APAC Secures 10 Spots in 2026 Kearney FDI Index

LONDON, U.K. — The Asia Pacific region accounts for 10 of the top 25 markets in Kearney's 2026 Foreign Direct Investment Confidence Index, the region's highest representation in more than a decade.

According to the report released by Kearney’s Global Business Policy Council, Japan advanced to third place globally, while China, including Hong Kong, rose to fourth.

Singapore moved from 15th to 8th place over the previous year. South Korea ranked 11th, and India placed 22nd.

Thailand and Malaysia re-entered the top 25 index at 20th and 21st, respectively, after absences of 3 and 12 years, respectively.

On Kearney’s separate Emerging Markets Index, China retained the top position for the third consecutive year, while Thailand ranked sixth, Malaysia seventh, and Vietnam 16th.

A January 2026 survey of 507 senior corporate executives found that technological and innovation capabilities are the primary factors driving global investment decisions, surpassing regulatory efficiency.

Investors cited technological innovation as the primary driver of capital allocation in Japan, China, Singapore, South Korea, and Taiwan.

In Singapore, 34 percent of investors identified technological innovation as the main reason for investment.

Another 30 percent cited economic performance, supported by expansions in biomedical manufacturing and the artificial intelligence-driven semiconductor sector.

Shigeru Sekinada, Kearney’s APAC Region Chair, stated that investors are recalibrating their decisions based on technological capability, economic growth potential, and geopolitical relevance amid a volatile operating environment.

The report also noted that 84 percent of total respondents identified industrial policy as highly important in determining investment locations.

Among APAC-based investors, 88 percent favored infrastructure-focused industrial policies and 80 percent supported government subsidies.

The survey includes responses from C-level executives at corporations with annual revenues of at least $500 million.