Outbound investment hits $8.9b in Q4 after 119.1% jump
Knight Frank cites MSCI data as rising costs and skills gaps complicate overseas expansion.
Outbound investment activity by Singapore-based entities rose by 55.6% year-on-year (YoY) in 2025, Knight Frank said, citing data from MSCI Real Assets.
The growth was spurred by a 119.1% quarter-on-quarter increase to $8.9b in the fourth quarter (Q4), the global property consultancy added.
It said that cross-border investment activity continued during Q4, supported by investors seeking portfolio diversification, exposure to more stable markets, and long-term income resilience even as global economic conditions remained uncertain.
Singapore companies are increasingly anchoring their India strategies in cities that combine scale, deep talent pools, and strong execution capacity, with Bengaluru emerging as a focal point for sustained market entry, rather than short-term experimentation.
“Bengaluru is India’s technology and innovation capital, home to a thriving startup ecosystem and strong clusters in manufacturing, IT (information technology) and services,” Samantha Teo, executive director of the International Business Division at the Singapore Business Federation (SBF), told Singapore Business Review.
Meanwhile, cross-border work and overseas deals are lifting hiring in the city-state’s legal sector, with demand expected to stay strong through 2026 as transactions grow more complex, rules differ across markets, and clients look for lawyers who can handle multi-country work.
Top-tier law firms said the ability to handle cross-border matters has become a key factor in hiring.
However, rising costs, funding constraints, and skills gaps are the main challenges facing Singapore businesses as they look to expand overseas and adopt new technologies, according to a survey conducted by KPMG and the Singapore Institute of Directors (SID).
The firms cited workforce readiness, skills mismatches, and mobility barriers as main obstacles to building globally capable teams.