Malaysia has emerged as Southeast Asia's most attractive investment destination among emerging markets, according to the Milken Institute's latest Global Opportunity Index (GOI) 2026 report.

The report ranked Malaysia 23rd globally, the highest in the region among developing Southeast Asian economies, underpinned by strong institutional quality and solid economic fundamentals.

Malaysia stood out for its consistency across all five GOI pillars. It performed well in key pillars, placing 17th in Financial Services and 18th in Business Perception.

The GOI, an annual ranking assessing 101 variables across five categories, Business Perception, Economic Fundamentals, Financial Services, Institutional Framework and International Standards & Policy, highlights Southeast Asia's growing role in global capital allocation.

The region's six key growth markets attracted 8.2 percent of total capital inflows into emerging and developing economies between 2021 and 2024, with foreign direct investment (FDI) accounting for more than 70 percent of those inflows.

"Southeast Asia's growth story remains compelling, but investors are becoming increasingly selective. We are seeing a continued shift in global capital toward high-growth emerging markets, and Southeast Asia is a key beneficiary of that trend," said Matthew Aleshi, director of Geo-Economics at the Milken Institute and one of the authors of the report.

According to him, countries that can maintain macroeconomic stability while deepening their financial systems and strengthening governance will be best placed to attract long-term investment.