Fashion
Asia claims largest share of markets on Kearney FDI Confidence Index
The survey, conducted in January covering more than 500 senior executives from leading corporations worldwide, shows that companies are committed to international investment despite mounting uncertainty.
Eighty-eight per cent of respondents in the Kearney 2026 FDI Confidence Index survey said they plan to raise FDI over the next three years, signalling sustained confidence in long-term global opportunities.
Technological and innovation capabilities rank as the key factor influencing where firms choose to invest.
Asia has the largest share of markets on the index for the first time in more than a decade.
The recent escalation of conflict in the Middle East adds a layer of uncertainty to the global investment environment, with the potential to disrupt, delay or redirect FDI flows depending on how risks evolve, it observed.
Technological and innovation capabilities rank as the most important factor influencing where companies choose to invest, surpassing traditional considerations like regulatory efficiency and domestic economic performance.
Investors cite technological innovation as the strongest or tied strongest reason to invest in 10 of the 25 markets on the index, underscoring the growing importance of innovation ecosystems in attracting global capital, a release from the management consulting firm said citing the study.
The United States maintains its position as the world’s most attractive destination for FDI for the 14th consecutive year. Investors continue to cite the country’s technological leadership and economic resilience as key reasons for investing.
However, despite that, investor sentiment has softened, with net optimism about the US market’s three-year economic outlook falling by 17 points compared with last year.
Canada holds the second position for the fourth year in a row and continues to close the gap with the United States. Investors point to Canada’s natural resource base, stable economic fundamentals and growing technology capabilities as key strengths.
Asia shows particularly strong momentum in this year’s rankings. Japan rises to third place, supported by investor confidence in its innovation ecosystem and targeted investment incentives. China climbs to fourth, reflecting the scale of its domestic market and its continued progress in technology development.
More broadly, Asia claims the largest share of markets on the index for the first time in more than a decade. The shift underscores a growing investor focus on markets that combine technological capability, economic growth potential, and geopolitical relevance.
So-called ‘middle power’ economies are also gaining prominence in this year’s results. Singapore posts one of the most notable improvements in the rankings, while South Korea also climbs in the index, reflecting strong investor interest in its technological innovation and advanced industrial capabilities. These markets are viewed as strategic investment hubs, offering growing roles in global supply chains.
China, the United Arab Emirates (UAE) and Saudi Arabia rank as the top three markets on the emerging markets index for the third consecutive year, while Thailand and Malaysia post some of the largest gains in the rankings amid ongoing supply chain diversification.
Several emerging markets—including China, the UAE, Brazil, Mexico, Thailand, Malaysia and India—also appear on the global rankings, highlighting the growing overlap between global and emerging investment destinations.
Investor sentiment toward emerging markets has improved modestly year on year, with investors expressing the strongest optimism about the economic outlook for markets like the United Arab Emirates and Thailand.
The results suggest that more companies are looking beyond traditional investment hubs as they expand supply chains and pursue growth opportunities across a broader set of emerging markets.
Executives remain alert to rising global risks even as investment intentions are strong. Geopolitical tensions rank as the most likely development over the next year (36 per cent), followed by commodity price increases and political instability in developed markets (30 per cent).
At the same time, industrial policy is playing a central role in shaping investment decisions. According to the survey, 84 per cent of investors say industrial policy is extremely or very important in determining where they invest, and 57 per cent believe it has a positive impact on their company’s business performance.
However, nearly nine in 10 investors report at least moderate business risk from competing national industrial policies, underscoring the complexity created by overlapping policy frameworks.
Investors view infrastructure development and tax incentives as the most effective industrial policy tools, with roughly four-fifths saying infrastructure investment is effective in achieving economic and security goals, while enthusiasm for tariffs and export controls is significantly lower.
Fibre2Fashion News Desk (DS)
The March survey showed business confidence dropped 29 points to -29 index points, marking one of the steepest monthly declines on record, with similar falls previously seen only during the Global Financial Crisis and the onset of COVID-19, NAB said in a press release.
Despite the sharp fall in sentiment, business conditions eased only marginally, slipping by 1 point to 6 index points, indicating that economic activity has yet to fully reflect the impact of the external shock.
Australian business confidence plunged in March, falling 29 points to -29, while business conditions remained relatively stable, according to NAB.
Despite strong capacity utilisation, forward orders and capital expenditure weakened, signalling rising uncertainty.
Cost pressures intensified, with purchase costs doubling.
