The Singapore Economic Development Board (EDB) secured investment commitments in 2019 that exceeded its forecast for the year, reflecting companies’ confidence in Singapore despite global uncertainties. These amounted to S$15.2 billion in Fixed Asset Investments (“FAI”) and S$9.0 billion in Total Business Expenditure per annum (“TBE”) in 2019.
According to a statement released in January 2020, the projects, when fully implemented, will create 32,814 new jobs in the coming years with a projected contribution of S$29.4 billion in Value-Added Per Annum (“VA”).
Large manufacturing investments came from semiconductor as well as energy & chemical companies. These companies value Singapore’s stability, skilled workforce and competitive manufacturing ecosystem. Despite current uncertainties in the global economy, these companies invest for the long term and are preparing for the eventual upturn in demand.
In addition, companies across a variety of industries continued to establish and expand headquarter activities and hub services, as well as build digital capabilities for themselves and their customers. EDB also anchored investments across the innovation value chain, from product management to research & development. These activities promise the creation of good business and job opportunities for Singapore and Singaporeans.
According to EDB’s statement, the strong investment commitment numbers are the result of consistent engagement of key companies aligned with Singapore’s economic development priorities. They also reflect companies’ confidence in Singapore’s fundamentals as a trusted, strategic location at the heart of a growing Southeast Asia and the broader Asia-Pacific region.
The EDB stated that it will continue to focus on three key areas. First, it will work closely with Enterprise Singapore to strengthen Singapore’s position as a platform for global and regional companies to tap into opportunities in Southeast Asia. This includes better access to a growing market of over 650 million consumers; higher levels of integration between key manufacturing hubs in the region; and more regional corporates with activities in Singapore.
Second, EDB will strive to deepen and broaden Singapore’s role as a hub for manufacturing and non-manufacturing companies to develop and deliver digital products and solutions to their own operations as well as to customers in the region and beyond.
Finally, as Singapore continues its shift towards an innovation-led economy, EDB will encourage and support companies on their corporate venturing journey to create new products, services and businesses out of Singapore.
According to Dr Beh Swan Gin, Chairman, EDB, “the 2019 investment commitment numbers are testament to Singapore’s position as the preferred location for global companies to tap into Asia’s growth, and Singapore’s competitiveness as a hub for manufacturing, innovation and digital activities.”
“Although the global operating environment remains uncertain, we are cautiously optimistic that the investment flows in 2019 will continue into 2020 and bring good business and job opportunities for Singapore and Singaporeans,” he concluded
