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OECD Report: Enabling Sustainable Investment In ASEAN

What can ASEAN member states do to further promote investment benefits for their social and environmental objectives? In this report co-sponsored by the Hinrich Foundation, the Organisation for Economic Co-operation and Development (OECD) measures the impact of sustainable FDI in Southeast Asia, reviews the region's investment policy reforms, and suggests ways to enable responsible business conduct and foster green investment.

Southeast Asia has developed rapidly over the past two decades and the region is a major engine of global economic growth. Member states of the Association of Southeast Asian Nations are at very different stages of development, but almost all their economies have more than doubled in size since 2000.

Thanks to strong political commitment to effective policies, over 100 million people in the region have been lifted out of poverty in the last 20 years. Member states have individually and collectively made substantial improvements in the climate for investment. Southeast Asia has been among the biggest recipients of foreign direct investment (FDI) among emerging regions, as some countries in the region were early movers in the shift towards export-led development based in part on FDI.

As the below charts show, FDI flows to Southeast Asia have increased by a factor of nine over the last two decades, with over half of these going to Singapore which tends to act as the regional hub for many investors to invest into other AMS. Nevertheless, new, “greenfield” investment projects have seen a major decline since the onset of the COVID-19 pandemic, with no signs of improvement yet. DOWNLOAD REPORT

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