GOVERNMENT REGULATORY POLICIES AND THEIR IMPACT ON FOREIGN DIRECT INVESTMENT IN SOUTHEAST ASIA

Abstract

This paper examines the role of government regulation and targeted incentives in attracting foreign direct investment (FDI) in Southeast Asian countries. ASEAN’s experience shows that streamlined regulatory procedures, sector-specific tax incentives, and coordinated policies significantly enhance FDI inflows. The study highlights the effectiveness of incentives for sustainable sectors such as renewable energy, as well as the importance of improving institutional capacity and policy coordination to create a favorable investment climate. Lessons from ASEAN can guide other countries aiming to boost FDI.