MALAYSIA has re-entered the top 25 of the Foreign Direct Investment Confidence Index (FDICI) 2026 published by Kearney’s Global Business Policy Council, marking its first return to the ranking in 12 years.
The annual survey, which measures executive sentiment on the most attractive markets for foreign direct investment over the next three years, placed Malaysia at 21st position, while neighbouring Thailand ranked 20th, also re-entering the top tier after its absence since 2023.
The inclusion of both countries underscores the strengthening performance of the Asia-Pacific region in global investment flows.
The survey, conducted in January 2026 among more than 500 senior executives from leading global companies, found that despite rising uncertainty, international investment intentions remain robust.
“88 per cent of respondents said they plan to increase foreign direct investment over the next three years,” the report noted, signalling continued confidence in long-term global opportunities.
For the first time in more than a decade, Asia-Pacific accounted for the largest share of economies in the top 25, with 10 entries, reflecting shifting global investment dynamics shaped by geopolitical tensions, evolving industrial policies and accelerating technological competition.
Kearney Asia-Pacific Chairman Shigeru Sekinada said the region is emerging as a key winner as investors recalibrate strategies in an increasingly volatile environment.
“The technological capabilities, economic growth potential and geopolitical relevance offered by leading APAC markets make them preferred FDI destinations among business communities actively pursuing emerging opportunities while navigating growing complexity and risk,” he said in a statement.
The United States and Canada retained the top two positions in the index, while Japan rose to third place and China, including Hong Kong, ranked fourth. Singapore placed eighth, South Korea 11th, and India 22nd.
In emerging markets, China remained the top-ranked economy for the third consecutive year, while Thailand and Malaysia ranked sixth and seventh respectively, among emerging market economies, recording some of the strongest improvements in position.
Vietnam also climbed three places to 16th, reflecting broader momentum across the region.
The report highlighted that global investors remain alert to rising risks even as investment appetite stays strong. Geopolitical tensions were identified as the most likely development over the next year at 36 per cent, followed by rising commodity prices and political instability in developed markets at 30 per cent.
Industrial policy is also playing an increasingly influential role in investment decisions, with 84 per cent of global investors saying it is important or very important in determining investment locations, while 57 per cent believe it positively impacts corporate performance.
Within Asia-Pacific, investors showed strong support for infrastructure development and subsidies as effective policy tools, with 88 per cent viewing infrastructure-focused industrial policy as beneficial and 80 per cent expressing the same view on subsidies. - April 10, 2026
