Page 19 - EU_ASEN Relations: Perspectives From Malaysia

€19 billion annually in the region (2012─2014) (European Commission,

2017b). Albeit being one of the major investors in ASEAN countries, the FDI
flows from the European Union declined by 20 per cent, from $25 billion in

2014 to $20 billion in 2015 (UNCTAD & ASEAN, 2016). The share of the top
10 investors from EU in ASEAN rose from 71 per cent in 2014 to 75 per cent

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in 2015. Of the top ten EU investors, Luxembourg was ranked 4 in 2014,
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whilst France and the Netherlands were positioned 9 and 10 , respectively.
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In 2015, the Netherlands ranked at 6 place. The FDI flow from Denmark
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increased, and was positioned in 9 place, whilst Luxembourg and France
dropped out of the rankings. Germany’s investment in ASEAN amounted to
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US$409 million in 2016 and the country was positioned 5 amongst the EU
countries (UNCTAD & ASEAN, 2016).

FDI from different economies dominated in different industries in ASEAN. In

2014, the FDI in extractive industries was dominated by investors from the EU
and ASEAN. Japan, ASEAN, the Republic of Korea, and the European Union,

in that order, accounted for 64 per cent of total FDI inflows into the
manufacturing industry in 2015 (UNCTAD & ASEAN, 2016). In terms of

services, three industries were the primary recipients (i.e. finance, wholesale

and retail trade, and real estate). Australia, the European Union, and Japan were
the largest investors in wholesale and retail trade activities (UNCTAD &

ASEAN 2016). In 2015, three quarters of the European Union’s FDI of
US$19.6 billion in ASEAN was concentrated in the services sector (UNCTAD

& ASEAN, 2016).

In similar vein, foreign MNEs continue to expand their operations in ASEAN.

The European MNEs including BASF, Continental, Infineon, Nestlé, L’Oreal,
and GN ReSound; alongside MNEs from other countries such as the United

States, Japan, and China, increased their operations in ASEAN through

expansion of their investments in ASEAN host countries (UNCTAD &
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