Rajah & Tann Singapore LLP

Climate Impact & Sustainability Data (2023, 2024)

Regional FDI inflows may continue to see slowdown in 2024 given underinvestment in some countries.
Declining FDI trend could affect investment momentum to the region.
Inflation risks and current high interest rates could lead to higher costs of finance, slowing down investment and international project finance activities.
Financial uncertainties, fear of recession and concern about the profitability and financial health of firms could hold back FDI, including in cross-border M&A transactions.
Implementation of international tax reforms (global minimum tax) has significant implications for investment policies, FDI promotion and development of Special Economic Zones (SEZs).

RCEP agreement can strengthen the region’s attractiveness for FDI.
FDI drive related to restructuring international supply chains will continue, with ASEAN expected to remain a major destination.
Robust investment interests will continue in key industries such as manufacturing, energy transition sectors, the digital economy, and digital infrastructure.
Commitment to energy transition and untapped renewable energy potential will attract FDI in renewable energy generation, transmission, distribution, technology solutions, and manufacturing of renewable equipment.

Climate Change Data