Foreign direct investments into Malaysia in digital infrastructure expanded by 51 per cent in 2025, the strongest among ASEAN, according to a report quoting a United Overseas Bank Ltd (UOB) note recently. Using the latest data from UN Trade and Development, the note added that Singapore grabbed the bulk of the overall FDIs, attracting US$151 billion in inflows, making it the number two most attractive FDI destination in the world after the US.
Overall, ASEAN attracted a record US$244 billion in FDIs in 2025, a jump of 10 per cent, the note said, attributing the increase to supply chain shifts and capital reallocation, driven by accelerating focus on digital infrastructure and green industries.
“The increase outpaced the 6 per cent global growth and places Southeast Asia’s total investment capture near Europe’s,” it said, calling Southeast Asia a “strategic winner”. Reports indicate some of the gains also came from diversification of lower value consumer goods and electronic assembly away from China.
FDIs also rose for Thailand and Vietnam but plunged 14 per cent in Indonesia. However, the figure belies the fact that Indonesia drew the largest share of big infrastructure financing and led the region in corporate acquisitions and industrial developments reflecting continued long-term commitments by global investors, according to the note.