Economist labels Malaysia, Indonesia, Thailand, Philippines and Vietnam as the ‘Fabulous Five’ for FDI growth
Chief economist Shan Saeed says five ASEAN economies attracted about US$85.3 billion in FDI in 2025, roughly 35% of the region’s total.
Shan Saeed, chief economist for Juwai IQI, described Malaysia, Indonesia, Thailand, the Philippines and Vietnam as the “Fabulous Five” poised to benefit from a shift toward productive-capacity investment in ASEAN. Using UNCTAD’s World Investment Report 2026, he estimated the five economies attracted US$85.3 billion in FDI in 2025, about 35% of the region’s US$243.9 billion total. The same group is credited with US$84.8 billion, roughly 80%, of announced greenfield investment, indicating where future factories, data centres and semiconductor plants may emerge.
Manufacturing FDI rose nearly 150% to US$44 billion in 2024, according to the ASEAN Investment Report 2025, reinforcing the trend. Saeed pointed to McKinsey’s projection of US$6.7 trillion in cumulative data-centre spending through 2030 and highlighted emerging sites such as Johor, Jakarta and Chonburi. He warned that converting announced projects into operating capacity will depend on energy security, regulatory credibility and skilled labour, stressing that credibility, not just scale, drives sustainable growth.
Why it matters
The investment outlook signals where Southeast Asia’s next manufacturing and digital hubs will develop, affecting jobs and technology transfer.
How this story developed
- Sep 9 ASEAN leaders warn connectivity alone won’t bridge emerging AI divide
- Sep 12 Chinese President Xi Jinping called on BRICS nations at the New Delhi summit to support peace initiatives in the Middle East, saying the war harms the international community.
- Sep 13 Leaders adopted a 140‑point New Delhi Declaration covering security, trade, climate and technology issues.
- Sep 13 Day 2 of the summit focused on PM Modi’s four‑pillar BRICS agenda, early‑warning and disaster systems, AI, digital agriculture, supply chains and startups.
- Sep 13 President Xi outlined proposals for a BRICS AI Open Source Zone and a China‑hosted service‑trade forum.
- Sep 14 Thick haze from Kalimantan forest fires cut visibility to about 300 m, causing 73 flights over three days to be delayed or rescheduled at Supadio Airport.
- Sep 16 The Malaysian government is consulting Malaysia Airlines and Batik Air about taking over AirAsia's domestic market share as the low-cost carrier faces financial strain.
- Sep 17 Indonesia broadened its wildfire‑containment operations to additional provinces and national parks.
- Sep 18 AirAsia announced a US$1 billion fundraising effort on the international debt market.
- Sep 19 India unveiled a BRICS Logistics Supply Chain Cooperation Framework during the summit.
- Sep 20 India and Thailand met to assess accelerating the ASEAN‑India trade pact review.
- Sep 22 In the August WEF survey of 36 chief economists, more than 60 % predict income growth in India and South-East Asia, contrasting with expectations of flat or falling real incomes elsewhere. Respondents also foresee higher household costs, especially for food, electricity and transport. Indian economists warned the optimism may be short-lived, citing rising retail inflation and vulnerable food prices, and highlighted the influence of oil prices and government buffering on future wages.
- Sep 23 Malaysia’s GDP expansion forecast was added to the outlook.
- Sep 24 ASEAN held separate meetings with Japan and South Korea trade ministers in Manila.
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