ASEAN as a Safe Haven for Foreign Investors: Opportunities and Challenges Amid Global Geopolitical Tensions
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Abstract
In an era marked by escalating geopolitical tensions and global economic uncertainty, the Association of Southeast Asian Nations (ASEAN) has increasingly emerged as a potential “Investment Safe Haven” for foreign investors. This article examines ASEAN’s strategic positioning as a secure and attractive destination for foreign direct investment (FDI) by analyzing its political stability, legal and regulatory clarity, and commitment to open, predictable economic policies. ASEAN’s relative neutrality in global power rivalries, combined with proactive economic frameworks such as the ASEAN Economic Community (AEC) and the Regional Comprehensive Economic Partnership (RCEP), enhances its appeal to multinational corporations seeking to mitigate risks from global disruptions. Key mechanisms—such as Special Economic Zones (SEZs), One-Stop Service centers, and the ASEAN Comprehensive Investment Agreement (ACIA)—further contribute to investor confidence through streamlined processes and policy predictability. However, the region faces structural challenges, including regulatory divergence among member states, unresolved regional security issues like the South China Sea dispute, and pressures stemming from U.S.–China strategic competition. Despite these challenges, ASEAN has responded through strategic diplomacy, regional economic integration, infrastructure modernization, and soft power branding. This article concludes that ASEAN’s sustained role as an investment safe haven will depend on its ability to harmonize legal standards, manage geopolitical risks, and institutionalize investor-friendly reforms—thus reinforcing its global reputation as a stable and resilient investment hub.
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