Asia realises the importance of economic integration in maintaining its leading role in the world economy. Although the region as a whole has suffered a downturn in FDI flows in the past two years, it remains the largest developing region in terms of population, GDP and FDI. Asia has a 59% share of all FDI flows into developing countries and has only suffered an 11% decline in inward investment in the economic downturn.

China, alone, attracted $53bn of FDI flows in 2002, while several of the Association of South East Asian Nations (ASEAN) countries, such as Singapore, Thailand and Malaysia, remain competitive recipients for investment, the latter defying the downturn to achieve a rise in investment during the past year. Other strong economies, such as India, South Korea, Japan and Australia, are prominent sources and recipients of FDI in the region.

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