Foreign Direct Investment (FDI) has always been a barometer of global economic integration, but its dynamics have shifted under the weight of geopolitical rivalry, technological decoupling and supply chain diversification. Despite global direct investment flows declining to about $1.3 trillion in 2022, the Association of Southeast Asian Nations (ASEAN) has stood out as a rare bright spot, attracting a record $225 billion in 2024 and raising its share of global FDI to about 17%. For UOB, this presented both an opportunity and a responsibility. UOB launched its FDI Advisory Unit in 2011 to help corporates set up and expand operations in Asia. Over the years it has grown into a regional platform, working with government agencies, corporates and ecosystem partners to facilitate thousands of investments. Jimmy Koh, Managing Director and Head of Network Partnerships and Strategic Marketing at UOB FDI Advisory, reflected on how the unit has evolved into a strategic bridge — connecting corporates not just to markets, but to ecosystems. Koh explained that the flows UOB facilitates are not abstract capital movements but pipelines of projects with direct impact on industries, jobs and communities. “ASEAN has become a magnet of global investment,” he said. “The question is no longer whether capital will come, but how it can be channelled into projects that deliver both economic and social value.” Koh outlined UOB’s approach to FDI flows in ASEAN, the example of the Johor–Singapore Special Economic Zone (JS-SEZ), and the frameworks for benchmarking hubs through best practices rather than rankings. He also reflected on the role of banks in enabling long-term investment and why consistency mattered more than opportunism. ASEAN as the new frontier of investment Global FDI flows have been volatile in the past decade, but ASEAN has proven resilient. According to the ASEAN Secretariat, the region attracted $224 billion in 2022, the highest on record. Singapore received the largest share, while Vietnam, Indonesia, Malaysia and Thailand all drew significant inflows. Koh attributed this to supply chain diversification. “Corporates are moving from globalisation to regionalisation,” he said. “They want resilience and ASEAN offers complementary strengths that fit into ‘China + n strategies’.” He noted that Vietnam has become central to electronics manufacturing, Penang in Malaysia has developed as a semiconductor hub, Thailand’s Eastern Economic Corridor is attracting electric vehicle projects, and Indonesia is drawing investment into green energy and infrastructure. ASEAN’s diversity is part of its appeal. Each market offers a different proposition, and corporates could distribute their operations across the region to balance risk. Singapore functions as a headquarters hub, Vietnam as a manufacturing base, Malaysia as a high-technology cluster, and Indonesia as a resource-rich frontier. Koh said this multi-hub model allows corporates to capture efficiency while reducing exposure to single-market risks. Singapore’s role as gateway remains critical. Koh explained that much of the inflow into the city-state will be ultimately redeployed into neighbouring markets. “When you look at the figures, Singapore receives huge inflows, but these are not all staying in Singapore,” he said. “They are being channelled into ASEAN. Our job is to help corporates land in Singapore, then spring board them into the wider region.” He emphasised that this is not simply about capital but about projects. UOB’s FDI Advisory Unit works with corporates with their Asean investments, match them with local partners, localising their supply chains and secure government support. Since 2011, the unit has supported more than 5,000 companies in their regional expansion efforts — investments estimated to exceed SGD 50 billion ($37 billion) and enabled the creation of over 300,000 jobs across ASEAN since 2020. Koh said this practical facilitation is what differentiates banks that play an enabling role from those that only provide financing. Johor–Singapore Special Economic Zone as a case study The Johor–Singapore Special Economic Zone has become a showcase for state-capital anchored integration. First discussed in 2023, the framework agreement was formally signed on 7 January 2025. Authorities have targeted about 50 projects and 20,000 skilled jobs in the first five years. Johor Bahru, the state capital anchoring the project, is at the centre of this vision. Its proximity to Singapore, combined with land and labour availability, creates a complementary relationship with the island nation. UOB played an active role in the zone’s early development. On 19 February 2025, it announced a “Green Lane” with Invest Johor that gave corporates introduced by the bank priority facilitation. Koh said this arrangement reduces friction for investors and ensures projects align with government priorities. Since 2024, UOB has also committed MYR 11.5 billion (about $2.5 billion) in financing to support businesses in Johor and is facilitating a further MYR 10 billion (about $2.2 billion) in FDI flows into the SEZ. Among the first projects facilitated was Gold Peak Technology Group’s planned MYR 670 million (about $150 million) investment to establish an advanced manufacturing and research and development facility in the JS-SEZ, producing next-generation battery technologies for datacentre and energy-storage applications. The project is expected to create up to 180 skilled jobs and strengthen Johor’s sustainable-industry ecosystem. Koh stressed that patience would be essential. The example of Suzhou Industrial Park in China shows that such projects could take a decade or more to mature. “We should not expect overnight success,” he said. “What matters is consistency, policy continuity and sustained infrastructure.” The JS-SEZ also has symbolic value. It demonstrates how cross-border cooperation that could reshape economic geography. Koh said that if successful, it could become a benchmark for other regions seeking to deepen integration beyond borders. Beyond borders and into