Issue FDI dominance coexists with sharply volatile portfolio and bank-related flows

Summary

The report's own summary of the capital picture has two halves: FDI supplies more than 70 percent of inflows to the six between 2021 and 2024 and M&A deal counts hold steady, while portfolio and bank-related and other inflows have swung substantially over the decade - so the stable headline rests on a volatile remainder.

Classification

Main topicMacroeconomy & Finance

Secondary topicsTrade & Economic Security

Region menusGlobal Other Regions

Impactscope:transnational · geo_region:southeast_asia

Time horizon0-3 years (2026-07-26)

Last updated2026-07-29 04:49:52

Evidence 1

Global Opportunity Index 2026: Growth Markets in Southeast Asia Milken Institute page=5;section=Introduction 2026-04 accessed 2026-07-26

Constituent trends 2

TrendCapital leaving China is redistributed among developing regions without being replaced3 signals
TrendDeveloping regions diverge in capital mix while Southeast Asia's six concentrate on FDI4 signals

Directly linked signals 5

SignalCambodia's bank-related inflows turned negative in 2024 after driving growth to 2021
SignalFDI rose to 72.5% of inflows to the six as portfolio share fell from 21.5% to 8.5%
SignalFDI to the six rose from $50.0bn in 2015 to $74.7bn in 2024, averaging 67.6% of inflows
SignalMalaysia had the decade's most frequent reversals in capital inflows
SignalPortfolio and bank-related flows, not FDI, drove the decade's variation in inflows

Relation types: constitutes · direct_urgent

Public id: fm-50cef7f6c05a