Asia attracts over US$100 billion in investment as funds shift from US
Asia, excluding China, has attracted more than US$100 billion in investment inflows over the past nine months, as global investors seek to diversify away from the United States, according to Reuters.
Kevin Sneader, chairman of Goldman Sachs Asia Pacific ex-Japan, told the Milken Institute Asia Summit 2025 in Singapore that capital inflows into the region had been rising steadily.
Sneader emphasised that the trend should be viewed in the context of diversification rather than divestment.
Warning on unstable China inflows
Industries attracting strong investor interest across Asia include technology, luxury goods and manufacturing, with healthcare seeing growing demand in private markets.
Japan has emerged as one of the main beneficiaries of this trend. At the same time, foreign funds have begun to re-examine Chinese markets, following a steady rebound in Chinese equities since late last year, largely driven by domestic investors and the technology boom.
However, Goldman Sachs cautioned against overreacting to this tentative return of capital into China. Much of the recent inflow is from fast-moving hedge funds seeking short-term gains, creating volatility.
Current allocations are estimated at only 60–65%, suggesting that investors are merely “testing” or “speculating” rather than making full-scale, long-term commitments.
‘Old globalisation’ has ended
Dilhan Pillay, chief executive officer of Temasek International, declared that “the globalisation we once knew is gone”. He cited geopolitical tensions, tariffs and energy constraints as factors that have fundamentally reshaped how profits are generated from investment.
The Temasek chief explained that businesses must restructure their supply chains, prioritising resilience over efficiency — a shift that comes at a cost. These higher costs, he warned, will remain as long as the world faces the risks of relying on single production hubs.
Pillay also underlined the growing role of artificial intelligence (AI), describing it as the most pervasive force now influencing politics, society and the global economy.
