ASEAN is set to be a US$5.2 trillion economy by 2025. Is the UK doing enough to engage with it?
Overview
By Henry Tillman
The UK has been investing in Malaysia for the past 60 years, in fact, it was the leading FDI investor in Malaysia for its initial several years after independence. However, by the mid-1980s, for numerous reasons, the UK was overtaken by Japan (focused on the electronics industry) and Singapore (increasing trade linkages) in FDI investment. These FDI trends have accelerated in today’s rapidly evolving multi-polar greening world, led by technology and digitization.
Within the past decade, not only has UK interest in FDI in Malaysia declined, three of the UK’s largest companies have made significant exits. Conversely, Malaysia has become an increasingly active investor in the UK over the past decade and is currently leading two of the UK’s leading infrastructure projects. In spite of these developments, both countries house large, international businesses which combined with their financial markets can assist both countries in developing future growth.
Inbound Investment into Malaysia
In our November issue of Asia Investment Research; Malaysia’s Economic Transition: from Plantations and Palm Oil to tech and Green Energy (complimentary download here) we
examined inbound investment into Malaysia by components:
- Semi-conductors – $10 billion, USA (Intel) and EU (Infineon, Nexperia, Austria Technologie)
- Algae to energy – 35 Japanese…
