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Investment in Southeast Asia rises

Foreign direct investment (FDI) into Southeast Asia rose 13.4 percent last year in a sign that alleged terrorist links in the region had little impact on investment flows, economic ministers said yesterday.

FDI last year totalled US$13.06 billion, up from US$11.52 billion in the previous year.

"The council welcomed this positive development and noted that the September 11 terrorist attacks have had a limited impact on foreign and ASEAN firms' investment plans and commitment to the region," the ministers said.

The ministers also announced new initiatives to shore up investor confidence in the region, where pockets of Muslim militants linked to Osama bin Laden's al-Qaeda network are located.

In a statement issued after a meeting of the ASEAN Investment Area Council here, the ministers said FDI from the US was up 30 percent and investment from the EU jumped 57 percent.

Investments from Japan rose to US$896 million last year, the ministers said.

The investment council, which monitors progress under the ASEAN Investment Area, aimed at luring more investors into the region, met ahead of their 34th annual meeting here today.

Brunei Minister for Industry and Primary Resources Abdul Rahman Taib also noted that the increase in investments was achieved despite the US-led global economic slowdown.

"Given the improved regional business environment and the expected stronger regional economic growth in 2002, the council is confident that the outlook for FDI flows to ASEAN will continue with the upward trend," the statement said.

"All these initiatives indicate ASEAN's seriousness to stay in competition," ASEAN spokesman M.C. Abad said.

But he said the FDI figures were still small when compared to before the Asian financial crisis in 1997-1998 when investment into Indonesia stood at US$33 billion.
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