Pacific

Countries:
Australia | Fiji | Kiribati | Nauru | New Zealand | Papua New Guinea | Samoa | Solomon Islands | Tonga | Tuvalu | Vanuatu

Commonwealth economies in Asia and Pacific

 

By the end of 2010, inward FDI stock in all Asian member states, namely Bangladesh, Brunei Darussalam, India, Maldives, Malaysia, Pakistan, Singapore and Sri Lanka, stood at US$813 billion, accounting for almost one-fourth of the Commonwealth total. The largest three FDI recipients were Singapore (with FDI stock of US$470 billion), India (US$198 billion) and Malaysia (US$101 billion). By contrast, inward FDI stock in the nine Pacific member states was merely US$5 billion, with Fiji and Papua New Guinea being the major recipients.

Inflows into Asian Commonwealth countries surged from 2003, reaching a peak of US$78 billion in 2007.  FDI increases during 2004-2007 were particularly significant in India and Pakistan, which registered an average annual growth rate of 64 per cent and 83 per cent respectively, as well as in Malaysia and Singapore, which each saw an average growth rate of 41 per cent. In India, for instance, the FDI surge in the mid-2000s was driven by robust economic growth, an improved investment climate and a further opening up of service industries such as telecommunications, real estate and retail. In Pakistan, inflows rose mainly as a result of privatisation in the services and extractive industries.

FDI inflows to these countries declined in 2008-2009, but recovered to US$76 billion in 2010. However, the largest recipient countries differ in trends: while inflows to Malaysia and Singapore boomed in 2010, those to India dropped by 31 per cent. The setback in the latter was partly due to macroeconomic concerns, as well as to delays in the approval of large FDI projects.