EDB bullish on foreign investments in Singapore in 2012

It forecasts investments into the country to amount to a whopping S$13 -15 billion this year.

EDB achieved record investment commitments in 2011 as investor interest in Asia remained strong. Singapore's positioning as a Global-Asia hub and EDB's 'Home' strategy resonated well with companies looking for a strategic base in Asia to drive their business, innovation and talent activities.

For 2012, EDB expects investment commitments to be sustained around 2011 levels. EDB will continue to build on and strengthen Singapore's Global-Asia positioning even as new capabilities put in place in recent years gain traction.

YEAR 2011 IN REVIEW
EDB achieved record investment commitments in 2011, meeting or exceeding the forecast announced in January last year. This took place despite global economic uncertainties especially in the second half of 2011.

Investment commitments for FAI, TBS, TBS less depreciation and value-added per annum were at the top end of the forecasts. FAI, at S$13.7 billion, represented a record year if spikes due to the petrochemical cracker-related investments in 2007 and 2008 were excluded. When projects committed in 2011 are fully implemented, they will contribute a record S$15.5 billion in value-added per annum and create 20,300 new skilled jobs, above our forecast range of 16,000 – 19,000 jobs.

EDB continued to secure key projects in manufacturing, R&D and innovation last year, generating good jobs for the Singapore workforce.

Singapore's Global-Asia positioning and EDB's 'Home' strategy continued to resonate strongly with international companies and Asian enterprises. International companies stepped up their presence in Singapore to better orchestrate and coordinate the growth of their Asian or global operations, while Asian enterprises leveraged Singapore as their platform for internationalisation and to seek out growth opportunities beyond their domestic markets.

Business activities undertaken in Singapore by these companies are expanding to include the development of products, services and solutions for Asian and international markets, as well as the development and deployment of Asia-ready talent to harness opportunities in the region.

2012 INVESTMENT OUTLOOK

EDB is cautiously optimistic about the outlook for 2012 and expects investment commitments in 2012 to be sustained at 2011 levels. Investment interest in Asia remains healthy in spite of the uncertainties in the global economy, especially in the Eurozone.

For 2012, EDB forecasts Fixed Asset Investments to amount S$13 -15 billion; while expected VA per annum will likely amount to S$15-17 billion.

The strong FAI forecast for 2012 reflects the continued strong interest in downstream chemicals projects that have been enabled by the two new petrochemical crackers. Decisions on such capital-intensive investments are typically based on long term strategic considerations and are less sensitive to short term economic volatility. Barring any major negative economic event, EDB expects that the investment momentum in 2011 will be carried over into 2012.

Initiatives to build new capabilities launched in recent years have strengthened Singapore's position as a Global-Asia hub. For example, Singapore's ability to provide pan-Asian insights is valued by the international business community, while the establishment of centres of excellence such as the Institute for Asian Consumer Insight, will further entrench Singapore's position as a choice location for companies to better understand Asian consumers and markets. Data analytics is a key capability that enables the discovery of such insights. The growing demand for such expertise plays to Singapore's strength as a choice location for analytics.

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Tags: foreign investments in Singapore 2012, EDB, Fixed Asset Investments, Singapore workforce