PRESS RELEASE

ASEAN RELEASES TWO INVESTMENT PUBLICATIONS

The Association of Southeast Asian Nations (ASEAN) Secretariat today (Friday) released two investment publications which economists could use in encouraging investment inflows into the region.

First of title series released this year, these publications are entitled "ASEAN Investment Report (AIR) 1999: Trends and Developments in Foreign Direct Investment," and "Statistics of Foreign Direct Investment (FDI) in ASEAN -1999 Edition."

The publications were presented during the Joint Ministerial Summit Meeting held at the Philippine International Convention Center (PICC) in Manila.

The purpose of the two publications is to promote better understanding on the progress of foreign direct investment flows into and within ASEAN, a statement from the Secretariat said.

As explained, the ASEAN Investment Report 1999 and the FDI statistical series are companion publications. which should be read together.

The aim of the first publication is to present an analytical and balanced assessment of FDI flows in the region, which could be useful as a reference material on the annual surveillance report on FDI flows that is vital in supporting the ASEAN Investment Area (AIA) process.

The Secretariat said that by closely monitoring FDI flows and development in the region, "the effectiveness of investment policies can be constructively assessed in the light of the objectives of AIA, which is to substantially increase the levels of FDI flows into and within ASEAN."

Intended to address specific investment issues each year, the publications are aimed to portray ASEAN's position in attracting FDI and the investment relationships between ASEAN and major FDI exporting countries as well as among the ASEAN countries.

The AIR also assesses the full impact of the 1997 financial crisis on the ASEAN's ability to attract FDI and the prospects of FDI flows into the region in 2000.

The report concluded that while the financial crisis hurt the regional economics in mid 1997 which affected the FDI flows into the region, the level of inward FDI in 1998 and 1999 was perceived to be healthy compared to the annual average of 1990-95 pre-crisis period.

Despite the financial crisis, not all ASEAN countries experienced a downturn in FDI flows considering that some ASEAN countries continue to receive increasing amount of FDI, partly due to the liberalization measures taken by these countries, the secretariat said.

They also experienced cheaper cost of investment as a result of the markedly depreciated currencies and the increase in investment opportunities in the financial sector.

It is, however, seen that with the improved global picture and the economic situation in the region, major Asian FDI exporting countries have strong prospects for receiving higher levels of FDI flows next year.