SINGAPORE: Singapore surpassed expectations to attract S$15.2 billion in fixed asset investments last year, propped up by commitments from semiconductor as well as energy and chemical companies.
Despite the global uncertainties, investment commitments exceeded the forecast of between S$8 billion and S$10 billion for the year, according to the Singapore Economic Development Board’s (EDB) annual year-in-review report released on Thursday, report agencies.The fixed asset investments are also nearly 40 per cent more than the S$10.9 billion recorded in 2018.
Fixed asset investments refer to a company’s incremental capital investment in facilities, equipment and machinery.
The investment commitments are “testament” to Singapore’s position as the “preferred location for global companies to tap into Asia’s growth”, as well as the country’s competitiveness as a hub for manufacturing, innovation and digital activities, said EDB chairman Beh Swan Gin.
“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 added.
The chemicals sector (32.2 per cent) pulled in the most fixed asset investments, followed by the electronics sector (30.2 per cent).
By region, Singapore saw the most investment commitments from Europe (47.4 per cent) followed by the United States (37.6 per cent).In 2019, EDB also attracted S$9 billion in total business expenditure per annum, exceeding the S$5 billion to S$7 billion forecast and 2018’s S$6.2 billion.
Total business expenditure per annum refers to companies’ incremental operating expenditure, including wages and rental.
“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,” said EDB in its report.