Transcript Document

MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
Investment Patterns in ASEAN
MIGA FDI Study Findings
and Lessons Learned
Presented by
Bill Luttrell - MIGA
MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
1400
Total Global FDI
1200
Foreign
Direct
Investment
1000
800
Total M&A
600
400
Total Developing Countries
200
Total Asia
(less Aus,NZ,Japan)
2001 World Investment Report - UNCTAD
2001
2000
1999
1998
1997
1996
0
1995
Total ASEAN
MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
MIGA – Deloitte & Touche FDI Survey
• Key business objectives behind FDI decision
• Most attractive destinations for FDI
• Key factors and considerations that influence strategy
MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
Most Important Objectives When
Investing Outside of Home Country
Develop
new product
lines
4%
Source Raw
Materials
6%
Other
factors
8%
Develop
new
technologies
2%
Reduce
operating cost
17%
Reduce risk 1%
4%
Consolidate
operations
2%
Improved
productivity
1%
Improved
labor force
access
55%
Improved
market access
MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
Top FDI Destinations
0%
10%
20%
30%
40%
Poland
Italy
Singapore
Czech Republic
Chile
Thailand
India
Japan
Hungary
Malaysia
60%
70%
66%
United States
China
Brazil
United Kingdom
Mexico
Germany
Canada
France
Australia
Spain
50%
40%
39 %
39 %
35%
35%
33%
32%
27%
27%
26%
24%
23%
23%
22%
21%
21%
20%
19%
19%
Argentina
19 %
Russia
19 %
MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
Most Influential Site Selection Factors
• Access to customers (77%)
• Stable social and political environment (64%)
• Ease of doing business (54%)
MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
Investment Plans
• Postpone Project (47%)
• Downsize Project (30%)
• Go ahead with Project (20%)
• Cancel Project (6%)
MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
Lessons Learned …
10 suggestions for Sustainable Investment
1. Improve domestic demand
2. Strengthen AFTA / AIA / ASEAN-China Free Trade Area
3. Remove protectionist barriers
4. Provide better and standardized investment information
5. Pro-active marketing
6. Improve political and social environment
7. Improve transparency and reduce corruption
8. Improve education to match investor’s skill needs
9. Improve infrastructure and development of industrial clusters
10. Leverage domestic businesses through linkages to FDI
MULTILATERAL INVESTMENT GUARANTEE AGENCY
A Member of the World Bank Group
Q&A
MIGA / D&T FDI Survey:
www.ipanet.net\fdisurvey