2 February 2017

Investment commitments in Singapore continue in positive territory

Investment commitments in 2016 met or exceeded the Singapore Economic Development Board's (EDB’s) forecasts for all indicators, reflecting the continued confidence of global companies in Singapore as a strategic location in Asia to drive growth and innovation of their businesses.
EDB will continue to capture opportunities in growth sectors to generate sustained growth and create good jobs for Singaporeans. In 2016, EDB attracted S$9.4 billion in fixed asset investments (FAI), which is at the upper end of the forecast of S$8 to S$10 billion. Total business expenditure per annum (TBE) stood at S$8.3 billion, which exceeded the forecast range partly due to large-scale shipyard projects committed. Value-added per annum (VA) and expected jobs, at S$12.9 billion and 20,100 respectively, were within the forecast ranges.

For 2017, investment commitments are expected to be comparable to 2016 levels. TBE, however, is expected to return to earlier levels as the large shipyard projects committed in 2016 have long investment cycles and will not recur in the near future. This overall outlook reflects the steady growth in Asia and Singapore’s resilience as a strategic location to drive growth and innovation.

EDB will also seek to consolidate Singapore’s position as a high-value manufacturing base by capturing opportunities in advanced manufacturing. Strategies include anchoring lead adopters of advanced manufacturing in Singapore, while building up an ecosystem of suppliers and enablers to develop technologies and solutions. In addition, EDB will partner other government agencies such as SkillsFuture Singapore and Workforce Singapore, companies and institutes of higher learning to ensure that there is a pipeline of fresh graduate and mid-career entrants into the manufacturing workforce.

“The investment commitments attained in 2016 are a testament to Singapore’s attractiveness and strengths as a global business hub. We will continue to seize economic opportunities brought about by growth sectors including advanced manufacturing, hub services and digitalisation, and help Singaporeans take up new jobs with skills upgrading programmes,” said Dr Beh Swan Gin, Chairman EDB. “Despite the uncertain operating environment in 2017, the level of investment interests from companies remain stable. We will also focus on transforming existing industries to boost our economic competitiveness and uncover new business opportunities for companies in Singapore.”


Read the WorkSmart Asia blog post about business sentiment in Singapore for the coming months