Executive Summary
The Asia Pacific Foundation of Canada’s first Investment Monitor report of 2023 reviews two-way investment flows between Canada and Asia at the national and sub-national levels that occurred in 2022.
APF Canada is grateful for the sponsorship and support it has received from Export Development Canada for the Investment Monitor project.
The key findings of our latest Investment Monitor report are:
National
Two-way foreign direct investment between Canada and Asia Pacific economies dropped sharply in 2022.
China-Canada investment continued its four‑year decline, dropping to its lowest value since 2003.
Australia, Singapore, and India were Canada’s top three Asia Pacific investment partners.
Subnational
Most Asia Pacific investment went to Ontario, although Toronto’s share of Ontario’s investment dropped in 2022.
New Delhi (India) and Tasmania (Australia) were among the top five destinations for Canadian investment for the first time
Sectoral
For five years and counting, the Canadian mining sector has continued to be the most attractive for Asia Pacific investors.
The software and computer services sector, which attracted the most Canadian investment in the Asia Pacific in 2022, has ranked among the top 10 sectors for the past five years.
Top Performers
Pension funds were among top five Canadian investors in the Asia Pacific.
The most significant investments by Asia Pacific firms were in Canadian real estate, critical minerals, and electronic vehicle (EV) battery manufacturing.
Looking Ahead to 2023
Two-way investment flows between Canada and the Asia Pacific are expected to remain low in 2023.
Some sectors will benefit from government policies encouraging FDI, while restrictive investment policies on both sides of the Pacific will hamper others.
We anticipate that Canada’s diversification of investment partners will help Canadian firms to expand their footprint in the Asia Pacific.