US Remains Top Investment Destination, But Asia-Pacific's Appeal is Rising

Foreign investor interest in injecting direct investment into the Asia-Pacific region is increasing. This is evident from the FDI Confidence Index 2026 by Kearney, published on Friday (24/4/2026). This year, ten countries from the Asia-Pacific region are included in the FDI Confidence Index, making it the region with the highest representation compared to other areas. The Asia-Pacific’s position as an investment destination remains strong despite investor sentiment being influenced by global uncertainties due to geopolitical volatility, expansion of industrial policies, and increasing technological competition. However, according to the index, the United States (US) still holds the first rank as the most attractive country for direct investment. Thus, the US has occupied the top position for 14 consecutive years. Nevertheless, the US’s overall score has fallen to the lowest level since 2022. In the latest index, the US recorded an index score of 2.2431. Optimism regarding the US’s prospects has also declined. The US leads the world in private AI investment, attracting US$470.9 billion in AI investments since 2013, according to Stanford University’s AI Index 2025. Furthermore, the US has demonstrated economic resilience throughout the past year. In the following positions are Canada, Japan, and China. Meanwhile, Singapore is in 8th place globally. The driving factors for FDI attractiveness in Southeast Asian countries include improvements in ease of doing business, workforce quality, and economic performance. Thailand, for example, is known for its skilled workforce in manufacturing sectors such as automotive, food processing, and service industries. Meanwhile, the workforce in Malaysia is more concentrated in high-value-added industries such as semiconductors, technology, and services. Indonesia’s main appeal for FDI is supported by its large domestic demand and abundant natural resources.