While some regions saw improved conditions, confidence declined nationwide.
The divergence suggests that while businesses are increasingly cautious about the outlook, operational momentum has remained intact so far. Capacity utilisation edged up to 83.1 per cent, staying well above its long-run average, with most industries continuing to operate at elevated levels.
However, forward-looking indicators signalled emerging weakness. Forward orders fell into negative territory, erasing gains made earlier in 2026, while capital expenditure also declined, reflecting rising uncertainty among businesses.
The impact of the geopolitical situation was more pronounced on costs, with purchase cost growth doubling to 3 per cent on a quarterly basis. Product price growth also increased, while labour cost growth remained steady.
Sector-wise, the decline in conditions was broad-based, with transport and utilities. Regionally, conditions improved in some areas such as Western Australia and South Australia, but confidence fell across all regions, highlighting widespread concern.
NAB noted that while the economy entered this period with solid momentum, the sharp deterioration in confidence underscores growing risks to the outlook as geopolitical tensions continue to weigh on business sentiment and future activity.
Fibre2Fashion News Desk (SG)
The company said the agreement marks a key milestone in its transformation journey, reflecting continued support from capital partners.
Saks Global has secured $500 million in exit financing under a restructuring support agreement as it progresses through Chapter 11, targeting emergence by summer.
The company is advancing its reorganisation plan, strengthening brand partnerships and inventory flows, with over 650 brands resuming shipments.
Improved inventory has boosted customer engagement, while it aims for double-digit EBITDA margins.
“Achieving this important milestone underscores the progress we are making on our transformation and reflects our capital partners’ confidence in our go-forward vision,” said Geoffroy van Raemdonck, CEO at Saks Global.
Saks Global is currently engaging with stakeholders on a formal Plan of Reorganisation, expected to be filed in the coming weeks. The retailer aims to emerge from Chapter 11 by summer with a strengthened financial structure, targeting double-digit adjusted EBITDA margins and long-term sustainable growth, the company said in a press release.
The company plans to leverage an integrated retail model, combining optimised physical stores in key luxury markets with distinct e-commerce platforms and remote selling capabilities. It also intends to enhance its curated product offering through stronger brand partnerships and deeper customer insights.
Operationally, Saks Global reported progress since filing for bankruptcy protection. Over 650 brand partners have resumed shipments, unlocking $1.5 billion in retail receipts and covering more than 90 per cent of expected inventory for the first quarter of fiscal 2026. March inventory receipts rose 18 per cent year on year (YoY).
Improved inventory flow has translated into stronger customer engagement, with spend per store visit increasing 6 per cent and online conversion rising 11 per cent. The company also noted gains in full-price selling across its banners, including Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.
“As we advance the restructuring process, our focus remains on strengthening brand relationships and delivering personalised luxury experiences,” added van Raemdonck, highlighting confidence in completing the restructuring with sufficient liquidity and positioning the business for future growth.
Fibre2Fashion News Desk (SG)
Following talks between his CDU party and its coalition partners, Chancellor Friedrich Merz said his government has decided to cut the tax on petrol and diesel by around 17 euro cents ($0.19) for two months.
Germany yesterday announced a €1.6-billion ($1.9-billion) fuel price relief package for households and businesses struggling with the energy shock triggered by the Middle East conflict.
Chancellor Friedrich Merz said his government has decided to cut the tax on petrol and diesel by around $0.19 for two months.
The funds for the relief measures would be financed by higher taxes on tobacco.
The announcement followed another surge in oil prices after the US-Iran peace talks collapsed and US President Donald Trump’s decision to blockade the Strait of Hormuz.
The war “is the root cause of the problems we face in our own country”, said Merz, stressing that Berlin is doing all it could to try to end the conflict.
“This will very quickly improve the situation for drivers and businesses in the country, and above all for those who, mainly for professional reasons, spend a great deal of time on the road,” he told a news conference in Berlin.
The funds for the relief measures would be financed by higher taxes on tobacco, a finance ministry spokesman was cited as saying by global newswires.
Employers can also pay staff tax-free bonuses of up to €1,000 ($1,170) to mitigate the impacts of inflation, which has already started rising in Germany, the government announced.
“At the same time, we cannot offset every single outcome on the market with government funds… The state cannot absorb all uncertainties, not all risks, not all disruptions in global politics,” Merz cautioned.
He said the war’s effects are likely to last long. “The German economy will face a significant burden over an extended period,” he added.
Fibre2Fashion News Desk (DS)
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