KUALA LUMPUR, Jan 29 (Bernama) — The United Nations Commission on Trade and Development (UNCTAD) has released earlier this week its latest Global Investment Trend Monitor report. It estimated that Global Foreign Direct Investment (FDI) flow fell by 42 per cent to an estimated USD859 billion in 2020 compared to USD1.5 trillion recorded in 2019. Almost all regions reported lower FDI in 2020, mainly due to the impact of lockdowns and a drastic decrease in the economic activities during the COVID-19 pandemic.
FDI flows to developing economies decreased by 12 per cent. The decline was reflected across all types of investments: greenfield projects (- 4 per cent), cross-border projects finance deals (-7 per cent) and cross-border M&A (- 4 per cent). FDI into South East Asia contracted by 31 per cent due to a decline in investments to the largest recipients in the sub region; inflows in Singapore fell by 37 per cent, Indonesia by 24 per cent, Vietnam by 10 per cent, Thailand by 50 per cent and Malaysia by 68 per cent.