends in early 2027.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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