Singapore accounts for nearly 70 percent of total foreign direct investment (FDI) inflows to ASEAN, attracting investments from the United States, United Kingdom, European Union, Japan and China. Their position as the key gateway of FDI to the region shows the city-state has amplified their win-win situations with ASEAN countries.

Despite global headwinds and uncertainties, Singapore’s role as a regional hub remains indispensable. Its central role in driving regional capital flows is underscored by its contribution to intra-ASEAN investment, which stood at 63 percent.

Through various mechanisms, Singapore has placed ASEAN at the center of its foreign policy agenda, prioritizing regional initiatives such as the Digital Economy Framework Agreement (DEFA) while also making progress on the ASEAN Power Grid (APG) and other connectivity-driven initiatives. Its sustained focus on ASEAN affairs appears to be grounded in both strategic interest and long-term regional stability.

What about Indonesia? As the largest economy in Southeast Asia and de-facto leader of ASEAN, do we stand to benefit from a more prosperous ASEAN?

From a pragmatic standpoint, I believe there is no one-line answer, instead, we must take a more nuanced view by looking into several indicators.

First, on regional trade: While countries such as China (US$62 billion), the United States ($26.3 billion), and Japan ($20.7 billion) have traditionally been among the top importers of Indonesian goods, in recent years, ASEAN countries, particularly Singapore ($12.2 billion), Malaysia ($12 billion), the Philippines ($10.7 billion), Vietnam ($9.4 billion) and Thailand ($7.7 billion) have emerged as major export markets.