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<\/a>![\"Malaysia](\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/04\/b1f7f9fe43e5a041a0645a3ba78f4fb96c54407d90fef6e3d3c4a00e40ed3a85.webp\")
<\/a><\/p>\nThe Milken Institute said that Malaysia\u2019s investment landscape is \u201crelatively balanced, anchored by strong institutions and robust economic fundamentals\u201d. <\/p>\n
It further noted that Malaysia came in 17th globally for financial services and 18th for business perception, also placing it first among the six markets.<\/p>\n
Indonesia stood out for \u201cnotable improvements\u201d in its financial sector. It ranked 38th globally in financial services, rising from 78th in 2022. The Milken Institute also noted that Indonesia is among the world\u2019s top 20 economies by gross domestic product, coming in 17th.<\/p>\n
The Philippines, meanwhile, \u201ccombines strong growth prospects with more uneven investment conditions\u201d, the Milken Institute said. <\/p>\n
\u201cWith projected real GDP growth of 5.7 per cent in 2026, the country ranks sixth in economic performance and 32nd in economic fundamentals,\u201d it noted.<\/p>\n
\u201cHowever, its weaker scores in business perception and institutional framework \u2013 56th and 59th, respectively \u2013 highlight governance and regulatory challenges that may constrain longer-term investment.\u201d <\/p>\n
Among the six markets, Cambodia and Laos lagged their regional counterparts, the Milken Institute found.<\/p>\n
\u201cStructural and institutional constraints continue to weigh on their investment environments, with both countries struggling with institutional frameworks… and aspects of their economic fundamentals related to long-term growth prospects,\u201d it said. <\/p>\n
Laos ranked 79th globally in institutional frameworks; Cambodia came in 73rd. <\/p>\n
The institute noted that in Cambodia, capital inflows had been growing \u201csteadily until 2021, driven mainly by a strong expansion in bank-related and other inflows, and a modest gain in FDI\u201d. <\/p>\n
\u201cSince then, bank-realted and other inflows have declined sharply, turning negative in 2024,\u201d it said, adding that FDI \u201cremained relatively stable, while portfolio inflows were negligible\u201d.<\/p>\n
Laos had the biggest share of FDI inflows \u201cfrom 2017 to 2018, and again in 2023 and 2024\u201d. However, bank-related and other inflows turned negative from 2021 to 2023, after accounting for the largest share of total capital in 2019 and 2020. <\/p>\n
The country\u2019s portfolio inflows stayed \u201cminimal\u201d throughout, the institute said.<\/p>\n
Dip in China FDI <\/p>\n
The Milken Institute pointed out that growth markets in South-east Asia \u201crepresent a subset of developing economies, which captured less than 20 per cent of the world\u2019s capital investment from 2021 to 2024\u201d.<\/p>\n
Still, it noted that inflows to China \u201ccontracted sharply\u201d, falling 64.1 per cent or US$295.2 billion between the two four-year periods. <\/p>\n
The country\u2019s share of capital inflows \u201cdeclined by nearly 20 percentage points\u201d to 14.7 per cent of the developing economies\u2019 aggregate in 2021 to 2024.<\/p>\n
\u201cFDI had the smallest decline, down US$5.9 billion, compared with declines of US$14.1 billion in portfolio and US$9.7 billion in bank-related and other inflows,\u201d the Milken Institute noted.<\/p>\n
Such declines in capital inflows to China had a relatively significant effect in reshaping the global distribution of capital flows, it added.<\/p>\n
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.<\/p>\n","protected":false},"excerpt":{"rendered":"FDI makes up 72.5% of inflows to Cambodia, Malaysia, Laos, Indonesia, the Philippines and Vietnam [SINGAPORE] Six growth…\n","protected":false},"author":2,"featured_media":382686,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,46],"class_list":["post-382685","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/382685","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=382685"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/382685\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/382686"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=382685"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=382685"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=382685"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}