ASEAN shifts investment push toward high-value, innovation-driven industries

ASM, Philippine Canadian Inquirer
September 20, 2026

Photo courtesy: Philippine News Agency

MANILA, Philippines — The Association of Southeast Asian Nations is shifting its investment strategy toward projects that can generate innovation, quality jobs and stronger industrial capacity, as the region seeks to compete for investments tied to emerging industries and the green and digital transitions.

Trade Undersecretary Ceferino Rodolfo said ASEAN economic ministers discussed the direction during the 29th ASEAN Investment Area Council Meeting in Manila, held alongside the 58th ASEAN Economic Ministers’ Meeting. ASEAN confirmed that the meeting covered regional investment integration and initiatives aimed at improving the bloc’s competitiveness in attracting foreign direct investment.

“The meeting highlighted the need to move beyond simply increasing investment volumes toward attracting investments that generate innovation, quality jobs, strengthen industrial capabilities, and contribute to sustainable development,” Rodolfo said.

The discussions included the implementation of the ASEAN Regional Investment Promotion Action Plan 2025–2030, which is designed to promote Southeast Asia collectively as an investment destination and strengthen regional value chains.

Priority areas cited during the meeting included biofuels, medical devices, solar photovoltaic equipment, carbon capture and storage, veterinary healthcare, sustainable building materials and smart-grid development, according to Rodolfo.

ASEAN’s current investment promotion platform identifies carbon capture and storage, biofuels, medical devices, solar photovoltaic equipment, smart-grid development and sustainable building materials among the plan’s target sectors.

The investment push comes as foreign direct investment into Southeast Asia reaches record levels.

ASEAN attracted US$243.9 billion in FDI in 2025, up 9.7% from US$222.3 billion in 2024, according to ASEAN data based on the United Nations Conference on Trade and Development’s World Investment Report 2026. The region accounted for 15% of global FDI inflows that year.

Rodolfo also said investments originating from within ASEAN rose to nearly US$40 billion in 2025, pointing to stronger economic links among member states.

“The message from ASEAN today is clear: ASEAN remains open for business, committed to regional cooperation, and determined to compete successfully in the industries of the future,” Rodolfo said.

“At the same time, ASEAN seeks to ensure that economic progress is inclusive and is sustainable.”

Trade Secretary Cristina Roque, who chairs the ASEAN Economic Ministers’ meetings under the Philippines’ 2026 ASEAN chairmanship, urged member states to take advantage of changing global investment patterns as companies reassess where they place capital.

Roque said the changing investment environment presents both pressure and opportunity for Southeast Asia, citing the region’s young and technology-oriented population, market openness and growth potential. She said the Philippines, as ASEAN chair, would work to strengthen the bloc’s position as a leading investment destination.

ASEAN ministers also engaged with the United Nations Conference on Trade and Development, the UN Economic and Social Commission for Asia and the Pacific, and the Organisation for Economic Co-operation and Development on initiatives aimed at strengthening ASEAN’s ability to attract foreign investment.