ASEAN, Hong Kong sign investment protocol to boost US$16.5bn FDI flows
ASEAN and Hong Kong signed a protocol amending their investment agreement on Sunday to enhance two-way investment flows, with Hong Kong’s foreign direct investment into ASEAN reaching a record US$16.5 billion in 2025—up…
Source: The Star · September 20, 2026 at 8:20 PM · AI-assisted report
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MANILA, 20 SEPTEMBER 2026 —
ASEAN and Hong Kong signed a protocol amending their investment agreement on Sunday to enhance two-way investment flows, with Hong Kong’s foreign direct investment into ASEAN reaching a record US$16.5 billion in 2025—up 18% from US$14.0 billion in 2024, according to preliminary ASEAN statistics.
Market Impact
The First Protocol to Amend the ASEAN-Hong Kong, China Investment Agreement (AHKIA) was finalised during the 10th ASEAN Economic Ministers-Hong Kong, China Consultation in Manila, co-chaired by Philippine Trade Secretary Maria Cristina Roque and Hong Kong Undersecretary for Commerce and Economic Development Bernard Chan. The amendment aims to improve investment predictability and stability, officials said, while urging parties to resolve outstanding issues under the AHKIA Work Programme to further strengthen investor confidence.
The protocol follows a broader push to deepen economic ties amid geopolitical risks. ASEAN’s two-way merchandise trade with Hong Kong hit US$154.5 billion in 2025, positioning Hong Kong as ASEAN’s seventh-largest trading partner and fourth-largest source of FDI. Meanwhile, ASEAN’s total FDI stock in Hong Kong stood at US$57.8 billion by the end of 2024, reinforcing the bloc’s role as Hong Kong’s second-largest merchandise trading partner.
The amendment also seeks to accelerate the implementation of the First Protocol to Amend the ASEAN-Hong Kong, China Free Trade Agreement (AHKFTA), with officials urging remaining parties to expedite written notifications to unlock additional trade benefits. Supply chain resilience and energy market volatility emerged as key concerns, with officials highlighting disruptions in oil and gas supply chains that have increased costs for businesses, particularly micro, small, and medium-sized enterprises (MSMEs).
Hong Kong’s interest in joining the Regional Comprehensive Economic Partnership (RCEP) was also discussed, with ASEAN encouraging the RCEP Joint Committee to advance its accession process. Cooperation on digital trade infrastructure was another focus, with discussions on integrating ASEAN’s Single Window with Hong Kong’s Trade Single Window, including a pilot project for exchanging electronic Certificates of Origin.
For Malaysian businesses, the protocol reinforces ASEAN’s position as a key destination for Hong Kong capital, particularly in sectors like manufacturing, services, and infrastructure—areas where Malaysian firms could benefit from deeper integration. The amendment’s implementation, if expedited, may also ease trade friction and reduce compliance costs for Malaysian exporters trading with Hong Kong.
Related: Manila