Malaysia first for foreign investment in emerging Southeast Asia, index shows

Malaysia ranks No. 1 in emerging Southeast Asia as the country with the most potential to attract foreign investors, according to the 2022 Milken Institute Global Opportunity Index.

The annual assessment, created to help inform investors and policymakers in global investment decisions, evaluates an economy’s investment landscape using variables such as macroeconomic outlook, access to financial services, and the potential for future innovation and development.

“In this year’s report, we identify several policies that will help emerging Southeast Asia remain competitive when it comes to investment opportunities,” said head of the Research Department at the Milken Institute, Claude Lopez.

“Governments in the region must strengthen their institutional frameworks, deepen regional integration to take advantage of each country’s unique resources and opportunities, and maximise social impact by leveraging global capital flows to advance development.”

The 2022 Global Opportunity Index includes a report focusing on emerging Southeast Asia, a region where an influx of capital could lead to increased innovation, job creation, and competitiveness, a statement said.

Emerging Southeast Asia scores well compared to other emerging and developing economies in three key areas: 1) having a strong economic performance, 2) offering a highly qualified workforce, and 3) being firmly integrated with the global economy.

Key findings from the 2022 Global Opportunity Index include Sweden maintaining its No. 1 rank from 2021 as the country with the most potential to attract foreign investment, followed by the UK at No. 2 and Denmark at No. 3.

Meanwhile, Malaysia, Thailand, and Indonesia took the top spots in emerging Southeast Asia. Malaysia received the highest ranking in the region due to its strong performance across all categories measured. Vietnam and the Philippines rounded out the top five countries in emerging Southeast Asia.

To create the index, the Milken Institute evaluates investment opportunities through 100 variables organised into five categories and 14 sub-categories. The five major categories are: business perception, financial services, international standards and policy, economic fundamentals, and institutional frameworks.