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Strong growth, improving financial systems, and steady capital inflows are positioning Southeast Asia as a key destination for global investors, with several economies climbing the latest rankings.
Economies across Southeast Asia are drawing renewed investor interest, as the latest 2026 Global Opportunity Index (GOI) highlights a region navigating global headwinds with measured growth and increasing resilience.
Published by the Milken Institute, the annual index assesses the investment attractiveness of emerging and developing markets using 101 variables across five key categories:
- Business perception
- Economic fundamentals
- Financial services
- Institutional framework
- International standards & policy
Southeast Asia captures growing share of global capital
According to the report, six growth markets in Southeast Asia collectively attracted 8.2% of total capital inflows to emerging and developing economies between 2021 and 2024. Foreign direct investment (FDI) accounted for more than 70% of these inflows, highlighting the region’s increasing importance as a destination for global capital.
Malaysia leads the region, Vietnam follows closely
Among Southeast Asian economies, Malaysia emerged as the top performer, ranking 23rd globally. Its position is supported by strong institutions and robust economic fundamentals, alongside high scores in financial services (17th) and business perception (18th).
Vietnam ranked second in the region and 39th globally, driven by strong economic expansion and financial sector development. The country placed second in economic performance and 14th in financial size and conditions, with real GDP growth reaching 7.1% in 2024, the fastest among its regional peers.
Indonesia and the Philippines show mixed progress
Indonesia, the region’s largest economy, recorded one of the most notable improvements in the index. Its financial services ranking climbed significantly from 78th in 2022 to 38th, supported by expanded financial access, where it now ranks 28th globally.
The Philippines, meanwhile, continues to show strong growth prospects, with projected GDP growth of 5.7% in 2026. It ranks 6th globally in economic performance. However, its overall investment attractiveness is tempered by lower rankings in business perception (56th) and institutional framework (59th), pointing to ongoing governance and regulatory challenges.
Singapore remains a top global benchmark
While not classified in the group due to its status as a developed economy, Singapore continues to stand out globally, ranking 7th overall in the 2026 index. The city-state performs strongly in financial services, placing 3rd in financial size and conditions and 11th in financial access.
It also ranks 4th in both business perception and international standards & policy, reinforcing its position as a benchmark for investment attractiveness in the region.
Gaps remain across the region
Not all Southeast Asian economies are advancing at the same pace. Cambodia and Laos continue to lag behind, with persistent institutional weaknesses limiting their investment environments.
These disparities highlight the uneven development across the region, even as overall interest from global investors grows.
A closer look at how investment attractiveness is measured
The GOI evaluates countries using a broad set of indicators spanning economic performance, financial sector depth, governance standards, and workforce-related factors such as talent and diversity.
Data is drawn from international sources including the World Bank, the International Monetary Fund, the United Nations, and Transparency International. The 2026 edition also introduces updated indicators, including data from the World Bank’s Business Ready project, and expands its coverage of the digital economy to better reflect technology adoption and infrastructure quality.
A region to watch
Matthew Aleshire, Director of Geo-Economics, Milken Institute and one of the authors of the report said Southeast Asia’s growth story remains compelling, although investors are becoming more selective. He noted that global capital is continuing to shift towards high-growth emerging markets, with the region benefiting from this trend, adding that countries able to maintain macroeconomic stability while strengthening financial systems and governance frameworks will be better positioned to attract long-term investment.
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Lead image / Tengku Zafrul Facebook
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