Thanks to a good business environment and links with Southeast Asian countries.
Singapore has overtaken the US as the most attractive destination for Chinese overseas direct investments (ODI), the Economist Intelligence Unit (EIU) revealed.
According to China Going Global Investment Index, the city state’s superior business environment, access to Southeast Asian markets, and close links with China are integral to its top ranking. Meanwhile, the fall in the US ranking is partly attributable to higher trade tensions with China.
Singapore previously ranked second in 2013 and 2015.
In terms of attractiveness of countries' consumer goods business, Singapore ranked fifth. In terms of attractiveness to China's Belt and Road Initiative (BRI), Hong Kong and Singapore, ranked second and third respectively. They are also located along the BRI and both are seeking to act as intermediaries for associated Chinese investment.
"Malaysia and Singapore stand out as attractive Belt and Road Initiative (BRI) destinations, providing an investment environment that offers opportunities as well as low levels of risk," the report said.
Despite a rise in foreign contracted projects under the BRI, ODI flows to BRI countries from China are yet to accelerate notably since 2013.
The report cited prominent M&A deals, including the purchase of Global Logistics Properties (GLP) for US$11.6b by a Chinese consortium led by Chinese real-estate developer Vanke.
Do you know more about this story? Contact us anonymously through this link.