Intra-ASEAN investment rose from $19.4 billion in 2013 to $24.4 billion in 2014, account for 18% of total inflows into the region. This upward intraregional trend suggests a growing interest of ASEAN companies in establishing a stronger regional presence, particularly in recent years, in light of emerging opportunities and AEC-2015 influences.
Intraregional investment is a major source of FDI for the region. For instance, ASEAN was the largest investor in Indonesia, accounting for 60% for FDI flows into that Member State last year, primarily in agriculture, manufacturing and finance. In Viet Nam they were mainly in manufacturing, while in Cambodia they were mainly in agriculture.
Investors from different Member States dominated in different industries. Singapore was the largest source of regional investment in a number of industries: Malaysia led in investment in construction, transportation and storage, and ICT.
ASEAN companies also invest in the region through mergers and acquisitions (M&As) which contributed to a stronger intraregional investment scenario. Singaporean and Malaysian companies were active regional acquirers in a range of industries