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Singapore captures 62% of ASEAN FDI

Semiconductor and financial hub status supported investor confidence.

Singapore attracted $194.79b (US$151b) in foreign direct investment (FDI) in 2025, up 11% year on year (YoY), accounting for about 62% of ASEAN's total inflows, according to a UOB Global Economics & Markets Research note.

The city-state ranked amongst the world's top five FDI destinations, behind only the US, which attracted $357.33b (US$277b).

“Singapore's resilience highlighted sustained investor confidence in its role as a global semiconductor and financial hub,” UOB said.

ASEAN attracted a record $314.76b (US$244b) in FDI in 2025, up 10% YoY. The bloc accounted for about 38% of Asia's $830.76b (US$644b) in FDI inflows.

“Singapore continues to consolidate its role as a leading global financial and innovation hub through strong institutions, regulatory certainty, and advanced infrastructure,” the report said.

Singapore also recorded a 70% YoY increase in outward FDI, reaching $121.26b (US$94b), equivalent to about 5% of global FDI outflows, reflecting the city-state's role in global value chains and international capital allocation.

UOB said ASEAN's FDI performance reflected supply chain diversification, digitalisation, and downstream processing.

The region's FDI inflows grew faster than global inflows, which rose 6% to about $2.09t (US$1.62t) in 2025.

Within the ASEAN-5, Malaysia recorded the strongest growth in FDI inflows at 51%, followed by Thailand at 30% and Vietnam at 1%. Indonesia's FDI inflows fell 14%.

Despite the decline, Indonesia ranked first amongst the ASEAN-5 in cross-border M&A activity, greenfield investment, and international project finance, which UOB said pointed to continued long-term investment commitments.

ASEAN economies are also coordinating investment promotion efforts under the ASEAN Regional FDI Investment Promotion Action Plan 2025–2030, with a focus on green industries, digital transformation, and downstream processing.

(US$1 = SG$1.29)

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