1. MULTILATERAL INVESTMENT GUARANTEE AGENCY A Member of the World Bank Group Investment Patterns in ASEAN MIGA FDI Study Findings and Lessons Learned Presented by Bill Luttrell - MIGA

2. MULTILATERAL INVESTMENT GUARANTEE AGENCY A Member of the World Bank Group 0 0 200 400 600 800 1000 1200 1995 1996 1997 1998 1999 2000 Foreign Direct Investment Foreign Direct Investment 1400 2001 Total Global FDI Total M&A Total Developing Countries Total Asia (less Aus,NZ,Japan) Total ASEAN 2001 World Investment Report - UNCTAD

3. MULTILATERAL INVESTMENT GUARANTEE AGENCY A Member of the World Bank Group MIGA – Deloitte & Touche FDI Survey Key business objectives behind FDI decision Most attractive destinations for FDI Key factors and considerations that influence strategy

4. MULTILATERAL INVESTMENT GUARANTEE AGENCY A Member of the World Bank Group Most Important Objectives When Investing Outside of Home Country Develop new technologies 2% Consolidate operations 4% Improved productivity 2% 4% Source Raw Materials 6% Reduce risk1% Improved labor force access 1% 8% Reduce operating cost 17% Improved market access 55% Develop new product lines Other factors

5. MULTILATERAL INVESTMENT GUARANTEE AGENCY A Member of the World Bank Group 35% 33% 32% 27% 26% 24% 23% 22% 21% 20% 19% 66% 0%10%20%30%40%50%60%70% 35% 19 % 40% 39 % United Kingdom Germany Czech Republic Brazil China Russia United States Mexico Canada France Australia Spain Poland Italy Singapore Chile Thailand India Japan Hungary Malaysia Argentina Top FDI Destinations

6. MULTILATERAL INVESTMENT GUARANTEE AGENCY A Member of the World Bank Group Most Influential Site Selection Factors Access to customers (77%) Stable social and political environment (64%) Ease of doing business (54%)

7. MULTILATERAL INVESTMENT GUARANTEE AGENCY A Member of the World Bank Group Investment Plans Postpone Project (47%) Downsize Project (30%) Go ahead with Project (20%) Cancel Project (6%)

8. MULTILATERAL INVESTMENT GUARANTEE AGENCY A Member of the World Bank Group Lessons Learned … 10 suggestions for Sustainable Investment 1.Improve domestic demand 2.Strengthen AFTA / AIA / ASEAN-China Free Trade Area 3.Remove protectionist barriers 4.Provide better and standardized investment information 5.Pro-active marketing 6.Improve political and social environment 7.Improve transparency and reduce corruption 8.Improve education to match investor’s skill needs 9.Improve infrastructure and development of industrial clusters 10.Leverage domestic businesses through linkages to FDI

9. MULTILATERAL INVESTMENT GUARANTEE AGENCY A Member of the World Bank Group Q & A MIGA / D&T FDI Survey: www.ipanet.net\fdisurvey