ecosystems Special economic zones and industrial corridors attract headlines, but Koh argued that ecosystems are what ultimately determine success. “FDI is not just about land or tax incentives,” he said. “It is about whether corporates can find suppliers, service providers and talent to sustain operations.” UOB FDI Advisory is built around this philosophy. Koh explained that the unit connects corporates to a wide range of ecosystem partners — from legal and accounting firms to recruitment agencies and logistics providers. This, he said, reduces entry risks and accelerates timelines. “Banking is commoditised,” he added. “Our value is in connecting corporates beyond banking to what they really need to succeed.” The bank’s physical network underpins this model. UOB maintains an extensive branch and office network across ASEAN, with a global network of more than 470 branches and offices in 19 markets in Asia Pacific, Europe and North America. Its acquisition of Citigroup’s consumer banking businesses in Malaysia and Thailand in November 2022, Vietnam in March 2023 and Indonesia in November 2023 further expanded its footprint. Koh emphasised that corporates value consistency. “Clients know we will not just help them set up,” he said. “We will still be there as they grow, diversify and face challenges. That makes a big difference.” Evaluating hubs and benchmarking best practices When asked how corporates should assess ASEAN’s diverse hubs, Koh warned against simplistic league tables. “We do not believe in rankings that try to say one hub is number one,” he said. “Each hub has its own DNA — sectoral strengths, infrastructure, government intent. You have to look at what is relevant to a corporate’s needs.” He explained that UOB instead uses signposts: scale of FDI commitments, maturity of industrial parks, quality of infrastructure, skill levels of labour and evidence of governments delivering on their plans. These indicators, he said, provide a clearer picture for corporates evaluating new markets. Benchmarking is still important, but the goal is to identify best practices. Koh pointed to the Vietnam-Singapore Industrial Parks as an example of how cross-border partnerships could deliver industrial development at scale. Thailand’s Eastern Economic Corridor, he added, shows how sustained incentives and infrastructure investment could nurture clusters. He emphasised that corporates ultimately care about practical fit. A manufacturing firm seeking skilled labour might prioritise one hub, while a logistics firm might focus on connectivity. What matters is relevance, not absolute ranking. Social impact as the true ROI Koh repeatedly returned to the human dimension of FDI. “The flows we facilitate ultimately translate into jobs, livelihoods and well-being for their families,” he said. Since 2020, UOB estimates that its work had supported the creation of more than 300,000 jobs. The Advisory also emphasised capacity building. UOB works with corporates to create training programmes, local hiring policies and knowledge transfer mechanisms. This, Koh said, ensures that investments build long-term competitiveness, particularly in markets like Vietnam that are seeking to move up the value chain. He added that social impact could not be separated from economic outcomes. “A project that creates jobs, builds skills and uplifts communities is a successful FDI project,” he said. “That is the measure we should use.” Expanding networks across ASEAN On 27 March 2025 UOB opened its 11th FDI Advisory Centre in Seoul to support South Korean corporates investing into ASEAN. Koh said this reflects the growing flows of Korean firms into Vietnam, Indonesia and Thailand, particularly in electronics and automotive. “By being in Seoul, we can serve them directly,” he explained. Koh argued that this illustrates a global trend of decentralisation. National strategies set the tone, but execution happen at the local level, shifting from countries to economic corridors. He is clear that banks are not passive intermediaries. “We are convenors and connectors,” he said. “Our role is to link corporates, governments and partners so that projects can move faster and with more certainty .” UOB’s long-standing presence across ASEAN gives it credibility. With deep networks, local staff and consistent strategy, Koh believes corporates view it as a stable partner with a long term view. The acquisition of Citigroup’s consumer banking businesses across Malaysia, Thailand, Vietnam and Indonesia further expanded its reach and customer base across both the wholesale and retail sectors. Koh emphasised that consistency matters as much as scale. “Success in FDI comes from being the right institution doing the right things consistently,” he said. “That is how we build trust with clients.” He concluded that UOB’s role in FDI makes it a proxy for ASEAN’s economic connectivity. “Our flows mirror the region’s long-term currents,” he said. “That makes us not only a participant but also a barometer.” ASEAN at a crossroads The world is at an inflection point given the last 80 years of economic order, and ASEAN stands at a critical juncture, Koh said. The region faces competing pressures — geopolitical rivalry, supply chain diversification and sustainability imperatives. How it manages FDI flows would determine whether it consolidates its role as a resilient hub or fragments under strain. He argued that success would depend on channelling investment into economic corridors, building ecosystems and adopting best practices. “It is not just about capital moving across borders,” he said. “It is about building ecosystems that last.” UOB’s FDI Advisory, Koh added, is seeking to play its part by connecting corporates with governments and partners. “We want to enable investment that delivers both commercial and social value,” he said. He concluded on a note of consistency. “There is no such thing as being at the right place at the right time by luck. This is our place, we just wait for our time,” he said. “It comes from being present, consistent and keep creating new value.”
