Illustration of investment. (CNN Indonesia / Adhi Wicaksono)

Become the biggest recipient of FDI in the world, investment flow in Asia increased up to 4%

Asia – As the biggest recipient of Foreign Direct Investment (FDI) in the world, Asia has absorbed 39 percent of global inflows in 2018, or increased from the 2017 absorption level of only 33 percent.

It is reported that the investment growth occurs mainly in China, Hong Kong, Singapore, Indonesia and other countries that are members of the UN Southeast Asia, and also India and Turkey were also included as the biggest recipients of FDI.

According to 2019 World Investment Report or 2019 World Investment Report published by the United Nations Conference on Trade and Development (UNCTAD), the flow of FDI entering the developing countries in Asia increased up to 3.9 percent to USD 512 billion in 2018.

 The investment rate reached USD 149 billion in 2018 in Southeast Asia, or increased 3 percent from the previous year. Investments from the Asian economy and strong intra-ASEAN investments support FDI growth in the sub-regions as well.

Meanwhile, in East Asia, the total inflow of foreign funds increased 4 percent to USD 280 billion in 2018, with the majority of inflows to China increased  4 percent to an all-time high of USD 139 billion. That figure accounts for more than 10 percent of the world's total investment. It is reported that foreign investors have set up around 60,000 new companies in China in 2018 until this year.

According to the source, in Western Asia, the largest increase in investment were in Turkey and Saudi Arabia, which increased by 3 percent to USD 29 billion, stopping the continuous downward trend over the past 10 years and increased last year.

In Southern Asia, the flow of foreign funds increased 3.5 percent to USD 54 billion. The largest recipient of investment in the region was India, and increased 6 percent to USD 42 billion.

It is informed that, the sectors that supported the flow of foreign funds including manufacturing and services, particularly financial services, retail and wholesale trade.

Manufacturing, communication, financial services and cross-border merger and acquisition activities were also the investments in Asia.

Source: https://www.cnnindonesia.com/ekonomi/20190614175812-532-403426/naik-4-persen-aliran-investasi-ke-asia-capai-us-512-miliar