Indonesia and Malaysia Among Asia's Top 10 FDI Hotspots, Says IHS

Kuala Lumpur, 07 Rajab 1437/14 April 2016 (MINA) – Indonesia and Malaysia are ranked among Asia Pacific’s top 10 foreign direct investment (FDI) hotspots, according to a study by US-based global information company IHS Inc.

The other Asia Pacific FDI hotspots are China, Vietnam, the Philippines, Myanmar, Thailand, India, Sri Lanka and Bangladesh, Mi’raj Isamic News Agency (MINA reported, quoting Bernama.

In a statement today, IHS said that over the next decade, the Asia Pacific is forecast to be the fastest growing region of the global economy and the region that offers the biggest potential gains for FDI.

“The Asia Pacific region will grow at an average annual rate of 4.5 per cent per year, boosted by rapid growth in consumer spending in China, India and Southeast Asia,” said IHS Chief Economist Asia Pacific Rajiv Biswas.

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Malaysia, Indonesia, the Philippines and Thailand are also expected to join the ranks of Asian nations with a Gross Domestic Product exceeding US$1 trillion by 2030.

“This will help to increase the geopolitical and economic importance of ASEAN and economic grouping in international diplomacy and the global dialogue on trade, investment and international standards-setting,” said.

IHS said that Southeast Asia is expected to be one of the world’s fastest growing regions with these four ASEAN nations.

Referring to Malaysia as Asia’s next advanced economy, the IHS report said that Malaysia’s economy is forecast to achieve a per capita GDP of US$20,000 by 2025, with total GDP exceeding US$1 trillion by 2030.

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Biswas pointed out that the structure of the Malaysian economy will continue to shift towards higher value-added manufacturing and services.

“Strategic growth industries in the services sector will include financial services, healthcare, education, commercial aviation, tourism and the IT-Business Process Outsourcing industry, as Malaysia becomes an increasingly important services, services-exporting economy for Southeast Asia,” said Biswas.

Indonesia’s GDP is forecast to grow at five per cent per year over 2016-2020, supported by strong growth in consumer demand and infrastructure investment, he added.

“By 2020, Indonesia will have already become a nation with a GDP size exceeding US$1 trillion, and by 2030, Indonesian GDP is projected to exceed US$3.7 trillion,” said Biswas, adding that Indonesia is Southeast Asia’s largest economy and one of the world’s largest emerging markets. (T/R07/R01)

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Mi’raj Islamic News Agency (MINA)