FDI in ASEAN rising, still dropping in RI
FDI in ASEAN rising, still dropping in RI
The Jakarta Post, Jakarta
While investment flows into Indonesia remains negative, flows
to other ASEAN countries are showing signs of rising, with
realized foreign direct investment (FDI) in the region at US$1.95
billion during the first half of 2002.
According to a report issued by the secretariat office of the
Association of South East Asian Nations, the above figure was
slightly higher than $1.94 billion posted in the same period in
2001. The figure excludes Singapore and Myanmar, which do not
provide half-year data.
"It shows (the region's) resilience in the light of the global
FDI slowdown," the report said. It also added that Philippines,
Malaysia and Vietnam topped the list of countries in the region
that lured FDI the most during the first semester of the year.
The three countries drew $1.3 billion, $730 million and $450
million respectively.
In a stark contrast, Indonesia continued to see massive
disinvestment during the period, extending the downward trend
that began in 1997.
Some $1.1 billion of approved investments were withdrawn as of
June, as compared to $3.3 billion worth of withdrawals posted for
all of 2001.
Noordin Azhari, ASEAN Secretariat's director of economic
corporation said that in order to counter the declining trend of
global FDI stock, ASEAN members must develop a resilient domestic
economy that can withstand external factors.
"We have to proceed with our regional economic integration
through AFTA, by reducing tariff and non-tariff barriers and
enhancing trade facilitation by harmonizing standards and customs
procedures to generate intra-ASEAN trade and investments.
"All these will spur economic growth and help attract FDI
inflows...," Noordin said.
AFTA is the regional free trade area.
FDI in ASEAN
(in US$ million)
-------------------------------------------------------------
Country 1997 1998 1999 2000 2001 2002*
--------------------------------------------------------------
Brunei 701 573 747 549 526 216
Cambodia 168 120 143 111 112 17
Indonesia 4,678 (365) (2,745) (4,549)(3,278) (1,172)
Laos 86 45 51 34 24 22
Malaysia 6,323 2,714 3,895 3,787 554 731
Myanmar 878 683 304 208 192 NA
Philippines 1,261 1,718 1,734 1,354 1,537 1,342
Singapore 12,836 8,214 12,825 5,389 8,583 NA
Thailand 3,626 7,433 6,149 3,280 3,780 334
Vietnam 2,587 1,700 1,483 1,289 1,300 450
-------------------------------------------------------------
Total
($ billion) 33.1 22.8 24.5 11.4 13.3 1.95
-------------------------------------------------------------
* As of June
() stands for disinvestment
Source: ASEAN Secretariat