Key countries in SEA attract foreign investments

The remaining four—Cambodia, Myanmar, Brunei and Laos—have attracted much lower levels of interest. In the years to come, it is quite likely that Myanmar will join the ranks of the larger six nations.

The reasons for investing in SEA vary by sector, but high on the list are impressive rates of economic growth, and a powerful consumer spending story. 

South East Asia also has a strong manufacturing story, given that China is becoming expensive, and it has a growing investment story in fixed assets such as infrastructure. Alongside these factors, companies are also being attracted by the possibilities for greater integration in ASEAN—the stitching together of 10 smallish markets into one large one of 617m people.

Top-down policies from the ASEAN Secretariat are only part of the integration story. Just as important are the bottom-up integration dynamics. Local companies are pushing into their neighbouring markets. Investment flows across ASEAN borders are picking up. And people are moving across the region in ever greater numbers. In banking, for example, even though the ASEAN Banking Integration Framework is yet to be ratified, some banks in Singapore and Malaysia are already building a pan-ASEAN presence. Companies know they will benefit from ASEAN integration agreements, but they aren’t waiting for them to arrive before they act.