United Overseas Bank (UOB) expects inbound foreign direct investments (FDIs) into Asean to reach US$370 billion ($479.33 billion) by 2030, up from US$225 billion in 2024, according to UNCTAD’s World Investment Report.
The estimate, shared at UOB’s Gateway to Asean conference on Oct 16, comes as the region emerged as a key beneficiary from the shift in global supply chains, which began during the Covid-19 pandemic and accelerated due to trade tensions and broad-based tariffs.
The supply chain shifts towards this part of the world have also benefitted UOB. In 1H2025, UOB’s financial supply chain management (FSCM) anchors grew by 21% y-o-y and spokes grew by 18% y-o-y. Over two-thirds of this growth is Asean-based companies, says the bank.
Digital payments accounted for 90% of the bank’s total transaction volumes in 1H2025, thanks to business momentum across domestic and cross-border electronic channels.
Singapore will attract largest investments in Apac: Gateway to Asean paper
In UOB’s Gateway to Asean paper, which studies how businesses are navigating supply chain shifts, investment priorities and Asean’s economic influence, found that 75% of global executives plan to reconfigure their supply chains within the next three to five years.
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The shifts are also leading businesses, 52%, to consider nearshoring within the next three years. At the same time, the paper found that 45% of companies looking to invest in Asean, intend to build local supply chains.
With this, Singapore will attract the largest investments in the Asia-Pacific (Apac) region, with businesses allocating more capital to the city-state than any other market.
China is also emerging as a top investment destination with 15% of businesses prioritising investments in the country over the next three years.
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Finally, 70% of businesses have indicated that they want banks to manage tariff exposures, foreign exchange (forex) volatility and trade finance.
Asean ‘more relevant than ever’: deputy chairman and CEO Wee
In his speech at the opening of the conference, UOB’s deputy chairman and CEO, Wee Ee Cheong, noted that Asean is “more relevant than ever” in a multi-polar world.
“Supply chain re-rewiring is creating new opportunities. Investments are flowing from the rest of the world to Asean, for production and market access,” he says.
He adds that the momentum for market integration in Asean is “encouraging” amid recent moves by governments including strengthening the “Asean Trade in Goods Agreement” to boost intra-Asean trade flows from the current levels of under 30%. Another initiative cited by Wee is the “Digital Economic Framework Agreement” to unlock the region’s digital economy potential, which is tipped to reach US$2 trillion by 2030.
Finally, Wee expects trade between China and Asean as well as within the region to continue growing. At present, China-Asean and intra-Asean trade have exceeded US$1.5 trillion.
Highlighting the bank’s efforts to help businesses navigate the Asean region, Wee notes that the bank has “doubled down” on efforts to bring in new FDIs in the past five years. “The companies we have supported have pledged to invest over $50 billion, which will translate into creating almost 300,000 job opportunities in the various markets.”
For instance, as an early mover in the Johor-Singapore special economic zone (JS-SEZ), UOB has facilitated companies to invest $3.3 billion since 2024, Wee concludes.
